Baylin Announces Strong Financial Results for Fiscal 2024
Revenue increased $10.5 million or 14.4% over fiscal 2023.
Gross profit increased $6.0 million or 21.1% over fiscal 2023.
Adjusted EBITDA(2) increased $5.6 million over fiscal 2023.
Gross margin of 41.1%, an increase of 5.7% over fiscal 2023.
Investor Conference Call on March 20, 2025 at 10:00 a.m. ET
TORONTO, March 19, 2025 /CNW/ - Baylin Technologies Inc. (TSX:BYL) (OTCQB:BYLTF) (the "Company" or "Baylin"), a diversified global wireless technology company focused on the research, design, development, manufacture, and sale of passive and active radio frequency and satellite communications products, and the provision of supporting services, today announced its financial results for the three and twelve months ended December 31, 2024. All amounts are stated in Canadian dollars unless otherwise indicated.
FISCAL YEAR SUMMARY
Continuing Operations
Revenue of $83.6 million in fiscal 2024, an increase of $10.5 million or 14.4% compared to fiscal 2023. The increase was primarily due to a sales volume increase in the Embedded Antenna and Wireless Infrastructure business lines compared to the prior fiscal year.
Gross profit of $34.4 million in fiscal 2024, an increase of $6.0 million or 21.1% compared to fiscal 2023. The increase was primarily due to an increase in both revenue and higher gross margin in the Wireless Infrastructure business line.
Gross margin of 41.1% in fiscal 2024 compared to 38.9% in fiscal 2023. The higher gross margin in fiscal 2024 was due to improved product mix mainly generated by higher sales of multibeam, small cell and innovative antennas in the Wireless Infrastructure business line.
Adjusted EBITDA of $5.4 million in fiscal 2024, an increase of $5.6 million compared to negative $0.2 million in fiscal 2023. The increase in Adjusted EBITDA in fiscal 2024 was mainly due to a combination of both stronger revenue and higher gross margin discussed above.
Net loss of $8.5 million in fiscal 2024 compared to a net loss of $8.2 million in fiscal 2023. The net loss in fiscal 2024 was mainly due to an operating loss of $4.5 million, which included an impairment charge of $2.6 million for the Satcom business line, interest and other finance expenses, as well as an unfavourable adjustment of $1.5 million based on the fair market value of the Company's convertible debentures. On a per share basis, a net loss of $0.05 per share in fiscal 2024 compared to a net loss of $0.10 per share in fiscal 2023.
Net debt(3) of $14.3 million at December 31, 2024, an increase of $1.5 million from December 31, 2023.
Backlog(4) of $30.2 million at December 31, 2024 compared to $31.2 million at December 31, 2023. Backlog increased to $30.6 million at February 28, 2025.
Discontinued Operations (representing the Mobile and Network ("M&N") business line)
Adjusted EBITDA from discontinued operations of negative $1.7 million in fiscal 2024 compared to negative $2.3 million in fiscal 2023. The decreased loss in Adjusted EBITDA was primarily due to lower operating expenses of the M&N business line in the second half of fiscal 2024 as a result of the completion of sale of GTK in July 2024.
Net income from discontinued operations of $0.6 million in fiscal 2024 compared to a net loss of $5.6 million in fiscal 2023. The net income from discontinued operations in fiscal 2024 was mainly due to a gain on sale of the M&N business line in the amount of $4.1 million. On a per share basis, a net income of $nil per share in fiscal 2024 compared to a net loss of $0.06 per share in fiscal 2023.
FOURTH QUARTER SUMMARY
Continuing Operations
Revenue of $20.8 million in the fourth quarter of 2024, an increase of $4.7 million or 28.9% compared to the fourth quarter of 2023. The increase in revenue in the fourth quarter of 2024 was also due to sales volume increases in the Embedded Antenna and Wireless Infrastructure business lines.
Gross profit of $7.9 million in the fourth quarter of 2024, an increase of $2.2 million or 38.8% compared to the fourth quarter of 2023. The increase in gross profit in the fourth quarter of 2024 was also due to improved revenue and gross margin.
Gross margin of 37.9% in the fourth quarter of 2024 compared to 35.2% in the fourth quarter of 2023. The higher gross margin in the fourth quarter of 2024 was primarily attributable to stronger revenue recovery and favourable product mix in the Wireless Infrastructure business line.
Adjusted EBITDA of $1.8 million in the fourth quarter of 2024, an increase of $3.8 million compared to negative $2.0 million in the fourth quarter of 2023. The increase in Adjusted EBITDA in the fourth quarter of 2024 was also due to the increase in revenue and gross profit as discussed above and a reclassification of $2.0 million from cash based to non-cash based share compensation.
Net loss of $4.9 million in the fourth quarter of 2024 compared to a net loss of $6.9 million in the fourth quarter of 2023. The net loss in the fourth quarter of 2024 was primarily due to an operating loss of $4.4 million, which included an impairment charge of $2.6 million for the Satcom business line. On a per share basis, a net loss of $0.03 per share in the fourth quarter of 2024 compared to a net loss of $0.07 per share in the fourth quarter of 2023.
Discontinued Operations (representing the Mobile and Network business line)
Adjusted EBITDA from discontinued operations of negative $0.4 million in the fourth quarter of 2024 compared to negative $0.7 million in the fourth quarter of 2023. The decreased loss in Adjusted EBITDA was due to the reasons noted above.
Net income from discontinued operations of $3.7 million in the fourth quarter of 2024 compared to a net loss of $1.1 million in the fourth quarter of 2023. The net income from discontinued operations in the fourth quarter of 2024 was mainly due to reclassifying the gain on sale of the M&N business line to discontinued operations in this quarter. On a per share basis, a net income of $0.03 per share in the fourth quarter of 2024 compared to a net loss of $0.01 per share in the fourth quarter of 2023.
SELECTED FINANCIAL INFORMATION
The table below discloses selected financial information for the periods indicated.
(in $000's except per share amounts)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
Change
Change
2024
2023
Change
Change
$
$
$
%
$
$
$
%
Profit and Loss
Revenue
20,792
16,129
4,663
28.9 %
83,589
73,041
10,548
14.4 %
Gross profit
7,888
5,681
2,207
38.8 %
34,390
28,398
5,992
21.1 %
Gross margin
37.9 %
35.2 %
2.7 pp
7.7 %
41.1 %
38.9 %
2.2 pp
5.7 %
Net loss from continuing operations
(4,942)
(6,947)
2,005
(28.9 %)
(8,460)
(8,217)
(243)
3.0 %
Net income (loss) from discontinued operations
3,706
(1,132)
4,838
N/A
606
(5,635)
6,241
N/A
Net loss
(1,236)
(8,079)
6,843
(84.7 %)
(7,854)
(13,852)
5,998
(43.3 %)
Basic and diluted ...
