Lumenpulse Growing and Making New Acquisitions
Above Industry Growth Rate
Lumenpulse Inc. today released its financial results for the third quarter and nine-month period ended January 31, 2016.
“Our results for the third quarter were spearheaded by the impressive performance of our U.S. operations, which grew 88%, well above the industry growth rate, reflecting the traction of our innovative and expanding product portfolio and the strength of our distribution channels,” said Francois-Xavier Souvay, President and CEO of Lumenpulse.
“Q3 Adjusted Lumenpulse Products Gross Margin attained 50.8%, up from 45.2% over the same period last year due to the continued leverage of our manufacturing capabilities and productivity initiatives. Adjusted EBITDA for the quarter was $3.6 million or 10.1% of total revenues representing a notable improvement over the $1.4 million or 5.3% reported for the same period last year.
Acquisitions in Italy and Canada
“In recent months, we were active on the M&A front with the acquisition of Exenia s.r.l. based in Italy, which adds complementary LED products in the retail, hospitality and museum sectors. This acquisition also allows us to access a well-established network of 14 Italian agents and 13 European VARs, which in turn should increase the penetration of our brands in Italy and the rest of Europe.
“Today, in a separate press release, we announced the acquisition of Canadian company Fluxwerx for an initial consideration of $60 million, which could reach $85 million based on an earn-out payment, which is subject to certain conditions. The merging of our organizations represents a major milestone, which we believe will be transformational for the Lumenpulse Group, creating one of the most exciting and innovative companies in the LED lighting industry.
“Over the next few quarters, we look forward to the integration of our recent acquisitions as we see tremendous cross-selling and technology synergies, new opportunities via a larger addressable market, expanded geographic access and the benefit of new management sharing our vision and goals,” added Mr. Souvay.
“We remain in a solid financial position which allows us to continue the execution of our growth strategy. We had $41.3 million in cash and cash equivalents at quarter-end, of which a substantial portion was used to acquire Fluxwerx. Recently we entered into a new revolving credit agreement of up to $40 million allowing us to maintain our operational flexibility,” added Peter Timotheatos, Executive Vice-President and Chief Financial Officer.
“Our objectives remain to continue growing Lumenpulse’s business at a rate that exceeds the growth rate in the general lighting market for LED products, and, within the next four years, to converge towards market growth, to maintain an Adjusted Gross Margin of approximately 50% and ultimately to deliver Adjusted EBITDA margins of approximately 18% to 20%,” concluded Mr. Souvay.