Full Year 2024 Adacel Technologies Ltd Earnings Call Transcript
Key Points
- Secured multiple significant contracts, including a $59 million FAA contract and a $27 million US Air Force contract.
- Increased revenues to $31 million from $27.3 million in the previous year.
- Achieved a target of signing over $100 million in new orders for the Maxim product and related services.
- Strong backlog for FY 2025 with recent five-year renewals and new contract awards.
- Optimistic EBITDA forecast for FY 2025, ranging between $4 million and $5 million.
- Operational inefficiencies and delays in contract timing impacted in-year profitability.
- Consolidated gross margin decreased from $8.8 million to $7.2 million.
- Normalized EBITDA dropped significantly from $2.9 million to $1.1 million.
- Recorded a non-cash impairment loss of $1.9 million related to remote tower assets.
- Ended the year with a net overdraft position of $1.9 million compared to net cash of $0.9 million the previous year.
Thank you, and good morning, everyone. Thank you for attending our call this morning. I'll open with a few brief comments and then hand the call over to Daniel. It was both a frustrating and disappointing year. The team did a terrific job securing a number of important and large contracts. That's the good news. Regrettably, the timing of the contracts were delayed relative to our internal plans and expectations, resulting in operational efficiencies and a consequent impact on in-year profitability.
However, as we look forward to fiscal year '25, we are optimistic given the multiple significant contract wins, the ongoing management efforts to optimize our cost structure, and a robust pipeline of new opportunities. Notably, those related to revolve our product targeted at the remote tower space. Accordingly, we are forecasting fiscal year 2025 EBITDA to be in the range of USD4 million to USD5 million.
I'll now turn the call over to Daniel Verret, our Chief Executive Officer. Daniel?
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