IGNITE Files Q1 2021 Financial Statements and MD&A
VAUGHAN, Ontario–(BUSINESS WIRE)–IGNITE International Brands, Ltd. (CSE:BILZ, OTCQX: BILZF) (“IGNITE” or the “Company”), a global consumer packaged goods brand, today announced the filing of its financial statements, MD&A, and accompanying certificates for its fiscal Q1 2021 filings (collectively, the “Q1 2021 Filings”). The Q1 2021 Filings have been filed on the System for Electronic Document Analysis and Retrieval and may be viewed by shareholders and interested parties under the Company’s profile at www.sedar.com.
“We’re keeping the momentum going with positive net income for a second consecutive quarter,” says Dan Bilzerian, CEO at IGNITE. “The strength of our Q1 financial statements is a testament to the traction we’ve gained as a result of premium quality products tied to a recognizable brand. Even with some of our markets shutdown for almost all of 2021, such as Canada and the United Kingdom, our sales in Q2 will be more than double our sales in Q1 2021 and more than double sales in Q2 last year. This is going to be a very exciting year for IGNITE with existing markets reopening and our plan to open a number of new markets in the second half of the year.”
“The IGNITE team effectively executed the Q1 strategy despite significant global supply chain challenges and retailer lockdowns in key markets,” says John Schaefer, President and COO at IGNITE. “Our unwavering dedication to driving customer satisfaction will hopefully enable us to continue to achieve triple digit sales growth throughout 2021. We look forward to sharing news of expanded product lines and the creation of lifestyle experiences to further engage our customer base.”
Q1 2021 Highlights
- Revenue of $3.7 million was a significant milestone as it is the strongest performing first quarter in the Company’s history, exceeding Q1 2020 by $2 million or 115%, and Q1 2019 by $2.1 million or 135%;
- EBITDA of $0.3 million was nearly a $7 million improvement from the $6.3 million loss in Q1 2020 and was the result of improved sales coupled with significant cost reductions;
- Net Income for Q1 2021 was $0.1 million compared to a $9.1 million loss in Q1 2020; and
- Working Capital of $24.4 million was up $11.1 million compared to $13.5 million as at December 31, 2021.
About IGNITE
IGNITE is a global consumer premium brand, operating in several market segments. Founded by Dan Bilzerian, the Company’s “quality-first” approach is fundamental to the brand and its products. IGNITE product categories include CBD products, nicotine and synthetic nicotine vape products, premium performance drinks named ZRO, spirits featuring a premium vodka, and apparel. The IGNITE THC product line was introduced in Canada in 2020.
Shares of IGNITE are listed on the Canadian Securities Exchange (CSE) under the symbol “BILZ” and quoted in the United States on the OTCQX under the symbol “BILZF”.
Further information on IGNITE can be found on the Company’s website at www.ignite.co.
NON IFRS FINANCIAL MEASURES
Management uses net loss and comprehensive loss as presented in the consolidated statements of net loss and comprehensive loss as well as “EBITDA” as a measure to assess performance of the Company. EBITDA is another financial measure and is reconciled to net loss and comprehensive loss below under “Results of Operations”.
EBITDA is a supplemental financial measure to further assist readers in assessing the Company’s ability to generate income from operations before considering the Company’s financing decisions, depreciation of property, plant and equipment and amortization of ROU and intangible assets. EBITDA comprises net income or loss for the period adding back depreciation and amortization, as well as non-cash expenses such as share-based compensation, interest accretions, and income tax.
EBITDA does not represent the actual cash provided by the operating activities nor is it a recognized measure of financial performance under IFRS. Readers are cautioned that this measure should not be considered as a replacement for those as per the consolidated financial statements prepared under IFRS. The Company’s definitions of this non IFRS financial measure may differ from those used by other companies.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon several estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the effects and impacts of the coronavirus disease (COVID-19) pandemic, the extent and duration of which are uncertain at this time on IGNITE’s business and general economic and business conditions and markets; the ability of IGNITE to give effect to its business plan. There can be no assurance that any of the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by law.
Contacts
Paul A. Holden, General Counsel
Tel: 416-407-1795
Email: [email protected]
