Latest news with #CovalonTechnologies
Yahoo
29-05-2025
- Business
- Yahoo
Covalon Technologies Ltd (CVALF) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue Growth: Strong revenue growth relative to prior periods, with sequential quarterly growth expected in Q3 and the second half of the year. Vascular Access and Surgical Consumables Sales Growth: More than 40% year-to-date growth over last year. Gross Margin: Performance in the 55% to 60% range, slightly lower in Q2 due to geographic revenue mix. Profitability: Positive adjusted EBIT in Q2, marking the fifth consecutive quarter of profitability. Cash Position: Over $18 million in cash on hand, an increase of about $11 million from a year ago. US Product Revenue Growth: Over 30% growth in the US product revenue category over three years. Top 50 US Hospital Customers: 100% retention and 38% revenue growth from the same group of top 50 hospitals from 2024. New Hospital Accounts: Added 29 new hospital accounts in Q2, totaling 50 new hospitals in the first half of the year. Warning! GuruFocus has detected 6 Warning Signs with BMO. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Covalon Technologies Ltd (CVALF) reported strong revenue growth in its vascular access and surgical consumables and international sales channels, with both up more than 40% year-to-date compared to last year. The company has maintained a disciplined approach to spending, achieving its fifth consecutive quarter of profitability with positive adjusted EBIT. Covalon Technologies Ltd (CVALF) has a robust cash position with over $18 million in cash and zero debt, providing significant flexibility for growth and shareholder value initiatives. The company has successfully retained 100% of its top 50 US hospital customers, demonstrating the stickiness of its business and the quality of its products. Covalon Technologies Ltd (CVALF) has engaged Origin Merchant Partners to explore opportunities for mergers, acquisitions, and partnerships to maximize shareholder value and expand the reach of its technology. The company's gross margin was slightly lower this quarter due to a higher geographic mix of revenue from its international sales channel, which has a lower gross margin than the US sales channels. Covalon Technologies Ltd (CVALF) experienced a softer quarter in its US Advanced wound care sales channel, impacting overall revenue growth. The company has not yet executed a share buyback program, despite discussions with the board and Origin Merchant Partners. Covalon Technologies Ltd (CVALF) does not currently provide quarterly guidance, citing the stage of the company and the predictability of its revenue. The company's adjusted EBITDA for the trailing 12 months has decreased, attributed to the softer performance in the US Advanced wound care channel. Q: Given the company's $18 million cash position and low valuation, is there a plan for share buybacks? A: Brent Ashton, CEO: Our cash position provides flexibility for growth and shareholder value initiatives, including potential share buybacks. This is under discussion with our board and Origin, but no action has been taken yet. Q: When will Covalon provide quarterly guidance, considering the goal of doubling the share price annually for five years? A: Brent Ashton, CEO: We are confident in our growth potential but are not issuing guidance due to the current stage of our company and revenue predictability. Q: What caused the erosion in gross profit as a percentage of sales? A: Brent Ashton, CEO: The shift in revenue mix, with a higher percentage from our international business, which has lower gross margins, affected the overall gross profit. We expect margins to rebound. Q: Can you explain the drop in adjusted EBITDA for the trailing 12 months? A: Brent Ashton, CEO: The drop is due to a softer quarter in the US Advanced wound care channel. We anticipate sequential quarterly growth in Q3 and a stronger second half of the year. Q: What is the future outlook for the international sales channel, and will US sales channel growth improve gross margins? A: Brent Ashton, CEO: We expect gross margins to improve as US sales pick up. The international sales channel is a strong growth driver, and we are expanding product offerings and entering new countries. Q: What is Covalon's M&A strategy, and are there specific geographic focuses? A: Brent Ashton, CEO: We are actively exploring opportunities with Origin, focusing on North America but open to global prospects. Specific targets are not disclosed due to the ongoing process. Q: How many US sales reps does Covalon have, and what are the future plans? A: Brent Ashton, CEO: We have one open position for the West Coast and will continue to refine our model responsibly to support growth without inflating costs. Q: How does EBITDA margin on international sales compare to the US? A: Brent Ashton, CEO: We report EBITDA at the company level. International gross margins are lower than US margins, but the selling model differs, affecting the EBITDA profile. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
National Post
21-05-2025
- Business
- National Post
Covalon Announces Conference Call to Discuss Second Quarter Fiscal 2025 Financial Results
Article content MISSISSAUGA, Ontario — Covalon Technologies Ltd. (the 'Company' or 'Covalon') (TSXV: COV; OTCQX: CVALF), an advanced medical technologies company, will release its Q2 Fiscal 2025 financial results on Wednesday, May 28, 2025, before markets open. A conference call and webcast to discuss the financial results will be held on Wednesday, May 28, 2025, at 8:30am ET. Article content Article content To view, listen to, and participate in the live webcast, please follow the link below: Article content Article content To listen and participate via the conference call, please dial: Article content North American Toll-Free: 1-800-549-8228 Local (Toronto): 289-819-1520 Local (New York): 646-564-2877 Conference ID: 92114 Article content Participants will be able to ask questions of Company management during the Q&A portion of the conference call either by asking them on the call or by submitting them using the chat function on the webcast. Article content Copies of Covalon's financial statements and MD&A can be obtained on SEDAR PLUS at and under SEDAR Filings on the Investors tab of Covalon's website. Article content About Covalon Covalon is a leading medical device company dedicated to improving patient outcomes through innovative and compassionate medical products and technologies. Our expertise spans advanced wound care, vascular access, and surgical consumables, with a strong focus on enhancing healing, reducing healthcare-associated infections (HAIs), and protecting skin integrity. Our solutions are designed for patients and made for care providers. The Company is listed on the TSX Venture Exchange (COV) and trades on the OTCQX Market (CVALF). To learn more about Covalon, visit our website at Article content Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Article content This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as 'seek', 'anticipate', 'plan', 'estimate', 'expect', 'intend', or variations of such words and phrases or state that certain actions, events, or results 'may', 'could', 'would', 'might', 'will' or 'will be taken', 'occur', or 'be achieved'. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates, and projections regarding future events. Forward-looking statements involve risks and uncertainties, including, but not limited to, the factors described in greater detail in the 'Risks and Uncertainties' section of our management's discussion and analysis of financial condition and results of operations for the year ended September 30, 2024, which is available on the Company's profile at any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Investors should not place undue reliance on any forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company assumes no obligation to update or alter any forward-looking statements, whether as a result of new information, further events, or otherwise, except as required by law. Article content Article content Article content Article content
Yahoo
22-02-2025
- Business
- Yahoo
Covalon Technologies First Quarter 2025 Earnings: EPS: CA$0.04 (vs CA$0.035 loss in 1Q 2024)
Revenue: CA$8.17m (up 75% from 1Q 2024). Net income: CA$1.21m (up from CA$851.5k loss in 1Q 2024). Profit margin: 15% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. EPS: CA$0.04 (up from CA$0.035 loss in 1Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 64% growth forecast for the Biotechs industry in Canada. Performance of the Canadian Biotechs industry. The company's shares are down 7.6% from a week ago. Before we wrap up, we've discovered 1 warning sign for Covalon Technologies that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
