Continued revenue acceleration with total first quarter
revenue of $25.9 million representing
a 63% increase over the quarter ended June
30, 2017 and a 14% increase over revenues of $22.8 million in the fourth quarter of fiscal
2018;
Continued price appreciation with average selling price per
gram of $8.94 for the first quarter,
as compared to $7.96 last year in the
same quarter and $8.43 in the fourth
quarter of fiscal 2018;
Continued leadership in the Canadian medical cannabis sector
with over 85,000 patients and launch of innovative Spectrum
Cannabis colour-coded Soft-gels providing consistent and discrete
dosing formats and further reinforcing the unique Spectrum product
system;
Spectrum Cannabis' global operational footprint now covers 11
countries with key additions in Czech
Republic, Columbia and Lesotho; completed transfer of high-quality
medical cannabis from Germany to
Czech Republic for distribution to
pharmacies;
Now wholly-owned subsidiary, Canopy Health Innovations
("CHI"), received approval to conduct Phase IIb "in-human" clinical
trials to evaluate the use of medical cannabis in the treatment of
insomnia, trials are first in planned series of trials to
investigate and quantify the therapeutic effect of cannabis and
cannabinoids in humans;
Canopy Animal Health, a division of CHI, received approval to
research the effectiveness of cannabidiol to treat anxiety in
certain animals;
Multi-year supply agreement commitments, with annualized
delivery requirements of over 67,000 kiliograms, or an
estimated 36% of the total supply committed1 to date to
provinces and territories;
Inventory of approximately 19,721 kilograms of dry
cannabis, 14,895 litres of cannabis oils and 1,055 kilograms of
softgel capsules at quarter end;
Value of biological assets more than doubled to $52.8 million, inline with Company plan to
increase future inventory levels to help address expected Canadian
and international market demand and benefiting from investments
over prior quarters that have more than tripled the Company's
licensed footprint in calendar 2018;
Added private "brick & mortar" and
online cannabis retail licenses in Manitoba, and Saskatchewan, to existing licenses in
Newfoundland and Labrador; and
Completed oversubscribed convertible Senior Note offering,
participated in by an affiliate of Constellation Brands as well as
institutional investors in the United
States, Europe and
Canada, that raised gross proceeds
of $600 million.
SMITHS FALLS, ON, Aug. 14, 2018 /PRNewswire/ - Canopy Growth
Corporation (TSX: WEED) (NYSE: CGC) ("Canopy Growth" or "the
Company") today released its consolidated financial results for the
first quarter fiscal 2019 ended June 30,
2018. All financial information in this press release is
reported in Canadian dollars, unless otherwise indicated.
"With our unparalleled success in Canada and Europe, Spectrum Cannabis' expanding global
operational footprint now covering 11 countries, our active
regulatory and global market development efforts, as well as
approvals to proceed with the first of many planned clinical trials
of cannabis-based medical therapies for both humans and animals,
our leadership position in international medical cannabis markets
continues to strengthen," said Bruce
Linton, Chairman and Co-CEO.
Added Linton, "With an estimated 36% of the total supply
committed to date to the provinces and territories, we have secured
by far the deepest channel into the Canadian recreational cannabis
market. Considering our substantial inventory, large
cultivation footprint in production and the millions of additional
sq. ft. of greenhouses and our new state-of-the-art distribution
centre that are ready and waiting for licenses, we remain very
confident in our ability to succeed in capturing significant market
share."
Concluded Linton, "To drive our brand down to main street
Canada and capture retail margin,
we successfully invested in securing Tweed cannabis store licenses
in Newfoundland and Labrador, Manitoba and Saskatchewan and we expect to leverage these
successes in Alberta as well as in
the anticipated private retail framework in Ontario. Canopy
is developing the leading private cannabis retail channel in
Canada."
First Quarter 2019 Highlights
|
|
|
|
|
|
|
Q1 2019
|
Q4 2018
|
% Change
|
Q1 2018
|
% Change
|
Active registered
patients
|
82,700
|
74,000
|
12%
|
59,000
|
40%
|
Kilograms and
kilogram equivalents sold
|
2,695
|
2,528
|
7%
|
1,830
|
47%
|
Kilograms
harvested
|
9,685
|
4,811
|
101%
|
5,575
|
74%
|
Inventory &
Biological Assets (millions)
|
$171
|
$118
|
45%
|
$75
|
128%
|
|
|
|
|
|
|
Revenues
(millions)
|
$25.9
|
$22.8
|
14%
|
$15.9
|
63%
|
Average selling price
per gram
|
$8.94
|
$8.43
|
6%
|
$7.96
|
12%
|
Cash and Cash
Equivalents (millions)
|
$658
|
$323
|
104%
|
$115
|
472%
|
- Company continues to invest significant effort and resources
across all business areas in preparation for the recreational
market. Activities included the development, construction and
licensing of large greenhouse cultivation platforms in BC,
Quebec and Ontario, the development of a regional
distribution centre with highly efficient automation of product
packaging, securing recreational cannabis supply commitments to
provinces and territories, building product inventories, the
development of new permitted product SKUs including pre-rolled form
factors, the development of recreational product packaging, the
development of cannabis retail and education programs and the
development of the Tweed retail store concept and rollout
strategy
- Total first quarter revenue was $25.9
million representing a 63% increase over the quarter ended
June 30, 2017 when revenue totaled
$15.9 million and a 14% increase over
revenues of $22.8 million in the
fourth quarter of fiscal 2018
- 2,695 kilograms and kilogram equivalents sold in the first
quarter ended June 30, 2018,
representing an increase of 47% over the first quarter of last
year, and an increase of 7% over the fourth quarter of fiscal 2018
in which 2,528 kilograms and kilogram equivalents were sold
- Oil sales, including softgel capsules, accounted for 26% of
first quarter product revenue (reported revenue net of merchandise
revenue, clinic revenue and shipping fees). Oil sales in the first
quarter accounted for 2,650 liters (or approximately 330 kilogram
equivalents) of the kilogram and kilogram equivalents stated
above
- Cannabis sales in Germany
accounted for 14% of product revenue in the first quarter as
compared to 2% in the same quarter last year
- Average selling price per gram was $8.94 for the first quarter, as compared to
$7.96 last year in the same quarter
and $8.43 in the fourth quarter of
fiscal 2018
- Spektrum Cannabis sold 248 kilograms in Germany at an average selling price of
$13.62 per gram, up from 175
kilograms at an average selling price of $13.35 per gram in the fourth quarter of fiscal
2018, representing quarter over quarter growth of 42% and 2%
respectively
- Harvested 9,685 kilograms in the first quarter as compared to
4,811 kilograms in the fourth quarter of fiscal 2018 and 5,575
kilograms in the first quarter of fiscal 2018
- At quarter end the Company held inventory of 19,721 kilograms
of dry cannabis, 14,895 litres of cannabis oils, ranging from
concentrated resins, or refined oil, to finished oil, and 1,055
kilograms of softgel capsules. Inventories are continuing to be
scaled to meet management's expectation of market demands,
including the legalized recreational market expected later in
calendar 2018
- The Company closed the issuance of 4.25% convertible notes
amounting to $600 million in gross
proceeds, including exercise of an overallotment by the initial
purchasers. The transaction was significantly over-subscribed and
included the participation by Greenstar Canada Investment Limited
Partnership, an affiliate of Constellation Brands, Inc. for
$200 million, and the remainder of
the offering was allocated exclusively to institutions, primarily
in the United States, Europe, as well as Canada
- Acquired Annabis Medical s.r.o ("Annabis Medical"), a medical
cannabis distributor in the Czech
Republic and Daddy Cann Lesotho PTY Ltd., a Lesotho-based company licensed to cultivate,
manufacture, supply, hold, import, export and transport cannabis
and its resin
Subsequent to First Quarter Fiscal 2019
- Completed the acquisition of unowned interests in Canopy Health
Innovations and BC Tweed, making them wholly-owned subsidiaries of
the Company
- Alberta and BC supply
agreements signed, doubling annualized supply requirement to over
67,000 kg per year.
- Formed wholly-owned subsidiary Canopy LATAM Corporation
("Canopy LATAM") and through Canopy LATAM acquired Spectrum
Cannabis Colombia S.A.S., which previously operated as Colombian
Cannabis S.A.S., expanding the Company's focus on the emerging
medical cannabis market of Latin
America
- Announced proposed acquisition of Hiku Brands to strengthen the
Company's portfolio of cannabis brands and advanced retail platform
including branded Tokyo Smoke stores. The transaction is expected
to close in the second quarter of fiscal 2019
First Quarter Fiscal 2019 Revenue
Review
Revenue for the first quarter fiscal 2019 was a $25.9, representing an increase of 63% over the
prior year's quarter in which revenue was $15.9 million. In the three months ended
June 30, 2018 and 2017, oils,
including the Company's Softgel capsules, accounted for 26% and
19%, respectively, of the product revenue for each period.
First Quarter Fiscal 2019 Product Sales
Review
During the first quarter of fiscal 2019, the Company sold 2,695
kilograms and kilogram equivalents in the first quarter ended
June 30, 2018 at an average sale
price of $8.94, up from 1,830
kilograms and kilogram equivaents at an average price of
$7.96 in the prior year period,
representing an increase of 47% and 12% respectively. The
higher average price was due to changes in the mix of product sold
and increasing sales in Germany by
wholly-owned subsidiary Spektrum Cannabis GmbH ("Spektrum
Cannabis").
Oil sales, including gel caps, accounted for 26% of first
quarter product revenue (reported revenue net of merchandise
revenue, clinic revenue and shipping fees). Oil sales in the first
quarter accounted for 2,650 litres (or approximately 330 kilogram
equivalents) of the kilogram and kilogram equivalents sold.
Spektrum Cannabis sold 248 kilograms in Germany, all sourced from Canadian domestic
production, at an average price of $13.62 per gram.
First Quarter Fiscal 2019 Gross Margin
Summary
The cost of sales includes the impact of cash operating costs of
subsidiaries not yet cultivating or selling cannabis, including our
BC Tweed and Vert Mirabel facilities that are partially licensed,
and higher overheads incurred while preparing operations for the
legalization of recreational cannabis. Excluding the costs
associated with non-cultivating subsidiaries totaling $5.4 million, the gross margin before the fair
value impacts in cost of sales and other inventory charges would
have been $16.5 million or 64% of
sales.
The first quarter fiscal 2019 gross margin2 including
the costs of operating the non‑cultivating subsidiaries and
distribution charges but before the fair value effects of the IFRS
accounting for biological assets and inventory and other inventory
charges was $11.1 million or 43% of
sales, as compared to $8.7 million or 55% of sales in the first
quarter of last year.
First Quarter Fiscal 2019 Operating Expense
Summary
Management believes ongoing investment in building the Company's
significant and diversified production platform, flexible
distribution capability, world-leading brands, medical and
recreational sales and customer support capabilities, robust
information technology infrastructure, international business
development and operations and as well as research and development
into advanced operational systems, cannabis genetics in different
environmental conditions and new cannabis-based product form
factors that will enter the market when permitted, all of which
directly impacted profitability in quarter, represents a prudent
long‑term investment to strengthen the Company's global leadership
position. As a result, both sales and marketing and general
and administrative expenses were up significantly relative to the
same period last year.
|
|
|
|
|
|
Q1 2019
|
Q1 2018
|
|
$
|
% of
Revenue
|
$
|
% of
Revenue
|
Sales and Marketing
Expenses (millions)
|
$17.3
|
67%
|
$6.4
|
40%
|
General and
Administrative Expenses (millions)
|
$19.6
|
76%
|
$7.5
|
47%
|
Research and
Development Expenses (millions)
|
$0.8
|
3%
|
$0.1
|
1%
|
|
|
|
|
|
Sales and marketing expenses include staffing levels in
marketing and sales functions needed to service the coming
regulated recreational and international markets, costs associated
with the development of branding, marketing and education
campaigns, the development of new permitted product SKUs, the
development of recreational product packaging, the development of
cannabis retail and education programs as well as costs associated
with the Company's medical outreach program and the growing
customer care center which interfaces directly with the Company's
growing base of patients.
The General and Administrative expenses include higher legal and
professional services fees related to investments in governance,
expanded operations and supporting business development as well as
expanding the Company's information technology capability. G&A
expenses also included higher employee compensation costs due to
increased staff levels, necessary use of consultants and advisory
services while expanding and commercializing the Company's
operations, compliance costs associated with meeting Health Canada
requirements, as well as other public company compliance related
expenses including related professional fees.
First Quarter Fiscal 2019 Adjusted EBITDA
Summary (Non-GAAP
measure)3
Adjusted EBITDA in the first quarter fiscal 2019 amounted to a
loss of $22.5 million compared to a
loss of $3.9 million in the same
period last year.
The Adjusted EBITDA is reconciled and explained in the
Management's Discussion & Analysis under "Adjusted EBITDA
(Non-GAAP Measure)" a copy of which will be filed on SEDAR after
financial markets close today. The Adjusted EBITDA is reconciled in
a table elsewhere in this press release.
First Quarter Fiscal Year 2019 Other
Expenses and Net Earnings Summary
Other expenses totaled $60.4
million for the three months ended June 30, 2018 and was comprised of a non-cash
fair value loss of $19.3 million
principally related to the change in fair value of TerrAscend
warrants and a non-cash fair value loss on AusCann options. Both
the warrants and options were initially recognized at fair value
and are subsequently remeasured to their fair value at the end of
each reporting period. Other expenses also included
$16 million related to the
convertible debt issue costs which arose at the end of the
quarter. In addition, fair value changes on the BC Tweed and
Vert Mirabel put liabilities combined to a loss of $18.1 million. Of note, due to the full
acquisition of BC Tweed in July, the BC Tweed put liability which
had a fair value of $72.6 million at
the end of June will be extinguished in the second quarter which
will result in a gain in that quarter.
The $60.4 million in other
expenses described above accounted for $0.30 of the reported $0.40 loss per basic and diluted share in the
quarter, compared to net loss of $0.06 per basic and diluted share in the
comparative period last year.
Net loss in the quarter, after taxes and after the other
expenses of $60.4 million just
described contributed to a reported net loss of $90.8 million or $0.40 per basic and diluted share share compared
to a net loss of $9.2 million or
$0.06 per basic and diluted share in
the comparative period last year.
First Quarter Fiscal 2019 Balance Sheet
Highlights
At June 30, 2018, the Company's
cash and cash equivalents totaled $657.9 million, representing an increase of
$335.3 million from March 31, 2018, principally due to the issuance
of $600 million in convertible notes
in the quarter, offset by investment in the aggressive
expansion of our production assets and corporate
capabilities.
Inventory at June 30, 2018
amounted to $118.2 million
(March 31, 2018 - $101.6 million) and biological assets amounted to
$52.8 million (March 31, 2018 - $16.3
million), together totaling $171.0
million (March 31, 2018 -
$117.9 million). Inventories
are continuing to be scaled to meet management's expectation of
market demands, including the legalized recreational market
expected later in calendar 2018.
At June 30, 2018, the Company held
inventory of 19,721 kilograms of dry cannabis, 14,895 litres of
cannabis oils, ranging from concentrated resins, or refined oil, to
finished oil, and 1,055 kilograms of softgel capsules. Included in
the dry cannabis quantities was 2,594 kilograms available for sale
in the Company's online stores and 6,576 kilograms in process of
finishing or awaiting approval for sale and 10,551 kilograms of
cannabis held for conversion to saleable oils and
softgel capsules.
The unaudited Consolidated Financial Statements and Management's
Discussion and Analysis documents for the three months ended
June 30, 2018 will be filed on SEDAR
and available at www.sedar.com. The basis of financial reporting in
the Unaudited Condensed Interim Consolidated Financial Statements
and Management's Discussion and Analysis documents is in thousands
of Canadian dollars, unless otherwise indicated.
Note 1: Estimated share of supply agreements announced to
date by provinces and territories. Includes Canopy Growth
estimate of total of supply agreements entered into by Alberta and British
Columbia
Note 2: The Gross margin before the fair value effects of
the IFRS accounting for biological assets and inventory 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. The definition of this term can
be found in the Management's Discussion & Analysis under GROSS
MARGIN, a copy of which will be filed on SEDAR after financial
markets close today.
Note 3: The Adjusted EBITDA is a non-GAAP financial
measure that does not have any standardized meaning prescribed by
IFRS and may not be comparable to similar measures presented by
other companies. The Adjusted EBITDA is reconciled and explained in
the Management's Discussion & Analysis under "Adjusted EBITDA
(Non-GAAP Measure)", a copy of which will filed on SEDAR after
financial markets close today.
Webcast and Conference Call Information
The Company will host a conference call and audio webcast with
Bruce Linton, CEO and Tim Saunders, CFO at 8:00
AM Eastern Time on August 15,
2018.
Webcast Information
A live audio webcast will be available at:
https://event.on24.com/wcc/r/1800764/F7B6A3CFF26AED5C28B555A658CF1105
Calling Information
Toll Free Dial-In Number: 1-888-231-8191
International Dial-In Number (647) 427-7450
Conference ID: 4984819
Replay Information
A replay of the call will be accessible by telephone until
11:59 PM ET on
November 14, 2018.
Toll Free Dial-in Number: 1-855-859-2056
Replay Password: 4984819
About Canopy Growth Corporation
Canopy Growth is a
world-leading diversified cannabis and hemp company, offering
distinct brands and curated cannabis varieties in dried, oil and
Softgel capsule forms. 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.
Canopy Growth has established partnerships with leading sector
names including cannabis icon Snoop Dogg, breeding legends DNA
Genetics and Green House seeds, and Fortune 500 alcohol leader
Constellation Brands, to name but a few. Canopy Growth operates ten
cannabis production sites with over 2.4 million square feet of
production capacity, including over 500,000 square feet of
GMP-certified production space. The Company has operations in nine
countries across five continents. The Company is proudly dedicated
to educating healthcare practitioners, conducting robust clinical
research, and furthering the public's understanding of cannabis,
and through its partly owned subsidiary, Canopy Health Innovations,
has devoted millions of dollars toward cutting edge,
commercializable research and IP development. Through partly owned
subsidiary Canopy Rivers Corporation, the Company is providing
resources and investment to new market entrants and building a
portfolio of stable investments in the sector. From our historic
public listing to our continued international expansion, pride in
advancing shareholder value through leadership is engrained in all
we do at Canopy Growth. For more information visit
www.canopygrowth.com
Notice Regarding Forward Looking Statements
This news
release contains forward-looking information. Often, but not
always, forward-looking 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 information involves 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
information contained in this news release. Examples of such
statements include statements with respect to the future market
share achieved in recreational markets, product development,
clinical trial work, and planned acquisition activities related to
BC Tweed, and Canopy Health Innovations. 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 risks associated
with entering a new market dynamic in Canada or internationally, and such risks
contained in the Company's annual information form dated June
28, 2017 and filed with Canadian securities regulators
available on the Company's issuer profile on SEDAR
at www.sedar.com. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information 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 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 to reflect new information, subsequent
events or otherwise unless required by applicable securities
legislation.
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
UNAUDITED
|
June
30,
|
March 31,
|
(Expressed in CDN
$000's)
|
2018
|
2018
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
657,896
|
$
|
322,560
|
|
Amounts
receivable
|
|
27,746
|
|
21,425
|
|
Biological
assets
|
|
52,811
|
|
16,348
|
|
Inventory
|
|
118,204
|
|
101,607
|
|
Prepaid expenses and
other assets
|
|
36,137
|
|
19,837
|
|
|
892,794
|
|
481,777
|
|
|
|
|
|
Property, plant and
equipment
|
|
479,898
|
|
303,682
|
Other long-term
assets
|
|
26,973
|
|
8,340
|
Investments in
associates and joint ventures
|
|
93,269
|
|
63,106
|
Other financial
assets
|
|
177,282
|
|
163,463
|
Intangible
assets
|
|
101,723
|
|
101,526
|
Goodwill
|
|
340,374
|
|
314,923
|
|
|
|
|
|
|
$
|
2,112,313
|
$
|
1,436,817
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
127,248
|
$
|
89,571
|
|
Deferred
revenue
|
|
767
|
|
900
|
|
Current portion of
long-term debt
|
|
2,539
|
|
1,557
|
|
|
130,554
|
|
92,028
|
|
|
|
|
|
|
Long-term
debt
|
|
617,749
|
|
6,865
|
|
Deferred tax
liability
|
|
30,815
|
|
33,536
|
|
Long-term financial
liabilities
|
|
108,732
|
|
61,150
|
|
|
|
|
|
|
|
887,850
|
|
193,579
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
1,124,485
|
|
1,076,838
|
|
Other
reserves
|
|
145,564
|
|
127,418
|
|
Accumulated other
comprehensive income
|
|
39,280
|
|
46,166
|
|
Deficit
|
|
(171,926)
|
|
(91,649)
|
|
|
|
|
|
Equity attributable
to Canopy Growth Corporation
|
|
1,137,403
|
|
1,158,773
|
|
|
|
|
|
|
Non-controlling
interests
|
|
87,060
|
|
84,465
|
|
|
|
|
|
Total
equity
|
|
1,224,463
|
|
1,243,238
|
|
|
|
|
|
|
$
|
2,112,313
|
$
|
1,436,817
|
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF OPERATIONS
|
FOR THE THREE
MONTHS ENDED JUNE 30, 2018 AND 2017
|
UNAUDITED
|
June
30,
|
June 30,
|
(Expressed in CDN
$000's except share amounts)
|
2018
|
2017
|
|
|
|
(Restated)
|
|
|
|
|
|
Revenue
|
$
|
25,916
|
$
|
15,873
|
|
|
|
|
|
Inventory production
costs expensed to cost of sales
|
|
14,832
|
|
7,161
|
|
|
|
|
|
Gross margin before
the undernoted
|
|
11,084
|
|
8,712
|
|
|
|
|
|
Fair value changes in
biological assets included in inventory sold and other inventory charges
|
|
26,388
|
|
10,784
|
Unrealized gain on
changes in fair value of biological assets
|
|
(57,289)
|
|
(20,254)
|
|
|
|
|
|
Gross
margin
|
|
41,985
|
|
18,182
|
|
|
|
|
|
Sales and
marketing
|
|
17,266
|
|
6,405
|
Research and
development
|
|
756
|
|
133
|
General and
administration
|
|
19,588
|
|
7,493
|
Acquisition-related
costs
|
|
1,884
|
|
836
|
Share-based
compensation expense
|
|
23,072
|
|
2,881
|
Share-based
compensation expense related to acquisition milestones
|
|
7,095
|
|
1,130
|
Depreciation and
amortization
|
|
3,030
|
|
3,544
|
|
|
|
|
|
Operating
expenses
|
|
72,691
|
|
22,422
|
|
|
|
|
|
Loss from
operations
|
|
(30,706)
|
|
(4,240)
|
|
|
|
|
|
Share of loss on
equity investments
|
|
(2,569)
|
|
-
|
Other expense,
net
|
|
(60,426)
|
|
(3,601)
|
Total other
expense, net
|
|
(62,995)
|
|
(3,601)
|
|
|
|
|
|
Loss before income
taxes
|
|
(93,701)
|
|
(7,841)
|
|
|
|
|
|
Income tax (expense)
recovery
|
|
2,723
|
|
(1,333)
|
|
|
|
|
|
Net
loss
|
$
|
(90,978)
|
$
|
(9,174)
|
|
|
|
|
|
Net loss
attributable to:
|
|
|
|
|
|
Canopy Growth
Corporation
|
$
|
(80,277)
|
$
|
(9,054)
|
|
Non-controlling
interests
|
|
(10,701)
|
|
(120)
|
|
$
|
(90,978)
|
$
|
(9,174)
|
|
|
|
|
|
Earnings per
share, basic and diluted
|
|
|
|
|
|
Net loss per
share:
|
$
|
(0.40)
|
$
|
(0.06)
|
|
Weighted average
number of outstanding common
shares:
|
|
200,160,740
|
|
163,884,269
|
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE THREE
MONTHS ENDED JUNE 30, 2018 AND 2017
|
UNAUDITED
|
June
30,
|
|
June 30,
|
(Expressed in CDN
$000's)
|
2018
|
|
2017
|
|
|
|
|
|
(Restated)
|
Net inflow (outflow)
of cash related to the following activities:
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
|
Net loss
|
$
|
(90,978)
|
$
|
(9,174)
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
3,661
|
|
1,735
|
|
|
|
Amortization of
intangible assets
|
|
2,632
|
|
3,322
|
|
|
|
Share of loss on
equity investments
|
|
2,569
|
|
-
|
|
|
|
Fair value changes in
biological assets included in inventory sold and other inventory charges
|
|
26,388
|
|
10,784
|
|
|
|
Unrealized gain on
changes in fair value of biological assets
|
|
(57,289)
|
|
(20,254)
|
|
|
|
Share-based
compensation
|
|
30,951
|
|
3,958
|
|
|
|
Loss on disposal of
property, plant and equipment and intangible assets
|
|
1,840
|
|
143
|
|
|
|
Other
assets
|
|
(3,120)
|
|
-
|
|
|
|
Other income and
expense
|
|
56,312
|
|
3,500
|
|
|
|
Income tax (recovery)
expense
|
|
(2,951)
|
|
1,333
|
|
|
|
Increase in fair
value of acquisition consideration related liabilities
|
|
-
|
|
-
|
|
|
|
Non-cash interest and
FX impact on assets
|
|
834
|
|
-
|
|
|
|
Changes in non-cash
operating working capital items
|
|
(38,490)
|
|
(7,739)
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(67,641)
|
|
(12,392)
|
|
|
|
|
|
|
Investing
|
|
|
|
|
|
|
Purchases and
deposits of property, plant and equipment and assets in process
|
|
(153,654)
|
|
(9,749)
|
|
|
Purchases of
intangible assets and intangibles in process
|
|
(2,815)
|
|
(34)
|
|
|
Purchases of
restricted investments
|
|
(1,212)
|
|
-
|
|
|
Investments in
associates
|
|
(3,500)
|
|
-
|
|
|
Investments in other
financial assets
|
|
(21,759)
|
|
-
|
|
|
Net cash inflow
(outflow) on acquisition of subsidiaries
|
|
(41)
|
|
(391)
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(182,981)
|
|
(10,174)
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
|
Payment of share
issue costs
|
|
(301)
|
|
(1,515)
|
|
|
Proceeds from
issuance of shares by Canopy Rivers
|
|
787
|
|
36,680
|
|
|
Proceeds from
exercise of stock options
|
|
1,758
|
|
1,511
|
|
|
Proceeds from
exercise of warrants
|
|
133
|
|
-
|
|
|
Issuance of long-term
debt
|
|
600,000
|
|
-
|
|
|
Payment of long-term
debt issue costs
|
|
(16,045)
|
|
-
|
|
|
Increase/(decrease)
in finance lease obligations
|
|
(54)
|
|
-
|
|
|
Repayment of
long-term debt
|
|
(320)
|
|
(416)
|
Net cash provided
by financing activities
|
|
585,958
|
|
36,260
|
|
|
|
|
|
Net cash
inflow
|
|
335,336
|
|
13,694
|
Cash and cash
equivalents, beginning of period
|
|
322,560
|
|
101,800
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
657,896
|
$
|
115,494
|
CANOPY GROWTH
CORPORATION
|
|
|
|
|
Adjusted
EBITDA1 Non-GAAP Measure
|
Three Months
Ended
|
(In
CDN$000's)
|
June
30,
2018
|
June 30,
2017
|
|
|
|
(Restated)
|
Adjusted
EBITDA1 Reconciliation
|
|
|
|
|
Loss from
operations - as reported
|
$
|
(30,706)
|
$
|
(4,240)
|
IFRS non-cash
accounting related to biological assets and
inventory
|
Fair value changes in
biological assets included in
inventory sold and other inventory charges
|
|
26,388
|
|
10,784
|
Unrealized gain on
changes in fair value of biological assets
|
|
(57,289)
|
|
(20,254)
|
|
|
(30,901)
|
|
(9,470)
|
Share-based
compensation expense (per statement of cash flows)2
|
|
30,951
|
|
3,958
|
Acquisition
Costs
|
|
1,884
|
|
836
|
Depreciation and
amortization (per statement of
cash flows)
|
|
6,293
|
|
5,057
|
|
|
39,128
|
|
9,851
|
Adjusted
EBITDA
|
$
|
(22,479)
|
$
|
(3,859)
|
|
|
|
|
|
|
|
1 - Adjusted
EBITDA is Earnings Before Interest, Tax, and Depreciation and other
non-cash items, and as adjusted for acquisition related
items.
|
|
2 - Includes
$7,095 and $1,130 for the three months ended June 30, 2018 and
2017, respectively, in share-based compensation expense related to
acquisition milestones
|
View original
content:http://www.prnewswire.com/news-releases/canopy-growth-corporation-reports-first-quarter-fiscal-2019-financial-results-300697247.html
SOURCE Canopy Growth Corporation