Salona Global: Salona Global Completes Turn Around Plan with Profitable Third Quarter, Posting Record Results with 18.5% Quarterly Organic Revenue Growth and 29% Quarterly Gross Profit Growth; Generates $749,425 in Adjusted EBITDA for the Quarter

NEW YORK, Nov. 15, 2023 (GLOBE NEWSWIRE) -- Salona Global Medical Device Corporation (the ‎‎" Company ") (TSXV:SGMD), soon to be renamed Evome Medical Technologies Inc., today announced financial highlights for its third quarter, ending September 30, 2023. Financial Headlines Revenues Generated $19,647,489 in revenue for the quarter ending September 30, 2023. 18.5% increase from the previous quarter. 78.3% increase from the same period in the prior year. Profits Generated $7,268,163 in gross profit for the quarter ending September 30, 2023. 29.0% increase from the previous quarter. 128.4% increase from the same period in the prior year. Improved gross profit margins to 37% from 34% in the previous quarter. Generated $749,425 in positive Adjusted EBITDA (defined below) for the quarter ending September 30, 2023 as compared to negative Adjusted EBTIDA of $819,394 in the previous quarter, a difference of $1,568,819 for the quarter. Generated $2,998,468 in net income for the quarter ending September 30, 2023 as compared to a net loss of $1,115,843 in the previous quarter, a difference of $4,114,311 for the quarter. Acquisition Debt Reduction The Company reduced acquisition debt by US$428,237.45 in the third quarter pursuant to the previously announced forbearance agreement. On October 31, 2023, the Company further reduced its acquisition debt by making a scheduled payment. "We have succeeded in implementing our turnaround plan very quickly this quarter with fantastic results," said CEO Mike Seckler. "We had record revenue with solid organic revenue and gross profit growth. With this sales momentum I now want to focus on getting our gross profit figures up above 40%. I am also optimistic our operational challenges will be overcome and we are now assessing a pathway to eliminate our going concern issues." "Most importantly, we can now look to the future and focus on revenue growth. We have some very exciting product launches and international partnerships that look to fuel growth in 2024. I look forward to announcing our new product tomorrow and soon we will debut our entire next generation line of products." Earnings Call On Wednesday, November 15, 2023, at 4:00 p.m. (Eastern Time), CEO Mike Seckler and CFO Natalia Vakhitova will hold an earnings call (see details below) to discuss the third quarter financial results. The call-in numbers for participants are: Toll Free Dial In: +1 (800) 245-3047 Direct Dial: +1 (203) 518-9765 Conference ID: SALONA Sign up at http://tinyurl.com/salonaglobalnewsletter for updates on the Company delivered directly to your inbox. Full Financial Statements Condensed financial statements for the third quarter ending September 30, 2023 are attached at end of this release. The full financial statements and related management discussion and analysis (in the form of a quarterly report on Form 10-Q) for the three and nine months ended September 30, 2023 have been filed with the United States Securities and ‎Exchange ‎Commission and available at www.sec.gov, and with the securities regulatory authorities in certain ‎provinces of ‎Canada and available at www.sedarplus.com. For more information please contact: Mike Seckler Chief Executive Officer Tel: 1 (800) 760-6826 Email: Info@Salonaglobal.com Non-GAAP Measures This press release refers to "Adjusted EBITDA" which is a non-GAAP and non-IFRS financial ‎measure that does ‎not have a standardized meaning prescribed by GAAP or IFRS. The ‎Company's presentation of this financial ‎measure may not be comparable to similarly titled ‎measures used by other companies. This non-GAAP financial measure assists the Company's ‎management in comparing its operating performance over time because certain items may ‎obscure underlying business trends and make comparisons of long-term performance difficult, ‎as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete ‎acquisition plans that are fundamentally different from the ongoing operating plans of the ‎Company. The Company's management also believes that presenting this measure allows ‎investors to view the Company's performance using the same measures that the Company ‎uses in evaluating its financial and business performance and trends.‎ "Adjusted EBITDA" is defined as net loss excluding interest expense, provision for income ‎taxes, depreciation of property and equipment, amortization of right-of-use asset, amortization ‎of intangible asset, foreign exchange (loss) gain, other income, provision for impairment, ‎change in fair value of contingent consideration, transaction costs, and stock-based ‎compensation.‎ The following table provides reconciliation between net income (loss) and Adjusted EBITDA:‎ Additional Information Unless otherwise specified, all dollar amounts in this press release are expressed in Canadian ‎dollars.‎ 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 release. Certain statements contained in this press release constitute "forward-looking information" within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. These statements can be identified by the use of forward-looking terminology such as "expects" "believes", "estimates", "may", " would", "could", ‎‎"should", "potential", ‎‎‎‎‎"will", "seek", "intend", "plan", and "anticipate", and similar expressions as they relate ‎‎‎‎to the Company, including: the Company getting gross profit figures up above 40%; the Company launching new products in 2024, including announcing new products on November 16, 2023 and debuting an entire next generation line of products soon. All ‎statements ‎other than statements of ‎historical fact may be forward-looking‎ information. Such statements reflect the Company's current views and intentions with respect to future ‎events, and current information available to the Company, and are subject to certain risks, ‎uncertainties and assumptions, including: the Company finding additional cost restructuring opportunities and reductions. The Company cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such factors include but are not limited to the ‎‎general business and ‎‎economic ‎conditions in the regions in ‎which the Company operates; the ability of the Company to execute on key ‎‎priorities, ‎including the successful completion of acquisitions, business‎ retention, and‎‎ strategic plans and to‎‎ attract, develop ‎and retain key executives; difficulty integrating newly acquired businesses; ‎‎ongoing or new disruptions in the supply chain, the extent and scope of such supply chain disruptions, and the timing or extent of the resolution or improvement of such disruptions; the ability to‎‎‎ implement business strategies and pursue business opportunities; ‎‎disruptions in or attacks (including ‎cyber-attacks) on the Company's information technology, internet, network access or other ‎‎voice or data ‎communications systems or services; the evolution of various types of fraud or other ‎‎‎criminal behavior to which ‎ the Company is exposed; the failure of third parties to comply with their obligations to ‎‎ the Company or its ‎affiliates; the‎ impact of new and changes to, or application of, current laws and regulations; ‎granting of permits and licenses in a highly regulated business; the ‎overall difficult ‎‎‎‎‎litigation environment, including in the United States; increased competition; changes in foreign currency rates; ‎increased ‎‎‎‎funding ‎costs and market volatility due to market illiquidity and competition for funding; the ‎availability of funds ‎‎‎‎and resources to pursue operations; critical ‎accounting estimates and changes to accounting standards, policies,‎‎‎‎ and methods used by the Company; the occurrence of natural and unnatural‎‎ catastrophic ‎events ‎and claims ‎‎‎‎resulting from such events; as well as those risk factors discussed or ‎referred to ‎in the ‎Company's disclosure ‎documents filed with United States Securities and Exchange Commission ‎and ‎available at ‎www.sec.gov, and with ‎the securities regulatory authorities in certain provinces of Canada and ‎‎available at ‎www.sedarplus.ca. Should any ‎factor affect the Company in an unexpected manner, or should ‎‎assumptions underlying ‎the forward-looking ‎information prove incorrect, the actual results or events may differ ‎‎materially from the results ‎or events predicted. ‎Any such forward-looking information is expressly qualified in its ‎‎entirety by this cautionary ‎statement. Moreover, ‎the Company does not assume responsibility for the accuracy or ‎‎completeness of such ‎forward-looking ‎information. The forward-looking information included in this press release ‎‎is made as of the ‎date of this press ‎release and the Company undertakes no obligation to publicly update or revise ‎‎any forward-‎looking information, ‎other than as required by applicable law‎.‎