Crescita Therapeutics™ Reports 2017 Fourth Quarter and Year End Results

MISSISSAUGA, ON, March 28, 2018

F2017 Year-over-Year Financial Highlights

• Revenue¹ of $12.0 million, up $8.5 million versus F2016, including $3.3 million of up-front and milestone payments;
• Adjusted EBITDA^1,2 of $(4.4) million, an improvement of $9.0 million versus F2016;
• Net loss of $(11.5)^1,3 million, a reduction of $5.4 million versus F2016;
• Net loss per share from continuing operations^1,3 of $(0.81) a $0.38 improvement versus F2016;
• Non-cash goodwill and intangible assets impairment of $5.7 million recorded in connection to the INTEGA Acquisition;
• Cash position of $7.0 million after paying down long-term debt and other obligations by $4.2 million.

Q4-F2017 Year-over-Year Financial Highlights

• Revenue of $2.3 million versus $2.2 million in Q4-F2016;
• Adjusted EBITDA² of $(2.0), improved by $2.0 million versus Q4-F2016;
• Net loss per share from continuing operations³ of $(0.59), versus $(0.33) in Q4-F2016;
• Cash position of $7.0 million.

"Fiscal 2017 was a year of many operational and financial challenges for Crescita.  We are proud of the progress we have made over the last year. We have refocused our corporate strategy, realigned our resources and have signed certain strategic agreements, such as the acquisition of the Alyria^® product line and the out-licensing of the Pliaglis^® U.S. rights to Taro, all of which will be pivotal to securing Crescita's future," said Serge Verreault, President of Crescita.  

Mr. Verreault added, "While still in a loss position, we have improved our Adjusted EBITDA by $9.0 million year-over-year, we have paid down our long-term debt and other obligations by $4.2 million, and, most recently, we have completed our Rights Offering, raising gross proceeds of approximately $3.7 million. This additional cash now affords us the flexibility and agility to successfully execute our strategic growth plan and deliver shareholder value going forward as we work towards making Crescita a leading North-American skincare company." 

¹ The F2017 results reflect the full year's impact of the INTEGA acquisition, versus only four months in F2016 due to the timing of the acquisition.
²Adjusted EBITDA is a non-IFRS measure. This term is defined as earnings (loss) from continuing operations before interest, income taxes (recovery), depreciation and amortization, gain on debt renegotiations, net, equity-settled stock-based compensation (SBC), goodwill and intangible assets impairment, accretion on the fair value of inventory, and foreign currency (gains) and losses.  Please refer to the Non-IFRS Financial Measures and Adjusted EBITDA Reconciliation sections of this press release.
³Net loss and net loss per share from continuing operations for F2017 and Q4-F2017 included a non-cash goodwill and intangible assets impairment of $5.7 million.