Covalon Technologies Ltd (OTCPK:CVALF)

Q4 2024 Covalon Technologies Ltd Earnings Call Transcript

Jan 07, 2025 / 01:30PM GMT

Release Date Price: $2.3 (-7.85%)

Transcript

Key Points

Positve

Covalon Technologies Ltd (CVALF) reported its third consecutive quarter of over 30% growth and positive net income and EBITDA.
The company achieved significant growth of more than 65% in its US Medical consumables business in 2024.
Covalon Technologies Ltd (CVALF) increased its cash position to almost $17 million by the end of September 2024, with zero debt.
The company successfully reduced operating expenses by over $2 million while growing the business by almost $5 million.
Covalon Technologies Ltd (CVALF) added 66 new hospitals to its customer base in 2024, demonstrating strong market penetration.

Negative

The company experienced a decrease in revenue and earnings per share from Q3 to Q4, partly due to the issuance of 2.7 million shares.
Covalon Technologies Ltd (CVALF) faces potential margin pressure from possible tariffs on goods entering the US from Canada.
The company's business in the Middle East is described as 'lumpy,' with significant variability in revenue due to large bids and tenders.
There was a $1.2 million increase in G&A expenses quarter-over-quarter due to bonuses and consulting services.
The adjusted EBITDA decreased from $2.4 million in Q3 to $1.1 million in Q4, attributed to one-off expenses.

Operator

Good morning, ladies and gentlemen, and welcome to Covalon's Fourth Quarter Fiscal 2024 Conference Call and Webcast. My name is Jenny, and I will be your conference operator today. As a reminder, today's conference call is being recorded. (Operator Instructions)

At this time, I would like to turn the conference over to Mr. Brent Ashton, Chief Executive Officer and Ms. Katie Martinovich, Interim Chief Financial Officer. Please go ahead, Mr. Ashton and Ms. Martinovich.

Brent Ashton;

Covalon Technologies Ltd - Chief Executive Officer, Director

Thanks, Jenny, and good morning to all of you on the call today. I hope that you all had a great holiday break here a week or two ago and are really excited at the recent turning of the calendar year here for 2025. We appreciate you connecting in today.

Katie Martinovich, our Interim Chief Financial Officer, has joined me on the call here. And Saleha Assadzada from Covalon is helping to co-ordinate the conference call and the webcast today. And she'll now provide us with some instructions.

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