Generated $124
million Net Revenue, up from $76
million in Q2 2020
Excluding portfolio
restructuring charges in Q2 2020, Net Revenue up
13%
Achieved Gross Margin of 34%
Total
Operating Expenses down 14% versus the prior
quarter
Adjusted EBITDA loss decreases to $92 million
SMITHS FALLS, ON, Feb. 14, 2020 /CNW/ - Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (NYSE:
CGC) today announced its financial results for the third quarter
ended December 31, 2019. All
financial information in this press release is reported in millions
of Canadian dollars, unless otherwise indicated.
Third Quarter
Fiscal 2020 Financial Summary
|
|
|
Gross
revenue1
|
Net
revenue
|
Gross
margin2
|
Adjusted
EBITDA3
|
Free cash
flow4
|
Reported
|
$135.6
|
$123.8
|
34%
|
$(91.7)
|
$(359.6)
|
% change vs. Q2
2020
|
15%
|
62%
|
NM
|
41%
|
16%
|
% change vs. Q3
2019
|
39%
|
49%
|
800 bps
|
-23%
|
-20%
|
1 Excludes the impact of other
revenue adjustments in Q2 2020, which represent the Company's
determination of returns and pricing adjustments.
|
2 Gross margin is before fair value
impacts in cost of sale, and is a non-IFRS measure. See "Non-IFRS
Measures" below.
|
3 Adjusted EBITDA is a non-IFRS
measure. See "Non-IFRS Measures" below.
|
4 Free
cash flow is defined as operating cash flow less capital
expenditures, and is a non-IFRS measure. See "Non-IFRS Measures"
below.
|
Third Quarter Fiscal 2020 Corporate Financial
Highlights
- Revenues: Reported Net Revenues increased 62% over Q2
2020, or 13% excluding the impact of portfolio restructuring
charges. Gross Recreational B2B revenue increased 8% over prior
quarter due, in part, to over 140 stores becoming active in the
quarter and higher sales of premium dried flower and pre-roll
joints. Our acquired businesses including Storz & Bickel and
This Works also performed well, contributing to organic growth this
quarter.
- Gross margin: Gross margin before fair value impacts was
34%. Gross margin performance in quarter benefited from lower
period costs due to higher facility utilization
- Operating expenses: Total operating expenses decreased
14% versus Q2 2020 primarily due to a $20
million reduction in G&A expenses and over $31 million lower stock-based compensation versus
the prior quarter
- Adjusted EBITDA: Adjusted EBITDA loss of $92 million, a $64
million narrower loss versus Q2 2020 driven by higher sales,
improved gross margins and lower operating expenses
- Cash Position: Gross cash balance was $2.3 billion, down from $2.7 billion in Q2 2020, reflecting the EBITDA
loss, capital investments and M&A
Third Quarter Fiscal 2020 Business & Operational
Highlights
- Maintained leading market share in retail, at an estimated 22%,
of the Canadian recreation market as we saw a strong demand for
both premium and value priced dried flower and pre-rolled
joints
- Continued market share gains and increase in the number of
patients, to over 76,700, in the Canadian medical cannabis
market
- Named David Klein as new Chief
Executive Officer
- Completed first shipments of cannabis-infused edible chocolates
and JUJU Power 510 batteries in December
2019
- Storz & Bickel expanded product line with launch of Crafty+
vaporizer in November 2019
- Announced initial line of First & Free Hemp-derived CBD
products and began sales online through www.firstandfree.com, one
quarter ahead of Q4 2020 target
"In Q3 we executed across Canada, in our international markets and in
our strategic acquisitions to drive revenue growth," said
David Klein, CEO. "We have a lot of
work to do. We are eager to capitalize on the opportunity to
create an unassailable position through a tight focus on the
consumer and on critical markets."
"We delivered significant gross improvement in the third quarter
driven by stronger revenues and higher capacity utilization.
Actions taken earlier this year are expected to meaningfully reduce
stock-based compensation in FY21, and we have started to implement
tighter cost controls across the organization," said Mike Lee, EVP & CFO. "We plan to take
further steps to reduce our costs and right-size our business to
ensure that we can generate a healthy margin profile and cash
generation in the coming years."
Third Quarter
Fiscal 2020 Financial and Operational Review
|
|
|
Q3
2020
|
Q2
2020
|
%
Change
|
Q3
2019
|
%
Change
|
Canadian recreational
cannabis
|
|
|
|
|
|
- Business to
business1
|
$53.5
|
$49.4
|
8%
|
$60.1
|
-11%
|
- Business to
consumer
|
$15.2
|
$13.1
|
16%
|
$11.5
|
32%
|
Canadian medical
cannabis
|
$14.8
|
$14.1
|
5%
|
$15.9
|
-7%
|
Canadian
cannabis
|
$83.5
|
$76.6
|
9%
|
$87.5
|
-5%
|
International medical
cannabis
|
$18.7
|
$18.1
|
3%
|
$2.7
|
593%
|
Cannabis gross revenue excluding other revenue
adjustments
|
$102.2
|
$94.7
|
8%
|
$90.2
|
13%
|
Other
revenue
|
$33.4
|
$23.6
|
42%
|
$7.5
|
345%
|
Gross revenue excluding other revenue
adjustments
|
$135.6
|
$118.3
|
15%
|
$97.7
|
39%
|
Other revenue
adjustments2
|
$-
|
$32.7
|
-100%
|
$-
|
NM
|
Excise
taxes3
|
$11.8
|
$9.0
|
31%
|
$14.7
|
-20%
|
Net
revenue
|
$123.8
|
$76.6
|
62%
|
$83.0
|
49%
|
1 Excludes
the impact of other revenue adjustments.
|
2 Other revenue adjustments represent
the Company's determination of returns and pricing
adjustments.
|
3 Excise taxes is presented net of
the impact from other revenue adjustments.
|
Canadian Cannabis
- Recreational B2B sales increased 8% over Q2 2020, due to over
140 stores becoming active in the quarter and higher sales of
premium dried flower and pre-roll joints
- Recreational B2C sales increased 16% over prior quarter, due in
part to an 11% increase in same store sales
- Medical sales increased 5% over the prior quarter primarily
attributable to the broadening of our brand and product offerings,
including the availability of products from additional CraftGrow
partners, as well as an increase in number of customers to over
76,700.
International Cannabis
- C3 revenue increased 5% over Q2 2020
- Germany cannabis sales higher
than expected due to opportunistic sales into the German market to
fill a supply gap that resulted from a regulatory enforced sales
halt of cannabis products offered by another vendor
Strategic Acquisitions
- Storz & Bickel vaporizer revenue increased 46% over Q2 2020
due to solid organic growth and seasonal sales
- This Works revenue increased 42% over prior quarter due to
strong organic growth
Third Quarter
Fiscal 2020 Cannabis Product Revenue Highlights
|
|
|
Q3
2020
|
Q2
2020
|
%
Change
|
Q3
2019
|
%
Change
|
Canadian
recreational - Business to business
|
|
|
|
|
|
Dry
cannabis
|
$55.8
|
$47.4
|
18%
|
$39.3
|
42%
|
Cannabis oil and
softgels excluding other revenue
adjustments
|
$3.0
|
$2.0
|
50%
|
$20.8
|
-86%
|
Other revenue
adjustments1
|
$(5.3)
|
$(32.7)
|
-84%
|
$-
|
NM
|
|
$53.5
|
$16.7
|
220%
|
$60.1
|
-11%
|
Canadian
recreational - Business to consumer
|
|
|
|
|
|
Dry
cannabis
|
$13.5
|
$11.6
|
16%
|
$10.9
|
24%
|
Cannabis oil and
softgels
|
$1.7
|
$1.5
|
13%
|
$0.6
|
183%
|
|
$15.2
|
$13.1
|
16%
|
$11.5
|
32%
|
Canadian
medical
|
|
|
|
|
|
Dry
cannabis
|
$5.3
|
$5.5
|
-4%
|
$8.1
|
-35%
|
Cannabis oil and
softgels
|
$9.5
|
$8.6
|
10%
|
$7.8
|
22%
|
|
$14.8
|
$14.1
|
5%
|
$15.9
|
-7%
|
International
medical
|
|
|
|
|
|
Dry
cannabis
|
$3.9
|
$4.1
|
-5%
|
$2.7
|
44%
|
Cannabis oil and
softgels
|
$14.8
|
$14.0
|
6%
|
$-
|
NM
|
|
$18.7
|
$18.1
|
3%
|
$2.7
|
593%
|
1 Other revenue adjustments represent
the Company's determination of returns and pricing
adjustments.
|
Third Quarter
Fiscal 2020 Adjusted EBITDA
|
|
|
Q3
2020
|
Q2
2020
|
%
Change
|
Q3
2019
|
%
Change
|
Adjusted
EBITDA1
|
$(91.7)
|
$(155.7)
|
41%
|
$(74.8)
|
-23%
|
Attributed as
follows:
|
|
|
|
|
|
- Operations and
corporate overhead
|
$(44.4)
|
$(109.0)
|
59%
|
$(52.8)
|
16%
|
- Strategic
investments and business development
|
$(39.1)
|
$(36.2)
|
-8%
|
$(8.9)
|
-339%
|
- Non-operating or
under-utilized facilities
|
$(8.2)
|
$(10.5)
|
22%
|
$(13.1)
|
37%
|
1 Adjusted EBITDA is a non-IFRS
measure. See "Non-IFRS Measures" below.
|
Non-IFRS Measures
Gross margin percentage, before fair value impacts in cost of
sales, a non-IFRS measure, is a key operational metric that does
not have any standardized meaning prescribed by IFRS and may not be
comparable to similar measures presented by other companies.
This measure is calculated as net revenue less inventory production
costs expensed to cost of sales, divided by net revenue, and may be
computed from the consolidated statements of operations presented
within this news release.
Adjusted EBITDA, a non-IFRS measure, is a key operational metric
that does not have any standardized meaning prescribed by IFRS and
may not be comparable to similar measures presented by other
companies. Adjusted EBITDA is calculated as earnings before
interest, tax, depreciation and amortization, share-based
compensation expense, fair value changes and other non-cash items,
and further adjusted to remove acquisition-related costs. The
Company attributes Adjusted EBITDA to its operations and corporate
overhead, strategic investments and business developments, and
non-operating or under-utilized facilities. The Adjusted EBITDA
reconciliation is presented within this news release and explained
in Management's Discussion & Analysis under "Adjusted EBITDA
(Non-IFRS Measure)", a copy of which will be filed on SEDAR.
Free Cash Flow, a non-IFRS measure, is a key operational metric
that does not have any standardized meaning prescribed by IFRS and
may not be comparable to similar measures presented by other
companies. This measure is calculated as net cash provided by
(used in) operating activities less purchases and deposits of
property, plant and equipment.
Transition to U.S. GAAP Reporting
As part of our U.S. financial reporting requirements, Canopy
Growth confirmed that, as of September 30,
2019, it no longer met the criteria for qualification as a
foreign private issuer because (1) more than 50% of the outstanding
voting securities are held by residents of the United States, and (2) the majority of
Canopy Growth's directors are United
States citizens.
Therefore, as of April 1, 2020
Canopy Growth will be considered a United
States domestic issuer and a large accelerated filer. As a
result of this change, as of April 1,
2020, Canopy Growth will be required to prepare its
consolidated financial statements, including the Company's
March 31, 2020 audited annual
consolidated financial statements, in conformity with United States generally accounting principles,
with such change being applied retrospectively. The extent of the
impact of this change in accounting framework has not yet been
quantified. Canopy Growth will also be required to provide an
auditor attestation report under Section 404(b) of the
Sarbanes-Oxley Act.
This press release is intended to be read in conjunction with
the Company's Unaudited Condensed Interim Consolidated Financial
Statements ("Financial Statements) and Management Discussion &
Analysis ("MD&A) for the three and nine months ended
December 31, 2019, which will be
filed on SEDAR (www.sedar.com) and will be available at
www.canopygrowth.com. The basis of financial reporting in the
Financial Statements and MD&A is in thousands of Canadian
dollars, unless otherwise indicated.
Webcast and Conference Call Information
The Company will host a conference call and audio webcast with
David Klein, CEO and Mike Lee, CFO at 10:00 AM
Eastern Time on February 14,
2020.
Webcast Information
A live audio webcast will be available at:
https://event.on24.com/wcc/r/2171215/8311836AC24F7988B042B4BB0FA5622A
Replay Information
A replay of the call will be accessible by webcast, until
11:59 PM ET on May 14, 2020, at
https://event.on24.com/wcc/r/2171215/8311836AC24F7988B042B4BB0FA5622A
About Canopy Growth Corporation
Canopy Growth
(TSX:WEED, NYSE:CGC) is a world-leading diversified cannabis, hemp
and cannabis device company, offering distinct brands and curated
cannabis varieties in dried, oil and Softgel capsule forms, as well
as medical devices through the Company's subsidiary, Storz &
Bickel GMbH & Co. KG. From product and process innovation to
market execution, Canopy Growth is driven by a passion for
leadership and a commitment to building a world-class cannabis
company one product, site and country at a time. The Company has
operations in over a dozen countries across five continents.
The Company's medical division, Spectrum Therapeutics is proudly
dedicated to educating healthcare practitioners, conducting robust
clinical research, and furthering the public's understanding of
cannabis, and has devoted millions of dollars toward cutting edge,
commercializable research and IP development. Spectrum Therapeutics
sells a range of full-spectrum products using its colour-coded
classification Spectrum system as well as single cannabinoid
Dronabinol under the brand Bionorica Ethics.
The Company operates retail stores across Canada under its award-winning Tweed and Tokyo
Smoke banners. Tweed is a globally recognized cannabis brand which
has built a large and loyal following by focusing on quality
products and meaningful customer relationships.
From our historic public listing on the Toronto Stock Exchange
and New York Stock Exchange to our continued international
expansion, pride in advancing shareholder value through leadership
is engrained in all we do at Canopy Growth. Canopy Growth has
established partnerships with leading sector names including
cannabis icons Snoop Dogg and Seth
Rogen, breeding legends DNA Genetics and Green House Seeds,
and Fortune 500 alcohol leader Constellation Brands, to name but a
few. Canopy Growth operates eleven licensed cannabis production
sites with over 5.2 million square feet of production capacity,
including over one million square feet of GMP certified production
space. For more information visit www.canopygrowth.com
Notice Regarding Forward Looking Statements
This news
release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995
and "forward-looking information" within the meaning of applicable
Canadian securities legislation. Often, but not always,
forward-looking statements and information can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "estimates", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements or information involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Canopy Growth or its
subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements or information contained in this news
release. Examples of such statements include statements with
respect to the Company's expectations with respect to future
harvests, the Company's expectation for additional finished
inventory available for sale in future quarters, bringing CBD
products to market by the end of fiscal 2020, the accelerated
market expansion for Acreage, the anticipated benefits of the
rebranding of Spectrum Therapeutics on the Company's market share,
the potential opportunity for cannabis products in Europe and the anticipated Increase in
Canadian and Danish product availability, the anticipated increased
sales from Storz & Bickel, the expectation that facilities will
be fully operational in the months ahead, the launch of new CBD
consumer products and brands in fiscal 2020, the timing for
implementation of the transaction with Acreage. Risks,
uncertainties and other factors involved with forward-looking
information could cause actual events, results, performance,
prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information, including
changes in laws, regulations and guidelines; compliance with laws;
international laws; operational, regulatory and other risks;
execution of business strategy; management of growth; difficulty to
forecast; reliance on licences; risks inherent in an agricultural
business; contracts with provincial and territorial governments;
constraints on marketing products; risks inherent in acquisitions
and investments; expansion into foreign jurisdictions; governmental
regulations; cannabis is a controlled substance in the United States; Farm Bill risks;
assumptions as to the ability of the parties to receive, in a
timely manner and on satisfactory terms, the necessary regulatory
and court approvals for the transaction with Acreage; and such
risks contained in the Company's management information circular of
the Company dated May 17, 2019 and in
the annual information form dated June 24,
2019 and filed with Canadian securities regulators and
available on the Company's issuer profile on SEDAR at
www.sedar.com. Readers are cautioned that the foregoing list of
factors is not exhaustive. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information or forward-looking statements in this news release are
reasonable, undue reliance should not be placed on such information
and no assurance can be given that such events will occur in the
disclosed time frames or at all. The forward-looking information
and 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
information or forward-looking information to reflect new
information, subsequent events or otherwise unless required by
applicable securities laws.
|
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
UNAUDITED
|
December
31,
|
March 31,
|
(Expressed in CDN
$000's)
|
2019
|
2019
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,561,664
|
$
|
2,480,830
|
Marketable
securities
|
|
705,921
|
|
2,034,133
|
Amounts
receivable
|
|
108,822
|
|
106,974
|
Biological
assets
|
|
59,107
|
|
78,975
|
Inventory
|
|
622,575
|
|
262,105
|
Prepaid expenses and
other current assets
|
|
114,637
|
|
107,123
|
|
|
3,172,726
|
|
5,070,140
|
|
|
|
|
|
Investments in equity
method investees
|
|
123,077
|
|
112,385
|
Other financial
assets
|
|
351,952
|
|
363,427
|
Property, plant and
equipment
|
|
1,725,333
|
|
1,096,340
|
Intangible
assets
|
|
567,185
|
|
519,556
|
Goodwill
|
|
2,068,696
|
|
1,544,055
|
Other long-term
assets
|
|
37,073
|
|
25,902
|
|
|
|
|
|
|
$
|
8,046,042
|
$
|
8,731,805
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
225,181
|
$
|
226,533
|
Current portion of
long-term debt
|
|
21,652
|
|
103,716
|
Other current
liabilities
|
|
171,476
|
|
81,414
|
|
|
418,309
|
|
411,663
|
|
|
|
|
|
Long-term
debt
|
|
536,107
|
|
842,259
|
Deferred tax
liability
|
|
65,733
|
|
96,031
|
Share repurchase
credit liability
|
|
1,301,322
|
|
-
|
Other long-term
liabilities
|
|
194,737
|
|
140,404
|
|
|
|
|
|
|
|
2,516,208
|
|
1,490,357
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share
capital
|
|
6,359,643
|
|
6,026,618
|
Other
reserves
|
|
2,768,725
|
|
1,673,472
|
Accumulated other
comprehensive income
|
|
(45,904)
|
|
28,630
|
Deficit
|
|
(3,826,095)
|
|
(777,087)
|
|
|
|
|
|
Equity attributable
to Canopy Growth Corporation
|
|
5,256,369
|
|
6,951,633
|
|
|
|
|
|
Non-controlling
interests
|
|
273,465
|
|
289,815
|
|
|
|
|
|
Total
equity
|
|
5,529,834
|
|
7,241,448
|
|
|
|
|
|
|
$
|
8,046,042
|
$
|
8,731,805
|
|
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF OPERATIONS
|
FOR THE THREE AND
NINE MONTHS ENDED DECEMBER 31, 2019 AND 2018
|
UNAUDITED
|
Three months
ended
|
Nine months
ended
|
|
December
31,
|
December
31,
|
December
31,
|
December
31,
|
(Expressed in CDN $000's except share amounts)
|
2019
|
2018
|
2019
|
2018
|
|
(Restated - see
note 2(d))
|
(Restated - see
note 2(d))
|
|
|
|
|
|
Revenue
|
$135,546
|
$97,703
|
$324,558
|
$146,946
|
Excise
taxes
|
11,782
|
14,655
|
33,699
|
14,655
|
|
|
|
|
|
Net
revenue
|
123,764
|
83,048
|
290,859
|
132,291
|
|
|
|
|
|
Inventory production
costs expensed to cost of
sales
|
81,953
|
61,329
|
241,456
|
90,358
|
|
|
|
|
|
Gross margin before
the undernoted
|
41,811
|
21,719
|
49,403
|
41,933
|
|
|
|
|
|
Fair value changes in
biological assets included in
inventory sold and other
charges
|
60,546
|
28,105
|
175,765
|
105,989
|
Unrealized gain on
changes in fair value of
biological assets
|
(78,964)
|
(22,267)
|
(300,303)
|
(90,500)
|
|
|
|
|
|
Gross
margin
|
60,229
|
15,881
|
173,941
|
26,444
|
|
|
|
|
|
Sales and
marketing
|
62,104
|
48,324
|
171,814
|
107,199
|
Research and
development
|
20,795
|
5,264
|
41,191
|
7,964
|
General and
administration
|
67,385
|
46,088
|
217,517
|
102,777
|
Acquisition-related
costs
|
3,256
|
4,520
|
19,000
|
9,606
|
Share-based
compensation expense
|
56,763
|
40,062
|
217,611
|
108,159
|
Share-based
compensation expense related to
acquisition milestones
|
4,916
|
23,849
|
24,311
|
81,674
|
Depreciation and
amortization
|
16,530
|
5,015
|
42,953
|
11,640
|
|
|
|
|
|
Operating
expenses
|
231,749
|
173,122
|
734,397
|
429,019
|
|
|
|
|
|
Loss from
operations
|
(171,520)
|
(157,241)
|
(560,456)
|
(402,575)
|
|
|
|
|
|
Loss on
extinguishment of warrants
|
-
|
-
|
(1,176,350)
|
-
|
Other income
(expense), net
|
24,903
|
233,142
|
(51,759)
|
54,445
|
Total other income
(expense), net
|
24,903
|
233,142
|
(1,228,109)
|
54,445
|
|
|
|
|
|
(Loss) income
before income taxes
|
(146,617)
|
75,901
|
(1,788,565)
|
(348,130)
|
|
|
|
|
|
Income tax recovery
(expense)
|
22,451
|
(1,041)
|
8,611
|
1,398
|
|
|
|
|
|
Net (loss)
income
|
$(124,166)
|
$74,860
|
$(1,779,954)
|
$(346,732)
|
|
|
|
|
|
Net (loss) income
attributable to:
|
|
|
|
|
Canopy Growth
Corporation
|
$(120,969)
|
$67,582
|
$(1,778,208)
|
$(349,831)
|
Non-controlling
interests
|
(3,197)
|
7,278
|
(1,746)
|
3,099
|
|
$(124,166)
|
$74,860
|
$(1,779,954)
|
$(346,732)
|
|
|
|
|
|
(Loss) earnings
per share, basic
|
|
|
|
|
Net (loss) income per
share, basic:
|
$(0.35)
|
$0.22
|
$(5.13)
|
$(1.45)
|
Weighted average
number of outstanding common
shares:
|
348,530,622
|
303,281,549
|
346,877,660
|
241,806,351
|
|
|
|
|
|
Loss per share,
diluted
|
|
|
|
|
Net loss per share,
diluted:
|
$(0.35)
|
$(0.38)
|
$(5.13)
|
$(1.45)
|
Weighted average
number of outstanding common
shares, diluted:
|
348,530,622
|
315,974,639
|
346,877,660
|
242,044,821
|
|
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE NINE
MONTHS ENDED DECEMBER 31, 2019 AND 2018
|
UNAUDITED
|
|
December
31,
|
|
December
31,
|
(Expressed in CDN
$000's)
|
|
2019
|
|
2018
|
|
|
|
|
|
Net inflow (outflow)
of cash related to the following activities:
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
Net loss
|
$
|
(1,779,954)
|
$
|
(346,732)
|
Adjustments
for:
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
57,926
|
|
15,703
|
Amortization of
intangible assets
|
|
26,680
|
|
7,869
|
Share of loss on
equity investments
|
|
6,668
|
|
9,021
|
Fair value changes in
biological assets included in inventory sold and other charges
|
|
175,765
|
|
105,989
|
Unrealized gain on
changes in fair value of biological assets
|
|
(300,303)
|
|
(90,500)
|
Share-based
compensation
|
|
241,922
|
|
194,686
|
Other
assets
|
|
-
|
|
(16,908)
|
Loss on extinguishment
of warrants
|
|
1,176,350
|
|
-
|
Other income and
expense
|
|
93,162
|
|
(44,476)
|
Income tax
recovery
|
|
(8,611)
|
|
(1,398)
|
Non-cash foreign
currency
|
|
(3,945)
|
|
1,394
|
Changes in non-cash
operating working capital items
|
|
(233,918)
|
|
(129,547)
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(548,258)
|
|
(294,899)
|
|
|
|
|
|
Investing
|
|
|
|
|
Purchases and deposits
of property, plant and
equipment
|
|
(610,858)
|
|
(495,236)
|
Purchases of
intangible assets
|
|
(7,800)
|
|
(40,140)
|
Redemption (purchase)
of marketable securities, net
|
|
1,324,682
|
|
(802,247)
|
Investments in equity
method investees
|
|
(4,719)
|
|
(27,201)
|
Investments in other
financial assets
|
|
(46,647)
|
|
(74,071)
|
Premium paid for
Acreage Call Option
|
|
(395,190)
|
|
-
|
Net cash outflow on
acquisition of non-controlling interests
|
|
-
|
|
(1,996)
|
Net cash outflow on
acquisition of subsidiaries
|
|
(511,080)
|
|
(344,472)
|
Payment of acquisition
related liabilities
|
|
(29,837)
|
|
-
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(281,449)
|
|
(1,785,363)
|
|
|
|
|
|
Financing
|
|
|
|
|
Payment of share issue
costs
|
|
(245)
|
|
(18,617)
|
Proceeds from issuance
of common shares and warrants
|
|
-
|
|
5,072,500
|
Proceeds from issuance
of shares by Canopy Rivers
|
|
1,062
|
|
91,218
|
Proceeds from exercise
of stock options
|
|
39,149
|
|
28,730
|
Proceeds from exercise
of warrants
|
|
446
|
|
18,684
|
Issuance of long-term
debt
|
|
10,268
|
|
600,000
|
Payment of long-term
debt issue costs
|
|
-
|
|
(16,380)
|
Payment of interest on
long-term debt
|
|
(13,738)
|
|
-
|
Repayment of lease
obligations
|
|
(9,331)
|
|
(2,728)
|
Repayment of long-term
debt
|
|
(112,705)
|
|
(3,499)
|
|
|
|
|
|
Net cash (used)
provided by financing activities
|
|
(85,094)
|
|
5,769,908
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(4,365)
|
|
103,664
|
|
|
|
|
|
Net cash (outflow)
inflow
|
|
(919,166)
|
|
3,793,310
|
Cash and cash
equivalents, beginning of period
|
|
2,480,830
|
|
322,560
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
1,561,664
|
$
|
4,115,870
|
Adjusted
EBITDA1 Non-IFRS Measure
|
Three months
ended
|
(In
CDN$000's)
|
December
31,
2019
|
December
31,
2018
|
|
|
|
|
|
Adjusted
EBITDA1 Reconciliation
|
|
|
|
|
Loss from
operations - as reported
|
$
|
(171,520)
|
$
|
(157,241)
|
|
|
|
|
|
IFRS fair value
accounting related to biological assets and
inventory
|
Fair value changes in
biological assets included in
inventory sold and other charges
|
|
60,546
|
|
28,105
|
Unrealized gain on
changes in fair value of biological assets
|
|
(78,964)
|
|
(22,267)
|
|
|
(18,418)
|
|
5,838
|
Share-based
compensation expense (per statements of cash flows)
|
|
61,679
|
|
64,179
|
Acquisition-related
costs
|
|
3,256
|
|
4,520
|
Depreciation and
amortization (per statements of cash flows)
|
|
33,342
|
|
7,890
|
|
|
98,277
|
|
76,589
|
Adjusted
EBITDA
|
$
|
(91,661)
|
$
|
(74,814)
|
|
|
|
|
Nine months
ended
|
(In
CDN$000's)
|
December
31,
2019
|
December
31,
2018
|
|
|
|
|
|
Adjusted
EBITDA1 Reconciliation
|
|
|
|
|
Loss from
operations - as reported
|
$
|
(560,456)
|
$
|
(402,575)
|
|
|
|
|
|
IFRS fair value
accounting related to biological assets and
inventory
|
Fair value changes in
biological assets included in
inventory sold and other charges
|
|
175,765
|
|
105,989
|
Unrealized gain on
changes in fair value of biological assets
|
|
(300,303)
|
|
(90,500)
|
|
|
(124,538)
|
|
15,489
|
Share-based
compensation expense (per statements of cash flows)
|
|
241,922
|
|
194,686
|
Acquisition-related
costs
|
|
19,000
|
|
9,606
|
Depreciation and
amortization (per statements of cash flows)
|
|
84,606
|
|
23,572
|
|
|
345,528
|
|
227,864
|
Adjusted
EBITDA
|
$
|
(339,466)
|
$
|
(159,222)
|
1 Adjusted EBITDA is earnings before
interest, tax, depreciation and amortization, share-based
compensation expense, fair value changes and other non-cash items,
and further adjusted to remove acquisition-related
costs.
|
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SOURCE Canopy Growth Corporation