Gray Wolf Animal Health Report Reports Fourth Quarter and Year End Financial Results of 2023

Toronto, April 11, 2024 /CNW/ – Gray Wolf Animal Health Corporation (TSXV: WOLF) (“Gray Wolf” or the “Company”), a Canadian diversified animal health company, today announced its fourth quarter and year-end financial results. December 31, 2023.

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• Revenue for the quarter increased 11.4% year over year; $6.2 million. Revenue increased by 12.3%; $25.4 million 1 year.

• Gross profit increased by 9.6% compared to the same period last year. 3 million dollars 10.9% for the quarter; $12.8 million 1 year.

• Adjusted EBITDA¹ remained consistent with $700,000 compared to the current quarter $700,000 Adjusted EBITDA¹ That year was $3.6 million compared to $3.5 million Last year, it increased by 4.7%.

“2023 was a successful year for Gray Wolf, our first full year as a publicly traded company, with total revenue up 12.3%; $25.4 million Gross profit increased 10.9% year over year, driven by organic growth within our expanded product portfolio. In addition, adjusted EBITDA¹ 4.7% increase or $200,000 As a result, our operating profit for the year improved, but this was offset by our operating costs as a public entity. ” Angela Cecchetto, chief executive officer. “Furthermore, we $2.4 million We captured cash from operations during the year and continued to pay down debt, ending the year with the following results: $7.8 million With cash on hand. The company is poised for continued growth. ”

Key financial data and comparative results

Fourth quarter and year-end operating results December 31, 2023

Earnings for ended 3 and 12 months December 31, 2023increased by 11.4% $6.2 million 12.3% $25.4 millionThis increase was due to organic revenue growth in both our Animal Health and Pharmacy businesses.

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Gross profit margin for ended 3 and 12 months December 31, 2023, compared to the same period in 2022, slightly decreased to 49.8% compared to 50.6% and 50.5% compared to 51.1%, respectively. Gross margin was impacted by higher Pharmacy margins and a slight decrease in Animal product mix margins. Health Business Department.

Total costs for the ended 3 and 12 months December 31, 2023increased by 9.6% $3.2 million decreased by 5.4%, $11.3 millionThe decrease in total expenses in 2023 primarily related to expenses related to qualifying transactions during the same period in 2022, offset by the expenses described below. During the last 12 months, we have increased our salaries, bonuses and benefits related to business growth compared to the same period in 2022. Travel, meals, and operating expenses increased in 2023 due to increased attendance for our sales and marketing teams. conventions, trade shows, customer visits, etc. Finally, because the company now operates as a public entity, professional fees and external services related to corporate costs have increased.

Adjusted EBITDA¹ Regarding the ended 3 and 12 months December 31, 2023it remained flat at $700,000 and increased $200,000 to $3.6 millionwhen compared to the corresponding period in 2022.

Cash and cash equivalents are $7.8 million like December 31, 2023 compared to $6.9 million The Company generated cash from the following operations as of December 31, 2022: $2.4 million Sales in 2023 were primarily the result of increased revenues in both our Veterinary Health and Pharmacy business segments. This was offset by the use of: $100,000 Our cash resources are derived from changes in working capital and the repayment of borrowings. $ 1,000,000.like December 31, 2023the Company had outstanding debts. $9.2 millionof which $1.1 million is the current one, $8.1 million It is non-current. Our debt is a fixed rate term loan with an average interest rate of 4.7% through September 2026.

Gray Wolf's financial statements for the ended three and twelve months and accompanying management's discussion and analysis December 31, 2023 You can view the company profile. www.sedar.com.

Issuance of stock acquisition rights

After this quarter, our board of directors authorized the grant of an aggregate of 225,000 stock options to purchase shares of our common stock to certain of our officers, directors and employees. Our Stock Option Plan has been amended and restated. The option expires 10 years from the date of grant, with an exercise price equal to his closing price per share on April 15, 2024, and a third anniversary on each of the first, second, and third anniversaries of the date of grant. 1 vests. Vesting of these options is automatically accelerated upon a change of control.

¹Non-IFRS measures

Management uses both IFRS and non-IFRS measures to evaluate the financial and operating results of our business. These non-IFRS measures are not recognized under IFRS, have no standardized meaning under IFRS, and are unlikely to be comparable to similar measures presented by other companies. Non-IFRS measures referenced in this press release include Adjusted EBITDA. The Company calculates Adjusted EBITDA from earnings before financing and special transaction costs (which, for added certainty, includes fees associated with qualifying transactions), interest income, interest and accruals, income taxes, and depreciation of property, plant and equipment. It is defined as the depreciation expense of the right of use. amortization of assets, intangible assets, stock-based compensation, changes in fair value of embedded derivatives, foreign exchange gains and losses, and other income. The Company considers Adjusted EBITDA to be an additional metric in evaluating operating performance and an important measure of operating results and cash flow, and is useful for investors and analysts to help analyze and compare profitability between companies. Provide information.

The following table summarizes the differences between Gray Wolf's consolidated IFRS and non-IFRS financial measures, reconciled below.

EBITDA and adjusted EBITDA

About Gray Wolf Animal Health Corp.

Gray Wolf Animal Health Corp., Headquarters: toronto, canadais a diversified animal health company founded by veterinarians to bring to market a broad portfolio of products that meet the unmet needs of veterinarians, clinics, and pets. The company's strategy is to license, acquire and develop innovative prescription and non-prescription products for commercialization in the veterinary channel. Canada. For more information, please visit www.greywolfah.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-looking statements

Certain information contained in this press release contains forward-looking information within the meaning of applicable Canadian securities laws. This information includes statements regarding the Company's objectives, strategies for achieving those objectives, statements regarding management's beliefs, plans, estimates and intentions, and statements regarding anticipated future events, results, conditions, performance or expectations. Contains similar descriptions. It's not a historical fact. Forward-looking information generally includes forward-looking statements such as “outlooks,” “goals,” “may,” “will,” “will,” “expects,” “intends,” and “estimates.” You can identify them by using terms related to them. “anticipate,” “believe,” “should,” “plan,” “continue” or similar expressions suggesting future results or events or the negation thereof. Such forward-looking information reflects management's beliefs and is based on information currently available. All forward-looking information contained in this press release is qualified by the following cautionary statements:

Forward-looking information necessarily involves known and unknown risks and uncertainties, whether general or specific, including the possibility that expectations, projections, forecasts, projections or conclusions will prove to be inaccurate, assumptions made, etc. may be incorrect, and the purpose may arise. , strategic goals and priorities may not be achieved. Various factors, many of which are beyond our control, may affect our and our subsidiaries' operations, performance and results and may cause actual results to differ materially from current expectations regarding estimated or anticipated events or results. This may cause

A more detailed assessment of the risks that could cause actual results to differ materially from current expectations can be found under “Risk Factors” in Gray Wolf's management's discussion and analysis for the ended three-month and twelve-month period. section. December 31, 2023. The forward-looking information contained in this press release is made as of the date of this press release and should not be relied upon as representing our views as of any date subsequent to this press release. Management undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. We do not owe.

Source: Gray Wolf Animal Health Corp.

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