false 0001731348 0001731348 2022-01-10 2022-01-10

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 10, 2022

 

Tilray, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-38594

82-4310622

(State or Other Jurisdiction

of Incorporation)

(Commission File

Number)

(IRS Employer

Identification No.)

 

 

 

655 Madison Avenue, Suite 1900
New York, NY

 

10065

(Address of Principal Executive Offices,

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (844) 845-7291

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class 2 Common Stock, $0.0001 par
value per share

 

TLRY

 

 

The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 


 

 

 

Item 2.02

Results of Operations and Financial Condition.

On January 10, 2022, Tilray, Inc. (“Tilray”) issued a press release announcing financial results for its second quarter ended November 30, 2021. A copy of the press release is furnished herewith as Exhibit 99.1.

The information in this current report on Form 8-K, including the press release attached as Exhibit 99.1 hereto, is being furnished, but shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by Tilray, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

 

 

 

 

Exhibit
Number

  

Description

 

 

 

 

 

99.1

  

Press Release of Tilray, Inc., dated January 10, 2022

 

 

 

104

  

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

Tilray, Inc.

 

 

 

 

Date:  January 10, 2022

 

By:

/s/ Mitchell Gendel

 

 

 

Global General Counsel

 

 

 

 

 

 

Exhibit 99.1

PRESS RELEASE

January 10, 2022

 

 

 

Tilray, Inc. Reports Profitable Second Quarter Fiscal Year 2022 Financial Results

 

New Parent Company Name, TILRAY BRANDS, Reflects Growing Portfolio of Leading, Global CPG Brands

 

 

Net Revenue Increased ~20% to $155 Million from the Prior Year Quarter

 

 

Net Income Improved $95 Million to $6 Million from the Prior Year Quarter

 

 

Adjusted EBITDA of $13.8 Million, 11th Consecutive Quarter of Positive Adjusted EBITDA

 

 

Achieved $70 Million in Cost Synergies To Date; On-Track to Exceed Original Plan of $80 Million Ahead of Schedule and to Generate Additional $20 Million of Synergies in Fiscal 2023

 

 

Leading Medical Cannabis Company in Europe with ~20% Market Share in Germany

 

NEW YORK – January 10, 2022 -- Tilray, Inc. (“Tilray” 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 second fiscal quarter ended November 30, 2021. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

 

The Company also announced a new parent name, Tilray Brands, Inc., reflecting the Company’s evolution from a Canadian LP to a global consumer packaged goods company powerhouse with a market leading portfolio of cannabis and lifestyle CPG brands.

 

Irwin D. Simon, Tilray’s Chairman and Chief Executive Officer, stated, “Our second quarter performance reflects notable success building high-quality and highly sought-after cannabis and lifestyle CPG brands which, coupled with our scale, operational excellence and broad global distribution, enabled us to increase sales and maintain profitability despite sector-specific and macro-economic headwinds.”

 

Mr. Simon continued, “Looking at performance highlights across key markets, we maintained our #1 cannabis market share position in Canada – despite market saturation and related competitive challenges -- on the strength of our brands and adept pricing and marketing adjustments. Importantly, we believe these adjustments will enable us to aggressively recapture share when the market right-sizes. In Germany – Europe’s largest and most profitable medical cannabis market – our nearly 20% share leads the market.  We believe this, coupled with our infrastructure, will also allow us to capture the adult-use

1

 


 

 

PRESS RELEASE

January 10, 2022

 

market as legalization accelerates under the new coalition Government. Turning to the U.S., SweetWater Brewing and Manitoba Harvest continued to invest in product innovation and acquisitions to enhance awareness and distribution.  These profitable businesses further provide an opportunity to launch THC-based products upon federal legalization in the U.S. Subsequent to the end of the fiscal quarter, we also expanded our spirits portfolio through the acquisition of Breckenridge Distillery, deepening our presence in the fast-growing spirits sector while also providing an immediate contribution to earnings.”

 

Mr. Simon concluded, “The totality of our performance, our prospects and our global platform make Tilray Brands' opportunity as compelling as ever, driven by our success as a cannabis and lifestyle CPG powerhouse and our relentless focus on delivering shareholder value.”

 

Financial Highlights – Second Quarter Fiscal 2022

 

 

Net income increased to $6 million from a net loss of $89 million in the previous year quarter.

 

Net revenue increased ~20% to $155 million during the second quarter from $129 million in the prior year quarter. The increase was driven by 7% growth in cannabis revenue to $58.8 million, net beverage alcohol revenue of $13.7 million from SweetWater, and wellness segment revenue of $13.8 million from Manitoba Harvest.

 

Adjusted EBITDA of $13.8 million in the second quarter 2022, 8% growth compared to the preceding prior quarter, and the eleventh consecutive quarter of positive Adjusted EBITDA

 

Gross profit of $32.8 million, a 7% decrease from $35.3 million in the prior year quarter.

 

Adjusted gross margin in the cannabis segment remained strong at 43%.

 

Maintained #1 cannabis market share in Canada1 with leading portfolio of comprehensive medical cannabis and adult-use brands, including top position in cannabis flower and pre-rolls.

 

International medical cannabis market leader and #1 in Germany2 with ~20% market share.

 

Cost synergies from Aphria-Tilray combination of $70 million achieved on a run-rate basis to date, with actual cash-savings close to $36 million to date. Expect to reach $80 million synergy target, ahead of schedule, by May 31, 2022 and to generate an additional $20 million in synergies in fiscal 2023.

 

Strategic Growth Actions

 

 

On December 21, 2021 – SweetWater acquired award-winning craft-beer brands, Alpine Beer and Green Flash Brewing.

 

On December 8, 2021, Tilray acquired Breckenridge Distillery, strengthening its strategic position in the U.S.

 

On November 4, 2021, SweetWater entered the Spirits category with new ready-to-drink cocktail and cross-brand collaboration with Canadian cannabis brand, RIFF.

 

1 

Based on Hifyre retail data.

2 

Insight Health NPI: Panel data of 5,500 pharmacies (29% coverage)

2

 


 

 

PRESS RELEASE

January 10, 2022

 

 

 

On October 26, 2021, Tilray announced European expansion with medical cannabis agreement in Luxembourg.

 

On October 20, 2021, Tilray announced an expanded distribution agreement with Great North Distributors for adult-use cannabis sales across Canada.

 

Growth and High Potential Across Key Markets

 

 

#1 Market Leading Position in Germany and Poised to Benefit from Recreational Legalization Tilray is also the only company currently supplying the German government with medical cannabis grown in-country. The Company’s state-of-the-art EU GMP certified cultivation facility in Germany has additional capacity to immediately support entry into the recreational market upon legalization, which the new German coalition government is accelerating.

 

 

Ongoing Progress Across the EU - Tilray’s success across the EU, a powerful growth market worth potentially $1 billion for the Company, is backed by its two state-of-the-art cultivation facilities in Portugal and Germany that provide EU GMP certified pharmaceutical-grade medical cannabis across the region. Tilray is also the only Company with two EU GMP certified cannabis facilities in Europe.  This unparalleled production capability coupled with Tilray’s sales arrangements through major distribution channels in Germany, the UK, and other key markets, and strong relationships with local governments and the trust of patients give Tilray the ability to drive accelerated growth. Tilray is also the only Company with two EU GMP certified cannabis facilities in Europe.

 

 

#1 Leading Cannabis Market Share in Canada – Amid an intensely competitive and over-saturated market, Tilray remains the market leader in the CAD$4.26 billion Canadian cannabis market, driven by a portfolio of carefully curated brands across all consumer segments; medical, wellness, innovative cannabis 2.0 products across concentrates, edibles, and drinks; processing capacity; and distribution.In order to address the saturated marketplace, Tilray has implemented strategic price adjustments, expanded distribution through its coast-to-coast agreement with Rose Life Sciences and Great North Distributors, and doubled-down on and accelerated product innovation.

 

 

A Leading U.S. CPG Platform that Generates Considerable Cash Flow Now and Will Be Immediately Leveraged for Cannabis Products Upon Federal Legalization - In the U.S., Tilray’s operating businesses include SweetWater, the 11th largest craft brewer in the nation3

 

3 

The Brewers Association Top 50 Brewing Companies by Sales Volume Report for 2020.

3

 


 

 

PRESS RELEASE

January 10, 2022

 

 

and leading lifestyle brand, and Manitoba Harvest, a pioneer in hemp, CBD and wellness products. Together, they generate approximately $100 million in revenue and are EBITDA and cash flow positive and will expand in the near term into CBD adjacencies and THC-based products upon legalization. Further, the Company continues to build its U.S. platform, including through its prior acquisition of a majority of the outstanding senior secured convertible notes of MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) – which marked a critical step towards delivering on its objective of leading the U.S. cannabis market upon federal legalization.

 

Conference Call

Tilray executives will host a conference call and live audio webcast to discuss these results at 8:30 am Eastern Time, details of which are provided below.

 

Call-in Number: (877) 407-0792 from Canada and the U.S. or (201) 689-8263 from international locations. Please dial in at least 10 minutes prior to the start time.

 

A telephone replay will be available approximately two hours after the call concludes through January 26, 2022. To access the recording dial (844)-512-2921 and use the passcode 13725661.    

 

There will be a simultaneous, live webcast available on the Investors section of Tilray’s website at www.tilray.com. The webcast will also be archived.

 

ICR Conference Participation Today

 

Tilray executives will also host a virtual fireside chat at the ICR Conference at 1:30 pm Eastern Time today. There will be a simultaneous, live webcast available on the Investors section of Tilray’s website at www.tilray.com. The webcast will also be archived.

 

About Tilray

 

Tilray, 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 – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body, and soul and invoke a sense of wellbeing. Tilray’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages.

 

For more information on how we open a world of wellbeing, visit www.Tilray.com.

Forward-Looking Statements

Certain statements in this communication that are not historical facts 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,”

4

 


 

 

PRESS RELEASE

January 10, 2022

 

“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; expectations regarding profitable revenue growth and expected cost savings; and the Company’s ability to commercialize new and innovative beverage products.  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 Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray 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 EBITDA and adjusted 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.

 

Adjusted EBITDA is calculated as net income (loss) before finance expense, net; non-operating expense (income), net; amortization; stock-based compensation; facility start-up and closure costs; inventory valuation adjustment; lease expense; 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. Gross margin, excluding inventory valuation adjustments, 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 Gross margin, excluding inventory valuation adjustments, to gross margin, 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 deducted from each other which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets. Adjusted free cash flow removes the cash impact of acquisitions from free cash flow. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow and to adjusted cash flows, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release.

 

For further information:

 

Media: Berrin Noorata, news@tilray.com

Investors: Raphael Gross, +1-203-682-8253, Raphael.Gross@icrinc.com

 

 

 

 


5

 


 

 

PRESS RELEASE

January 10, 2022

 

 

Consolidated Statements of Financial Position

 

(In thousands of United States dollars)

 

November 30,

2021

 

 

May 31,

2021

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

331,783

 

 

$

488,466

 

Accounts receivable, net

 

 

84,575

 

 

 

87,309

 

Inventory

 

 

233,020

 

 

 

256,429

 

Prepaids and other current assets

 

 

57,340

 

 

 

48,920

 

Convertible notes receivable

 

 

1,560

 

 

 

2,485

 

Total current assets

 

 

708,278

 

 

 

883,609

 

Capital assets

 

 

604,249

 

 

 

650,698

 

Right-of-use assets

 

 

13,933

 

 

 

18,267

 

Intangible assets

 

 

1,450,015

 

 

 

1,605,918

 

Goodwill

 

 

2,814,163

 

 

 

2,832,794

 

Interest in equity investees

 

 

4,440

 

 

 

8,106

 

Long-term investments

 

 

168,244

 

 

 

17,685

 

Other assets

 

 

164

 

 

 

8,285

 

Total assets

 

$

5,763,486

 

 

$

6,025,362

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Bank indebtedness

 

$

8,736

 

 

$

8,717

 

Accounts payable and accrued liabilities

 

 

168,300

 

 

 

212,813

 

Contingent consideration

 

 

62,339

 

 

 

60,657

 

Warrant liability

 

 

40,455

 

 

 

78,168

 

Current portion of lease liabilities

 

 

3,588

 

 

 

4,264

 

Current portion of long-term debt

 

 

31,510

 

 

 

36,622

 

Total current liabilities

 

 

314,928

 

 

 

401,241

 

Long - term liabilities

 

 

 

 

 

 

 

 

Lease liabilities

 

 

49,265

 

 

 

53,946

 

Long-term debt

 

 

151,819

 

 

 

167,486

 

Convertible debentures

 

 

554,854

 

 

 

667,624

 

Deferred tax liability

 

 

219,311

 

 

 

265,845

 

Other liabilities

 

 

320

 

 

 

3,907

 

Total liabilities

 

 

1,290,497

 

 

 

1,560,049

 

Shareholders' equity

 

 

 

 

 

 

 

 

Common stock ($0.0001 par value; 990,000,000 shares authorized; 463,802,393 and 265,423,304 shares issued and outstanding, respectively)

 

 

46

 

 

 

46

 

Additional paid-in capital

 

 

4,954,547

 

 

 

4,792,406

 

Accumulated other comprehensive income

 

 

9,595

 

 

 

152,668

 

Accumulated Deficit

 

 

(527,900

)

 

 

(486,050

)

Total Tilray shareholders' equity

 

 

4,436,288

 

 

 

4,459,070

 

Non-controlling interests

 

 

36,701

 

 

 

6,243

 

Total shareholders' equity

 

 

4,472,989

 

 

 

4,465,313

 

Total liabilities and shareholders' equity

 

$

5,763,486

 

 

$

6,025,362

 

 

 

 


6

 


 

 

PRESS RELEASE

January 10, 2022

 

 

Condensed Consolidated Statements of Net Income (Loss) and Comprehensive (Loss)

 

 

 

 

Three months ended November 30,

 

 

Six months ended

November 30,

 

 

Three months ended November 30,

 

 

Six months ended November 30,

 

(In thousands of United States dollars)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Change

 

 

%Change

 

 

Change

 

 

%Change

 

Net revenue

 

$

155,153

 

 

$

129,459

 

 

$

323,176

 

 

$

246,949

 

 

$

25,694

 

 

20%

 

 

$

76,227

 

 

31%

 

Cost of goods sold

 

 

122,387

 

 

 

94,176

 

 

 

239,455

 

 

 

176,721

 

 

 

28,211

 

 

30%

 

 

 

62,734

 

 

35%

 

Gross profit

 

 

32,766

 

 

 

35,283

 

 

 

83,721

 

 

 

70,228

 

 

 

(2,517

)

 

(7%)

 

 

 

13,493

 

 

19%

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

0

 

 

 

 

 

General and administrative

 

 

33,469

 

 

 

28,273

 

 

 

82,956

 

 

 

54,245

 

 

 

5,196

 

 

18%

 

 

 

28,711

 

 

53%

 

Selling

 

 

9,210

 

 

 

6,079

 

 

 

16,642

 

 

 

11,896

 

 

 

3,131

 

 

52%

 

 

 

4,746

 

 

40%

 

Amortization

 

 

29,016

 

 

 

4,208

 

 

 

59,755

 

 

 

8,335

 

 

 

24,808

 

 

590%

 

 

 

51,420

 

 

617%

 

Marketing and promotion

 

 

7,120

 

 

 

4,252

 

 

 

12,585

 

 

 

9,177

 

 

 

2,868

 

 

67%

 

 

 

3,408

 

 

37%

 

Research and development

 

 

515

 

 

 

225

 

 

 

1,300

 

 

 

345

 

 

 

290

 

 

129%

 

 

 

955

 

 

277%

 

Transaction costs

 

 

8,120

 

 

 

18,206

 

 

 

33,699

 

 

 

20,664

 

 

 

(10,086

)

 

(55%)

 

 

 

13,035

 

 

100%

 

Total operating expenses

 

 

87,450

 

 

 

61,243

 

 

 

206,937

 

 

 

104,662

 

 

 

26,207

 

 

43%

 

 

 

102,275

 

 

98%

 

Operating loss

 

 

(54,684

)

 

 

(25,960

)

 

 

(123,216

)

 

 

(34,434

)

 

 

(28,724

)

 

111%

 

 

 

(88,782

)

 

258%

 

Interest expense, net

 

 

(9,940

)

 

 

(4,832

)

 

 

(20,110

)

 

 

(10,568

)

 

 

(5,108

)

 

106%

 

 

 

(9,542

)

 

90%

 

Non-operating income (expense), net

 

 

64,750

 

 

 

(72,649

)

 

 

113,610

 

 

 

(86,008

)

 

 

137,399

 

 

(189%)

 

 

 

199,618

 

 

(232%)

 

Income (loss) before income taxes

 

 

126

 

 

 

(103,441

)

 

 

(29,716

)

 

 

(131,010

)

 

 

103,567

 

 

(100%)

 

 

 

101,294

 

 

(77%)

 

Income taxes (recovery)

 

 

(5,671

)

 

 

(14,192

)

 

 

(909

)

 

 

(20,017

)

 

 

8,521

 

 

(60%)

 

 

 

19,108

 

 

(95%)

 

Net income (loss)

 

$

5,797

 

 

$

(89,249

)

 

$

(28,807

)

 

$

(110,993

)

 

$

95,046

 

 

(106%)

 

 

$

82,186

 

 

(74%)

 

Total net income (loss) attributable to Shareholders of Tilray Inc.

 

$

(201

)

 

$

(99,900

)

 

$

(41,850

)

 

$

(134,243

)

 

$

99,699

 

 

(100%)

 

 

$

92,393

 

 

(69%)

 

Weighted average number of common shares - basic

 

 

460,254,275

 

 

 

243,477,655

 

 

 

454,797,598

 

 

 

242,207,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - diluted

 

 

460,254,275

 

 

 

243,477,655

 

 

 

454,797,598

 

 

 

242,207,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share - basic

 

$

(0.00

)

 

$

(0.41

)

 

$

(0.09

)

 

$

(0.55

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share - diluted

 

$

(0.00

)

 

$

(0.41

)

 

$

(0.09

)

 

$

(0.55

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


7

 


 

 

PRESS RELEASE

January 10, 2022

 

 

 

Net Revenue by Operating Segment

 

(In thousands of United States dollars)

 

Three months

ended

November 30,

2021

 

 

% of

Total

revenue

 

 

Three months

ended

November 30,

2020

 

 

% of

Total

revenue

 

 

Six months

ended

November 30,

2021

 

 

% of

Total

revenue

 

 

Six months

ended

November 30,

2020

 

 

% of

Total

revenue

 

Cannabis revenue

 

$

58,775

 

 

38%

 

 

$

54,766

 

 

42%

 

 

$

129,224

 

 

40%

 

 

$

105,968

 

 

43%

 

Distribution revenue

 

 

68,869

 

 

44%

 

 

 

73,983

 

 

57%

 

 

 

136,055

 

 

42%

 

 

 

140,271

 

 

57%

 

Beverage alcohol revenue

 

 

13,707

 

 

9%

 

 

 

710

 

 

1%

 

 

 

29,168

 

 

9%

 

 

 

710

 

 

0%

 

Wellness revenue

 

 

13,802

 

 

9%

 

 

 

 

 

0%

 

 

 

28,729

 

 

9%

 

 

 

 

 

0%

 

Net revenue

 

$

155,153

 

 

100%

 

 

$

129,459

 

 

100%

 

 

$

323,176

 

 

100%

 

 

$

246,949

 

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cannabis Revenue by Market Channel

 

 

 

Three months ended November 30,

 

 

Six months ended November 30,

 

(In thousands of United States dollars)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue from Canadian medical cannabis products

 

$

7,929

 

 

11%

 

 

$

6,260

 

 

9%

 

 

$

16,303

 

 

10%

 

 

$

12,640

 

 

9%

 

Revenue from Canadian adult-use cannabis products

 

 

49,535

 

 

67%

 

 

 

58,175

 

 

83%

 

 

 

119,128

 

 

73%

 

 

 

115,123

 

 

84%

 

Revenue from wholesale cannabis products

 

 

2,259

 

 

3%

 

 

 

1,440

 

 

2%

 

 

 

3,959

 

 

2%

 

 

 

5,232

 

 

4%

 

Revenue from international cannabis products

 

 

13,706

 

 

19%

 

 

 

4,280

 

 

6%

 

 

 

23,972

 

 

15%

 

 

 

4,280

 

 

3%

 

Total cannabis revenue

 

 

73,429

 

 

 

 

 

 

 

70,155

 

 

 

 

 

 

 

163,362

 

 

 

 

 

 

 

137,275

 

 

 

 

 

Excise taxes

 

 

(14,654

)

 

(20%)

 

 

 

(15,389

)

 

(22%)

 

 

 

(34,138

)

 

(21%)

 

 

 

(31,307

)

 

(23%)

 

Total cannabis net revenue

 

$

58,775

 

 

 

 

 

 

$

54,766

 

 

 

 

 

 

$

129,224

 

 

 

 

 

 

$

105,968

 

 

 

 

 

 


8

 


 

 

PRESS RELEASE

January 10, 2022

 

 

Other Financial Information: Gross Margin and Adjusted Gross Margin

 

(In thousands of United States dollars)

 

Three months ended November 30, 2021

 

 

 

Cannabis

 

 

Beverage

 

 

Distribution

 

 

Wellness

 

 

Total

 

Gross revenue

 

$

73,429

 

 

$

14,544

 

 

$

68,869

 

 

$

13,802

 

 

$

170,644

 

Excise taxes

 

 

(14,654

)

 

 

(837

)

 

 

 

 

 

 

 

 

(15,491

)

Net revenue

 

 

58,775

 

 

 

13,707

 

 

 

68,869

 

 

 

13,802

 

 

 

155,153

 

Cost of goods sold

 

 

45,259

 

 

 

5,921

 

 

 

61,237

 

 

 

9,970

 

 

 

122,387

 

Gross profit

 

$

13,516

 

 

$

7,786

 

 

$

7,632

 

 

$

3,832

 

 

$

32,766

 

Gross margin

 

 

23

%

 

 

57

%

 

 

11

%

 

 

28

%

 

 

21

%

Adjusted gross profit

 

$

25,516

 

 

$

7,786

 

 

$

7,632

 

 

$

3,832

 

 

$

44,766

 

Adjusted gross margin

 

 

43

%

 

 

57

%

 

 

11

%

 

 

28

%

 

 

29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended November 30, 2020

 

 

 

Cannabis

 

 

Beverage

 

 

Distribution

 

 

Wellness

 

 

Total

 

Gross revenue

 

$

70,155

 

 

$

754

 

 

$

73,983

 

 

$

 

 

$

144,892

 

Excise taxes

 

 

(15,389

)

 

 

(44

)

 

 

 

 

 

 

 

 

(15,433

)

Net revenue

 

 

54,766

 

 

 

710

 

 

 

73,983

 

 

 

 

 

 

129,459

 

Cost of goods sold

 

 

29,632

 

 

 

281

 

 

 

64,263

 

 

 

 

 

 

94,176

 

Gross profit

 

$

25,134

 

 

$

429

 

 

$

9,720

 

 

$

 

 

$

35,283

 

Gross margin

 

 

46

%

 

 

60

%

 

 

13

%

 

 

 

 

 

 

27

%

Adjusted gross profit

 

$

25,134

 

 

$

429

 

 

$

9,720

 

 

$

 

 

$

35,283

 

Adjusted gross margin

 

 

46

%

 

 

60

%

 

 

13

%

 

 

 

 

 

 

27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended November 30, 2021

 

 

 

Cannabis

 

 

Beverage

 

 

Distribution

 

 

Wellness

 

 

Total

 

Gross revenue

 

$

163,362

 

 

$

31,027

 

 

$

136,055

 

 

$

28,729

 

 

$

359,173

 

Excise taxes

 

 

(34,138

)

 

 

(1,859

)

 

 

 

 

 

 

 

 

(35,997

)

Net revenue

 

 

129,224

 

 

 

29,168

 

 

 

136,055

 

 

 

28,729

 

 

 

323,176

 

Cost of goods sold

 

 

85,450

 

 

 

12,583

 

 

 

120,527

 

 

 

20,895

 

 

 

239,455

 

Gross profit

 

$

43,774

 

 

$

16,585

 

 

$

15,528

 

 

$

7,834

 

 

$

83,721

 

Gross margin

 

 

34

%

 

 

57

%

 

 

11

%

 

 

27

%

 

 

26

%

Adjusted gross profit

 

$

55,774

 

 

$

16,585

 

 

$

15,528

 

 

$

7,834

 

 

$

95,721

 

Adjusted gross margin

 

 

43

%

 

 

57

%

 

 

11

%

 

 

27

%

 

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended November 30, 2020

 

 

 

Cannabis

 

 

Beverage

 

 

Distribution

 

 

Wellness

 

 

Total

 

Gross revenue

 

$