Record quarterly revenue of $21.7
million highest ever reported in Canadian cannabis sector
driven by strong domestic and international sales
Record Germany quarterly
sales of $1 million, all from
domestic Canadian production
Year-over-year registered patient growth of 138% and revenue
growth of 123%
Weighted average cost per gram1 to point of
harvest decreased 18% sequentially quarter over quarter to
$0.59 per gram, sixth consecutive
quarter below $1 per gram; weighted
average cost per gram before shipping and fulfillment decreased 18%
sequentially quarter over quarter to $1.03 per gram
Only cannabis company to secure multi-year supply agreements
with four provincial entities; multi-year commitments from
Canopy totaling up to 25,000 kilograms per year
Secured four retail license allocations in Newfoundland and Labrador, locations represent first announced
privately owned and operated legal cannabis retail locations in
Canada.
Raised $245 million in landmark
deal with Fortune 500 company Constellation Brands and subsequent
$201 million bought deal financing
including the first co-led by a major bank, BMO Capital
Markets
International production licenses announced in Denmark and Jamaica (provisional), bringing number of
global licensed facilities to 102
Approximately $400 million cash
on hand to fund domestic and global expansion
SMITHS FALLS, ON, Feb. 14, 2018 /CNW/ - Canopy Growth Corporation
(TSX: WEED) ("Canopy Growth" or "the Company") today released its
consolidated financial results for the third quarter ended
December 31, 2017. All financial
information in this press release is reported in Canadian dollars,
unless otherwise indicated.
"The Company's record revenues in the quarter were driven by a
significant increase in domestic sales across all product formats
as well as sales in the German medical market, which is beginning
to show impressive growth," said Bruce
Linton, Chairman & CEO. "Success in future global
medical markets and the recreational cannabis market in
Canada will depend not only on
capacity, but on strong execution and securing supply agreements
with the provinces today. I believe our success on both these
fronts is evident as you look at our accomplishments this past
quarter."
Added Linton, "With the sector's largest inventory of
diversified, high quality cannabis products, demonstrated
distribution capabilities, robust IT infrastructure, a vast
production footprint, investments in seven provinces across the
country and a proven record of leadership and execution, we are now
excelling into the anticipated recreational sector with
unparalleled opportunity. With millions of square feet of
production expansion underway across the country and around the
world, as well as capacity offtake from our expanding roster of
CraftGrow partners and through Canopy Rivers Corporation, we will
ensure a sufficient and timely flow of supply to serve our line-up
of unparalleled premium brands."
Third Quarter 2018 Highlights
|
|
|
|
|
|
|
Q3 2018
|
Q2 2018
|
% Change
|
Q3 2017
|
% Change
|
Active registered
patients
|
69,000
|
63,000
|
10%
|
29,000
|
138%
|
Kilograms and
kilogram equivalents sold
|
2,330
|
2,020
|
15%
|
1,245
|
87%
|
Kilograms
harvested
|
7,961
|
4,167
|
91%
|
5,264
|
51%
|
Inventory &
Biological Assets (millions)
|
$108
|
$97
|
11%
|
$56
|
93%
|
|
|
|
|
|
|
Revenues
(millions)
|
$21.7
|
$17.6
|
23%
|
$9.8
|
123%
|
Average selling price
per gram
|
$8.30
|
$7.99
|
4%
|
$7.36
|
13%
|
Cost per gram to
point of harvest 1
|
$0.59
|
$0.72
|
-18%
|
$0.87
|
-32%
|
Cost per gram before
shipping and fullfillment 1
|
$1.03
|
$1.25
|
-18%
|
$1.70
|
-39%
|
Cash and Cash
Equivalents (millions)2
|
$238
|
$108
|
121%
|
$93
|
156%
|
|
1) Weighted average
cost per gram
|
|
2) Prior to
subsequent $201 million gross proceeds raised in the bought deal
closed February 7, 2018 and $26 million gross proceeds raised by
Canopy Rivers in a private placement that closed on January 10,
2018
|
- First producer to sign separate multi-year cannabis supply
Memorandum of Understanding ("MOU") with the provinces of
New Brunswick and Newfoundland & Labrador representing a
combined total of up to 12,000 kilograms/year
- Canopy Growth entered into a ground breaking strategic
relationship with Fortune 500 global beverage leader Constellation
Brands ("Constellation"). As part of the agreement, an affiliate of
Constellation invested approximately $245
million in Canopy Growth in exchange for 9.9% equity and
warrants in the Company and the parties have agreed to collaborate
on new product development
- Record third quarter revenue was $21.7
million, a 123% increase over the third quarter ended
December 31, 2016 when revenue
totaled $9.8 million
- Sold a record 2,330 kilograms and kilogram equivalents at an
average sales price of $8.30 per
gram, representing an increase of 87% and 13%, respectively over
third quarter fiscal 2017
- Oil sales, including softgel capsules, accounted for 23% of
third quarter product revenue compared to 13% in the prior year
period. Oil sales in the third quarter accounted for 2,132 litres
(or approximately 262 kilogram equivalents) of the total kilogram
and kilogram equivalents sold compared to 1,157 litres (or
approximately 116 kilogram equivalents) of the total kilogram and
kilogram equivalents sold in the comparison period last year
- Net earnings in the quarter of fiscal 2018 of $11.0 million, or $0.01 per basic and diluted share
- Inventory and biological assets valued at a record $108.3 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
- Established joint business operations with large scale
greenhouse operators in British
Columbia and Quebec to
retrofit upwards of 3.7 million sq. ft. of modern high-tech
greenhouses
- $237.7 million in cash and cash
equivalents at quarter end prior to the addition of net proceeds of
$192.5 million from bought deal that
closed on February 7, 2018 and
proceeds of Canopy Rivers private placement, net of $5.1 million investment by Canopy Growth, of
$20.0 million that closed on
January 10, 2018
Subsequent to Third Quarter 2018
- Closed a bought deal financing co-led by GMP Securities L.P.
and BMO Capital Markets on February 7,
2018 that raised aggregate gross proceeds of $200.7 million. This financing marked the first
equity deal in the cannabis sector co-led by a major Canadian
chartered bank
- Signed multi-year cannabis supply MOU with the province
of Prince Edward Island for up to 1,000 kilograms/year
- Signed letter of intent with the Société des alcools du
Québec's ("SAQ") to provide the Quebec market with 12,000 kilos of
high-quality cannabis annually
- On January 10, 2018, Canopy
Growth announced that its subsidiary, Canopy Rivers, closed a
non-brokered private placement offering of 23,636,363 Class B
common shares (the "Shares") at a price of $1.10 per Share. Pursuant to the offering, Canopy
Rivers raised aggregate gross proceeds of approximately
$26 million. The Company subscribed
for 4,673,938 Shares for approximately $5.1
million
Third Quarter Fiscal 2018 Revenue
Review
Revenue for the third quarter fiscal 2018 was a record
$21.7 million, representing an
increase of 123% over the prior year's quarter in which revenue was
$9.8 million. In the three
months ended December 31, 2017 and
2016, oils, including the Company's Softgel capsules, accounted for
23% and 13%, respectively, of the product revenue for each
period.
Revenue in the nine months ended December
31, 2017 totaled $55.1 million
more than double as compared to $25.2
million in the same period last year. Revenues in the
nine months ended December 31, 2017
already equal 138% of revenue generated in the twelve months ended
March 31, 2017.
Third Quarter Fiscal 2018 Product Sales
Review
During the third quarter of fiscal 2018, Canopy Growth sold
2,330 kilograms and kilogram equivalents at an average price
of $8.30 per gram, up from 1,245
kilograms and kilogram equivalents at an average price of
$7.36 per gram during the prior year
period. The higher average price was due to primarily to the
improved mix of oil products, including oil-based Softgel capsules
and higher selling price of medical cannabis sold in Germany by wholly-owned subsidiary Spektrum
Cannabis GmbH ("Spektrum Cannabis").
Oil sales, including gel caps, accounted for 23% of third
quarter product revenue (reported revenue net of merchandise
revenue, clinic revenue and shipping fees). Oil sales in the third
quarter accounted for 2,132 litres (or approximately 262 kilogram
equivalents) of the kilogram and kilogram equivalents sold.
Spektrum Cannabis sold 78 kilograms in Germany, all sourced from Canadian domestic
production, at an average price of $12.61 per gram.
Year-to-date, the Company has sold 6,198 kilograms and kilogram
equivalents at an average price of $8.11 per gram compared to 3,399 kilograms at an
average price of $7.12 per gram in
the nine months ended December 31,
2016, representing an increase of 82% and 14%,
respectively.
Third Quarter Fiscal 2018 Weighted Average
Cost per Gram (Non-GAAP measure) 1
Weighted Average
Cost Gram Information
|
Three Months
Ended
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost per Gram to
Harvest
|
$
|
0.59
|
|
$
|
0.72
|
|
$
|
0.76
|
|
$
|
0.86
|
|
$
|
0.87
|
Post Harvest Cost per
Gram
|
$
|
0.44
|
|
$
|
0.53
|
|
$
|
0.51
|
|
$
|
0.60
|
|
$
|
0.54
|
Cost per Gram
before shipping and fulfilment
|
$
|
1.03
|
|
$
|
1.25
|
|
$
|
1.27
|
|
$
|
1.46
|
|
$
|
1.41
|
Cost per Gram for
Shipping and Fulfilment
|
$
|
1.50
|
|
$
|
1.48
|
|
$
|
1.50
|
|
$
|
1.44
|
|
$
|
1.17
|
Weighted Average
Cost per Gram
|
$
|
2.53
|
|
$
|
2.73
|
|
$
|
2.77
|
|
$
|
2.90
|
|
$
|
2.58
|
The Company continues to make successive operating improvements
in production and post-harvest activities through scaling and
investments made to achieve competitive cost leadership within the
industry and may see further optimization as increasing percentages
of each facility are brought online and efficiencies are fully
realized. The shipping and fulfilment costs include
Canopy's premium brand packaging, a differentiator to support the
Company's brand category positioning.
Third Quarter Fiscal 2018 Gross Margin
Summary (Non-GAAP measure)3
The third quarter Fiscal 2018 gross margin before the fair value
effects of the IFRS accounting for biological assets and inventory
was $12.5 million or 58% of sales, as
compared to $6.2 million or 64%
of sales in the third quarter of last year. The lower gross margin
percentage was due primarily to the impact of cash operating costs
of subsidiaries not yet cultivating or selling cannabis. Excluding
the costs associated with non-cultivating subsidiaries totaling
$2.9 million, the gross margin before
the fair value impacts in cost of sales would have been
$15.5 million or 71% of sales.
Third Quarter Fiscal 2018 Operating Expense
Summary
Management believes the ongoing investment in building the
Company's significant and diversified production platform,
world-leading brands, unparalleled international reach, and iconic
partnerships, all of which directly impacted profitability during
the current period, is a prudent long-term investment to strengthen
the Company's global leadership position heading into next
year.
Sales and marketing expenses in the third quarter fiscal 2018
were $9.4 million, or 43% of revenue. In comparison,
Sales and marketing expenses were $3.8
million, or 39% of revenue in the same period last
year.
General and Administrative ("G&A") expenses in the third
quarter fiscal 2018 were $11.1
million, or 51% of revenue. In comparison, G&A
expenses were $4.0 million,
41% of revenue, in the three months ended December 31, 2017.
Third Quarter Fiscal 2018 Adjusted EBITDA Summary
(Non-GAAP measure)4
Adjusted EBITDA in the third quarter fiscal 2018 amounted to a
loss of $7.1 million compared to a
loss of $1.4 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 has been filed today on
www.sedar.com. The Adjusted EBITDA is reconciled in a table
elsewhere in this press release.
Third Quarter Fiscal 2018 Earnings
Summary
Net earnings in the third quarter of fiscal 2018 amounted to
$11.0 million, or $0.01 per basic and diluted share, including the
net non-cash fair value effects of the IFRS accounting for
biological assets and inventory which combined to a gain of
$6.5 million, fair value changes in
financial assets amounting to $35.9
million and a gain on the partial disposal of Agripharm of
$8.8 million, partially offset by
non-cash share-based compensation expense and
depreciation. In the comparative period last year, the
net income of $3.0 million, or
$0.03 per basic share and
$0.02 per diluted share including net
non-cash effects of the IFRS accounting for biological assets and
inventory which combined to a net gain of $10.7 million.
Third Quarter Fiscal 2018 Balance Sheet
Highlights
At December 31, 2017, the
Company's cash and cash equivalents totaled $237.7 million, representing an increase of
$135.9 million from March 31, 2017.
Inventory at December 31, 2017
amounted to $93.2 million
(March 31, 2017 - $46.0 million) and biological assets amounted to
$15.1 million (March 31, 2017 - $14.7
million), together totaling $108.3
million (March 31, 2017 -
$60.7 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 December 31, 2017, the Company
held 16,837 kilograms of dry cannabis and 5,919 litres of
cannabis oils, ranging from concentrated resins, or refined oil, to
finished oil. Included in the dry cannabis quantities was 2,606
kilograms available for sale in the Company's online stores and
6,059 kilograms in process of finishing or awaiting approval
for sale and 8,172 kilograms of extract-grade cannabis held for
conversion to saleable oils and capsules.
The Unaudited Condensed Interim Consolidated Financial
Statements and Management's Discussion and Analysis documents for
the three months ended December 31,
2017 have been filed with SEDAR and are available on
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: The Weighted Average Cost Per Gram 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 definition of this term can be
found in the Management's Discussion & Analysis under Weighted
Average Cost Per Gram (Non-GAAP measure), a copy of which has been
filed today on www.sedar.com.
Note 2: Includes 40% owned Agripharm for which Canopy
Growth has an off-take arrangement for between 75%-100% of their
production.
Note 3: The Gross margin before the fair value effects of
the IFRS accounting for biological assets and inventory 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 definition of this
term can be found in the Management's Discussion & Analysis
under GROSS MARGIN (Non-GAAP measure), a copy of which has been
filed today on www.sedar.com.
Note 4: 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 has been filed today
on www.sedar.com.
Webcast and Conference Call Information
The Company will host a conference call and audio webcast with
Bruce Linton, CEO and Tim Saunders, CFO at 8:30
AM Eastern Time the same day.
Webcast Information
A live audio webcast will be available at:
http://event.on24.com/r.htm?e=1595142&s=1&k=E5297D473ED845DDE857FD35673F9872
Calling Information
Toll Free Dial-In Number: 1-888-231-8191
International Dial-In Number (647) 427-7450
Conference ID: 7877468
Replay Information
A replay of the call will be accessible by telephone until
11:59 PM ET on May 14, 2018.
Toll Free Dial-in Number: 1-855-859-2056
Replay Password: 7877468
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 icons Snoop Dogg and Organa Brands,
breeding legends DNA Genetics and Green House seeds, and Fortune
500 alcohol leader Constellation Brands. Canopy Growth operates
seven cannabis production sites with over 665,000 square feet of
production capacity, including over 500,000 square feet of
GMP-certified production space. The Company has operations in seven
countries across four 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.
Notice Regarding Forward Looking Statements
This news
release contains forward-looking statements. Often, but not always,
forward-looking statements 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 involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Canopy Growth Corporation and its subsidiaries to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Examples of such statements include future operational
and production capacity, the impact of enhanced infrastructure and
production capabilities, and forecasted available product
selection. The forward-looking statements included in this
news release are made as of the date of this news release and
Canopy Growth Corporation does not undertake an obligation to
publicly update such forward-looking statements to reflect new
information, subsequent events or otherwise unless required by
applicable securities legislation. Neither the TSX Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
UNAUDITED
|
December
31,
|
March 31,
|
(Expressed in CDN
$000's)
|
2017
|
2017
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
237,708
|
$
|
101,800
|
|
Restricted short-term
investments
|
|
668
|
|
550
|
|
Amounts
receivable
|
|
9,075
|
|
5,815
|
|
Biological
assets
|
|
15,075
|
|
14,725
|
|
Inventory
|
|
93,243
|
|
45,981
|
|
Prepaid expenses and
other assets
|
|
18,479
|
|
3,735
|
|
|
374,248
|
|
172,606
|
|
|
|
|
|
Assets classified as
held for sale
|
|
-
|
|
6,180
|
|
|
374,248
|
|
178,786
|
|
|
|
|
|
Property, plant and
equipment
|
|
153,982
|
|
96,270
|
Deposits on property,
plant and equipment
|
|
23,160
|
|
-
|
Other
assets
|
|
1,932
|
|
-
|
Investments in
associates
|
|
66,395
|
|
-
|
Other financial
assets
|
|
75,224
|
|
24,030
|
Intangible
assets
|
|
127,861
|
|
162,263
|
Goodwill
|
|
272,346
|
|
241,371
|
|
|
|
|
|
|
$
|
1,095,148
|
$
|
702,720
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
25,099
|
$
|
15,386
|
|
Deferred
revenue
|
|
725
|
|
588
|
|
Current portion of
long-term debt
|
|
1,499
|
|
1,691
|
|
Other
liabilities
|
|
1,914
|
|
-
|
|
|
29,237
|
|
17,665
|
|
|
|
|
|
|
Long-term
debt
|
|
7,294
|
|
8,639
|
|
Deferred tax
liability
|
|
38,759
|
|
35,924
|
|
Other long-term
liabilities
|
|
-
|
|
766
|
|
|
|
|
|
|
|
75,290
|
|
62,994
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
866,550
|
|
621,541
|
|
Other
reserves
|
|
117,833
|
|
23,415
|
|
Accumulated other
comprehensive income
|
|
17,196
|
|
16,098
|
|
Deficit
|
|
(30,105)
|
|
(21,296)
|
|
|
|
|
|
Equity attributable
to Canopy Growth Corporation
|
|
971,474
|
|
639,758
|
|
|
|
|
|
|
Non-controlling
interests
|
|
48,384
|
|
(32)
|
|
|
|
|
|
Total
equity
|
|
1,019,858
|
|
639,726
|
|
|
|
|
|
|
$
|
1,095,148
|
$
|
702,720
|
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF OPERATIONS
|
FOR THE THREE AND
NINE MONTHS ENDED DECEMBER 31, 2017 AND 2016
|
|
Three months
ended
|
Nine months
ended
|
UNAUDITED
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
(Expressed in CDN $000's except share amounts)
|
2017
|
2016
|
2017
|
2016
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
21,700
|
$
|
9,752
|
$
|
55,142
|
$
|
25,234
|
|
|
|
|
|
|
|
|
|
Inventory production
costs expensed to cost of
sales
|
|
9,166
|
|
3,511
|
|
23,501
|
|
9,690
|
Gross margin before
the undernoted
|
|
12,534
|
|
6,241
|
|
31,641
|
|
15,544
|
|
|
|
|
|
|
|
|
|
Fair value changes in
biological assets included in
inventory sold and other inventory
charges
|
|
23,692
|
|
4,983
|
|
46,339
|
|
12,332
|
Unrealized gain on
changes in fair value of biological assets
|
|
(29,728)
|
|
(15,685)
|
|
(81,713)
|
|
(33,003)
|
Gross
margin
|
|
18,570
|
|
16,943
|
|
67,015
|
|
(20,671)
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
9,409
|
|
3,780
|
|
23,452
|
|
8,850
|
Research and
development
|
|
287
|
|
439
|
|
914
|
|
1,345
|
General and
administration
|
|
11,050
|
|
4,043
|
|
26,936
|
|
10,924
|
Acquisition-related
costs
|
|
790
|
|
1,383
|
|
2,491
|
|
1,975
|
Share-based
compensation expense
|
|
8,965
|
|
1,497
|
|
17,708
|
|
3,345
|
Share-based
compensation expense related to acquisition milestones
|
|
8,914
|
|
-
|
|
11,228
|
|
-
|
Depreciation and
amortization
|
|
5,187
|
|
1,048
|
|
15,535
|
|
2,943
|
Operating
expenses
|
|
44,602
|
|
12,190
|
|
98,264
|
|
29,382
|
|
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
|
(26,032)
|
|
4,753
|
|
(31,249)
|
|
6,833
|
|
|
|
|
|
|
|
|
|
Share of loss in
equity investments
|
|
-
|
|
-
|
|
(170)
|
|
(50)
|
Other expense,
net
|
|
(33)
|
|
(181)
|
|
(39)
|
|
(270)
|
Fair value changes on
financial assets
|
|
35,854
|
|
-
|
|
32,500
|
|
-
|
Gain on disposal of
consolidated entity
|
|
8,820
|
|
-
|
|
8,820
|
|
-
|
Increase in fair
value of acquisition consideration
related liabilities
|
|
-
|
|
(895)
|
|
-
|
|
(1,193)
|
Other income
(expenses)
|
|
44,641
|
|
(1,076)
|
|
41,111
|
|
(1,513)
|
Income before
income taxes
|
|
18,609
|
|
3,677
|
|
9,862
|
|
5,320
|
Income tax recovery
(expense)
|
|
(7,595)
|
|
(701)
|
|
(9,635)
|
|
(863)
|
Net
income
|
$
|
11,014
|
$
|
2,976
|
$
|
227
|
$
|
4,457
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
Canopy Growth
Corporation
|
$
|
1,583
|
$
|
2,992
|
$
|
(8,809)
|
$
|
4,473
|
|
Non-controlling
interests
|
|
9,431
|
|
(16)
|
|
9,036
|
|
(16)
|
|
$
|
11,014
|
$
|
2,976
|
$
|
227
|
$
|
4,457
|
|
|
|
|
|
|
|
|
|
Earnings per
share, basic
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
$
|
0.01
|
$
|
0.03
|
$
|
(0.05)
|
$
|
0.04
|
|
Weighted average
number of outstanding common
shares:
|
|
182,029,481
|
|
116,813,261
|
|
171,075,324
|
|
109,725,439
|
|
|
|
|
|
|
|
|
|
Earnings per
share, diluted
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
$
|
0.01
|
$
|
0.02
|
$
|
(0.05)
|
$
|
0.04
|
|
Weighted average
number of outstanding common
shares:
|
|
194,739,044
|
|
123,034,872
|
|
171,075,324
|
|
114,094,787
|
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE NINE
MONTHS ENDED DECEMBER 31, 2017 AND 2016
|
|
Three months
ended
|
Nine months
ended
|
UNAUDITED
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
(Expressed in CDN
$000's)
|
2017
|
2016
|
2017
|
2016
|
|
|
|
|
|
|
|
|
|
Net inflow (outflow)
of cash related to the following activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
11,014
|
$
|
2,976
|
$
|
227
|
$
|
4,457
|
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
2,324
|
|
974
|
|
6,360
|
|
2,721
|
|
|
|
Amortization of
intangible assets
|
|
2,863
|
|
74
|
|
9,175
|
|
222
|
|
|
|
Share of loss in
equity investments
|
|
-
|
|
-
|
|
170
|
|
50
|
|
|
|
Fair value changes in
biological assets included in inventory sold and other inventory charges
|
|
23,692
|
|
4,983
|
|
46,339
|
|
12,332
|
|
|
|
Unrealized gain on
changes in fair value of biological assets
|
|
(29,728)
|
|
(15,685)
|
|
(81,713)
|
|
(33,003)
|
|
|
|
Share-based
compensation
|
|
19,015
|
|
2,115
|
|
30,249
|
|
4,347
|
|
|
|
Contingent
consideration provision
|
|
-
|
|
527
|
|
-
|
|
527
|
|
|
|
Loss on disposal of
property, plant and equipment
|
|
385
|
|
218
|
|
553
|
|
218
|
|
|
|
Other
assets
|
|
(1,932)
|
|
-
|
|
(1,932)
|
|
-
|
|
|
|
Fair value changes on
financial assets
|
|
(35,506)
|
|
-
|
|
(32,152)
|
|
-
|
|
|
|
Gain on disposal of
consolidated entity
|
|
(8,820)
|
|
-
|
|
(8,820)
|
|
-
|
|
|
|
Income tax
expense
|
|
7,595
|
|
701
|
|
9,635
|
|
863
|
|
|
|
Increase in fair
value of acquisition consideration related liabilities
|
|
-
|
|
895
|
|
-
|
|
1,193
|
|
|
|
Changes in non-cash
operating working capital items
|
|
(12,625)
|
|
(218)
|
|
(22,686)
|
|
(5,311)
|
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(21,723)
|
|
(2,440)
|
|
(44,595)
|
|
(11,384)
|
|
|
|
|
|
|
|
|
|
|
Investing
|
|
|
|
|
|
|
|
|
|
|
Purchases and
deposits of property, plant and equipment and assets in process
|
|
(60,581)
|
|
(7,972)
|
|
(86,107)
|
|
(16,700)
|
|
|
Purchases of
intangible assets and intangibles in process
|
|
(751)
|
|
-
|
|
(1,033)
|
|
-
|
|
|
Proceeds on disposals
of property and equipment
|
|
-
|
|
37
|
|
75
|
|
37
|
|
|
Purchases of
restricted investments
|
|
-
|
|
-
|
|
(118)
|
|
-
|
|
|
Proceeds on assets
classified as held for sale
|
|
-
|
|
-
|
|
7,000
|
|
-
|
|
|
Investments in
affiliates
|
|
(12,650)
|
|
-
|
|
(18,824)
|
|
-
|
|
|
Indirect investments
through Canopy Rivers
|
|
(19,257)
|
|
-
|
|
(27,732)
|
|
-
|
|
|
Net cash outflow on
acquisition of subsidiaries
|
|
(3,241)
|
|
(783)
|
|
(3,600)
|
|
(783)
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(96,480)
|
|
(8,718)
|
|
(130,339)
|
|
(17,446)
|
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common shares
|
|
244,990
|
|
60,017
|
|
269,990
|
|
106,026
|
|
|
Proceeds from
issuance of shares by Canopy Rivers, net of share issue costs of $1,568
|
|
-
|
|
-
|
|
35,113
|
|
-
|
|
|
Proceeds from
exercise of stock options
|
|
4,109
|
|
2,329
|
|
7,544
|
|
3,457
|
|
|
Proceeds from
exercise of warrants
|
|
154
|
|
-
|
|
681
|
|
126
|
|
|
Issuance of long-term
debt
|
|
-
|
|
-
|
|
-
|
|
3,500
|
|
|
Payment of share
issue costs
|
|
(1,166)
|
|
(3,790)
|
|
(1,345)
|
|
(6,820)
|
|
|
Increase in finance
lease obligations
|
|
-
|
|
-
|
|
-
|
|
260
|
|
|
Repayment of
long-term debt
|
|
(387)
|
|
(273)
|
|
(1,141)
|
|
(612)
|
Net cash provided
by financing activities
|
|
247,700
|
|
58,283
|
|
310,842
|
|
105,937
|
|
|
|
|
|
|
|
|
|
Net cash
inflow
|
|
129,497
|
|
47,125
|
|
135,908
|
|
77,107
|
Cash and cash
equivalents, beginning of year
|
|
108,211
|
|
45,379
|
|
101,800
|
|
15,397
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
237,708
|
$
|
92,504
|
$
|
237,708
|
$
|
92,504
|
CANOPY GROWTH
CORPORATION
|
Adjusted
EBITDA1 Non-GAAP Measure
|
Three Months
Ended
|
Nine Months
Ended
|
(In
CDN$000's)
|
December
31,
2017
|
December
31,
2016
|
December
31,
2017
|
December
31,
2016
|
Adjusted
EBITDA1 Reconciliation
|
|
|
|
|
|
|
|
|
(Loss) income from
operations - as reported
|
$
|
(26,032)
|
$
|
4,753
|
$
|
(31,249)
|
$
|
6,833
|
|
|
|
|
|
|
|
|
|
IFRS non-cash
accounting related to biological assets and
inventory
|
Fair value changes in
biological assets included in
inventory sold and other inventory charges
|
|
23,692
|
|
4,983
|
|
46,339
|
|
12,332
|
Unrealized gain on
changes in fair value of biological assets
|
|
(29,728)
|
|
(15,685)
|
|
(81,713)
|
|
(33,003)
|
|
|
(6,036)
|
|
(10,702)
|
|
(35,374)
|
|
(20,671)
|
|
|
|
|
|
|
|
|
|
Share-based
compensation expense (per statement of cash flows)2
|
|
19,015
|
|
2,115
|
|
30,249
|
|
4,347
|
Acquisition
Costs
|
|
790
|
|
1,383
|
|
2,491
|
|
1,975
|
Depreciation and
amortization
|
|
5,187
|
|
1,048
|
|
15,535
|
|
2,943
|
|
|
24,992
|
|
4,546
|
|
48,275
|
|
9,265
|
Adjusted
EBITDA
|
$
|
(7,076)
|
$
|
(1,403)
|
$
|
(18,348)
|
$
|
(4,573)
|
|
1 - Adjusted
EBITDA is Earnings Before Interest, Tax, and Depreciation and other
non-cash items, and as adjusted for acquisition related
items.
|
2 - Includes
$8,914 and $11,228 for the three and nine months ended December 31,
2017, respectively, in share-based compensation expense related to
acquisition milestones
|
SOURCE Canopy Growth Corporation