GREY WOLF ANIMAL HEALTH REPORTS FOURTH QUARTER AND YEAR END 2024 FINANCIAL RESULTS

TORONTO, April 16, 2025 /CNW/ - Grey Wolf Animal Health Corp. (TSXV: WOLF) ("Grey Wolf" or the "Company"), a Canadian diversified health company, today announced financial results for the fourth quarter and year ended December 31, 2024.

Highlights

• Closed the acquisition of The Compounding Pharmacy of Manitoba ("CPM"), providing greater scale and capacity for growth in the Company's Pharmacy business.
  
  
• Revenue for the quarter increased year over year by 8.6% to $6.7 million. Revenue for the full year increased by 5.6% to $26.8 million for the year.
  
  
• Gross profit increased year over year by 9.5% to $3.4 million for the quarter and 7.3% to $13.8 million for the year.
  
  
• Adjusted EBITDA¹ increased year over year by 29.0% to $0.9 million for the quarter and 17.4% to $4.3 million for the year.

"Grey Wolf delivered solid revenue and Adjusted EBITDA¹ in 2024.  Our Pharmacy business grew by 8.8% to $14.7 million during the year driven by organic growth in our existing compounded products and complemented by one-month of contribution from the CPM acquisition in December 2024.  The acquisition of CPM provides us leverage to increase our compounded animal health products and strengthens our presence in the compounded human health product market as well. Our Animal Health business grew by 1.9% to $12.1 million during the year due to organic growth in established and new products, offset by a decline in commission revenues. We saw softness in the veterinary market in 2024, however, our products continue to have value in supporting the health of pet patients." said Angela Cechetto, Chief Executive Officer. "Excluding one-time costs, our total expenses decreased by 1.6% to $11.1 million over 2023 as we focused our promotional investment on key products.  Adjusted EBITDA¹ increased by 17.4% to $4.3 million for the year as a result of improved operating income."

Key Financial Data and Comparative Results

Results of Operations for the Fourth Quarter and Year ended December 31, 2024

Revenue for the three- and twelve- month periods ended December 31, 2024 increased 8.6% to $6.7 million and 5.6% to $26.8 million, respectively, compared to the same period in 2023.  Revenue in the Animal Health business decreased by 3.3% to $3.0 million and increased by 1.9% to $12.1 million, respectively, in the quarter and full year of 2024. For the year, revenue growth was driven by organic growth in sales of established and new products, offset by a decrease in commission revenue.  The decrease in revenue in the fourth quarter was due to a decline in commission revenue.  In the Pharmacy business, revenue grew year over year by 20.4% to $3.7 million and 8.8% to $14.7 million respectively, in the quarter and full year of 2024 due to organic growth in sales of compounded products and the impact of the CPM acquisition in December 2024.

Gross profit margins for the three- and twelve-month periods ended December 31, 2024 increased to 50.2% from 49.8% and 51.3% from 50.5% respectively, compared to the same periods in 2023. Gross profit was impacted by improved margins in the Pharmacy business and product mix in the Animal Health business.

Total expenses for the three- and twelve-month periods ended December 31, 2024, increased 10.0% to $3.6 million and 5.2% to $11.9 million, respectively, over the same periods in 2023. During the year, excluding one-time employee settlement and transaction costs incurred, total expenses decreased by 1.6% to $11.1 million over the same period in 2023. Travel, meals, and business expenses increased in 2024 as the sales and marketing team increased attendance at conventions, trade shows and customer visits.

Adjusted EBITDA¹ for the three- and twelve-month periods ended December 31, 2024 increased 29.0% to $0.9 million and 17.4% to $4.3 million respectively, compared to the same periods in 2023. The increase in Adjusted EBITDA¹ was mainly due to increased operating net income compared to the prior year.

Cash and cash equivalents were $6.4 million as at December 31, 2024 compared to $7.8 million at December 31, 2023.  Cash decreased by $1.4 million mainly due to an increase in cash provided for operating activities, offset by purchases of property and equipment and net transaction costs related to the CPM acquisition.  During 2024, the Company generated cash flows from operations of $1.7 million, used $0.9 million of its cash resources from changes in working capital and $1.0 million from the repayment of borrowings. The Company also had proceeds from borrowings of $18.5 million and used $19.9 million of cash related to the CPM Acquisition.

As at December 31, 2024, the Company had outstanding borrowings of $26.9 million, of which $2.1 million are current and $24.8 million are non-current. The Company repaid borrowings of $0.3 million in the quarter and $1.0 million since December 31, 2023. The Company has three loans: (1) a fixed rate term loan for $11,500,000 with an average interest rate of 4.7% until September 2026, (2) a fixed rate term loan for $14,283,000 with an interest at a rate of 7.09% per annum and (3) a fixed rate mortgage for $4,392,000 with an interest at a rate of 7.09% per annum.

Grey Wolf's financial statements and accompanying Management Discussion and Analysis for the three- and twelve-months ended December 31, 2024 are available under the Company's profile on www.sedarplus.ca.

Presentation at the 2025 Bloom Burton & Co. Healthcare Investor Conference

Angela Cechetto, CEO is scheduled to present at the 2025 Bloom Burton & Co. Healthcare Investor Conference on Monday May 5, 2025 at 9:30am ET at the Metro Toronto Convention Centre in Toronto.

Grey Wolf will also be available for one-on-one meetings during both days of the conference to be held on May 5-6, 2025.  Investors interested in meeting with Grey Wolf during the conference should contact the conference coordinator.

¹Non-IFRS Measures

Management uses both IFRS and Non-IFRS Measures to assess the financial and operating performance of the Company's operations. These Non-IFRS Measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. The Non-IFRS Measures referenced in this press release includes Adjusted EBITDA. The Company defines Adjusted EBITDA as earnings before transaction costs (including, for greater certainty, transaction costs related to the CPM Acquisition), settlement costs, interest income, interest and accretion expense, income taxes, depreciation of property and equipment, depreciation of right of use assets, amortization of intangible assets, share-based compensation, foreign exchange gains or losses and other income The Company considers Adjusted EBITDA as an additional metric in assessing business performance and an important measure of operating performance and cash flow, providing useful information to help analyze and compare profitability between companies for investors and analysts.

The following table provides a summary of the differences between Grey Wolf's consolidated IFRS and Non-IFRS financial measures, which are reconciled below:

EBITDA and Adjusted EBITDA

About Grey Wolf Animal Health Corp.‎

Grey Wolf Animal Health Corp., headquartered in Toronto, Canada, is a diversified health ‎company founded by a veterinarian to bring to market a broad portfolio of products that meets the ‎unmet needs of veterinarians, physicians and patients.  The Company's strategy is to in-license, acquire or compound prescription and non-prescription products for commercialization in the animal and human health market ‎in Canada. For additional information, please visit: www.greywolfah.com.‎

Neither the 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 included in this press release contains forward-looking information with the meaning of applicable Canadian securities laws. This information includes statements concerning the Company's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan", "continue", or similar expressions suggesting future outcomes or events or the negative thereof. Such forward-looking information reflects management's beliefs and is based on information currently available. All forward-looking information in this press release is qualified by the following cautionary statements.

Forward-looking information necessarily involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the Company's control, affect the operations, performance and results of the Company and its subsidiaries, and cause actual results to differ materially from current expectations of estimated or anticipated events or results.

A more detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the Risk Factors section of Grey Wolf's Management Discussion and Analysis for the three- and twelve-months ended December 31, 2024. The forward-looking information included in this press release is made as of the date hereof and should not be relied upon as representing the Company's views as of any date subsequent to the date hereof. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

SOURCE Grey Wolf Animal Health Corp.