BioSyent Inc.

Welcome to the Bioscience Inc. Q4 and Fiscal Year 2023 results presentation.

My name is Rene Gorham, and I'm the president and CEO of the company. I want to start the presentation today by just giving you an overview of our sales by brand and business unit.

You can see here the Canadian pharmaceutical business grew 10% in the quarter, ended December 31st. I did just under $8 million, which represented an all-time record for the business. And for the full year, we were just under $30 million, up 13% to the year ago. You can see on a by-brand basis, for the most part, both in the quarter and on a full year, we had strong growth, particularly Tabela, which was up 36% in the quarter and 46% on the year. I will note that Combogesic has kind of negative revenue growth figures here. We did some work around promotional testing that had an impact on the top line. And I would just direct you to kind of what we expect those numbers to look like as we go forward through into 2024. And I don't expect the same look in terms of business results in the marketplace. Overall, we've been talking about our international business being quite lumpy, that has continued. You can see on the quarter down 54%, but on a full year basis up 53%. That business is concentrated into a handful of markets for which we receive and process and ship large orders. And as a result, best to measure that business on a full year basis. We have been filling the order book and expect that business to continue to progress. The legacy business had a strong fourth quarter and for the year ended flat to the year ago. So overall company sales reached just under $8.3 million for the quarter, up 11% to the year ago. Our EBITDA margin was relatively flat, 20% to the year ago, 21%. And yet margin up slightly from 16% to 18%. On a full year basis, you can see our sales reach just under $32 million, up 13% to the year ago. We've already talked about the strong performance in the Canadian pharmaceutical business. It represented a record quarter, obviously a record year as well for Canadian Pharma. We reshaped the portfolio a couple of years ago and have nicely gone through making up the loss in revenue that we had for the products that we returned to partners. and have returned the business to a solid growth as we move forward. On a full year basis, you can see that our EBITDA margin was 25% as the ratio to sales, and just under $8 million, up 7% to the year ago, and our NEET margin consistent with the year ago at 20%, and that represented growth of 18% versus the year ago, just under $6.5 million of net income after tax. So how does this flow through to a quarterly look on earnings per share? I would like to just point out the fact that the fourth quarter represented our 54th consecutive profitable quarter. For the quarter itself, we did $0.12 on a fully diluted basis, and that compares favorably to $0.09 in the year-ago period. Overall, on a TTM, which in this case represents fiscal 2023, we did 53 cents per share compared to 44%. So solid up over 20% a year on year measuring EPS. So if we go back to 2010, which is the first year that we had a profitable quarter, in the middle of that year, we had our first profitable quarter. We've been operating our business profitably since then. We've been investing in In licensing and launching new assets, you can see back in 2010, we had two brands on market that included our legacy business. On the far right of your screen, you can see all of the products and brands that we have in market today. On a full year revenue basis, 2023, as I've already indicated, just under $32 million in sales. Progressing over time, we've added to the portfolio and we've grown our profit over that period of time. And then at the bottom of the screen, just to kind of point out bottom right corner, fully diluted shares outstanding. At the recording of this presentation in the second week of March, under 12 million shares fully diluted. And that compares favorably to 2010 when we first came profitable. So though we've been investing in the business and we have a substantially larger business, larger commercial footprint and capacity and capability, a larger portfolio, measurably more profitable business, we've done that and reduced the fully diluted shares outstanding over that period of time. So I'd like to just speak to a couple of highlights for the fourth quarter of 2023. We launched GelClare and started shipping it in the quarter. We launched menopauseinformation.ca in partnership with the Canadian Menopause Society. This is a website to provide information, education to women that are experiencing menopause symptoms and menopause itself, and also to direct them to some options for treatment and how to prepare and consult with health care practitioners. In the quarter, we delivered our fifth consecutive dividend. In this case, it was a four-cent dividend that was paid in December, and we bought back over 93,000 shares under our NCIP. Subsequent to the quarter end, we declared an increase to our dividend, a 12.5% increase, so from 4 cents to 4.5 cents per quarter, and that first increased dividend will be paid on the 15th of March coming up. In February, BioSign was named to the 2024 TSX Venture 50 Top Performing Companies on the TSX Venture Exchange in the clean tech and life sciences category. We launched a new corporate website. If you haven't taken a look, I invite you to do so at bioscience.com. And we continued under our NCIB in buying back shares. In this case, just under 123,000 shares have been purchased since January 1st till the recording of this presentation.