TSX | NYSE: ACB
EDMONTON, Aug. 6, 2019 /CNW/ - Aurora Cannabis Inc.
("Aurora" or the "Company") (NYSE | TSX: ACB), the Canadian
company defining the future of cannabis worldwide, today provided a
corporate update on selected financial metrics for the fourth
quarter of the Company's Fiscal 2019 ("Q4 2019") period ended
June 30, 2019. This reiteration of
guidance and clarification of operations is intended to update our
investors as Aurora continues to demonstrate leadership in
transparency and disclosure as the industry navigates throughs
periods of volatility. Full results will be published prior to
September 15, 2019, details for which
will be provided in advance.
Based on a preliminary (unaudited) review, the Company
anticipates net revenues for the quarter ended June 30, 2019 of between $100 million and $107
million (net of excise taxes), compared to $19.1 million in the period ended June 30, 2018, and compared to $65.1 million for the previous quarter ended
March 31, 2019. Fiscal Q4 2019
net cannabis revenue is expected to be between $90 million and $95
million, with growth anticipated across all key business
segments including medical, both Canadian and international, and
consumer markets. The Company anticipates total net revenues
for the fiscal year ended June 30,
2019 to be between $249
million - $256 million. The
Company expects to report that production available for sale for Q4
2019 will be at the upper end of the range between 25,000 kg and
30,000 kg, ahead of previous guidance of 25,000 kgs.
These production and revenue estimates reflect strong delivery
against corporate Key Performance Indicators ("KPIs"), the
financial metrics the Company uses to evaluate the business on a
day-to-day basis. The Company also expects to report sequential
quarterly improvements in these KPIs, in particular: gross margins,
kilograms of cannabis sold and cash costs per gram produced. The
Company continues to track toward positive adjusted EBITDA, and in
particular adjusted EBITDA from cannabis operations.
From the beginning, the Company's core philosophy of
"purpose-built facilities" has focused on high quality
cultivation of medical grade cannabis globally. This
approach is validated by material growth in production and revenue
and continued improvement in the above KPIs. Aurora's management
team and Board of Directors continue to drive a culture rooted in
quality, transparency, and regulatory compliance. Aurora has grown
both organically and through acquisitions of companies with shared
visions, and today this culture is ingrained in Aurora's over 2,500
employees across the globe.
"Our Q4 2019 guidance highlights Aurora's continued leadership,"
said Terry Booth, CEO of Aurora. "We
set out to be best-in-class cultivators, and through carefully
evaluated acquisitions, that vision continues to drive exceptional
results today. We are the leader in cultivation capacity,
production available for sale and revenues for cannabis in the
Canadian medical and consumer markets. We continue to lead the
build out of European and other international medical cannabis
markets. Our success to date comes from a focus on quality,
regulatory compliance, appropriate Board of Directors oversight,
and delivering a profitable, low risk and sustainable business for
our shareholders."
The preliminary estimated financial results and other data for
the three months ended June 30, 2019
set forth above are subject to the completion of the Company's
financial closing procedures. This data has been prepared by, and
is the responsibility of, the Company's management. Aurora's
independent registered public accounting firm, KPMG LLP, is in the
process of performing year-end audit procedures with respect to the
accompanying preliminary financial results and other data, and
accordingly does not express an opinion or any other form of
assurance with respect thereto. The Company currently expects that
its final results of operations and other data will be consistent
with the estimates set forth above, but such estimates are
preliminary and Aurora's actual results of operations and other
data could differ materially from these estimates due to the
completion of its fiscal year-end audit procedures, final
adjustments, and other developments that may arise between now and
the time such annual audited consolidated financial statements for
the twelve months ended June 30, 2019
are released.
The Company defines adjusted EBITDA as net income (loss)
excluding interest income (expense), accretion, income taxes,
depreciation, amortization, changes in fair value of inventory
sold, changes in fair value of biological assets, share-based
compensation, changes in fair value of financial instruments, gains
and losses on deemed disposal, and non-cash impairment of equity
investments, goodwill and intangible assets. Adjusted EBITDA from
cannabis operations is defined as adjusted EBITDA for the Company's
business units engaged in the production and sale of cannabis and
legal derivatives thereof and excludes non-cannabis-related
business units or operations.
About Aurora
Headquartered in Edmonton, Alberta,
Canada with funded capacity in excess of 625,000 kg per
annum and sales and operations in 25 countries across five
continents, Aurora is one of the world's largest and leading
cannabis companies. Aurora is vertically integrated and
horizontally diversified across every key segment of the value
chain, from facility engineering and design to cannabis breeding
and genetics research, cannabis and hemp production, derivatives,
high value-add product development, home cultivation, wholesale and
retail distribution.
Highly differentiated from its peers, Aurora has established a
uniquely advanced, consistent and efficient production strategy,
based on purpose-built facilities that integrate leading-edge
technologies across all processes, defined by extensive automation
and customization, resulting in the massive scale production of
high-quality consistent product. Designed to be replicable and
scalable globally, our production facilities are designed to
produce cannabis at significant scale, with high quality,
industry-leading yields, and low-per gram production costs. Each of
Aurora's facilities is built to meet European Union Good
Manufacturing Practices ("EU GMP") standards. Certification has
been granted to Aurora's first production facility in Mountain View
County, the MedReleaf Markham facility, and its wholly owned
European medical cannabis distributor Aurora Deutschland. All
Aurora facilities are designed and built to the EU GMP
standard.
In addition to the Company's rapid organic growth and strong
execution on strategic M&A, which to date includes 17 wholly
owned subsidiary companies – MedReleaf, CanvasRX, Peloton
Pharmaceutical, Aurora Deutschland, H2 Biopharma, BC Northern
Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia,
HotHouse Consulting, MED Colombia, Agropro, Borela, ICC Labs,
Whistler, and Chemi Pharmaceutical – Aurora is distinguished by its
reputation as a partner and employer of choice in the global
cannabis sector, having invested in and established strategic
partnerships with a range of leading innovators, including: Radient
Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV:
HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc.
(CSE: MWM), Choom Holdings Inc. (CSE: CHOO), CTT Pharmaceuticals
(OTCC: CTTH), Alcanna Inc. (TSX: CLIQ), High Tide Inc. (CSE: HITI),
EnWave Corporation (TSXV: ENW), Capcium Inc. (private), Evio Beauty
Group (private), and Wagner Dimas (private).
Aurora's Common Shares trade on the TSX and NYSE under the
symbol "ACB", and is a constituent of the S&P/TSX Composite
Index.
For more information about Aurora, please visit our investor
website, investor.auroramj.com
Terry Booth, CEO
Aurora Cannabis Inc.
Forward looking statements
This news release makes reference to certain non-IFRS measures,
including certain industry metrics. These metrics and measures are
not recognized measures under IFRS do not have meanings prescribed
under IFRS and are as a result unlikely to be comparable to similar
measures presented by other companies. These measures are provided
as information complimentary to those IFRS measures by providing a
further understanding of our operating results from the perspective
of management. As such, these measures should not be considered in
isolation or in lieu of review of our financial information
reported under IFRS. This news release uses non-IFRS measures
including "EBITDA", "adjusted EBITDA", "net cannabis revenue",
"adjusted EBITDA from cannabis operations" and "production
available for sale". EBITDA, adjusted EBITDA and production
available for sale are commonly used operating measures in the
industry but may be calculated differently compared to other
companies in the industry. These non-IFRS measures, including the
industry measures, are used to provide investors with supplementary
measures of our operating performance that may not otherwise be
apparent when relying solely on IFRS metrics. Definitions of the
non-IFRS measures can be found in our most recent MD&A and in
this news release.
This news release also includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward-looking
statements are frequently characterized by words such as "plan",
"continue", "expect", "project", "intend", "believe", "anticipate",
"estimate", "may", "will", "potential", "proposed" and other
similar words, or statements that certain events or conditions
"may" or "will" occur and include, but are not limited to the
Company's achievement of its production and revenue estimates
and the Company's ability to report positive adjusted EBITDA
for cannabis operations and production available for sale for
Q4 2019 . These statements are only predictions. Various
assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout
this news release. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
These risks include, but are not limited to, the ability to retain
key personnel, the ability to continue investing in infrastructure
to support growth, the ability to obtain financing on acceptable
terms, the continued quality of our products, customer experience
and retention, the development of third party government and
non-government consumer sales channels, managements
estimation of consumer demand in Canada and in jurisdictions where the Company
exports, expectations of future results and expenses, the
availability of additional capital to complete construction
projects and facilities improvements, the risk of successful
integration of acquired business and operations, the impact of
competition, and the possibility for changes in laws, rules, and
regulations in the industry. The Company is under no obligation,
and expressly disclaims any intention or obligation, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law.
Neither TSX, NYSE nor their applicable Regulation Services
Providers (as that term is defined in the policies of the Toronto
Stock Exchange and New York Stock Exchange) accept responsibility
for the adequacy or accuracy of this release.
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SOURCE Aurora Cannabis Inc.