ADULT USE CANNABIS REVENUE INCREASES 27% FROM PRIOR QUARTER AND
FIFTH CONSECUTIVE QUARTER OF POSITIVE ADJUSTED EBITDA
Net Revenue Increases 5% from Prior Quarter
and 18% from Prior Year Quarter
Adjusted EBITDA from
Cannabis Operations of $9.3 Million
Increased 55% from Prior Quarter
Cash Cost Per Gram
Remained Below $1 and Decreased 5%
from Prior Quarter to $0.88
LEAMINGTON, ON, July 29, 2020 /CNW/ - Aphria Inc.
("Aphria" or the "Company") (TSX: APHA) (Nasdaq:
APHA), a leading global cannabis company, today reported its
financial results for the fourth quarter and fiscal year ended
May 31, 2020. All amounts are
expressed in Canadian dollars, unless otherwise noted and except
for per gram, kilogram, kilogram equivalents, and per share
amounts.
"At Aphria, we are setting ourselves apart from the rest of the
cannabis industry," said Irwin D.
Simon, Chairman and Chief Executive Officer. "We have
generated some of the strongest sales growth, we have one of the
strongest balance sheets and cash positions, compelling consumer
brands and a well-diversified global business. We are grateful for
the dedication of our employees for whom our commitment to protect
their safety is unwavering and remains a founding principle of our
company. Our strong finish to fiscal year 2020 demonstrates that
this was a transformative year for Aphria, as our net revenue
increased 129% from fiscal year 2019. We continue to focus on
capturing strong market share in Canada by executing upon our strategic plan
and positioning Aphria as a leader in category innovation. With
exciting new product categories and line extensions
launching in the very near future, we believe our award-winning
adult-use portfolio remains unmatched in the industry. By building
on this foundation, we remain focused on the highest return
opportunities for growth and long-term value creation."
Key Operating Highlights - Fourth Quarter Fiscal 2020
- Gross revenue for adult-use cannabis of $56.7 million in the fourth quarter, an increase
of 27% from prior quarter and the fifth consecutive quarter of
growth.
- Net cannabis revenue of $53.1
million in the fourth quarter, an increase of 81% from prior
year quarter.
- Net revenue of $152.2 million in
the fourth quarter, an increase of 18% from prior year quarter and
increase of 5% from prior quarter.
- Cash cost to produce dried cannabis per gram of $0.88 in the fourth quarter, a decrease of 5%
from prior quarter.
- Adjusted EBITDA of $8.6 million
in the fourth quarter, an increase of 49% from the prior
quarter.
- Adjusted EBITDA from cannabis operations of $9.3 million in the fourth quarter, an increase
of 55% from the prior quarter.
- Ended fourth quarter with a strong balance sheet and liquidity,
including $497.2 million of cash and
cash equivalents to fund planned Canadian and International
growth.
- Received its European Union Good Manufacturing Practices ("EU
GMP") certification from the Malta Medicines Authority ("MMA") at
the Company's subsidiary, ASG Pharma Ltd., providing the Company
with the ability to ship finished dried flower and finished oil for
medicinal and research use in permitted jurisdictions throughout
the European Union and strengthening the Company's leadership in
the region.
- Liquidated $39 million Promissory
Note from GA Opportunities Corp. for proceeds of approximately
$26 million.
- Reduced debt and eliminated $6.7
million in annual cash interest costs by repurchasing an
aggregate of approximately $127.5
million convertible senior notes at a 25% discount to their
face value, using shares issued at a 31% premium to Aphria's
closing market price as of May 7,
2020.
- Recorded a non-cash impairment of $64.0
million in the fourth quarter, which is largely attributable
to measures taken with respect to certain of the Company's
international businesses in response to the COVID-19 pandemic.
- Recognized for Executive Gender Diversity by Globe and
Mail's inaugural Report on Business Women Lead Here
list, an annual benchmark of executive gender diversity in
corporate Canada.
Key Operating Highlights - Fiscal Year 2020
- Gross revenue for adult-use cannabis of $150.4 million in 2020, an increase of 307% from
2019.
- Gross cannabis revenue of $204.7
million in 2020, an increase of 129% from $89.4 million in 2019.
- Net revenue of $543.3 million in
2020, an increase of 129% from $237.1
million in 2019.
- Cash cost to produce dried cannabis per gram of $1.04 in 2020, a decrease of 24.1% from
2019.
- Positive Adjusted EBITDA of $17.2
million in 2020, compared to a loss of $27.7 million in 2019.
- Adjusted EBITDA from cannabis operations of $20.1 million in 2020, compared to a loss of
$17.5 million in 2019.
Subsequent Events
- Aphria transferred its stock exchange listing from the New York
Stock Exchange to The Nasdaq Global Select Market ("Nasdaq") on
June 8, 2020. This transition did not
impact the Company's primary listing on the Toronto Stock Exchange
(TSX: APHA).
- Aphria, Emblem Cannabis Corporation ("Emblem"), and Aleafia
Health Inc. (TSX: AH, OTC: ALEAF) amicably settled their
outstanding dispute related to the termination of the parties'
wholesale cannabis supply agreement on June
25, 2020, ending any and all potential claims and litigation
against and between Aphria, Emblem, and Aleafia Health relating to
the supply agreement.
- Filed Prospectus supplement for $100
million (USD) At-the-Market program.
Key Financial Highlights
(In thousands of Canadian
dollars)
|
|
|
|
|
|
|
Three months
ended
|
Three months
ended
|
|
Twelve months
ended
|
Twelve months
ended
|
|
May 31,
2020
|
May 31,
2019
|
|
May 31,
2020
|
May 31,
2019
|
Net
revenue
|
$152,203
|
$128,568
|
|
$543,339
|
$237,110
|
Gross
profit
|
$47,390
|
$36,007
|
|
$191,975
|
$75,421
|
Adjusted cannabis
gross profit 1
|
$28,079
|
$15,165
|
|
$87,233
|
$40,596
|
Adjusted cannabis
gross margin 1
|
52.9%
|
53.0%
|
|
50.1%
|
53.3%
|
Adjusted distribution
gross profit 1
|
$11,947
|
$12,274
|
|
$46,526
|
$19,805
|
Adjusted distribution
gross margin 1
|
12.1%
|
12.4%
|
|
12.6%
|
12.5%
|
Net income
(loss)
|
($98,843)
|
$15,760
|
|
($84,634)
|
($16,499)
|
Adjusted EBITDA
1
|
$8,558
|
$209
|
|
$17,232
|
($27,720)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4-2020
|
Q3-2020
|
|
|
|
Distribution
revenue
|
$99,137
|
$88,308
|
|
|
|
Net cannabis
revenue
|
$53,066
|
$55,566
|
|
|
|
Net
revenue
|
$152,203
|
$144,424
|
|
|
|
Kilograms (or
kilogram equivalents) sold 1
|
12,557
|
14,014
|
|
|
|
Cash cost to produce
dried cannabis / gram1
|
$0.88
|
$0.93
|
|
|
|
"All-in" cost of
goods sold / gram1
|
$1.69
|
$1.69
|
|
|
|
Adjusted EBITDA from
cannabis operations 1
|
$9,360
|
$6,031
|
|
|
|
Adjusted EBITDA from
businesses under development 1
|
($2,745)
|
($2,859)
|
|
|
|
Adjusted EBITDA from
distribution operations 1
|
$1,943
|
$2,564
|
|
|
|
Cash and cash
equivalents & marketable securities
|
$497,222
|
$515,102
|
|
|
|
Working
capital
|
$732,908
|
$746,572
|
|
|
|
Capital and
intangible asset expenditures -wholly-owned
subsidiaries1
|
$25,569
|
$23,839
|
|
|
|
Source: Aphria Inc.
May 31, 2020 MD&A1
|
___________________
|
1
|
In this press
release, reference is made to adjusted cannabis gross profit,
adjusted cannabis gross margin, adjusted distribution gross profit,
adjusted distribution gross margin, adjusted EBITDA, adjusted
EBITDA from cannabis operations, adjusted EBITDA from distribution
operations, adjusted EBITDA from businesses under development, gram
equivalents, cash costs to produce dried cannabis per gram,
"all-in" cost of sales of dried cannabis per gram and capital and
intangible asset expenditures – wholly-owned subsidiaries, which
are not measures of financial performance under International
Financial Reporting Standards (IFRS). These metrics and measures
are not recognized measures under IFRS, do not have meanings
prescribed under IFRS and are as a result unlikely to be comparable
to similar measures presented by other companies. These measures
are provided as information complimentary to those IFRS measures by
providing a further understanding of our operating results from the
perspective of management. As such, these measures should not be
considered in isolation or in lieu of review of our financial
information reported under IFRS. Definitions and reconciliations
for all terms above can be found in the Company's Management's
Discussion and Analysis for the year ended May 31, 2020, filed on
SEDAR and EDGAR.
|
Net revenue for the three months ended May 31, 2020 was $152.2
million, an increase of 18% from $128.6 million in the same period last year.
Fourth quarter fiscal year 2020 net revenue was 5% higher when
compared to the prior quarter net revenue of $144.4 million, due to increases in net
distribution revenue and net cannabis revenue. Net revenue included
10,831 kilogram equivalents sold for the adult-use market, 1,273
kilogram equivalents for medical cannabis sales and 453 kilogram
equivalents sold in the wholesale market.
The average retail selling price of medical cannabis (exclusive
of wholesale), before excise tax, increased to $6.63 per gram in the quarter, compared to
$6.41 in the prior quarter. The
average selling price of adult-use cannabis, before excise tax,
decreased to $5.23 per gram in the
quarter, compared to $5.47 per gram
in the prior quarter, primarily as a result of a change in sales
mix and price reductions in key markets to solidify market
share.
Adjusted cannabis gross profit for the fourth quarter was
$28.1 million, with an adjusted
cannabis gross margin of 52.9%, compared to $23.7 million and 42.7% in the prior quarter. The
increase in adjusted cannabis gross margin was primarily due to the
increase in the higher margin adult-use sales to wholesale
transaction ratio in the current quarter, and higher usage of the
lower-cost cannabis produced by Aphria versus purchased
cannabis.
Adjusted distribution gross profit for the fourth quarter was
$11.9 million, with an adjusted
distribution gross margin of 12.1%, compared to $11.4 million and 12.9% in the prior quarter. The
decrease in adjusted distribution gross margin was primarily
related to the impacts of COVID-19 on sales mix.
Selling, general, and administrative costs in the quarter
increased to $116.6 million from
$50.9 million in the prior quarter
and $60.0 million in the prior year.
The increase was mainly related to $64.0
million of impairment charges recorded in the fourth
quarter, which is largely attributable to the COVID-19 pandemic
measures taken with respect to certain of the Company's
international businesses in response to the COVID-19 pandemic,
whereas none was recorded in the prior quarter or the same quarter
of the prior year.
Net loss for the fourth quarter of fiscal year 2020 was
$98.8 million, or a loss of
$0.39 per share, compared to net
income of $5.7 million, or
$0.02 per share in the prior quarter,
and net income of $15.8 million, or
$0.05 per share for the same period
last year. The decrease in net income was a result of the non-cash
impairment recognized in the fourth quarter as mentioned above as
well as non-operating losses mainly driven by changes in fair value
of long-term investments and convertible debentures, resulting from
a decline in the trading prices of the securities of participants
in the cannabis market.
Adjusted EBITDA increased by $2.8
million to $8.6 million for
the fourth quarter compared to $5.7
million in the prior quarter. Adjusted EBITDA from cannabis
operations for the fourth quarter was $9.3 million compared to $6.0 million in the prior quarter. The adjusted
EBITDA loss from businesses under development for the fourth
quarter was $2.7 million compared to
a loss of $2.9 million in the
prior quarter. Adjusted EBITDA from distribution operations for the
fourth quarter was $1.9 million,
compared to $2.6 million the prior
quarter.
The Company ended the fourth quarter with a strong balance
sheet, including $497.2 million of
cash and cash equivalents.
ATM ("At-the-Market") Program Established
The Company also announced today that it has established an
at-the-market equity program (the "ATM Program") under which
the Company may from time to time sell an aggregate of up to
US$100,000,000 (or its Canadian
dollar equivalent) of its common shares ("Common Shares")
through the Agents (as defined below). Any Common Shares sales
under the ATM Program will be made through "at-the-market
distributions" as defined in National Instrument 44-102 and sold
through the Toronto Stock Exchange (the "TSX"), the NASDAQ
Global Select Market (the "NASDAQ") or any other marketplace
on which the Common Shares are listed, quoted or otherwise traded,
at the prevailing market price at the time of sale. Sales may also
be made in privately negotiated transactions.
The ATM Program will be effective until the earlier of
December 22, 2021 and the issuance
and sale of all of the Common Shares issuable pursuant to the ATM
Program, unless terminated prior to such date by the Company or the
Agents. Aphria intends to use the net proceeds from the ATM
Program, if any, to fund Canadian and international expansion,
working capital and general corporate purposes or to repay
indebtedness. As Common Shares distributed in the ATM Program will
be issued and sold at the prevailing market price at the time of
the sale, or in privately negotiated transactions, prices may vary
among purchasers during the period of the distribution.
Distributions of the Common Shares through the ATM Program will
be made pursuant to the terms of an equity distribution agreement
dated July 29, 2020 among the
Company, Jefferies LLC and Canaccord Genuity LLC, as U.S. agents
and Canaccord Genuity Corp. and Jefferies Securities, Inc., as
Canadian agents (collectively, the "Agents").
The offering under the ATM Program will be made only pursuant to
a prospectus supplement dated July 29,
2020 (the "Prospectus Supplement") to the Company's
Canadian base shelf prospectus (the "Shelf Prospectus")
dated November 22, 2019, and pursuant
to a prospectus supplement dated July 29,
2020 (the "U.S. Prospectus Supplement") to the
Company's U.S. base prospectus (the "U.S. Base Prospectus")
dated November 22, 2019 and included
in its registration statement on Form F-10, as amended (the
"Registration Statement") (File No. 333-233426). The
Registration Statement was declared effective by the United States
Securities and Exchange Commission (the "SEC") on
November 26, 2019. The Prospectus
Supplement and the Shelf Prospectus are available on the SEDAR
website maintained by the Canadian Securities Administrators
at www.sedar.com, and the U.S. Prospectus Supplement, the U.S.
Base Prospectus and the Registration Statement are available on
EDGAR at the SEC's website at www.sec.gov. Alternatively, the
agents will send copies of the Prospectus Supplement and the Shelf
Prospectus, or the U.S. Prospectus Supplement and the U.S. Base
Prospectus, as applicable, upon request by contacting in the U.S.:
Jefferies LLC, Attention: Equity Syndicate Prospectus Department,
520 Madison Avenue, 2nd Floor, New York,
NY 10022, by phone at (877) 821-7388, or by e-mail at
Prospectus_Department@Jefferies.com or Canaccord Genuity LLC,
Attention: Syndicate Department, 99 High Street, Suite 1200,
Boston, MA 02110, Attn: Equity
Syndicate Department, by telephone at (617) 371-3900 or by e-mail
at prospecuts@cgf.com; or in Canada: Canaccord Genuity Corp., 161 Bay
Street, Suite 3000, P.O. Box 516, Toronto, ON Canada M5J 2S1, Attention: Syndication, phone:
1-416-869-7368, email: ecm@canaccordgenuity.com or Jefferies
Securities, Inc., 161 Bay Street, Suite 2700, Toronto, ON Canada M5J 2S1, Attention: Steven Latimer, phone: 416-572-2215.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy the Common Shares, nor shall there
be any sale of these securities in any state or jurisdiction in
which such an offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction.
Conference Call
Aphria executives will host a conference call to discuss these
results today at 9:00 am Eastern
Time. To listen to the live call, dial (888) 231-8191 from
Canada and the U.S. or (647)
427-7450 from International locations and use the passcode 3439698.
A telephone replay will be available approximately two hours after
the call concludes through August 29,
2020. To access the recording dial 1-855-859-2056 and use
the passcode 3439698.
There will also be a simultaneous, live webcast available on the
Investors section of Aphria's website at aphriainc.com. The webcast
will be archived for 30 days.
We Have A Good Thing Growing
About Aphria Inc.
Aphria Inc. is a leading global cannabis company driven by an
unrelenting commitment to our people, the planet, product quality
and innovation. Headquartered in Leamington, Ontario – the greenhouse capital
of Canada – Aphria Inc. has been
setting the standard for the low-cost production of high-quality
cannabis at scale, grown in the most natural conditions possible.
Focusing on untapped opportunities and backed by the latest
technologies, Aphria Inc. is committed to bringing breakthrough
innovation to the global cannabis market. The Company's portfolio
of brands is grounded in expertly-researched consumer insights
designed to meet the needs of every consumer segment. Rooted in our
founders' multi-generational expertise in commercial agriculture,
Aphria Inc. drives sustainable long-term shareholder value through
a diversified approach to innovation, strategic partnerships and
global expansion.
For more information, visit: aphriainc.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain
information in this news release constitutes forward-looking
information or forward-looking statements (together,
"forward-looking statements") under applicable securities laws and
are expressly qualified by this cautionary statement. Any
information or statements that are contained in this news release
that are not statements of historical fact may be deemed to be
forward-looking statements, including, but not limited to,
statements in this news release with regards to the anticipating
timing for the release of new product offerings, Aphria's market
position, ability to generate consistent growth, and net revenue
and adjusted EBITDA. The Company uses words such as
"forecast", "future", "should", "could", "enable", "potential",
"contemplate", "believe", "anticipate", "estimate", "plan",
"expect", "intend", "may", "project", "will", "would" and the
negative of these terms or similar expressions to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. Various
assumptions were used in drawing the conclusions contained in the
forward-looking statements throughout this news release.
Forward-looking statements reflect management's current
beliefs with respect to future events and are based on information
currently available to management including based on reasonable
assumptions, estimates, internal and external analysis and opinions
of management considering its experience, perception of trends,
current conditions and expected developments as well as other
factors that management believes to be relevant as at the date such
statements are made. Forward-looking statements involve significant
known and unknown risks and uncertainties. Many factors could cause
actual results, performance or achievement to be materially
different from any future forward-looking statements. Factors that
may cause such differences include, but are not limited to, risks
associated with COVID-19 nationally and globally which could have a
material adverse impact on Aphria's business, operations and
financial results, including disruptions in cultivation and
processing, supply chains and sales channels, as well as a
deterioration of general economic conditions including national
and/or global recessions and the response of governments to the
COVID-19 pandemic in respect of the operation of retail stores;
general economic conditions; adverse industry events; marketing
costs; loss of markets; future legislative and regulatory
developments involving cannabis or otherwise affecting Aphria's
business or its consumers generally; inability to access sufficient
capital from internal and external sources, and/or inability to
access sufficient capital on favorable terms; the cannabis industry
in Canada generally; income tax
and regulatory matters, including delays in the issuance of
licenses; the sale and distribution of vapes; the ability of Aphria
to meet its liquidity requirements to fund ongoing operations; the
ability of Aphria to implement its business strategies;
competition; crop failure; safety of derivative cannabis products;
currency and interest rate fluctuations.
Readers are cautioned that the foregoing list is not exhaustive
and should consider as other factors discussed under the heading
"Risk Factors" in Aphria's most recent Annual Information Form and
under the heading "Industry Trends and Risks" in Aphria's
Management's Discussion and Analysis for the three and twelve
months ended May 31, 2020, each
available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those
anticipated.
The forward-looking statements included in this news release are
made as of the date of this news release and the Company does not
undertake an obligation to publicly update such forward-looking
statements to reflect new information, subsequent events or
otherwise unless required by applicable securities laws. Neither
TSX nor its Regulation Services Provider (as that term is defined
in the policies of Toronto Stock Exchange) accepts responsibility
for the adequacy or accuracy of this release.
The schedule below is an excerpt of Aphria Inc.'s financial
statements prepared on a basis consistent with IFRS for the three
and twelve months ended on May 31,
2020 and filed on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov. This schedule does not contain all of the
information in Aphria Inc.'s financial statements that is important
to you. You should read the financial statements and Management's
Discussion and Analysis carefully to obtain a comprehensive
understanding of Aphria Inc.'s financial statements and notes
thereto under IFRS and related information.
Aphria
Inc. Consolidated Statements of Income and Comprehensive
Income (In thousands of Canadian dollars, except share and
per share amounts)
|
|
|
|
|
|
|
For the year
ended
May 31,
|
|
|
|
|
|
|
Note
|
2020
|
2019
|
Cannabis
revenue
|
|
|
|
$
204,736
|
$
89,383
|
Distribution
revenue
|
|
|
|
369,214
|
157,931
|
Insurance
recovery
|
|
|
|
1,000
|
--
|
Excise
taxes
|
|
|
|
(31,611)
|
(10,204)
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
|
|
543,339
|
237,110
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
|
5
|
64,972
|
36,446
|
Cost of cannabis
purchased
|
|
|
|
21,920
|
--
|
Cost of goods
purchased
|
|
|
|
322,688
|
138,126
|
|
|
|
|
|
|
|
|
|
Gross profit
before fair value adjustments
|
|
|
|
133,759
|
62,538
|
|
|
|
|
|
|
|
|
|
Fair value adjustment
on sale of inventory
|
|
|
5
|
57,039
|
27,724
|
Fair value adjustment
on growth of biological assets
|
|
|
6
|
(115,255)
|
(40,607)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
191,975
|
75,421
|
Operating
expenses:
|
|
|
|
|
|
General and
administrative
|
|
|
23
|
99,977
|
69,752
|
Share-based
compensation
|
|
|
|
24
|
22,500
|
26,080
|
Amortization
|
|
|
|
21,747
|
14,084
|
Selling
|
|
|
|
21,042
|
4,961
|
Marketing and
promotion
|
|
|
|
20,464
|
23,010
|
Research and
development
|
|
|
|
2,568
|
1,391
|
Impairment
|
|
|
10
|
63,971
|
58,039
|
Transaction
costs
|
|
|
|
5,763
|
23,259
|
|
|
|
|
|
|
|
258,032
|
220,576
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
|
(66,057)
|
(145,155)
|
|
|
|
|
|
|
|
|
|
Finance income
(expense), net
|
|
|
25
|
(26,347)
|
6,575
|
Non-operating income,
net
|
|
|
26
|
11,687
|
122,935
|
Loss before income
taxes
|
|
|
|
(80,717)
|
(15,645)
|
|
|
|
|
|
|
|
|
|
Income taxes
(recovery)
|
|
|
15
|
3,917
|
854
|
Net
loss
|
|
|
|
(84,634)
|
(16,499)
|
|
|
|
|
|
|
|
|
|
Other
comprehensive loss
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
(1,150)
|
(119)
|
Comprehensive
loss
|
|
|
|
$
(85,784)
|
$
(16,618)
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income (loss) attributable to:
|
|
|
|
|
Shareholders of Aphria
Inc.
|
|
|
|
(91,961)
|
(14,667)
|
Non-controlling
interests
|
|
|
22
|
6,177
|
(1,951)
|
|
|
|
|
|
|
|
$
(85,784)
|
$
(16,618)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares - basic
|
|
|
|
257,914,589
|
242,763,558
|
Weighted average
number of common shares - diluted
|
|
|
|
257,914,589
|
242,763,558
|
|
|
|
|
|
|
|
|
|
Loss per share -
basic
|
|
|
28
|
$
(0.33)
|
$
(0.07)
|
Loss per share -
diluted
|
|
|
28
|
$
(0.33)
|
$
(0.07)
|
Aphria
Inc. Consolidated Statements of Income and Comprehensive
Income (In thousands of Canadian dollars, except share and
per share amounts)
|
|
|
|
|
|
|
For the
three months
May 31,
|
|
|
|
|
|
|
|
2020
|
2019
|
Cannabis
revenue
|
|
|
|
|
$
65,461
|
$
34,306
|
Distribution
revenue
|
|
|
|
|
99,137
|
99,186
|
Excise
taxes
|
|
|
|
|
(12,395)
|
(4,924)
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
|
|
|
152,203
|
128,568
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
|
|
|
18,917
|
13,113
|
Cost of cannabis
purchased
|
|
|
|
6,070
|
--
|
Cost of goods
purchased
|
|
|
|
|
87,190
|
87,270
|
|
|
|
|
|
|
|
|
|
Gross profit
before fair value adjustments
|
|
|
40,026
|
28,185
|
|
|
|
|
|
|
|
|
|
Fair value adjustment
on sale of inventory
|
|
|
20,979
|
9,649
|
Fair value adjustment
on growth of biological assets
|
|
|
(28,343)
|
(17,471)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
47,390
|
36,007
|
Operating
expenses:
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
27,676
|
26,191
|
Share-based
compensation
|
|
|
|
4,855
|
3,084
|
Amortization
|
|
|
|
|
5,491
|
4,528
|
Selling
|
|
|
|
|
8,311
|
2,949
|
Marketing and
promotion
|
|
|
|
|
3,853
|
2,625
|
Research and
development
|
|
|
576
|
294
|
Impairment
|
|
|
|
|
63,971
|
--
|
Transaction
costs
|
|
|
|
|
1,859
|
20,329
|
|
|
|
|
|
|
|
116,592
|
60,000
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
|
|
(69,202)
|
(23,993)
|
|
|
|
|
|
|
|
|
|
Finance income
(expense), net
|
|
|
|
(8,732)
|
(2,918)
|
Non-operating income,
net
|
|
|
|
(23,032)
|
43,124
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
|
|
(100,966)
|
16,213
|
|
|
|
|
|
|
|
|
|
Income taxes
(recovery)
|
|
|
|
|
(2,123)
|
453
|
Net
loss
|
|
|
|
|
(98,843)
|
15,760
|
|
|
|
|
|
|
|
|
|
Other
comprehensive loss
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
1,580
|
(58)
|
Comprehensive
loss
|
|
|
|
|
$
(97,263)
|
$
15,702
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income (loss) attributable to:
|
|
|
|
Shareholders of Aphria
Inc.
|
|
|
|
(104,904)
|
16,862
|
Non-controlling
interests
|
|
|
|
|
7,641
|
(1,160)
|
|
|
|
|
|
|
|
$
(97,263)
|
$
15,702
|
Aphria
Inc. Consolidated Statements of Financial
Position (In thousands of Canadian dollars)
|
|
|
|
|
Note
|
May 31,
2020
|
May 31,
2019
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
|
$
497,222
|
$
550,797
|
Marketable
securities
|
|
--
|
20,199
|
Accounts
receivable
|
|
55,796
|
25,488
|
Prepaids and other
current assets
|
4
|
42,983
|
23,391
|
Inventory
|
5
|
264,321
|
91,529
|
Biological
assets
|
6
|
28,341
|
18,725
|
Promissory notes
receivable
|
14
|
--
|
39,200
|
Current portion of
convertible notes receivable
|
11
|
14,626
|
11,500
|
|
|
|
|
|
903,289
|
780,829
|
Capital
assets
|
8
|
587,163
|
503,898
|
Intangible
assets
|
9
|
363,037
|
392,056
|
Convertible notes
receivable
|
11
|
--
|
20,730
|
Interest in equity
investees
|
12
|
--
|
9,311
|
Long-term
investments
|
13
|
27,016
|
64,922
|
Goodwill
|
10
|
617,934
|
669,846
|
|
|
|
|
|
$
2,498,439
|
$
2,441,592
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Bank
indebtedness
|
16
|
$
537
|
$ --
|
Accounts payable and
accrued liabilities
|
|
152,750
|
105,813
|
Income taxes
payable
|
|
6,410
|
2,722
|
Deferred
revenue
|
|
902
|
23,678
|
Current portion of
lease liabilities
|
|
1,315
|
--
|
Current portion of
long-term debt
|
17
|
8,467
|
6,332
|
|
|
|
|
|
170,381
|
138,545
|
Long-term
liabilities
|
|
|
|
Lease
liabilities
|
|
5,828
|
--
|
Long-term
debt
|
17
|
129,637
|
60,895
|
Convertible
debentures
|
18
|
270,783
|
421,366
|
Deferred tax
liability
|
15
|
83,468
|
87,633
|
|
|
|
|
|
660,097
|
708,439
|
Shareholders'
equity
|
|
|
|
Share
capital
|
19
|
1,846,938
|
1,655,273
|
Warrants
|
20
|
360
|
1,336
|
Share-based payment
reserve
|
|
27,721
|
36,151
|
Accumulated other
comprehensive loss
|
|
(1,269)
|
(119)
|
Retained earnings
(deficit)
|
|
(61,215)
|
12,103
|
|
|
|
|
|
1,812,535
|
1,704,744
|
Non-controlling
interests
|
22
|
25,807
|
28,409
|
|
|
|
|
|
1,838,342
|
1,733,153
|
|
|
|
|
|
$
2,498,439
|
$
2,441,592
|
|
For the three
months
ended May 31,
|
For the year
ended
May 31,
|
2020
|
2019
|
2020
|
2019
|
Net income
(loss)
|
$
(98,843)
|
$
15,760
|
$
(84,634)
|
$
(16,499)
|
Income taxes
(recovery)
|
(2,123)
|
453
|
3,917
|
854
|
Finance (income)
expense, net
|
8,732
|
2,918
|
26,347
|
(6,575)
|
Non-operating
(income) loss, net
|
23,032
|
(43,124)
|
(11,687)
|
(122,935)
|
Amortization
|
14,439
|
8,611
|
49,271
|
22,940
|
Share-based
compensation
|
4,855
|
3,084
|
22,500
|
26,080
|
Fair value adjustment
on sale of inventory
|
20,979
|
9,649
|
57,039
|
27,724
|
Fair value adjustment
on growth of biological assets
|
(28,343)
|
(17,471)
|
(115,255)
|
(40,607)
|
Impairment
|
63,971
|
--
|
63,971
|
58,039
|
Transaction
costs
|
1,859
|
20,329
|
5,763
|
23,259
|
Adjusted EBITDA from
businesses under development
|
2,745
|
5,514
|
13,385
|
16,240
|
Adjusted EBITDA from
distribution operations
|
(1,943)
|
(3,872)
|
(10,511)
|
(6,036)
|
Adjusted EBITDA
from cannabis operations
|
$
9,360
|
$
1,851
|
$
20,106
|
$
(17,516)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended May 31,
|
For the year
ended
May 31,
|
2020
|
2019
|
2020
|
2019
|
Adjusted EBITDA from
cannabis operations
|
$
9,360
|
$
1,851
|
$
20,106
|
$
(17,516)
|
Adjusted EBITDA from
businesses under development
|
(2,745)
|
(5,514)
|
(13,385)
|
(16,240)
|
Adjusted EBITDA from
distribution operations
|
1,943
|
3,872
|
10,511
|
6,036
|
Adjusted
EBITDA
|
$
8,558
|
$
209
|
$
17,232
|
$
(27,720)
|
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SOURCE Aphria Inc.