EnWave Stock Trading Lower On 36% YoY Decline In Q4, NutraDried Improves After Restructuring

EnWave Corporation NWVCF ENW (FSE: E4U) reported its consolidated financial results on Thursday for the fourth quarter and fiscal year ended September 30, 2021.

The Vancouver-based company revealed that its vacuum-microwave machine and royalty business performed materially better in fiscal 2021 than in fiscal 2020, with record margins and profitability.

In addition, its wholly-owned subsidiary NutraDried improved its results in the second half of discal 2021 after material restructuring was conducted due to struggles experienced by the company during the first two fiscal quarters.

The turnaround at NutraDried is well underway with new leadership and there are material opportunities to further improve performance of this business unit in fiscal 2022, EnWave said.

Q4 2021 Financial Highlights

• Consolidated revenue totaled $6.9 million compared to $7.35 million in the corresponding quarter of 2021 and $10.8 million in the fourth quarter of last year, representing a 36% year-over-year decline.
• EnWave’s business unit revenue was $3.9 million compared to $1.6 million in the prior year’s period.
• NutraDried’s revenue amounted to $3.03 million compared to $9.19 million in the corresponding period of fiscal 2020, representing a decrease of $6.16 million.
• The gross margin was 34% compared to 20% for the fourth quarter of 2020.
• General and administrative expenses increased by 83% year-over-year to $1.7 million.
• Sales and marketing expenses declined by 22% year-over-year to $996 000.
• Research and development expenses totaled $453 000 versus $577 000 in the prior year’s period.
• Adjusted EBITDA, a non-IFRS financial measure, was a loss of $223 000 compared to Adjusted EBITDA of $20 000 for the fourth quarter of 2020 and adjusted EBITDA of $937 000 for the prior period.
• Purchased and canceled 1,573 million common shares under the Normal Course Issuer Bid at an average share price of $1.01.

Full-Year 2021 Financial Highlights

• Consolidated revenue amounted to $26.5 million, down by 19% year-over-year.
• General and administrative expenses were $5.1 million, down by 7% year-over-year.          
• Sales and marketing expenses declined by 31% to $4.65 million.
• Research and development expenses decreased by 6% to $1.88 million.
• Adjusted EBITDA, a non-IFRS financial measure, came in negative at $2.16 million compared to a $3.2 million loss in the prior year.

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NWVCF Price Action

EnWave’s shares traded 9.25% lower at $0.7 per share at the time of writing on Thursday morning.

Photo: Courtesy of Markus Winkler on Unsplash