KITS Eyecare Reports Record Third Quarter 2024 Financial Results
Revenue Increased 34% Year-Over-Year to a Record $41.9 million
Glasses Revenue Increased 43% Year-Over-Year
Eighth Consecutive Quarter Reporting Positive Adjusted EBITDA
VANCOUVER, BC, Nov. 6, 2024 /CNW/ - Kits Eyecare Ltd. (TSX:KITS) ("KITS" or the "Company"), a leading vertically integrated eyecare provider, is reporting its results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial & Operational Highlights
For the third quarter of 2024, compared to the third quarter of 2023:
Revenue increased by 34.4% to a record $41.9 million compared to $31.2 million
Gross profit was $13.8 million or 32.9% of revenue, compared to $10.7 million or 34.3% of revenues
Marketing expenses as a percentage of revenue improved by 30 basis points to 13.4% compared to 13.7%
Fulfillment expenses as a percentage of revenue improved by 180 basis points to 10.8% compared to 12.6%
General and administrative expenses as a percentage of revenue improved by 30 basis points to 6.2% compared to 6.5%
EBITDA was $0.9 million compared to $1.4 million
Adjusted EBITDA increased by $1.0 million to $1.6 million compared to $0.6 million
Net income was $0.1 million compared to $0.5 million
Glasses revenue increased by 43.2% to a record $5.7 million compared to $4.0 million
Record revenue milestone of $15.9 million from new customers
Year-to-Date 2024 Financial & Operational Highlights
For the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023:
Revenue increased 28.9% to $114.5 million compared to $88.8 million
Gross profit was $37.4 million or 32.6% of revenue, compared to $29.7 million or 33.4% of revenues
Marketing expenses as a percentage of revenue declined by 60 basis points to 13.3% compared to 13.9%
Fulfillment expenses as a percentage of revenue declined by 130 basis points to 11.3% compared to 12.6%
General and administrative expenses as a percentage of revenue were 6.7% compared to 6.7%. Excluding Share-based compensation, General and administrative expenses as a percentage of revenue were 5.9% compared to 6.2%
Adjusted EBITDA increased by $2.1 million to $3.5 million compared to $1.4 million
Net income was $0.4 million compared to a net loss of $1.7 million
Strong quarter end cash balance of $19.1 million compared to $19.3 million
Generated positive cash flow from operations of $9.2 million compared to $4.7 million
Management Commentary
"Reflecting on our third-quarter results, I'm incredibly proud of the progress we've made as a team. Achieving a record 34.4% revenue growth and significant operational efficiencies highlights the strength of our approach in reaching new customers while continually optimizing our business." said Roger Hardy, Co-Founder and CEO of KITS. "This quarter, we achieved a milestone in glasses revenue, up 43.2% year-over-year, and welcomed a record number of new customers. These achievements underscore the impact of our dedicated focus on product expansion and customer retention. We're excited to build on this momentum as we continue scaling KITS and driving value for our shareholders."
Third Quarter 2024 Financial Results
Revenue increased by 34.4% to $41.9 million compared to $31.2 million in the third quarter of 2023 (the "prior year period"). The increase was primarily attributable to strong repeat customer revenue in both contact lens and eyeglasses, with higher average order values.
Gross profit increased by 29.2% to $13.8 million compared to $10.7 million in the prior year period.
Net income was $0.1 million compared to net income of $0.5 million in the prior year period. EBITDA was $0.9 million compared to $1.4 million in the prior year period, while Adjusted EBITDA improved to $1.6 million compared to $0.6 million in the prior year period. The bottom-line improvements were primarily attributable to the increase in revenue and gross profit, along with achieving marketing and fulfillment efficiencies as a percentage of revenue.
On September 30, 2024, cash and cash equivalents totaled $19.1 million compared to $16.0 million on December 31, 2023 and $19.3 million on June 30, 2024.
Fourth Quarter 2024 Outlook
For the fourth quarter of 2024, KITS management expects revenue to be in the range of $43.0 million to $45.0 million, with Adjusted EBITDA as a percentage of revenue between 3% and 5%. See "Forward-Looking Statements" below for important disclosure with respect to expectations and forward-looking information.
Conference Call
KITS management will host the conference call followed by a question-and-answer period. To access the call instantly, please click here to register your name and phone number via the rapid connect link.
The conference call will also be webcast live with a presentation and available for replay here and via the investor relations section of the Company's website at www.kits.com.
Date: Wednesday, November 6, 2024Time: 9:00 a.m. Eastern time (6:00 a.m. Pacific time)Presentation webcast link: https://app.webinar.net/Mj9z3AjBXWO Rapid connect link: https://emportal.ink/3XVV2qY North American toll-free number: 1-888-510-2154Local Toronto dial-in number: 1-437-900-0527Confirmation #: 46190 #
Financial Highlights
The following selected financial information is qualified in its entirety by and should be read conjunction with our consolidated financial statements for the three and nine months ended September 30, 2024 and September 30, 2023 and accompanying notes and Management's Discussion and Analysis ("MD&A") which may be viewed on SEDAR at www.sedarplus.ca.
Three Months Ended
Nine Months Ended
Financial and Operating Data
September 30, 2024
(unaudited)
September 30, 2023
(unaudited)
September 30, 2024
(unaudited)
September 30,2023
(unaudited)
Revenue
$
41,871
$
31,150
$
114,505
$
88,847
Net income (loss)
$
132
$
480
$
383
$
(1,724)
Net income (loss) per share
