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Jamieson Wellness Inc. Reports Second Quarter 2022 Financial Results

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Company Increases Fiscal 2022 Guidance and Raises Second Quarter Dividend

TORONTO, August 04, 2022--(BUSINESS WIRE)--Jamieson Wellness Inc. ("Jamieson Wellness" or the "Company") (TSX: JWEL) today reported financial results for its second quarter ended June 30, 2022. All amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS and other financial measures. See "Non-IFRS and Other Financial Measures" below.

Highlights of Second Quarter 2022 versus Second Quarter 2021

  • Successfully completed transaction to purchase Nutrawise Health and Beauty Corporation ("Nutrawise" or "youtheory") and the youtheory brand, accelerating the Company’s expansion in the U.S.

  • Increased revenue to $112.0 million with strong Jamieson Brands revenue growth of 6.5%

  • Increased Adjusted EBITDA(1) by 9.5% to $24.4 million

  • Net earnings were $10.1 million and Adjusted net earnings(1) increased 11.4% to $13.4 million; and

  • Diluted earnings per share were $0.24, and Adjusted diluted earnings per share(2) increased 10.3% to $0.32.

"This is a remarkable time for the entire team at Jamieson Wellness, as we deliver on our strategic priorities and commitments in the face of a volatile geopolitical and economic environment," said Mike Pilato, President and CEO of Jamieson Wellness. "In the second quarter we realized strong branded revenue, expanded margins and earnings growth, while completing our acquisition of the youtheory brand. We continued our Jamieson brand’s 100th anniversary media campaign and celebrations, grew in China in spite of widespread COVID-19 related lockdowns, and made progress on our ESG activities by joining the UN Global Compact Initiative. The acquisition of Nutrawise adds the United States, the largest VMS market in the world, as a key strategic growth pillar. The transaction is immediately accretive to our fiscal 2022 results providing incremental revenue, Adjusted EBITDA and Adjusted Earnings per share. As we integrate these great businesses, we look forward to the long-term potential to accelerate growth, profitability, and the scale of Jamieson Wellness, globally."

Second Quarter 2022 Results

Revenue increased 1.3% to $112.0 million in the second quarter of 2022 compared with $110.6 million in the second quarter of 2021 driven by 6.5% growth in the Jamieson Brands segment, partially offset by a 13.8% decline in the Strategic Partners segment.

Revenue in the Jamieson Brands segment increased by 6.5% or $5.3 million to $87.7 million. The Company’s domestic branded sales increased by 8.0% in the second quarter of 2022, reflecting continued strong consumer demand and point of purchase growth reflecting consumers’ prioritization of their health and wellness. The Company’s international revenue remained flat on a reported basis compared with the second quarter of 2021 reflecting the temporary shift in purchasing patterns in our Eastern European markets due to the geopolitical situation in Ukraine, offsetting continued growth in China, through cross border e-commerce, despite widespread COVID-19 related lockdowns in Shanghai and Beijing.

Revenue in the Strategic Partners segment decreased by 13.8%, or $3.9 million to $24.3 million in the second quarter of 2022 reflecting order timing while lapping against prior year’s production planning which resulted in significant growth of 48.9%.

Gross profit increased by $2.4 million to $40.7 million in the second quarter of 2022 mainly driven by revenue growth and improved gross profit margin in the Jamieson Brands segment. Normalized gross profit margin(2) increased by 160 basis points to 36.4%, reflecting margin improvements in the Jamieson Brands segment and the mix impact of proportionally higher Branded sales, partially offset by lower margin in the Strategic Partners segment. Normalized gross profit margin in the Jamieson Brands segment increased by 120 basis points to 43.2% due to favourable mix and timing of trade investment offsetting elevated global supply chain costs. Gross profit margin(3) in Strategic Partners decreased by 200 basis points to 11.7% mainly due to production volume timing, and higher global supply chain and input costs, offset by favourable customer mix.

Selling, general and administrative ("SG&A") expenses increased by $3.8 million to $25.0 million in the second quarter of 2022 and include costs associated with the previously announced Nutrawise acquisition on June 1, 2022. Normalized SG&A expenses(1) increased $0.4 million to $20.1 million in the second quarter of 2022 due to additional resources in support of our strategic initiatives and timing of our marketing investments to promote our 100 year anniversary and international brand presence.

Earnings from operations decreased by $1.5 million, or 9.1%, to $14.6 million in the second quarter of 2022 and operating margin(3) decreased by 150 basis points to 13.0% due to factors affecting gross profit margin discussed above and higher SG&A expenses as a percentage of revenue mainly due to costs associated with the acquisition. Normalized earnings from operations(1) increased by $1.7 million, or 9.8% in the second quarter of 2022 and normalized operating margin(2) was 17.4% compared with 16.1% in the second quarter of 2021.

Adjusted EBITDA increased by 9.5% to $24.4 million in the second quarter of 2022 and adjusted EBITDA margin(2) was 21.8% compared with 20.2% in the second quarter of 2021.

Interest expense and other financing costs decreased by $0.1 million to $1.2 million due to lower average borrowings in the quarter.

Net earnings for the second quarter of 2022 was $10.1 million compared with $11.5 million in the second quarter of 2021. Adjusted net earnings, which excludes all non-operating expenses and foreign exchange, increased by $1.4 million, or 11.4%, to $13.4 million in the second quarter of 2022.

Adjusted net earnings excludes costs associated with foreign exchange gain/loss, acquisition related costs, IT system improvements, COVID-19 related costs, business integration, and other non-operating earnings or expenses net of related tax effects. A quantitative reconciliation of reported net earnings to EBITDA, Adjusted EBITDA, and non-IFRS normalized gross profit, normalized SG&A, normalized earnings from operations and Adjusted net earnings are included in the table accompanying this release under the heading "Non-IFRS and Other Financial Measures".

Balance Sheet & Cash Flow

The Company generated $13.3 million in cash from operations during the second quarter of 2022 compared with $5.1 million in the second quarter of 2021. Cash from operating activities before working capital considerations(1) of $16.8 million was $0.7 million higher due to increased earnings in the current quarter. Cash investments in working capital decreased by $7.6 million driven by timing of collections and payments offset by higher inventories to maintain continuity of supply. The Company’s cash as at June 30, 2022 was $8.4 million compared with $6.8 million on December 31, 2021 and $4.6 million at the end of the second quarter of 2021. The Company ended the quarter with approximately $143.1 million in cash and available operating lines and net debt(1) of $131.9 million.

Three months ended

June 30

($ in 000's, except as otherwise noted)

2022

2021

$ Change

% Change

Cash, beginning of period

5,432

8,766

(3,334

)

(38.0

%)

Cash flows from (used in):

Operating activities

13,315

5,079

8,236

162.2

%

Investing activities

(4,573

)

(6,664

)

2,091

31.4

%

Financing activities

(5,817

)

(2,545

)

(3,272

)

(128.6

%)

Cash, end of period

8,357

4,636

3,721

80.3

%

Cash flows from operating activities

13,315

5,079

8,236

162.2

%

Net Change in non-cash working capital

3,493

11,054

(7,561

)

(68.4

%)

Cash from operating activities before working capital considerations

16,808

16,133

675

4.2

%

($ in 000's, except as otherwise noted)

As at June 30,

2022

As at December 31,

2021

Long-term debt

140,294

149,125

Cash

(8,357

)

(6,775

)

Net debt

131,937

142,350

Fiscal 2022 Outlook

The Company is increasing its outlook for fiscal 2022 reflecting the acquisition of Nutrawise which was completed on July 19, 2022. The Company anticipates revenue in the range of $550.0 to $565.0 million, which represents annual growth of 5.0% to 9.0% in the base business plus revenue growth of approximately 16.0% from the acquisition. The Company estimates Adjusted EBITDA in the range of $120.0 to $125.0 million and Adjusted diluted earnings per share in the range of $1.52 to $1.60.

For additional details on the Company’s fiscal 2022 outlook, including guidance for the third quarter of 2022, refer to the "Outlook" section in the management’s discussion and analysis of financial condition and results of operations ("MD&A") for the three and six months ended June 30, 2022.

Declaration of Second Quarter Dividend

The board of directors of the Company authorized a 2.0 cent or a 13.33% increase in the quarterly dividend and declared a cash dividend for the second quarter of 2022 of $0.17 per common share, or approximately $7.1 million in the aggregate. The dividend will be paid on September 15, 2022 to all common shareholders of record at the close of business on August 31, 2022. The Company has designated this dividend as an "eligible dividend" for the purposes of the Income Tax Act (Canada).

Consolidated Financial Statements and Management’s Discussion and Analysis

The Company’s unaudited condensed consolidated interim financial statements and accompanying notes as at and for the three and six months ended June 30, 2022 and related MD&A are available under the Company’s profile on SEDAR at www.sedar.com and on the Investor Relations section of the Company’s website at https://investors.jamiesonwellness.com.

Conference Call

Management will host a conference call to discuss the Company’s second quarter 2022 results at 5:00 p.m. ET today, August 4, 2022. The call can be accessed live over the telephone by dialing 1-800-458-4121 from Canada and the U.S. or 1-323-794-2093 from international locations. A replay will be available shortly after the call and can be accessed by dialing 1-844-512-2921 from Canada and the U.S. or 1-412-317-6671 from international locations. The passcode for the replay is 9396819 and it will be available until Thursday August 18, 2022.

Interested parties may listen to a simultaneous webcast of the conference call by logging on via the Investor Relations section of the Company's website at https://investors.jamiesonwellness.com or directly at https://viavid.webcasts.com/starthere.jsp?ei=1556477&tp_key=2fd89ed7e7. A replay of the webcast will be available for approximately 30 days following the call.

About Jamieson Wellness

Jamieson Wellness is dedicated to improving the world's health and wellness with its portfolio of innovative natural health brands. Established in 1922, Jamieson is the Company's heritage brand and Canada's #1 consumer health brand. Jamieson Wellness also offers a variety of VMS products under its youtheory, Progressive, Smart Solutions, Iron Vegan and Precision brands. The Company is a participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. For more information please visit www.jamiesonwellness.com.

Jamieson Wellness’ head office is located at 1 Adelaide Street East Suite 2200, Toronto, Ontario, Canada.

Forward-Looking Information

This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company’s anticipated results and its outlook for its 2022 revenue, Adjusted EBITDA and Adjusted diluted earnings per share. Words such as "expect", "anticipate", "intend", "may", "will", "estimate" and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company’s Annual Information Form dated March 29, 2022 and under the "Risk Factors" section in the MD&A filed today, August 4, 2022. This information is based on the Company’s reasonable assumptions and beliefs in light of the information currently available to it and the statements are made as of the date of this press release. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law or regulatory authority.

The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company’s results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See "Forward-looking Information" and "Risk Factors" within the MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements.

____________________
(1) This is a non-IFRS financial measure. See the "Non-IFRS and Other Financial Measures" section of this press release for more information on each non-IFRS financial measure.
(2) This is a non-IFRS ratio. See the "Non-IFRS and Other Financial Measures" section of this press release for more information on each non-IFRS ratio.
(3) This is a supplementary financial measure. See the "Non-IFRS and Other Financial Measures" section of this press release for more information on each supplementary financial measure.

Jamieson Wellness Inc.

Selected Consolidated Financial Information

In thousands of Canadian dollars, except share and per share amounts

Three months ended

Six months ended

June 30

June 30

2022

2021

2022

2021

Revenue

111,990

110,556

215,665

208,826

Cost of sales

71,277

72,232

137,005

136,614

Gross profit

40,713

38,324

78,660

72,212

Gross profit margin

36.4

%

34.7

%

36.5

%

34.6

%

Selling, general and administrative expenses

24,996

21,224

46,616

41,990

Share-based compensation

1,136

1,057

2,278

3,659

Earnings from operations

14,581

16,043

29,766

26,563

Operating margin

13.0

%

14.5

%

13.8

%

12.7

%

Foreign exchange loss/(gain)

(413

)

117

50

133

Interest expense and other financing costs

1,238

1,371

2,516

2,786

Earnings before income taxes

13,756

14,555

27,200

23,644

Provision for income taxes

3,662

3,083

7,365

6,036

Net earnings

10,094

11,472

19,835

17,608

Adjusted net earnings

13,415

12,041

24,159

20,677

EBITDA

18,785

19,424

37,223

33,377

Adjusted EBITDA

24,439

22,327

45,384

40,869

Adjusted EBITDA margin

21.8

%

20.2

%

21.0

%

19.6

%

Weighted average number of shares

Basic

40,461,610

40,078,646

40,451,991

39,984,741

Diluted

41,919,787

41,428,523

41,877,072

41,315,745

Earnings per share attributable to common shareholders:

Basic, earnings per share

0.25

0.29

0.49

0.44

Diluted, earnings per share

0.24

0.28

0.47

0.43

Adjusted diluted, earnings per share

0.32

0.29

0.58

0.50

Jamieson Wellness Inc.

Consolidated Statements of Financial Position

In thousands of Canadian dollars

June 30,

2022

December 31,

2021

Assets

Current assets

Cash

8,357

6,775

Accounts receivable

92,060

104,186

Inventories

138,823

119,006

Derivatives

5,901

2,149

Prepaid expenses and other current assets

3,895

5,029

249,036

237,145

Non-current assets

Property, plant and equipment

104,077

96,977

Goodwill

122,975

122,975

Intangible assets

190,719

192,676

Deferred income tax

2,458

2,702

Total assets

669,265

652,475

Liabilities

Current liabilities

Accounts payable and accrued liabilities

80,949

74,533

Income taxes payable

1,393

2,896

Derivatives

821

3,317

Current portion of long-term debt

3,077

2,876

86,240

83,622

Long-term liabilities

Long-term debt

140,294

149,125

Post-retirement benefits

3,713

3,544

Deferred income tax

56,958

53,291

Other long-term liabilities

23,779

20,872

Total liabilities

310,984

310,454

Shareholders' equity

Share capital

270,365

268,214

Contributed surplus

16,599

14,786

Retained earnings

66,699

58,998

Accumulated other comprehensive income

4,618

23

Total shareholders' equity

358,281

342,021

Total liabilities and shareholders' equity

669,265

652,475

Jamieson Wellness Inc.

Segment Information

In thousands of Canadian dollars, except as otherwise noted

Jamieson Brands

Three months ended

June 30

2022

2021

$ Change

% Change

Revenue

87,715

82,391

5,324

6.5

%

Gross profit

37,875

34,467

3,408

9.9

%

Gross profit margin

43.2

%

41.8

%

-

1.4

%

Normalized gross profit

37,875

34,604

3,271

9.5

%

Normalized gross profit margin

43.2

%

42.0

%

-

1.2

%

Selling, general and administrative expenses

23,448

19,226

4,222

22.0

%

Normalized selling, general and administrative expenses

18,517

17,956

561

3.1

%

Share-based compensation

1,136

1,057

79

7.5

%

Earnings from operations

13,291

14,184

(893

)

(6.3

%)

Operating margin

15.2

%

17.2

%

-

(2.0

%)

Normalized earnings from operations

18,222

15,591

2,631

16.9

%

Normalized operating margin

20.8

%

18.9

%

-

1.9

%

Adjusted EBITDA

22,557

19,645

2,912

14.8

%

Adjusted EBITDA margin

25.7

%

23.8

%

-

1.9

%

Strategic Partners

Three months ended

June 30

2022

2021

$ Change

% Change

Revenue

24,275

28,165

(3,890

)

(13.8

%)

-

-

Gross profit

2,838

3,857

(1,019

)

(26.4

%)

Gross profit margin

11.7

%

13.7

%

-

(2.0

%)

Selling, general and administrative expenses

1,548

1,998

(450

)

(22.5

%)

Normalized selling, general and administrative expenses

1,548

1,676

(128

)

(7.6

%)

Earnings from operations

1,290

1,859

(569

)

(30.6

%)

Operating margin

5.3

%

6.6

%

-

(1.3

%)

Normalized earnings from operations

1,290

2,181

(891

)

(40.9

%)

Normalized operating margin

5.3

%

7.7

%

-

(2.4

%)

Adjusted EBITDA

1,882

2,682

(800

)

(29.8

%)

Adjusted EBITDA margin

7.8

%

9.5

%

-

(1.7

%)

Jamieson Brands

Six months ended

June 30

2022

2021

$ Change

% Change

Revenue

170,903

158,286

12,617

8.0

%

Gross profit

73,492

65,524

7,968

12.2

%

Gross profit margin

43.0

%

41.4

%

-

1.6

%

Normalized gross profit

73,492

66,151

7,341

11.1

%

Normalized gross profit margin

43.0

%

41.8

%

-

1.2

%

Selling, general and administrative expenses

43,499

38,506

4,993

13.0

%

Normalized selling, general and administrative expenses

37,714

35,638

2,076

5.8

%

Share-based compensation

2,278

3,659

(1,381

)

(37.7

%)

Earnings from operations

27,715

23,359

4,356

18.6

%

Operating margin

16.2

%

14.8

%

-

1.4

%

Normalized earnings from operations

33,500

26,854

6,646

24.7

%

Normalized operating margin

19.6

%

17.0

%

-

2.6

%

Adjusted EBITDA

42,097

36,470

5,627

15.4

%

Adjusted EBITDA margin

24.6

%

23.0

%

-

1.6

%

Strategic Partners

Six months ended

June 30

2022

2021

$ Change

% Change

Revenue

44,762

50,540

(5,778

)

(11.4

%)

Gross profit

5,168

6,688

(1,520

)

(22.7

%)

Gross profit margin

11.5

%

13.2

%

-

(1.7

%)

Selling, general and administrative expenses

3,117

3,484

(367

)

(10.5

%)

Normalized selling, general and administrative expenses

3,069

3,279

(210

)

(6.4

%)

Earnings from operations

2,051

3,204

(1,153

)

(36.0

%)

Operating margin

4.6

%

6.3

%

-

(1.7

%)

Normalized earnings from operations

2,099

3,409

(1,310

)

(38.4

%)

Normalized operating margin

4.7

%

6.7

%

-

(2.0

%)

Adjusted EBITDA

3,287

4,399

(1,112

)

(25.3

%)

Adjusted EBITDA margin

7.3

%

8.7

%

-

(1.4

%)

Non-IFRS and Other Financial Measures

This press release makes reference to certain financial measures, including non-IFRS financial measures that are historical, non-IFRS measures that are forward-looking, non-GAAP ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing the Company’s business performance and trends. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company uses the following non‑IFRS financial measures: "EBITDA", "Adjusted EBITDA" and "Adjusted net earnings", the most directly comparable financial measure for each that is disclosed in its financial statements being net earnings, "normalized gross profit", "normalized SG&A", "normalized earnings from operations", "cash from operating activities before working capital considerations" and "net debt", the most directly comparable financial measures for each that is disclosed in its financial statements being gross profit, SG&A, earnings from operations, cash flows from operating activities, and long-term debt, respectively, the following non-IFRS ratios: "Adjusted EBITDA margin", "Adjusted diluted earnings per share", "normalized gross profit margin", "normalized operating margin", and the following supplementary financial measures: "gross profit margin" and "operating margin" to provide supplemental measures of the Company’s operating performance and thus highlight trends in the Company’s core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non‑IFRS and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. For an explanation of the composition of each such measure and the usefulness and additional uses of each by management, see the "How we Assess the Performance of our Business" section of the MD&A, which is incorporated by reference. See below for a quantitative reconciliation of each non-IFRS financial measure to its most directly comparable financial measure disclosed in the Company’s financial statements to which the measure relates.

The following tables provide a quantitative reconciliation of net earnings to EBITDA, Adjusted EBITDA, and Adjusted net earnings, as well as gross profit to normalized gross profit, SG&A to normalized SG&A, earnings from operations to normalized earnings from operations, each of which are non-IFRS financial measures (see the "Non-IFRS and Other Financial Measures" of this press release for further information on each non-IFRS financial measure) for the three and six months ended June 30, 2022 and June 30, 2021.

Reconciliation of Non-IFRS Financial Measures

In thousands of Canadian dollars

Three months ended

Six months ended

June 30

June 30

2022

2021

2022

2021

Net earnings

10,094

11,472

19,835

17,608

Add:

Provision for income taxes

3,662

3,083

7,365

6,036

Interest expense and other financing costs

1,238

1,371

2,516

2,786

Depreciation of property, plant, and equipment

2,722

2,438

5,380

4,834

Amortization of intangible assets

1,069

1,060

2,127

2,113

Earnings before interest, taxes, depreciation, and amortization (EBITDA)

18,785

19,424

37,223

33,377

Add EBITDA adjustments:

Share-based compensation (1)

1,136

1,057

2,278

3,659

Foreign exchange loss/(gain)

(413

)

117

50

133

Acquisition related cost (2)

3,484

-

3,484

-

IT system implementation (3)

1,436

-

2,175

-

COVID-19 related costs (4)

11

1,480

174

2,178

Business integration (5)

-

184

-

1,701

Other

-

65

-

(179

)

Adjusted EBITDA

24,439

22,327

45,384

40,869

Provision for income taxes

(3,662

)

(3,083

)

(7,365

)

(6,036

)

Interest expense and other financing costs

(1,238

)

(1,371

)

(2,516

)

(2,786

)

Depreciation of property, plant, and equipment

(2,722

)

(2,438

)

(5,380

)

(4,834

)

Amortization of intangible assets

(1,069

)

(1,060

)

(2,127

)

(2,113

)

Share-based compensation (6)

(1,136

)

(1,845

)

(2,278

)

(3,407

)

Tax effect of normalization adjustments

(1,197

)

(489

)

(1,559

)

(1,016

)

Adjusted net earnings

13,415

12,041

24,159

20,677

Three months ended

Six months ended

June 30

June 30

2022

2021

2022

2021

Gross profit

40,713

38,324

78,660

72,212

Business integration (5)

-

137

-

627

Normalized gross profit

40,713

38,461

78,660

72,839

Normalized gross profit margin

36.4

%

34.8

%

36.5

%

34.9

%

Selling, general and administrative expenses

24,996

21,224

46,616

41,990

Acquisition related cost (2)

(3,484

)

-

(3,484

)

-

IT system implementation (3)

(1,436

)

-

(2,175

)

-

COVID-19 related costs (4)

(11

)

(1,480

)

(174

)

(2,178

)

Business integration (5)

-

(47

)

-

(1,074

)

Other

-

(65

)

-

179

Normalized selling, general and administrative expenses

20,065

19,632

40,783

38,917

Earnings from operations

14,581

16,043

29,766

26,563

Acquisition related cost (2)

3,484

-

3,484

-

IT system implementation (3)

1,436

-

2,175

-

COVID-19 related costs (4)

11

1,480

174

2,178

Business integration (5)

-

184

-

1,701

Other

-

65

-

(179

)

Normalized earnings from operations

19,512

17,772

35,599

30,263

Normalized operating margin

17.4

%

16.1

%

16.5

%

14.5

%

(1)

Pertains to the expenses relating to our long-term incentive plan (the "LTIP"), along with associated payroll taxes.

(2)

Expenses for legal, due diligence, regulatory, tax, and fairness opinions relating to the Nutrawise acquisition.

(3)

Relates to system implementation costs to advance our supply chain planning infrastructure. Unlike other system improvement projects with costs capitalized, due to its cloud-based nature, these system implementation costs are expensed accordingly.

(4)

Costs related to COVID-19 which do not reflect the ongoing costs of operation.

(5)

Prior year expenses mainly pertained to start-up costs to complete our transition to a third-party logistics provider to make room for capacity expansion at our existing operations.

(6)

Costs pertaining to our LTIP, excluding certain one-time grants to certain employees. Prior year expenses included the acceleration of share-based compensation expense in relation to our CEO transition, net of tax benefits realized on the vesting of certain share-based awards.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005829/en/

Contacts

Investor and Media Contact Information:
Jamieson Wellness
Ruth Winker
416-705-5437
rwinker@jamiesonlabs.com