VivoPower International PLC Reports Preliminary Unaudited Financial Results for the Fiscal Year Ended June 30, 2022
30 August 2022 - 6:30AM
VivoPower International PLC (NASDAQ: VVPR) (“VivoPower,” the
“Company”) today announced its preliminary results for the fiscal
year ended June 30, 2022.
Highlights for the fiscal year ended June 30,
2022:
- Annual group revenues including
discontinued operations of $37.6 million, were down 7%
year-on-year, primarily due to COVID-19 related lockdowns resulting
in project deferrals and operational disruptions, particularly in
the Australian market. Group revenues were down 3% year-on-year on
a constant AUD/USD FX basis
- Gross profit margin including
discontinued operations decreased from 16% to 4% due to one-off
Bluegrass project overruns of $1.9m and other increased COVID-19
related compliance costs and supply chain/logistics related cost
increases. Gross profit margin including discontinued operations
adjusted for Bluegrass cost overruns was 9% for FY22 and for
continuing operations was 10%
- Underlying EBITDA loss including
discontinued operations of ($10.4) million (versus EBITDA loss of
($1.4) million in FY21) reflects a reduction in revenues, gross
profit and an increase in headcount and marketing costs to support
growth
- Statutory net after-tax loss of
($21.6) million for FY22 and earnings per share (“EPS”) of ($1.04)
per share, as compared to a ($8.0) million loss and ($0.49) per
share in FY21
- Adjusted net after-tax loss of
($21.1) million and adjusted EPS of ($1.02) per share for FY22 as
compared to a ($5.1) million loss and ($0.31) per share
respectively for FY21
- Raised $5.0 million in net equity
proceeds post June 30, 2022 from shelf issuance announced on July
29, 2022
- Increase in group net debt to $27.3
million from $14.5 million, offset by net proceeds from shelf
issuance and initial proceeds on J.A. Martin ex-Solar sale in July
2022, resulting in pro-forma net debt of $19.7m
- Expanded distribution partner
network for Tembo to 6 continents and over 50 countries, with
additional 3,350 EV kits in commitments and orders, and established
VivoPower and Tembo subsidiaries and operating units in key markets
globally (UAE, Australia, SouthEast Asia)
- Secured Design Services Agreement
(DSA) with Toyota Australia, with development of new generation
72kWh & V2 battery conversion kit
- Won largest ever solar contract for
electrical works at the 204MWdc Edenvale Solar Farm in Queensland,
Australia, bringing total of completed and contracted solar farms
to over 650MWdc across seven projects at Aevitas
- Divested non-core businesses within
Aevitas (completed post balance date) to allow for proceeds to be
re-invested in high growth business units
- Obtained B Corp recertification
following mandatory re-assessment review and was named one of the
best B Corps globally for Governance
A reconciliation of IFRS (“International
Financial Reporting Standards”) to non-IFRS financial measures has
been provided in the financial statement table included in this
press release. An explanation of these measures is also included
below, under the heading “About Non-IFRS Financial Measures.”
“The financial year ended June 30, 2022, was
particularly challenging with numerous headwinds including strict
COVID lockdowns in our key markets during the first half of the
year, followed by supply chain shortages, extended logistics delays
and COVID-19 related costs in the second half of the year which
affected our ability to operate and deliver efficiently. Our
financial results were as a consequence adversely affected, with
revenues constrained and group operating losses exacerbated by a
US$1.9m one off COVID driven loss in relation to the Bluegrass
Solar project in Australia and foreign exchange. However, we did
manage to execute on a number of important objectives in keeping
with our strategic goals. This included securing a commercial
definitive agreement with Toyota Australia, expanding our EV kit
distribution network globally, adding further EV kit commitments
and orders, as well as transitioning Tembo from a Netherlands
centric operation to a business with an international mindset and
presence with subsidiaries in Australia, the United Arab Emirates
and Southeast Asia. Post balance date, we have been able to
continue our execution momentum, including divesting of non-core
business units in Australia, completion of a capital raising and
signing our first EV kit memorandum of understanding in the Middle
East. Furthermore, the tailwinds for our various business units
have strengthened in the past few months, with developments such as
the ratification of the Inflation Reduction Act in the United
States and the added government impetus in Australia that is
fuelling a record level of solar power development. No doubt, there
will continue to be challenges to overcome in the short term, but
we remain resolute as a team focussed on achieving our medium to
long term strategic, financial and impact goals,” said
Kevin Chin, VivoPower’s Executive Chairman and Chief Executive
Officer.
About Non-IFRS Financial
Measures
Our preliminary results include certain non-IFRS
financial measures, including adjusted EBITDA, adjusted net
after-tax loss and adjusted EPS. Management believes that the use
of these non-IFRS financial measures provides consistency and
comparability with our past financial performance, facilitates
period-to-period comparisons of our results of operations, and also
facilitates comparisons with peer companies, many of which use
similar non-IFRS or non-GAAP (“Generally Accepted Accounting
Principles”) financial measures to supplement their IFRS or GAAP
results. Non-IFRS results are presented for supplemental
informational purposes only to aid in understanding our results of
operations. The non-IFRS results should not be considered a
substitute for financial information presented in accordance with
IFRS, and may be different from non-IFRS or non-GAAP measures used
by other companies.
The table included in this press release titled
“Reconciliation of Adjusted (Underlying) EBITDA to IFRS Financial
Measures” provides reconciliations of non-IFRS financial measures
to the most recent directly comparable financial measures
calculated and presented in accordance with IFRS.
|
|
Year ended June 30 |
Reconciliation of Adjusted (Underlying) EBITDA to IFRS
Financial Measures (US dollars in thousands) |
|
2022 |
|
2021 |
|
Net loss for the period |
|
(21,569 |
) |
(7,958 |
) |
Income tax |
|
(2,117 |
) |
(115 |
) |
Foreign exchange gains and
losses |
|
4,709 |
|
(2,093 |
) |
Interest income and
expense |
|
3,894 |
|
2,504 |
|
Non-cash share-based
compensation |
|
1,900 |
|
1,078 |
|
Restructuring and other
non-recurring costs |
|
443 |
|
2,880 |
|
Depreciation and
amortization |
|
2,387 |
|
2,256 |
|
Adjusted (Underlying)
EBITDA |
|
(10,352 |
) |
(1,448 |
) |
|
|
|
|
|
|
The table included in this press release titled
“Reconciliation of Adjusted (Underlying) net after-tax loss and
adjusted (underlying) EPS to IFRS Financial Measures” provides
reconciliations of non-IFRS financial measures to the most recent
directly comparable financial measures calculated and presented in
accordance with IFRS.
Reconciliation of Adjusted (Underlying) net after-tax loss
and adjusted (underlying) EPS to IFRS Financial Measures (US
dollars in thousands - except where indicated
otherwise) |
|
Year ended June 30 |
|
2022 |
|
2021 |
|
Net loss for the period |
|
(21,569 |
) |
(7,958 |
) |
Restructuring and other
non-recurring costs |
|
443 |
|
2,880 |
|
Adjusted (Underlying)
net loss for the year |
|
(21,126 |
) |
(5,078 |
) |
Weighted average number of
shares used in computing (loss)/earnings per share (shares) |
|
20,721,701 |
|
16,306,494 |
|
|
|
|
|
Group Basic EPS (Statutory)
(dollars) |
|
(1.04 |
) |
(0.49 |
) |
Restructuring and other
non-recurring costs per share (dollars) |
|
0.02 |
|
0.18 |
|
Group Adjusted
(Underlying) EPS (dollars) |
|
(1.02 |
) |
(0.31 |
) |
The table included in this press release titled
“Profit and Loss Reconciliation from pre-divestiture basis to
continuing operations” provides reconciliations of Total Group
(including discontinued operations) financial measures to
continuing operations financial measures.
Profit and Loss
Reconciliation from pre-divestiture basis to continuing operations
(US dollars in thousands) |
|
Total Group (pre-divestiture =Continuing
+Discontinued) |
Discontinued operations |
Continuingoperations |
FY2022 |
|
|
|
|
Revenue |
|
37,617 |
|
15,169 |
|
22,448 |
|
Gross profit |
|
1,586 |
|
1,290 |
|
296 |
|
Gross profit excluding Bluegrass COVID-related cost overruns |
|
3,467 |
|
1,290 |
|
2,177 |
|
Profit / (loss) after tax |
|
(21,569 |
) |
(369 |
) |
(21,200 |
) |
|
|
|
|
|
FY2021 |
|
|
|
|
Revenue |
|
40,411 |
|
16,436 |
|
23,975 |
|
Gross profit |
|
6,327 |
|
1,966 |
|
4,361 |
|
Profit / (loss) after tax |
|
(7,958 |
) |
(152 |
) |
(7,806 |
) |
|
|
|
|
|
About VivoPower
VivoPower is a sustainable energy solutions
company focused on battery storage, electric solutions for
customized and ruggedized fleet applications, solar and critical
power technology and services. The Company's core purpose is to
provide its customers with turnkey decarbonization solutions that
enable them to move toward net zero carbon status. VivoPower is a
certified B Corporation with operations in Australia, Canada, the
Netherlands, the United Kingdom, the United States and the United
Arab Emirates.
Forward-Looking Statements
This communication includes certain statements
that may constitute “forward-looking statements” for purposes of
the U.S. federal securities laws. Forward-looking statements
include, but are not limited to, statements that refer to
projections, forecasts or other characterizations of future events
or circumstances, including any underlying assumptions. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking.
Forward-looking statements may include, for example, statements
about potential revenues from e-LV distribution agreements, future
market outlooks, the benefits of the events or transactions
described in this communication and the expected returns therefrom.
These statements are based on VivoPower’s management’s current
expectations or beliefs and are subject to risk, uncertainty and
changes in circumstances. Actual results may vary materially from
those expressed or implied by the statements herein due to changes
in economic, business, competitive and/or regulatory factors, and
other risks and uncertainties affecting the operation of
VivoPower’s business. These risks, uncertainties and contingencies
include changes in business conditions, fluctuations in customer
demand, changes in accounting interpretations, management of rapid
growth, intensity of competition from other providers of products
and services, changes in general economic conditions, geopolitical
events and regulatory changes and other factors set forth in
VivoPower’s filings with the United States Securities and Exchange
Commission. The information set forth herein should be read in
light of such risks. VivoPower is under no obligation to, and
expressly disclaims any obligation to, update or alter its
forward-looking statements whether as a result of new information,
future events, changes in assumptions or otherwise.
Contact
Investor Relationsshareholders@vivopower.com
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