OXE Marine AB (publ) Interim report 1 January to 31 Mars 2022

Results presented in the interim report from Q1 2022 are consolidated from 16 February 2022 to 31 March 2022 following the completion of the acquisition of Diesel Outboards and Outdoor Network Manufacturing on 16 February 2022. Consolidated results include legal entities; OXE Marine AB (Sweden), OXE Marine INC (US) and OXE Marine Manufacturing INC (US). Furthermore, consolidated results do not have comparative figures as it is the first year of preparing consolidated financials. Where illustrated in the text, graphs and tables, prior year figures relate to OXE Marine AB only.

  • Consolidated Net turnover amounted to SEK 31.4 m.
  • Consolidated Gross Profit amounted to SEK 9.0 m with a gross margin of 29%.
  • Consolidated EBITDA amounted to SEK -14.9 m.
  • Consolidated EBIT amounted to SEK -21.1 m.
  • The consolidated result for the quarter amounted to SEK -23.5 m.
  • Significant events during the First quarter

The board of directors of OXE Marine AB (publ) convened an extraordinary general meeting on 16 February 2022 and proposed inter alia that the general meeting resolves to issue new shares to Power Sports Plus LLC, as payment for the shares in OXE Marine Inc and OXE Marine Manufacturing Inc.

OXE Marine AB (publ) initiated a written procedure to amend and waive certain terms in its up to MSEK 200 bonds. The proposed amendments to the Bond Terms mean that (i) the final redemption date for the bonds will be postponed by 24 months to 15 February 2025, (ii) effective from 15 August 2022, 2 percent of the quarterly interest will be paid in cash to the bondholders and the remaining interest will be quarterly compounded and added to the nominal amount of the bonds, (iii) the US Subsidiaries will be entitled to enter into a credit facility agreement of up to MUSD 5, secured by collateral in the US Subsidiaries’ inventory and (iv) OXE is allowed to create a secondary pledge over its business mortgages and over the shares in the US Subsidiaries in favour of the EIB. The EIB’s Tranche A loan of EUR 4 m will also be extended by 6 months in order to become repayable after the corporate bonds with a new maturity date of 12 March 2025.

OXE Marine AB (publ) obtained the bondholders’ approval to amend and waive certain terms in its up to MSEK 200 bonds. The required majority to approve the proposal in the written procedure has consequently been met and the proposed amendments and waivers (i) – (iv) were accepted, effectively 16 February 2022.

OXE Marine AB (publ) completed the acquisition of Diesel Outboards and Outdoor Network Manufacturing and reports from EGM. All closing conditions were satisfied, and the transaction was completed as of 16 February 2022.

As a result of the completion of the Transaction, Anders Berg commenced his new role as CEO of the Company. Anders Berg simultaneously stepped down as chair of the board while remaining a member of the board. The board resolved to elect Jonas Wikström as chair of the board until the end of the next annual general meeting.

In accordance with the resolution by the extraordinary general meeting in OXE Marine AB (publ) (the “Company”) on 16 February 2022, the Company issued 1,856,492 qualified employee stock options in the new incentive program 2022/2025 and has subscribed for the corresponding number of warrants of series 2022/2015 issued to secure the Company’s delivery of shares in the program. All options were taken up by the employees.

Significant events after the reporting period

There were no significant events after the reporting period.

A word from the CEO

“We continue the momentum with a solid quarter, significantly up from the previous year and our strongest gross margin ever achieved. With the closing of the transaction, we have laid the foundation for the execution of our new commercial model and bring OXE to the next level.”

Our overall sales performance during the quarter was solid and consolidated sales amounted to SEK 31.4 m, an increase of 211% relative to Q1 2021 of which 147% was organic growth.
Consolidated sales of propulsion units amounted to SEK 26m, an increase of 361% relative to Q1 2021 of which 273% was organic growth.
Consolidated Parts & Accessories sales (“P&A”) amounted to SEK 5.4 m, a 21% increase relative to Q1 2021. Organic growth amounted to -13% due to a large once-off order in Q1 2021. In general, we continue to see the trend of growth in our P&A business due to the increase in the global number of OXE motors in operation.
We also achieved our highest gross margin for a quarter with 29%. This is as a result of the continued development of P&A sales in combination with price increases on the OXE200 family of engines which became effective at the start of the quarter.
We spent a large portion of the quarter completing the acquisition of what is now OXE Marine INC and OXE Marine Manufacturing INC, which closed on 16 February. We therefore only consolidated the US entities for half of the quarter.
We made the announcement at the Miami International Boat Show where we hosted a live event and presented our Q4 2021 results live from Miami. In addition, we presented the OXE Water Jet and were able to exhibit our now extensive product range alongside the largest outboard manufacturers in the world.
On 28 March 2022 we launched our new organization, internally referred to as “OXE 2.0”, focusing on the roll out our new commercial model where we introduce several go-to-market routes with the customer in the center.
Anders Berg
Chief Executive Officer
This disclosure contains information that OXE Marine AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 02-05-2022 08:50 CET.
This article was shared with Prittle Prattle News as a Press Release.
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