from Volatus Aerospace Corp. (isin : CA92865G1054)
Volatus Releases Q1 2024 Financial Results and Provides General Corporate Update
Services Revenue increases by 39% and Gross Margin increases to 34%.
TORONTO, ON / ACCESSWIRE / May 28, 2024 / Volatus Aerospace Corp. (TSXV:VOL)(OTCQB:VLTTF) ("Volatus" or "the Company"), a leader in the aerial intelligence industry, is pleased to announce its financial results for the three months ended March 31, 2024.
The Company generated revenues of $6,623,741 for the three months ended Mar 31, 2024, with a 34% gross margin, and adjusted EBITDA improvement of $378,215 between Q1 2023 and Q1 2024.
Q1 2024 Performance Highlights:
- Service Revenue increased by 39% from $2.78M in Q1 2023 to $3.9M.
- Gross profit was $2,225,757. In Q1 2024, the Company successfully increased its gross margin percentage from 32% in Q1 2023 to 34%. This growth in the gross margin is a direct result of our strategic shift towards higher efficiency operations and an optimized product mix. Notably, the significant increase in our aerial intelligence service activities has been a key driver of this improvement.
- Available cash on hand on December 31, 2023, was $1,040,925, and as part of a subsequent event, the Company raised additional $950,000 on May 21, 2024. The temporary limitation in growth working capital led to a decline in equipment revenue by 40% in the current quarter.
- The Comprehensive loss of ($2,991,319) in Q1 2024 compared to ($3,003,365) Q1 2023. The increase in loss is due to higher depreciation expenses and interest charges.
- Adjusted EBITDA improved by 22% to ($1,380,119) from ($1,785,335) in Q1 2023. Efficiency measures implemented in late Q3 2023 will continue to be realised over the next few quarters. Management feels that adjusted EBITDA is an efficient measure of the performance of the Company.
Notable Operational Accomplishments During the Quarter:
- Continued expansion in the UK with the strategic acquisition of UAV Hub and Drone Mentor.
- Continued expansion in oil and gas sector in the U.S. by leveraging advanced technological applications such as optical gas inspections and magnetometry
- Secured work for the inspection of 11,000 structures in the US utility sector.
- Expanded LiDAR services in Eastern Canada and secured work in the growing façade and building envelope inspections sector in the U.S.
Webinar
In conjunction with this release, Volatus investor relations will host a webinar on Thursday, May 30 th at 8:30 AM EST at which time Glen Lynch, Chief Executive Officer, and Abhinav Singhvi, Chief Financial Officer, will review financial results and major milestones with Danielle Gagne, Head of Corporate Communications as moderator. Investors are invited to register for the webinar here .
https://us06web.zoom.us/webinar/register/WN_toHGFuw3S7etj0PEFajy9Q
Audio Replay Options
An audio replay of the event will be archived on the Investor Relations page of the company's website here .
SUMMARY OF RESULTS
| Three months ended March 31 | ||||||||
| 2024 | 2023 | |||||||
Revenue | $ | 6,623,741 | $ | 7,412,480 | ||||
Direct costs | $ | 4,397,985 | 5,045,802 | |||||
Gross Profit | 2,225,757 | 2,366,678 | ||||||
OPERATING EXPENSES | ||||||||
Advertising & marketing | $ | 293,339 | 406,118 | |||||
IT & tech | $ | 256,802 | 185,095 | |||||
Personnel | $ | 2,196,722 | 2,156,297 | |||||
R&D | $ | 11,840 | 100,420 | |||||
Office cost | $ | 583,199 | 892,539 | |||||
Travel | $ | 57,621 | 94,285 | |||||
External partner cost | $ | 200,072 | 274,013 | |||||
Depreciation and amortization | $ | 1,098,088 | 745,136 | |||||
Share based Payments | $ | 126,822 | 176,401 | |||||
| 4,824,504 | 5,030,304 | |||||||
(Loss) from Operations | (2,598,748 | ) | (2,663,626 | ) | ||||
OTHER ITEMS - INCOME/(EXPENSE) | ||||||||
Finance cost | $ | (379,106 | ) | (312,982 | ) | |||
Other income (expense) | $ | (10,168 | ) | (1,558 | ) | |||
Gain (Loss) on disposal of property and equipment | $ | (7,184 | ) | (10,511 | ) | |||
Foreign exchange translation | $ | 3,887 | (14,688 | ) | ||||
Net Loss | $ | (2,991,319 | ) | $ | (3,003,365 | ) | ||
Total comprehensive Income (loss) for the period attributable to: | ||||||||
Owners of Volatus Aerospace Corp. | (2,915,143 | ) | (2,611,890 | ) | ||||
Non-controlling interest | (76,176 | ) | (391,475 | ) | ||||
| (2,991,319 | ) | (3,003,365 | ) | |||||
SUMMARY OF QUARTERLY RESULTS
| Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | |||||||||||||||||||||||||
Revenue | 6,623,741 | 10,500,995 | 8,274,349 | 8,684,991 | 7,412,480 | 7,213,129 | 11,120,589 | 6,629,593 | ||||||||||||||||||||||||
Direct Cost | 4,397,985 | 7,700,881 | 5,265,775 | 5,724,516 | 5,045,802 | 5,190,979 | 7791145 | 4728672.918 | ||||||||||||||||||||||||
Gross Profit | 2,225,757 | 2,800,114 | 3,008,574 | 2,960,475 | 2,366,678 | 2,022,150 | 3,329,444 | 1,900,920 | ||||||||||||||||||||||||
| 33.60 | % | 26.67 | % | 36.36 | % | 34.09 | % | 31.93 | % | 28.03 | % | 29.94 | % | 28.67 | % | |||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||
Advertising & marketing | 293,339 | 278,781 | 541,635 | 629,686 | 406,118 | 575,539 | 599,285 | 591,365 | ||||||||||||||||||||||||
IT & tech | 256,802 | 28,439 | 243,602 | 211,960 | 185,095 | 164,260 | 140,392 | 110,775 | ||||||||||||||||||||||||
Personnel | 2,196,722 | 1,312,983 | 1,727,086 | 1,788,347 | 2,156,297 | 1,552,913 | 1,393,606 | 1,565,456 | ||||||||||||||||||||||||
R&D | 11,840 | 771,861 | 104,832 | 364,263 | 100,420 | 541,023 | - | - | ||||||||||||||||||||||||
Office cost | 583,199 | 605,396 | 722,276 | 610,650 | 892,539 | 490,740 | 378,474 | 416,589 | ||||||||||||||||||||||||
Travel | 57,621 | 126,710 | 90,804 | 167,364 | 94,285 | 144,372 | 140,622 | 54,456 | ||||||||||||||||||||||||
External partner cost | 200,072 | 436,686 | 243,443 | 326,979 | 274,013 | 602,171 | 403,238 | 168,371 | ||||||||||||||||||||||||
Depreciation | 1,098,088 | 1,647,364 | 843,744 | 797,487 | 745,136 | 604,849 | 270,081 | 300,511 | ||||||||||||||||||||||||
Share based Payments | 126,822 | 173,671 | 195,372 | 178,361 | 176,401 | 340,761 | 330,918 | 290,103 | ||||||||||||||||||||||||
| 4,824,504 | 5,381,891 | 4,712,793 | 5,075,097 | 5,030,304 | 5,016,628 | 3,656,616 | 3,497,626 | |||||||||||||||||||||||||
(Loss) from Operations | 2,598,748 | (2,581,777 | ) | (1,704,219 | ) | (2,114,622 | ) | (2,663,626 | ) | (2,994,477 | ) | (327,172 | ) |