TORONTO, April 16, 2025 /CNW/ - Grey Wolf Animal Health Corp. (TSXV: WOLF) ("Grey Wolf" or the "Company"), a Canadian diversified health company, today announced financial results for the fourth quarter and year ended December 31, 2024.

Highlights

   -- Closed the acquisition of The Compounding Pharmacy of Manitoba ("CPM"), 
      providing greater scale and capacity for growth in the Company's Pharmacy 
      business. 
 
   -- Revenue for the quarter increased year over year by 8.6% to $6.7 million. 
      Revenue for the full year increased by 5.6% to $26.8 million for the 
      year. 
 
   -- Gross profit increased year over year by 9.5% to $3.4 million for the 
      quarter and 7.3% to $13.8 million for the year. 
 
   -- Adjusted EBITDA1 increased year over year by 29.0% to $0.9 million for 
      the quarter and 17.4% to $4.3 million for the year. 

"Grey Wolf delivered solid revenue and Adjusted EBITDA(1) in 2024. Our Pharmacy business grew by 8.8% to $14.7 million during the year driven by organic growth in our existing compounded products and complemented by one-month of contribution from the CPM acquisition in December 2024. The acquisition of CPM provides us leverage to increase our compounded animal health products and strengthens our presence in the compounded human health product market as well. Our Animal Health business grew by 1.9% to $12.1 million during the year due to organic growth in established and new products, offset by a decline in commission revenues. We saw softness in the veterinary market in 2024, however, our products continue to have value in supporting the health of pet patients." said Angela Cechetto, Chief Executive Officer. "Excluding one-time costs, our total expenses decreased by 1.6% to $11.1 million over 2023 as we focused our promotional investment on key products. Adjusted EBITDA(1) increased by 17.4% to $4.3 million for the year as a result of improved operating income."

Key Financial Data and Comparative Results

 
                      Three months ended          Twelve months ended 
                      Dec 31, 2024  Dec 31, 2023  Dec 31, 2024  Dec 31, 2023 
 
Revenue                 $6,686,705    $6,157,507   $26,829,485   $25,410,406 
Gross profit             3,359,999     3,068,489    13,758,580    12,826,880 
Gross profit %              50.2 %        49.8 %        51.3 %        50.5 % 
Total operating 
 expenses                3,551,626     3,229,303    11,853,433    11,272,109 
Operating income for 
 the period              (191,627)     (160,814)     1,905,147     1,554,771 
 
Income tax expense          82,103        53,156       687,053       488,722 
Net income for the 
 period                  (501,102)     (283,882)       704,668       609,582 
 
Earnings (loss) per 
share 
-------------------- 
Basic and diluted          ($0.02)       ($0.01)         $0.02         $0.02 
 
EBITDA                     285,909       226,624     3,381,065     3,001,916 
Adjusted EBITDA            867,368       672,323     4,286,175     3,649,466 
 
                                                  Dec 31, 2024  Dec 31, 2023 
 
Total assets                                       $65,602,178   $41,411,092 
Total liabilities                                   36,771,017    16,321,538 
 

Results of Operations for the Fourth Quarter and Year ended December 31, 2024

Revenue for the three- and twelve- month periods ended December 31, 2024 increased 8.6% to $6.7 million and 5.6% to $26.8 million, respectively, compared to the same period in 2023. Revenue in the Animal Health business decreased by 3.3% to $3.0 million and increased by 1.9% to $12.1 million, respectively, in the quarter and full year of 2024. For the year, revenue growth was driven by organic growth in sales of established and new products, offset by a decrease in commission revenue. The decrease in revenue in the fourth quarter was due to a decline in commission revenue. In the Pharmacy business, revenue grew year over year by 20.4% to $3.7 million and 8.8% to $14.7 million respectively, in the quarter and full year of 2024 due to organic growth in sales of compounded products and the impact of the CPM acquisition in December 2024.

Gross profit margins for the three- and twelve-month periods ended December 31, 2024 increased to 50.2% from 49.8% and 51.3% from 50.5% respectively, compared to the same periods in 2023. Gross profit was impacted by improved margins in the Pharmacy business and product mix in the Animal Health business.

Total expenses for the three- and twelve-month periods ended December 31, 2024, increased 10.0% to $3.6 million and 5.2% to $11.9 million, respectively, over the same periods in 2023. During the year, excluding one-time employee settlement and transaction costs incurred, total expenses decreased by 1.6% to $11.1 million over the same period in 2023. Travel, meals, and business expenses increased in 2024 as the sales and marketing team increased attendance at conventions, trade shows and customer visits.

Adjusted EBITDA(1) for the three- and twelve-month periods ended December 31, 2024 increased 29.0% to $0.9 million and 17.4% to $4.3 million respectively, compared to the same periods in 2023. The increase in Adjusted EBITDA(1) was mainly due to increased operating net income compared to the prior year.

Cash and cash equivalents were $6.4 million as at December 31, 2024 compared to $7.8 million at December 31, 2023. Cash decreased by $1.4 million mainly due to an increase in cash provided for operating activities, offset by purchases of property and equipment and net transaction costs related to the CPM acquisition. During 2024, the Company generated cash flows from operations of $1.7 million, used $0.9 million of its cash resources from changes in working capital and $1.0 million from the repayment of borrowings. The Company also had proceeds from borrowings of $18.5 million and used $19.9 million of cash related to the CPM Acquisition.

As at December 31, 2024, the Company had outstanding borrowings of $26.9 million, of which $2.1 million are current and $24.8 million are non-current. The Company repaid borrowings of $0.3 million in the quarter and $1.0 million since December 31, 2023. The Company has three loans: (1) a fixed rate term loan for $11,500,000 with an average interest rate of 4.7% until September 2026, (2) a fixed rate term loan for $14,283,000 with an interest at a rate of 7.09% per annum and (3) a fixed rate mortgage for $4,392,000 with an interest at a rate of 7.09% per annum.

Grey Wolf's financial statements and accompanying Management Discussion and Analysis for the three- and twelve-months ended December 31, 2024 are available under the Company's profile on www.sedarplus.ca.

Presentation at the 2025 Bloom Burton & Co. Healthcare Investor Conference

Angela Cechetto, CEO is scheduled to present at the 2025 Bloom Burton & Co. Healthcare Investor Conference on Monday May 5, 2025 at 9:30am ET at the Metro Toronto Convention Centre in Toronto.

Grey Wolf will also be available for one-on-one meetings during both days of the conference to be held on May 5-6, 2025. Investors interested in meeting with Grey Wolf during the conference should contact the conference coordinator.

(1) Non-IFRS Measures

Management uses both IFRS and Non-IFRS Measures to assess the financial and operating performance of the Company's operations. These Non-IFRS Measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. The Non-IFRS Measures referenced in this press release includes Adjusted EBITDA. The Company defines Adjusted EBITDA as earnings before transaction costs (including, for greater certainty, transaction costs related to the CPM Acquisition), settlement costs, interest income, interest and accretion expense, income taxes, depreciation of property and equipment, depreciation of right of use assets, amortization of intangible assets, share-based compensation, foreign exchange gains or losses and other income The Company considers Adjusted EBITDA as an additional metric in assessing business performance and an important measure of operating performance and cash flow, providing useful information to help analyze and compare profitability between companies for investors and analysts.

The following table provides a summary of the differences between Grey Wolf's consolidated IFRS and Non-IFRS financial measures, which are reconciled below:

EBITDA and Adjusted EBITDA

 
                      Three months ended          Twelve months ended 
                      Dec 31, 2024  Dec 31, 2023  Dec 31, 2024  Dec 31, 2023 
 
Net (loss) income 
 for the period         ($501,102)    ($283,882)      $704,668      $609,582 
 
Interest income           (47,277)      (52,871)     (203,891)     (148,726) 
Interest and 
 accretion expense         254,547       144,025       664,901       599,022 
Income taxes                82,103        53,156       687,053       488,722 
Depreciation of 
 property and 
 equipment                 149,234        73,543       382,890       282,702 
Depreciation of 
 right of use assets        31,598        48,903        97,388       195,614 
Amortization of 
 intangible assets         316,806       243,750     1,048,059       975,000 
 
EBITDA                     285,909       226,624     3,381,068     3,001,916 
 
Adjustments 
-------------------- 
Share-based 
 compensation               40,045        58,146        85,634       232,584 
Foreign exchange 
 (gain)                     20,102      (11,242)        52,416        16,171 
Other Income                     -      (10,000)             -      (10,000) 
Transaction costs          521,312             -       521,312             - 
Settlement costs                 -       408,795       245,748       408,795 
 
Adjusted EBITDA            867,368       672,323     4,286,178     3,649,466 
 

About Grey Wolf Animal Health Corp.

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