Gaithersburg, MD, March 22, 2021 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTC Pink: VRUS) reported financial results for the fiscal 2020 fourth quarter and fiscal year ended October 31, 2020. In conjunction with this release, the Company is also providing additional details on significant business developments subsequent to the quarter’s end.
For fiscal Q4 and full fiscal year 2020, management is noting the following items of importance:
- Revenue set a record of $21.7 million during fiscal year 2020, compared to $13.6 million of revenue reported during fiscal year 2019, representing a 60% year-over-year increase;
- Fiscal Q4 2020 revenue totaled $4.8 million, nearly identical to the $4.7 million reported during fiscal Q4 2019;
- Gross profit margin was 12.3% for fiscal Q4 2020, lower than historical averages due to the business transitions taking place during the quarter;
- Operating expenses of $1.2 million were flat compared to the prior quarter (Q3/2020) and 64% lower than fiscal Q4 2019, primarily due to the completion of the former CEO’s stock-based compensation program;
- Operating loss of $0.6 million was 77% lower than the $2.6 million reported in fiscal Q4 2019;
- Net loss was $4.5 million, which was impacted by an aggregate of $3.9 million of non-cash expenses; and
- Stockholders’ equity achieved a new record at $1.4 million, which is significantly higher than the $0.9 million stockholders’ deficit reported at fiscal year-end October 31, 2019.
For fiscal year 2020, the Company posted a 60% increase in annual revenue, with the majority of this increase coming from the international food business. Due to the divestment and discontinuation of business units that were operational during fiscal year 2020, Verus expects to realize significant reductions in operating costs for the remainder of 2021, with the full impact of these reductions beginning in Q2 of fiscal year 2021.
“We are changing the business model at Verus away from the capital-intensive product development that required significant funding and many quarters to reach profitability,” explained Verus CEO Andy Dhruv. “We have now exited the business units that fit that historical profile and have simplified our operations into two core categories: international food and CBD products. During fiscal year 2021, we plan to add a third category, with selective distribution of third-party products where the margins make sense. We’ve been in cost-reduction mode for a number of months, which investors will see in future quarters. We believe that this combination of high margin, quick turnaround products and reduced operating and inventory costs will better position us to become profitable on an ongoing basis. The next step in our plan is to reestablish revenue growth, so that will be a primary goal for the remainder of the year.”
Operational Update
Due to the expected close proximity between the recent fiscal year 2020 10-K filing and the fiscal 1Q 2021 10-Q filing, management has elected to provide a full corporate update following the filing of its Q1/2021 results. The completion of these two financial filings will enable the Company to resume previously announced M&A discussions, all of which are active. As previously communicated, Verus expects to significantly reduce its authorized share count, but cannot finalize the reduced figure until the potential M&A has been further defined. Management cannot be certain of the outcome of these active M&A discussions, which involve companies of equal or greater size than Verus’ current operations.
About Verus International
Verus is an emerging multi-line consumer packaged goods (CPG) company developing branded product lines in the U.S. and on a global basis. The Company trades on the OTC market (OTC Pink: VRUS). Investors can find real-time quotes and market information for the Company on www.otcmarkets.com. Additional information is also available at the Company’s website, www.verusfoods.com, and via the official Twitter feed @Verus_Foods, and the Pachyderm Labs subsidiary Twitter feed @PachydermLabs.
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results could differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Contacts
Investor Contact:
MKR Group Inc.
Todd Kehrli or Mark Forney
vrus@mkr-group.com