Reviv3 Procare Posts Record Financial Results for the First Quarter of Fiscal 2023
Generated record first-quarter revenue of $4.2 million, up 405% year-over-year.
Gross profit increased to $3.3 million compared to $0.47 million for the same comparable period.
Total net cash increase of over $1.8 million.
Net income before provisions for income taxes of $0.25 million compared to a loss of $0.016 million in the prior year quarter.
LOS ANGELES, Oct. 12, 2022 (GLOBE NEWSWIRE) — Reviv3 Procare Company (OTCQB: RVIV), an emerging global e-commerce brand in the hair care, skin protection and enhancement products industry hearing, today announced its financial and operating results for the first quarter of fiscal 2023.
First Quarter Fiscal 2023 Financial Summary
Revenues for the three months ended August 31, 2022 and 2021 were $4,237,358 and $839,272, respectively representing an increase of 405% for the comparable period. The increase is mainly due to the acquisition of the hearing protectors and enhancements business, in accordance with the asset purchase agreement, which was finalized in June 2022.
Cost of sales for the first quarter was $954,704 compared to $363,896 in the prior year quarter. Cost of sales as a percentage of sales was 23%, compared to 43% year-over-year, primarily due to improved profit margins from the sale of protection products and improved hearing.
Gross profit for the first quarter was $3,282,654 compared to $475,376 in the prior year quarter. Gross margin as a percentage of sales was 77%, compared to 57% for the same comparable period in fiscal 2022, primarily due to improved margins in hearing protection and enhancement products.
Net cash provided by operating activities for the first quarter was $807,633.
As a result of the above, we reported a profit of $250,280 before provision for income taxes compared to a loss of $16,039 before provision for income taxes for the comparable three months of the previous year.
“Our entire team delivered exceptional results in the first quarter of fiscal 2023, including record revenues, gross profit and net profit despite ongoing supply chain constraints and raw material issues,” said commented CEO Jeff Toghraie.
“The impact of our recent acquisition of AXIL assets was immediate and exceeded our expectations. Our existing and planned new AXIL product offerings will play a critical role in advancing our fiscal 2023 revenue and profitability goals. For our second quarter, as we continue to improve our business fundamentals, we remain optimistic and expect revenues to exceed $4,600,000.
Wes Harris, Founder of AXIL and Chief Innovation Officer of Reviv3, said, “Our recent performance and future plans are possible because of the talented and hard work of our teams. As we continue to offer AXIL’s best product portfolio to our growing customer base, we look forward to introducing unique and superior innovations to existing and new markets. We believe that the combination of our current product demand and our new product offerings provides tremendous avenue for growth and will deliver significant value to our customers and shareholders.
About Reviv3 Procare Company
Reviv3 Procare Company (OTCQB: RVIV) is an emerging global consumer e-commerce company. The company is a direct-to-consumer distributor of premium hair care and skin care products under its in-house brand Reviv3 Procare and hearing enhancement and protection products, including earplugs, earmuffs and headphones, under the AXIL brand – selling products in the United States, Canada, European Union and throughout Asia. For more information, please visit the Company’s website at www.reviv3.com and, for the AXIL brand, visit www.goaxil.com.
This press release contains a number of forward-looking statements within the meaning of the federal securities laws. The use of words such as “plans”, “expects”, “intends”, “plans”, “will”, “may”, “should”, “could”, “would”, “Guidance”, “Outlook”, “Confident that”, and “Believes”, among others, generally identify forward-looking statements.
These forward-looking statements are based on currently available information and management’s current beliefs, projections and expectations, and are subject to a number of important risks and uncertainties, many of which are beyond management’s control. and may affect the results, performance or achievements of Reviv3. differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, among others: (i) Reviv3’s ability to increase net sales as expected and operate as expected; (ii) our ability to generate sufficient revenue to support Reviv3’s operations and to raise additional funds or obtain other forms of financing as needed on acceptable terms, or at all; (iii) potential difficulties or delays that Reviv3 may encounter in implementing its cost reduction and efficiency initiatives, including the integration of the AXIL brand; (iv) Reviv3’s ability to compete effectively against other hair care and skin care companies and hearing enhancement and protection companies; (v) the concentration of Reviv3’s customers, potentially increasing the negative impact on Reviv3 by changing buying or selling habits; (vi) changes in laws or regulations in the United States and/or other major markets, such as China, in which Reviv3 operates, including, without limitation, with respect to taxes, tariffs, trade policies or product safety, which may increase Reviv3’s product costs and other costs of doing business, and reduce Reviv3’s revenues; and (vi) the impact of market instability and general economic conditions on Reviv3’s business, financial condition and share price, including cost inflationary pressures, decline in discretionary consumer spending, supply chain disruptions and constraints, labor shortages, ongoing economic disruptions, including the effects of the Ukraine-Russia conflict and the continued impact of COVID-19, and other downturns in the business cycle or economy. There can be no assurance as to any of these, and prospective investors are urged to carefully consider these factors when evaluating any forward-looking statements. Other important factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the company’s filings with the United States Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Except as required by law, Reviv3 undertakes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.
Selected preliminary financial results for the quarter ending November 30, 2022 in this press release are preliminary, do not constitute a complete statement of financial results for this quarter, and are provided prior to the completion of all review and disclosure procedures. internal and external audit and, therefore, are subject to adjustment. Actual results may differ from these estimates, and the variations could be material. Among the factors that could cause or contribute to material differences between the Company’s actual results and the expectations indicated by the forward-looking statements are risks and uncertainties, which include, but are not limited to: changes in the financial results of the Company for the quarter ending November 30, 2022 due to the completion of financial close procedures, final adjustments and other developments that may occur between now and the finalization and issuance of the Company’s financial statements for the quarter and other risks and uncertainties described above and in the Company’s filings with the Securities and Exchange Commission.
Reviv3 PR Team
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