Record Q4 Net Revenue of $184 Million, Representing 20% Growth Year over Year, $627 Million of Net Revenue for FY2023; On a Constant Currency Basis, FY2023 Net Revenue Grew 6% to $668 Million
$8 Million of Net Cash from Operating Activities Generated for FY2023, Achieved Nearly $200 Million Improvement in Adjusted Free Cash Flow Compared to FY2022
Increased Tilray’s #1 Cannabis Market Share Position in Canada to 13% with HEXO Acquisition and Substantially Grew Medical Cannabis Market Position Across Europe
Company Issues FY2024 Guidance
Conference Call to be Held at 8:30 a.m. ET Today
NEW YORK and LEAMINGTON, Ontario, July 26, 2023 (GLOBE NEWSWIRE) — Tilray Brands, Inc. (“Tilray”, “our”, “we” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a leading global cannabis-lifestyle and consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, today reported financial results for the fourth quarter and fiscal year ended May 31, 2023. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
Irwin D. Simon, Tilray Brands’ Chairman and Chief Executive Officer, stated, “Our financial performance is demonstrative of Tilray Brands’ being the leading, most diversified cannabis lifestyle and CPG company in the world. During the 2023 fiscal year, we delivered on our commitment to generate positive adjusted free cash flow across all business segments, and executed against our strategic plan to grow revenue, drive operating efficiencies, and improve margins and profitability, all while investing in our industry-leading brands.”
Mr. Simon continued, “The recent closing of the HEXO transaction has boosted our competitive positioning in Canada, the largest, federally legalized cannabis market in the world. We are working towards a seamless integration into our efficient, built-to-last platforms as we leverage our deep CPG expertise and track record to drive both revenue and cost synergies while expanding product distribution in Canada and across international markets.”
Financial Highlights – 2023 Fiscal Fourth Quarter
Financial Highlights – 2023 Fiscal Year
Operating Highlights
Leadership in Global Cannabis Operations, Brands, and Market Share, Further Solidified through Recent HEXO Acquisition
Maximizing the High-Growth Potential of U.S. CPG and Craft-Beverage Portfolio
Fiscal Year 2024 Guidance
For its fiscal year ended May 31, 2024, the Company expects to achieve adjusted EBITDA targets of $68 million to $78 million, representing growth of 11% to 27% as compared to fiscal year 2023. In addition, the Company expects to generate positive adjusted free cash flow.
Management’s guidance for adjusted EBITDA is provided on a non-GAAP basis and excludes transaction expenses, integration charges, restructuring charges, litigation costs, start-up and closure costs, lease expense, purchase price accounting step-up, changes in fair value of contingent consideration and other items carried at fair value and other non-operating income (expenses) and other non-recurring items that may be incurred during the Company’s fiscal year 2024, which the Company will continue to identify as it reports its future financial results. Management’s guidance for adjusted free cash flow is provided on a non-GAAP basis and excludes our projected integration costs related to HEXO and the cash income taxes related to Aphria Diamond.
The Company cannot reconcile its expected adjusted EBITDA to net income or adjusted free cash flow to operating cash flow under “Fiscal Year 2024 Guidance” without unreasonable effort because of certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
Tilray Brands Strategic Growth Actions – Fiscal 2023 and to date
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
Live Conference Call and Audio Webcast
Tilray Brands will host a webcast to discuss these results today at 8:30 a.m. ET. Investors may join the live webcast available on the Investors section of the Company’s website at www.tilray.com. The webcast will also be archived after the call concludes.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people’s lives for the better – one person at a time. Tilray Brands delivers on this mission by inspiring and empowering the worldwide community to live their very best life, enhanced by moments of connection and wellbeing. Patients and consumers trust Tilray Brands to be the most responsible, trusted and market leading cannabis consumer products company in the world with a portfolio of innovative, high-quality, and beloved brands that address the needs of the consumers, customers, and patients we serve. A pioneer in cannabis research, cultivation, and distribution, Tilray Brands’ unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on Tilray Brands, visit www.Tilray.com and follow @Tilray
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by 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, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication.
Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the Company’s ability to become the world’s leading cannabis-focused consumer branded company the Company’s expectation to be free-cash flow positive in its operating business units; the Company’s ability to achieve long term profitability; the Company’s ability to achieve operational scale, market share, distribution, profitability and revenue growth in particular business lines and markets; the Company’s ability to successfully achieve revenue growth, production and supply chain efficiencies, synergies and cost savings; the Company’s ability to generate $68-$78 million of Adjusted EBITDA and expectation to be cash-flow positive in its operating business in fiscal year 2024; and the Company’s anticipated investments and acquisitions, including in organic and strategic growth, partnership efforts, product offerings and other initiatives.
Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of the Company and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of the Company made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Use of Non-U.S. GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including adjusted gross margin, Adjusted gross profit, Adjusted EBITDA, Adjusted net income and free cash flow. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company’s operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company’s Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.
Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, transaction costs, impairments, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company’s GAAP financial results.
The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company’s consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.
Adjusted EBITDA is calculated as net income (loss) before income tax benefits, net; interest expense, net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; impairments; other than temporary change in fair value of convertible notes receivable, inventory valuation adjustments, purchase price accounting step-up; facility start-up and closure costs; lease expense; litigation (recovery) costs; restructuring costs and transaction costs. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Adjusted gross profit, is calculated as gross profit adjusted to exclude the impact of inventory valuation adjustment and purchase price accounting valuation step-up. A reconciliation of Adjusted gross profit, excluding inventory valuation adjustments and purchase price accounting valuation step-up, to gross profit, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Adjusted gross margin, excluding inventory valuation adjustments and purchase price accounting valuation step-up, is calculated as revenue less cost of sales adjusted to add back inventory valuation adjustments and amortization of inventory step-up, divided by revenue. A reconciliation of Adjusted gross margin, excluding inventory valuation adjustments and purchase price accounting valuation step-up, to gross margin, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Adjusted net loss is calculated as net (loss) income plus (minus) non-operating income (expense), net, change in fair value of contingent consideration, impairments, other than temporary change in fair value of convertible notes receivable, inventory valuation adjustments, litigation (recovery) costs, and transaction (income) costs. A reconciliation of Adjusted net income, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Adjusted free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net, and the exclusion of growth CAPEX from investments in capital and intangible assets, net, which excludes the amount of capital expenditures that are considered to be associated with growth of future operations rather than to maintain the existing operations of the Company. A reconciliation of net cash flow provided by (used in) operating activities to adjusted free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Constant currency presentations of revenue are used to normalize the effects of foreign currency. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. Dollar are translated into U.S. Dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year. A reconciliation of prior year revenue to constant currency revenue the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Cash and marketable securities are comprised of two GAAP measures, cash and cash equivalents added to marketable securities. The Company’s management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its short-term liquidity position by combing these two GAAP metrics.
For further information:
Media: Berrin Noorata, news@tilray.com
Investors: Raphael Gross, +1-203-682-8253, Raphael.Gross@icrinc.com
| Consolidated Statements of Financial Position | ||||||||
| May 31, | May 31, | |||||||
| (in thousands of US dollars) | 2023 | 2022 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 206,632 | $ | 415,909 | ||||
| Marketable securities | 241,897 | — | ||||||
| Accounts receivable, net | 86,227 | 95,279 | ||||||
| Inventory | 200,551 | 245,529 | ||||||
| Prepaids and other current assets | 37,722 | 46,786 | ||||||
| Total current assets | 773,029 | 803,503 | ||||||
| Capital assets | 429,667 | 587,499 | ||||||
| Right-of-use assets | 5,941 | 12,996 | ||||||
| Intangible assets | 973,785 | 1,277,875 | ||||||
| Goodwill | 2,008,843 | 2,641,305 | ||||||
| Interest in equity investees | 4,576 | 4,952 | ||||||
| Long-term investments | 7,795 | 10,050 | ||||||
| Convertible notes receivable | 103,401 | 111,200 | ||||||
| Other assets | 222 | 314 | ||||||
| Total assets | $ | 4,307,259 | $ | 5,449,694 | ||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Bank indebtedness | $ | 23,381 | $ | 18,123 | ||||
| Accounts payable and accrued liabilities | 190,682 | 157,431 | ||||||
| Contingent consideration | 16,218 | 16,007 | ||||||
| Warrant liability | 1,817 | 14,255 | ||||||
| Current portion of lease liabilities | 2,423 | 6,703 | ||||||
| Current portion of long-term debt | 24,080 | 67,823 | ||||||
| Current portion of convertible debentures payable | 174,378 | — | ||||||
| Total current liabilities | 432,979 | 280,342 | ||||||
| Long – term liabilities | ||||||||
| Contingent consideration | 10,889 | — | ||||||
| Lease liabilities | 7,936 | 11,329 | ||||||
| Long-term debt | 136,889 | 117,879 | ||||||
| Convertible debentures payable | 221,044 | 401,949 | ||||||
| Deferred tax liabilities | 167,364 | 196,638 | ||||||
| Other liabilities | 215 | 191 | ||||||
| Total liabilities | 977,316 | 1,008,328 | ||||||
| Commitments and contingencies (see to Note 27) | ||||||||
| Stockholders’ equity | ||||||||
| Common stock ($0.0001 par value; 990,000,000 shares authorized; 656,655,455 and 532,674,887 shares issued and outstanding, respectively) | 66 | 53 | ||||||
| Additional paid-in capital | 5,777,743 | 5,382,367 | ||||||
| Accumulated other comprehensive loss | (46,610 | ) | (20,764 | ) | ||||
| Accumulated Deficit | (2,415,507 | ) | (962,851 | ) | ||||
| Total Tilray Brands, Inc. stockholders’ equity | 3,315,692 | 4,398,805 | ||||||
| Non-controlling interests | 14,251 | 42,561 | ||||||
| Total stockholders’ equity | 3,329,943 | 4,441,366 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,307,259 | $ | 5,449,694 | ||||
| Condensed Consolidated Statements of Loss | ||||||||||||||||||||||||||||||
| For the three months | For the twelve months | |||||||||||||||||||||||||||||
| ended May 31, | Change | % Change | ended May 31, | Change | % Change | |||||||||||||||||||||||||
| (in thousands of U.S. dollars, except for per share data) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||
| Net revenue | $ | 184,188 | $ | 153,325 | $ | 30,863 | 20 | % | $ | 627,124 | $ | 628,372 | $ | (1,248 | ) | (0 | )% | |||||||||||||
| Cost of goods sold | 117,025 | 160,058 | (43,033 | ) | (27 | )% | 480,164 | 511,555 | (31,391 | ) | (6 | )% | ||||||||||||||||||
| Gross profit (loss) | 67,163 | (6,733 | ) | 73,896 | (1,098 | )% | 146,960 | 116,817 | 30,143 | 26 | % | |||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||
| General and administrative | 47,774 | 41,400 | 6,374 | 15 | % | 165,159 | 162,801 | 2,358 | 1 | % | ||||||||||||||||||||
| Selling | 9,048 | 9,643 | (595 | ) | (6 | )% | 34,840 | 34,926 | (86 | ) | (0 | )% | ||||||||||||||||||
| Amortization | 21,617 | 30,846 | (9,229 | ) | (30 | )% | 93,489 | 115,191 | (21,702 | ) | (19 | )% | ||||||||||||||||||
| Marketing and promotion | 7,800 | 10,771 | (2,971 | ) | (28 | )% | 30,937 | 30,934 | 3 | 0 | % | |||||||||||||||||||
| Research and development | 180 | 54 | 126 | 233 | % | 682 | 1,518 | (836 | ) | (55 | )% | |||||||||||||||||||
| Change in fair value of contingent consideration | 292 | (15,585 | ) | 15,877 | (102 | )% | 855 | (44,650 | ) | 45,505 | (102 | )% | ||||||||||||||||||
| Impairments | — | 378,241 | (378,241 | ) | NM | 934,000 | 378,241 | 555,759 | NM | |||||||||||||||||||||
| Other than temporary change in fair value of convertible notes receivable | 64,954 | — | 64,954 | NM | 246,330 | — | 246,330 | NM | ||||||||||||||||||||||
| Litigation (recovery) costs | 1,465 | 10,029 | (8,564 | ) | (85 | )% | (505 | ) | 16,518 | (17,023 | ) | (103 | )% | |||||||||||||||||
| Restructuring costs | (1,482 | ) | — | (1,482 | ) | 0 | % | 9,245 | 795 | 8,450 | 1063 | % | ||||||||||||||||||
| Transaction (income) costs | 5,495 | (4,709 | ) | 10,204 | (217 | )% | 1,613 | 30,944 | (29,331 | ) | (95 | )% | ||||||||||||||||||
| Total operating expenses | 157,143 | 460,690 | (303,547 | ) | (66 | )% | 1,516,645 | 727,218 | 789,427 | 109 | % | |||||||||||||||||||
| Operating loss | (89,980 | ) | (467,423 | ) | 377,443 | (81 | )% | (1,369,685 | ) | (610,401 | ) | (759,284 | ) | 124 | % | |||||||||||||||
| Interest expense, net | (5,027 | ) | (5,522 | ) | 495 | (9 | )% | (13,587 | ) | (27,944 | ) | 14,357 | (51 | )% | ||||||||||||||||
| Non-operating income (expense), net | (16,680 | ) | 11,342 | (28,022 | ) | (247 | )% | (66,909 | ) | 197,671 | (264,580 | ) | (134 | )% | ||||||||||||||||
| Loss before income taxes | (111,687 | ) | (461,603 | ) | 349,916 | (76 | )% | (1,450,181 | ) | (440,674 | ) | (1,009,507 | ) | 229 | % | |||||||||||||||
| Income tax benefits, net | 8,132 | (3,803 | ) | 11,935 | (314 | )% | (7,181 | ) | (6,542 | ) | (639 | ) | 10 | % | ||||||||||||||||
| Net loss | $ | (119,819 | ) | $ | (457,800 | ) | $ | 337,981 | (74 | )% | (1,443,000 | ) | (434,132 | ) | (1,008,868 | ) | 232 | % | ||||||||||||
| Net loss per share – basic and diluted | $ | (0.15 | ) | $ | (0.99 | ) | $ | 0.84 | (85 | )% | $ | (2.35 | ) | $ | (0.99 | ) | $ | (1.36 | ) | 137 | % | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||||||
| For the twelve months | |||||||||||||||
| ended May 31, | Change | % Change | |||||||||||||
| (in thousands of US dollars) | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||
| Cash provided by (used in) operating activities: | |||||||||||||||
| Net loss | $ | (1,443,000 | ) | $ | (434,132 | ) | $ | (1,008,868 | ) | 232 | % | ||||
| Adjustments for: | |||||||||||||||
| Deferred income tax recovery | (31,953 | ) | (27,538 | ) | (4,415 | ) | 16 | % | |||||||
| Unrealized foreign exchange loss | 17,768 | 18,001 | (233 | ) | (1 | )% | |||||||||
| Amortization | 130,149 | 154,592 | (24,443 | ) | (16 | )% | |||||||||
| Gain on sale of capital assets | (48 | ) | (682 | ) | 634 | (93 | )% | ||||||||
| Inventory valuation write down | 55,000 | 67,000 | (12,000 | ) | (18 | )% | |||||||||
| Impairments | 934,001 | 378,240 | 555,761 | 147 | % | ||||||||||
| Other than temporary change in fair value of convertible notes receivable | 246,330 | — | 246,330 | 0 | % | ||||||||||
| Other non-cash items | 11,406 | (9,647 | ) | 21,053 | (218 | )% | |||||||||
| Stock-based compensation | 39,595 | 35,994 | 3,601 | 10 | % | ||||||||||
| Loss on long-term investments & equity investments | 2,190 | 4,914 | (2,724 | ) | (55 | )% | |||||||||
| Loss (gain) on derivative instruments | 31,213 | (227,583 | ) | 258,796 | (114 | )% | |||||||||
| Change in fair value of contingent consideration | 855 | (44,650 | ) | 45,505 | (102 | )% | |||||||||
| Change in non-cash working capital: | |||||||||||||||
| Accounts receivable | 4,168 | (5,842 | ) | 10,010 | (171 | )% | |||||||||
| Prepaids and other current assets | 3,122 | 4,472 | (1,350 | ) | (30 | )% | |||||||||
| Inventory | (12,934 | ) | (45,749 | ) | 32,815 | (72 | )% | ||||||||
| Accounts payable and accrued liabilities | 20,044 | (44,652 | ) | 64,696 | (145 | )% | |||||||||
| Net cash provided by (used in) operating activities | 7,906 | (177,262 | ) | 185,168 | (104 | )% | |||||||||
| Cash provided by (used in) investing activities: | |||||||||||||||
| Investment in capital and intangible assets | (20,800 | ) | (34,064 | ) | 13,264 | (39 | )% | ||||||||
| Proceeds from disposal of capital and intangible assets | 4,304 | 12,205 | (7,901 | ) | (65 | )% | |||||||||
| Change in marketable securities | (241,897 | ) | — | (241,897 | ) | 0 | % | ||||||||
| Net cash (paid for) acquired in business acquisition | (26,718 | ) | 326 | (27,044 | ) | (8296 | )% | ||||||||
| Net cash (used in) provided by investing activities | (285,111 | ) | (21,533 | ) | (263,578 | ) | 1224 | % | |||||||
| Cash provided by (used in) financing activities: | |||||||||||||||
| Share capital issued, net of cash issuance costs | 129,593 | 262,509 | (132,916 | ) | (51 | )% | |||||||||
| Proceeds from warrants and options exercised | — | 5,403 | (5,403 | ) | (100 | )% | |||||||||
| Shares effectively repurchased for employee withholding tax | (1,189 | ) | (8,686 | ) | 7,497 | (86 | )% | ||||||||
| Proceeds from convertible debentures issuance | 145,052 | — | 145,052 | 0 | % | ||||||||||
| Repayment of convertible debentures | (187,394 | ) | (88,026 | ) | (99,368 | ) | 113 | % | |||||||
| Proceeds from long-term debt | 1,288 | — | 1,288 | 0 | % | ||||||||||
| Repayment of long-term debt | (21,336 | ) | (40,254 | ) | 18,918 | (47 | )% | ||||||||
| Repayment of lease liabilities | (1,114 | ) | (4,672 | ) | 3,558 | (76 | )% | ||||||||
| Net increase in bank indebtedness | 5,258 | 9,406 | (4,148 | ) | (44 | )% | |||||||||
| Dividend paid to NCI | — | (7,484 | ) | 7,484 | (100 | )% | |||||||||
| Net cash provided by financing activities | 70,158 | 128,196 | (58,038 | ) | (45 | )% | |||||||||
| Effect of foreign exchange on cash and cash equivalents | (2,230 | ) | (1,958 | ) | (272 | ) | 14 | % | |||||||
| Net (decrease) increase in cash and cash equivalents | (209,277 | ) | (72,557 | ) | (136,720 | ) | 188 | % | |||||||
| Cash and cash equivalents, beginning of period | 415,909 | 488,466 | (72,557 | ) | (15 | )% | |||||||||
| Cash and cash equivalents, end of period | $ | 206,632 | $ | 415,909 | $ | (209,277 | ) | (50 | )% | ||||||
| Net Revenue by Operating Segment | ||||||||||||||||||||||||||||
| For the three months ended | % of Total Revenue | For the three months ended | % of Total Revenue | For the year ended | % of Total Revenue | For the year ended | % of Total Revenue | |||||||||||||||||||||
| (In thousands of U.S. dollars) | May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | ||||||||||||||||||||||||
| Cannabis business | $ | 64,413 | 35 | % | $ | 53,253 | 35 | % | $ | 220,430 | 35 | % | $ | 237,522 | 38 | % | ||||||||||||
| Distribution business | 72,612 | 39 | % | 61,160 | 39 | % | 258,770 | 41 | % | 259,747 | 41 | % | ||||||||||||||||
| Beverage alcohol business | 32,404 | 18 | % | 22,727 | 15 | % | 95,093 | 15 | % | 71,492 | 11 | % | ||||||||||||||||
| Wellness business | 14,759 | 8 | % | 16,185 | 11 | % | 52,831 | 9 | % | 59,611 | 10 | % | ||||||||||||||||
| Total net revenue | $ | 184,188 | 100 | % | $ | 153,325 | 100 | % | $ | 627,124 | 100 | % | $ | 628,372 | 100 | % | ||||||||||||
| Net Revenue by Operating Segment in Constant Currency | ||||||||||||||||||||||||||||
| For the three months ended | For the three months ended | For the year ended | For the year ended | |||||||||||||||||||||||||
| May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |||||||||||||||||||||||||
| (In thousands of U.S. dollars) | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | ||||||||||||||||||||
| Cannabis business | $ | 68,481 | 36 | % | $ | 53,253 | 35 | % | $ | 233,227 | 35 | % | $ | 237,522 | 38 | % | ||||||||||||
| Distribution business | 73,439 | 39 | % | 61,160 | 39 | % | 285,115 | 43 | % | 259,747 | 41 | % | ||||||||||||||||
| Beverage alcohol business | 32,404 | 17 | % | 22,727 | 15 | % | 95,093 | 14 | % | 71,492 | 11 | % | ||||||||||||||||
| Wellness business | 15,285 | 8 | % | 16,185 | 11 | % | 54,429 | 8 | % | 59,611 | 10 | % | ||||||||||||||||
| Total net revenue | $ | 189,609 | 100 | % | $ | 153,325 | 100 | % | $ | 667,864 | 100 | % | $ | 628,372 | 100 | % | ||||||||||||
| Net Cannabis Revenue by Market Channel | ||||||||||||||||||||||||||||
| For the three months ended | % of Total Revenue | For the three months ended | % of Total Revenue | For the year ended | % of Total Revenue | For the year ended | % of Total Revenue | |||||||||||||||||||||
| (In thousands of U.S. dollars) | May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | ||||||||||||||||||||||||
| Revenue from Canadian medical cannabis | $ | 6,080 | 9 | % | $ | 7,246 | 14 | % | $ | 25,000 | 11 | % | $ | 30,599 | 13 | % | ||||||||||||
| Revenue from Canadian adult-use cannabis | 58,256 | 90 | % | 46,869 | 88 | % | 214,319 | 97 | % | 209,501 | 88 | % | ||||||||||||||||
| Revenue from wholesale cannabis | 750 | 1 | % | 141 | 0 | % | 1,436 | 1 | % | 6,904 | 3 | % | ||||||||||||||||
| Revenue from international cannabis | 15,725 | 25 | % | 14,095 | 26 | % | 43,559 | 20 | % | 53,887 | 23 | % | ||||||||||||||||
| Less excise taxes | (16,398 | ) | -25 | % | (15,098 | ) | -28 | % | (63,884 | ) | -29 | % | (63,369 | ) | -27 | % | ||||||||||||
| Total | $ | 64,413 | 100 | % | $ | 53,253 | 100 | % | $ | 220,430 | 100 | % | $ | 237,522 | 100 | % | ||||||||||||
| Net Cannabis Revenue by Market Channel in Constant Currency | ||||||||||||||||||||||||||||
| For the three months ended | For the three months ended | For the year ended | For the year ended | |||||||||||||||||||||||||
| May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |||||||||||||||||||||||||
| (In thousands of U.S. dollars) | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | as reported in constant currency | % of Total Revenue | ||||||||||||||||||||
| Revenue from Canadian medical cannabis products | $ | 6,519 | 10 | % | $ | 7,246 | 14 | % | $ | 26,612 | 11 | % | $ | 30,599 | 13 | % | ||||||||||||
| Revenue from Canadian adult-use cannabis products | 62,917 | 92 | % | 46,869 | 88 | % | 225,694 | 97 | % | 209,501 | 88 | % | ||||||||||||||||
| Revenue from wholesale cannabis products | 803 | 1 | % | 141 | 0 | % | 1,529 | 1 | % | 6,904 | 3 | % | ||||||||||||||||
| Revenue from international cannabis products | 15,807 | 23 | % | 14,095 | 26 | % | 47,434 | 20 | % | 53,887 | 23 | % | ||||||||||||||||
| Less excise taxes | (17,565 | ) | -26 | % | (15,098 | ) | -28 | % | (68,042 | ) | -29 | % | (63,369 | ) | -27 | % | ||||||||||||
| Total | $ | 68,481 | 100 | % | $ | 53,253 | 100 | % | $ | 233,227 | 100 | % | $ | 237,522 | 100 | % | ||||||||||||
| Other Financial Information: Gross Margin and Adjusted Gross Margin | ||||||||||||||||||||
| For the three months ended May 31, 2023 | ||||||||||||||||||||
| (In thousands of U.S. dollars) | Cannabis | Beverage | Distribution | Wellness | Total | |||||||||||||||
| Net revenue | $ | 64,413 | $ | 32,404 | $ | 72,612 | $ | 14,759 | $ | 184,188 | ||||||||||
| Cost of goods sold | 24,955 | 15,838 | 65,866 | 10,366 | 117,025 | |||||||||||||||
| Gross profit | 39,458 | 16,566 | 6,746 | 4,393 | 67,163 | |||||||||||||||
| Gross margin | 61 | % | 51 | % | 9 | % | 30 | % | 36 | % | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Purchase price accounting step-up | — | 1,259 | — | — | 1,259 | |||||||||||||||
| Adjusted gross profit | 39,458 | 17,825 | 6,746 | 4,393 | 68,422 | |||||||||||||||
| Adjusted gross margin | 61 | % | 55 | % | 9 | % | 30 | % | 37 | % | ||||||||||
| For the three months ended May 31, 2022 | ||||||||||||||||||||
| (In thousands of U.S. dollars) | Cannabis | Beverage | Distribution | Wellness | Total | |||||||||||||||
| Net revenue | $ | 53,253 | $ | 22,727 | $ | 61,160 | $ | 16,185 | $ | 153,325 | ||||||||||
| Cost of goods sold | 72,342 | 11,359 | 65,138 | 11,219 | 160,058 | |||||||||||||||
| Gross profit | (19,089 | ) | 11,368 | (3,978 | ) | 4,966 | (6,733 | ) | ||||||||||||
| Gross margin | -36 | % | 50 | % | -7 | % | 31 | % | -4 | % | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Inventory valuation adjustments | 47,500 | — | 7,500 | — | 55,000 | |||||||||||||||
| Purchase price accounting step-up | — | 2,214 | — | — | 2,214 | |||||||||||||||
| Adjusted gross profit | 28,411 | 13,582 | 3,522 | 4,966 | 50,481 | |||||||||||||||
| Adjusted gross margin | 53 | % | 60 | % | 6 | % | 31 | % | 33 | % | ||||||||||
| For the twelve months ended May 31, 2023 | ||||||||||||||||||||
| (In thousands of U.S. dollars) | Cannabis | Beverage | Distribution | Wellness | Total | |||||||||||||||
| Net revenue | $ | 220,430 | $ | 95,093 | $ | 258,770 | $ | 52,831 | $ | 627,124 | ||||||||||
| Cost of goods sold | 162,755 | 48,770 | 231,309 | 37,330 | 480,164 | |||||||||||||||
| Gross profit | 57,675 | 46,323 | 27,461 | 15,501 | 146,960 | |||||||||||||||
| Gross margin | 26 | % | 49 | % | 11 | % | 29 | % | 23 | % | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Inventory valuation adjustments | 55,000 | — | — | — | 55,000 | |||||||||||||||
| Purchase price accounting step-up | — | 4,482 | — | — | 4,482 | |||||||||||||||
| Adjusted gross profit | 112,675 | 50,805 | 27,461 | 15,501 | 206,442 | |||||||||||||||
| Adjusted gross margin | 51 | % | 53 | % | 11 | % | 29 | % | 33 | % | ||||||||||
| For the twelve months ended May 31, 2022 | ||||||||||||||||||||
| (In thousands of U.S. dollars) | Cannabis | Beverage | Distribution | Wellness | Total | |||||||||||||||
| Net revenue | $ | 237,522 | $ | 71,492 | $ | 259,747 | $ | 59,611 | $ | 628,372 | ||||||||||
| Cost of goods sold | 194,834 | 32,033 | 243,231 | 41,457 | 511,555 | |||||||||||||||
| Gross profit | 42,688 | 39,459 | 16,516 | 18,154 | 116,817 | |||||||||||||||
| Gross margin | 18 | % | 55 | % | 6 | % | 30 | % | 19 | % | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Inventory valuation adjustments | 59,500 | — | 7,500 | — | 67,000 | |||||||||||||||
| Purchase price accounting step-up | — | 2,214 | — | — | 2,214 | |||||||||||||||
| Adjusted gross profit | 102,188 | 41,673 | 24,016 | 18,154 | 186,031 | |||||||||||||||
| Adjusted gross margin | 43 | % | 58 | % | 9 | % | 30 | % | 30 | % | ||||||||||
| Other Financial Information: Adjusted Earnings Before Interest, Taxes and Amortization | ||||||||||||||||||||||||||||||
| For the three months ended May 31, | Change | % Change | For the year ended May 31, | Change | % Change | |||||||||||||||||||||||||
| (In thousands of U.S. dollars) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||
| Net (loss) income | $ | (119,819 | ) | $ | (457,800 | ) | $ | 337,981 | (74 | )% | $ | (1,443,000 | ) | $ | (434,132 | ) | $ | (1,008,868 | ) | 232 | % | |||||||||
| Income tax benefits, net | 8,132 | (3,803 | ) | 11,935 | (314 | )% | (7,181 | ) | (6,542 | ) | (639 | ) | 10 | % | ||||||||||||||||
| Interest expense, net | 5,027 | 5,522 | (495 | ) | (9 | )% | 13,587 | 27,944 | (14,357 | ) | (51 | )% | ||||||||||||||||||
| Non-operating income (expense), net | 16,680 | (11,342 | ) | 28,022 | (247 | )% | 66,909 | (197,671 | ) | 264,580 | (134 | )% | ||||||||||||||||||
| Amortization | 28,993 | 40,768 | (11,775 | ) | (29 | )% | 130,149 | 154,592 | (24,443 | ) | (16 | )% | ||||||||||||||||||
| Stock-based compensation | 9,829 | 8,969 | 860 | 10 | % | 39,595 | 35,994 | 3,601 | 10 | % | ||||||||||||||||||||
| Change in fair value of contingent consideration | 292 | (15,585 | ) | 15,877 | (102 | )% | 855 | (44,650 | ) | 45,505 | (102 | )% | ||||||||||||||||||
| Impairments | – | 378,241 | (378,241 | ) | (100 | )% | 934,000 | 378,241 | 555,759 | 147 | % | |||||||||||||||||||
| Other than temporary change in fair value of convertible notes receivable | 64,954 | – | 64,954 | NM | 246,330 | – | 246,330 | NM | ||||||||||||||||||||||
| Inventory valuation adjustments | – | 55,000 | (55,000 | ) | (100 | )% | 55,000 | 67,000 | (12,000 | ) | (18 | )% | ||||||||||||||||||
| Purchase price accounting step-up | 1,259 | 2,214 | (955 | ) | (43 | )% | 4,482 | 2,214 | 2,268 | 102 | % | |||||||||||||||||||
| Facility start-up and closure costs | 700 | 3,300 | (2,600 | ) | (79 | )% | 7,600 | 13,700 | (6,100 | ) | (45 | )% | ||||||||||||||||||
| Lease expense | 700 | 700 | – | 0 | % | 2,800 | 3,100 | (300 | ) | (10 | )% | |||||||||||||||||||
| Litigation (recovery) costs | 1,465 | 10,029 | (8,564 | ) | (85 | )% | (505 | ) | 16,518 | (17,023 | ) | (103 | )% | |||||||||||||||||
| Restructuring costs | (1,482 | ) | – | (1,482 | ) | NM | 9,245 | 795 | 8,450 | 1,063 | % | |||||||||||||||||||
| Transaction costs | 5,495 | (4,709 | ) | 10,204 | (217 | )% | 1,613 | 30,944 | (29,331 | ) | (95 | )% | ||||||||||||||||||
| Adjusted EBITDA | $ | 22,225 | $ | 11,504 | $ | 10,721 | 93 | % | $ | 61,479 | $ | 48,047 | $ | 13,432 | 28 | % | ||||||||||||||
| Other Financial Information: Adjusted Net Loss | ||||||||||||||||||||||||||||||
| For the three months ended May 31, | Change | % Change | For the year ended May 31, | Change | % Change | |||||||||||||||||||||||||
| (In thousands of U.S. dollars) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||
| Net (loss) income | $ | (119,819 | ) | $ | (457,800 | ) | $ | 337,981 | (74 | )% | $ | (1,443,000 | ) | $ | (434,132 | ) | $ | (1,008,868 | ) | 232 | % | |||||||||
| Non-operating income (expense), net | 16,680 | (11,342 | ) | 28,022 | (247 | )% | 66,909 | (197,671 | ) | 264,580 | (134 | )% | ||||||||||||||||||
| Change in fair value of contingent consideration | 292 | (15,585 | ) | 15,877 | (102 | )% | 855 | (44,650 | ) | 45,505 | (102 | )% | ||||||||||||||||||
| Impairments | – | 378,241 | (378,241 | ) | (100 | )% | 934,000 | 378,241 | 555,759 | 147 | % | |||||||||||||||||||
| Other than temporary change in fair value of convertible notes receivable | 64,954 | – | 64,954 | NM | 246,330 | – | 246,330 | NM | ||||||||||||||||||||||
| Inventory valuation adjustments | – | 55,000 | (55,000 | ) | (100 | )% | 55,000 | 67,000 | (12,000 | ) | (18 | )% | ||||||||||||||||||
| Litigation (recovery) costs | 1,465 | 10,029 | (8,564 | ) | (85 | )% | (505 | ) | 16,518 | (17,023 | ) | (103 | )% | |||||||||||||||||
| Restructuring costs | (1,482 | ) | – | (1,482 | ) | NM | 9,245 | 795 | 8,450 | 1063 | % | |||||||||||||||||||
| Transaction costs | 5,495 | (4,709 | ) | 10,204 | (217 | )% | 1,613 | 30,944 | (29,331 | ) | (95 | )% | ||||||||||||||||||
| Adjusted net loss | $ | (32,415 | ) | $ | (46,166 | ) | $ | 13,751 | (30 | )% | $ | (129,553 | ) | $ | (182,955 | ) | $ | 53,402 | (29 | )% | ||||||||||
| Adjusted net loss per share – basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | 0.00 | (46 | )% | $ | (0.21 | ) | $ | (0.38 | ) | $ | 0.17 | (45 | )% | ||||||||||
| Other Financial Information: Free Cash Flow | ||||||||||||||||||||||||||||||
| For the three months ended May 31, | Change | % Change | For the year ended May 31, | Change | % Change | |||||||||||||||||||||||||
| (In thousands of U.S. dollars) | 2023 | 2022 | 2023 vs. 2022 | 2023 | 2022 | 2023 vs. 2022 | ||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 43,598 | $ | (20,524 | ) | $ | 64,122 | (312 | )% | $ | 7,906 | $ | (177,262 | ) | $ | 185,168 | (104 | )% | ||||||||||||
| Less: investments in capital and intangible assets, net | (10,277 | ) | (4,915 | ) | (5,362 | ) | 109 | % | (16,496 | ) | (21,859 | ) | 5,363 | (25 | )% | |||||||||||||||
| Free cash flow | 33,321 | (25,439 | ) | 58,760 | (231 | )% | (8,590 | ) | (199,121 | ) | 190,531 | (96 | )% | |||||||||||||||||
| Add: growth CAPEX | 9,850 | 631 | 9,219 | 1461 | % | 9,850 | 11,506 | (1,656 | ) | (14 | )% | |||||||||||||||||||
| Adjusted free cash flow | 43,171 | (24,808 | ) | 67,979 | (274 | )% | 1,260 | (187,615 | ) | 188,875 | (101 | )% | ||||||||||||||||||
| Other Financial Information: Key Operating Metrics | ||||||||||||||||
| For the three months ended May 31, | For the years ended May 31, | |||||||||||||||
| (in thousands of U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net cannabis revenue | $ | 64,413 | $ | 53,253 | $ | 220,430 | $ | 237,522 | ||||||||
| Net beverage alcohol revenue | 32,404 | 22,727 | 95,093 | 71,492 | ||||||||||||
| Distribution Revenue | 72,612 | 61,160 | 258,770 | 259,747 | ||||||||||||
| Wellness revenue | 14,759 | 16,185 | 52,831 | 59,611 | ||||||||||||
| Cannabis costs | 24,955 | 72,342 | 162,755 | 194,834 | ||||||||||||
| Beverage alcohol costs | 15,838 | 11,359 | 48,770 | 32,033 | ||||||||||||
| Distribution costs | 65,866 | 65,138 | 231,309 | 243,231 | ||||||||||||
| Wellness costs | 10,366 | 11,219 | 37,330 | 41,457 | ||||||||||||
| Total adjusted gross profit (excluding PPA step-up and inventory valuation adjustments) | 68,422 | 50,481 | 206,442 | 186,031 | ||||||||||||
| Cannabis adjusted gross margin (excluding inventory valuation adjustments) | 61 | % | 53 | % | 51 | % | 43 | % | ||||||||
| Beverage alcohol adjusted gross margin (excluding PPA step-up) | 55 | % | 60 | % | 53 | % | 58 | % | ||||||||
| Distribution gross margin (excluding inventory valuation adjustments) | 9 | % | 6 | % | 11 | % | 9 | % | ||||||||
| Wellness gross margin | 30 | % | 31 | % | 29 | % | 30 | % | ||||||||
| Adjusted EBITDA | 22,225 | 11,504 | 61,479 | 48,047 | ||||||||||||
| Cash and marketable securities | 448,529 | 415,909 | 448,529 | 415,909 | ||||||||||||
| Working capital | 340,050 | 523,161 | 340,050 | 523,161 | ||||||||||||
PALO ALTO, Calif., Nov. 22, 2024 /PRNewswire/ -- Aulisa® Medical USA, Inc., a leader in…
NEW YORK, Nov. 22, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape -…
Vancouver, British Columbia--(Newsfile Corp. - November 22, 2024) - DEFENCE THERAPEUTICS INC. (CSE: DTC) (OTCQB:…
3,250 InsuJet Starter Packs Being Delivered to Pharmacies Across CanadaToronto, Ontario--(Newsfile Corp. - November 22,…
The new app allows users to browse services, book IV therapy, manage appointments, purchase packages,…
PHILADELPHIA, Nov. 22, 2024 /PRNewswire/ -- Independence Blue Cross (IBX) is implementing the Epic Payer Platform…