- #1 Canadian Medical Position by Cannabis Net Revenue
& Strong International Medical Growth
- Cannabis Net Revenue of $67.8
million, Adjusted Gross Margin of 48%, or 52% Excluding
Nordic 1 Ramp Up Costs
- Achieved Targeted SG&A During Q1
2021
NYSE | TSX: ACB
EDMONTON, AB, Nov. 9, 2020 /PRNewswire/ - Aurora Cannabis Inc.
(the "Company" or "Aurora") (NYSE: ACB) (TSX: ACB),
the Canadian company defining the future of cannabinoids worldwide,
today announced its financial and operational results for the first
quarter of fiscal 2021 ended September 30,
2020.
"We continue to take the necessary steps to execute our plan and
transform our business to achieve sustainable profitability, and
ultimately positive cash flow," stated Miguel Martin, Chief Executive Officer of Aurora
Cannabis. "Our Q1 2021 results are transitional but do highlight
successes across a number of diverse profit pools. We remain the
leader by revenue in the high-margin Canadian medical market, our
international medical business experienced more than 40% net
revenue growth this quarter, and our CBD brand Reliva is #1 ranked
by Nielsen in the U.S. CBD sector."
"While we are not satisfied with our past performance in the
growing Canadian consumer business, we have a sense of urgency in
the execution of our tactical plan to grow profitable market share.
Our efforts are directed at delivering the highest quality
products, refocusing on our leading premium and ultra-premium
brands, better allocating our sales and marketing spend, and
executing key account partnerships at both the province and retail
levels."
"We have also taken action to improve our liquidity and
strengthen our balance sheet. It was a responsible decision to
raise capital using our ATM in today's environment and the cash is
expected to ensure we have the runway needed to compete with our
peers. Cannabis companies are being evaluated on both their
business performance and liquidity and we wanted to
ensure that we are addressing both. I remain confident in
Aurora's prospects and it is my utmost priority to secure our
winning future."
First Quarter 2021 Highlights
(Unless otherwise
stated, comparisons are made between fiscal Q1 2021 and Q4 2020
results and are in Canadian dollars)
Q1 2021 total and cannabis net revenue1 was
$67.8 million, a slight increase from
the $67.5 million of cannabis net
revenue1 in the prior quarter.
Adjusted gross margin before fair value adjustments on cannabis
net revenue1 remained strong at 48%, versus 50% in
Q4 2020. Excluding $2.6 million of
ramp up costs at Aurora Nordic 1, the Company's Q1 2021 adjusted
gross margin before fair value adjustments on cannabis net
revenue1 was 52%.
Adjusted EBITDA loss was $57.9
million in Q1 2021, which includes restructuring payments
such as contract and employee termination costs of $47.4 million. Excluding these impacts, the
Company's Adjusted EBITDA loss, as defined under the term credit
facility, is $10.5 million. Aurora
was in full compliance with its September
30, 2020 term debt covenants. As a reminder, the
Company's goal is to achieve positive Adjusted EBITDA in Q2
2021.
Cash balance at November 6, 2020
was approximately $250 million.
Consumer cannabis:
- Consumer cannabis net revenue1 was $34.3 million, a 3% decrease from the prior
quarter. Of note, Aurora's consumer cannabis extract net revenue
increased by $3.6 million as compared
to the prior quarter, driven by Aurora's focus on high-growth
extract segments such as vapes, edibles and concentrates, and a
$1.1 million increase in U.S.
CBD.
- Adjusted gross margin before fair value adjustments on consumer
cannabis net revenue1 was 38% in Q1 2021 versus 35% in
the prior quarter, primarily driven by sales mix shifting toward
higher margin derivative products
Medical cannabis:
- Medical cannabis net revenue1 was $33.5 million, a 4% increase from the prior
quarter. The increase was primarily attributable to a strong
performance in the international medical business, which grew 41%
quarter over quarter, and from consistent performance in Aurora's
leading Canadian medical operation.
- Adjusted gross margin before fair value adjustments on medical
cannabis net revenue1 was 59% in Q1 2021 versus 67% in
the prior quarter. Excluding $2.6
million of ramp-up costs at Aurora Nordic 1, Q1 2021
adjusted gross margin before fair value adjustments on medical
cannabis was 67%.
Selling, General and Administrative ("SG&A") and
Adjusted EBITDA:
- SG&A, including Research and Development ("R&D"), was
$46.9 million in Q1 2021, down
$19.6 million from the prior quarter
as a result of the Company's Business Transformation Plan. Included
in SG&A is $4.1 million of costs
related to restructuring charges, and severance and benefit costs
associated with the Business Transformation Plan. Excluding these
impacts, Q1 SG&A and R&D was $42.8
million.
- Adjusted EBITDA1 in Q1 2021 was a loss of
$57.9 million, compared to the prior
quarter Adjusted EBITDA loss of $29.6
million when excluding R&D and other restructuring
costs. The Q1 increased loss is primarily attributable to the legal
settlement and contract termination fees and costs associated to
ongoing severance and benefits associated with the business
transformation plan. Excluding these impacts, Adjusted EBITDA loss
decreased by $19.1 million, or 64%,
to $10.5 million, the third
sequential quarter of significantly improved Adjusted EBITDA.
Additional Financial Information:
- Capital Expenditures ("CapEx") were approximately $13.2 million in Q1 2021, a decline from the
$16.4 million reported in Q4
2020.
- Aurora continues to execute its announced plan for reducing
production and complexity through the closure of 5 cultivation
facilities, with three facilities now fully closed. Supporting the
Company's drive to align its production footprint to market and
geographic demand, Aurora has also recently received flower and oil
sales licensing at its EU GMP certified Aurora Nordic 1 facility,
located in Odense, Denmark, which
is expected to serve European and international medical
markets.
_________________________________
|
1
|
These terms are
non-GAAP measures, see "Non-GAAP Measures" below.
|
Fiscal Q1 2021 Cash Use: Significant Improvement in Cash
Used in Operations
Total cash use in Q1 2021 was similar
to the prior quarter. However, the mix within the use of cash
showed significant positive progress.
In Q1 2021, the Company used $25.2
million in cash to fund operations, excluding working
capital investments, and used $47.4
million for contract and employee termination costs,
including the previously announced exit of the UFC agreement. Cash
used to pay for capital expenditures in Q1 2021 was $15.0 million versus $32.0
million in the prior quarter, as many long-lead projects are
now complete. Cash used in operations and for capital expenditures
are crucial metrics in Aurora's drive toward generating sustainable
positive free cash flow, and both have improved significantly and
consistently over the past several quarters.
Increased net working capital used $37.0
million in the quarter, driven by a $13.8 million increase in accounts receivable and
a $25.1 million increase in
inventory. The Company continues to execute plans to more closely
align production levels with demand.
Given Aurora's continued strong gross margins,
reduced level of SG&A expense and capital expenditures,
and ongoing improvements in working capital investment, management
expects the Company to continue its move toward positive cash flow
during fiscal 2021.
The main components of cash source and use in Q1 2021 were as
follows:
($
thousands)
|
Q1
2021
|
Cash
Flow
|
|
Cash,
Opening
|
$162,179
|
|
|
Cash used in
operations excluding legal
settlement, contract termination fees and
restructuring costs
|
($25,199)
|
Working capital
change
|
($37,012)
|
Legal settlement,
contract termination fees and
restructuring costs
|
($47,381)
|
Capital
expenditures
|
($14,980)
|
Debt and interest
payments
|
($18,212)
|
Cash use
|
($142,784)
|
|
|
Proceeds raised from
sale of marketable
securities and investments in associates
|
$-
|
Proceeds raised
through ATM
|
$114,283
|
Cash
raised
|
$114,283
|
|
|
Cash,
Ending
|
$133,678
|
|
|
(1)
|
Refer to "Condensed
Consolidated Interim Statement of Cash Flows" in the "Condensed
Consolidated Interim Financial Statements (unaudited)" for our cash
flow statements prepared in accordance with IAS 7 – Statement of
Cash Flows.
|
Q1 2021 Key Financial and Operational Metrics
Base Shelf Prospectus
($ thousands,
except Operational Results)
|
Q1
2021
|
Q4 2020
(8)
|
$
Change
|
%
|
Financial
Results
|
|
|
|
|
Total net revenue
(1)
|
$67,812
|
|
$68,728
|
|
($916)
|
|
(1)%
|
Cannabis net revenue
(1)(2)(3a)
|
$67,812
|
|
$67,492
|
|
$320
|
|
0%
|
Medical cannabis net
revenue (2)(3a)
|
$33,474
|
|
$32,226
|
|
$1,248
|
|
4%
|
Consumer cannabis net
revenue (1)(2)(3a)
|
$34,338
|
|
$35,266
|
|
($928)
|
|
(3)%
|
Adjusted gross margin
before FV adjustments on
cannabis net revenue (2)(3b)(4)
|
48
|
%
|
50
|
%
|
N/A
|
|
(2)%
|
Adjusted gross margin
before FV adjustments on
medical cannabis net revenue (2)(3b)(4)
|
59
|
%
|
67
|
%
|
N/A
|
|
(8)%
|
Adjusted gross margin
before FV adjustments on
consumer cannabis net revenue (2)(3b)
|
38
|
%
|
35
|
%
|
N/A
|
|
3%
|
SG&A
expense
|
$44,324
|
|
$58,870
|
|
($14,546)
|
|
(25)%
|
R&D
expense
|
$2,584
|
|
$7,646
|
|
($5,062)
|
|
(66)%
|
Adjusted EBITDA
(3c)(5)
|
($57,891)
|
|
($32,263)
|
|
($25,628)
|
|
(79)%
|
|
|
|
|
|
Balance
Sheet
|
|
|
|
|
Working
capital
|
$201,425
|
|
$148,483
|
|
$52,942
|
|
36%
|
Cannabis inventory
and biological assets (6)
|
$166,178
|
|
$139,198
|
|
$26,980
|
|
19%
|
Total
assets
|
$2,757,272
|
|
$2,783,145
|
|
($25,873)
|
|
(1)%
|
|
|
|
|
|
Operational
Results – Cannabis
|
|
|
|
|
Average net selling
price of dried cannabis (2)
|
$3.72
|
|
$3.60
|
|
$0.12
|
|
3%
|
Kilograms sold
(7)
|
16,139
|
|
16,748
|
|
(609)
|
|
(4)%
|
|
|
(1)
|
Includes the impact
of actual and expected product returns and price adjustments (three
months ended September 30, 2020 - $0.8 million; three months ended
June 30, 2020 - $1.9 million).
|
(2)
|
These terms are
defined in the "Non-GAAP Measures" section below.
|
(3)
|
Refer to the
following sections for reconciliation of non-GAAP measures to the
IFRS equivalent measure:
|
|
a.
|
Refer to the
"Net Revenue" section for a reconciliation of
cannabis net revenue to the IFRS equivalent.
|
|
b.
|
Refer to the
"Adjusted Gross Margin" section for reconciliation to
the IFRS equivalent.
|
|
c.
|
Refer to the
"Adjusted EBITDA" section for reconciliation to the IFRS
equivalent.
|
(4)
|
Included in Q1 2021
Adjusted gross margin before FV adjustments on cannabis net revenue
and Adjusted gross margin before FV adjustments on medical cannabis
net revenue is $2.6 million of additional cost of sales from the
ramp up of European operations after receiving our sales license
for the Aurora Nordic 1 facility. Removing this charge, for which a
nominal amount of revenue had been recognized, would result in
these measures being reported as 52% and 67%,
respectively.
|
(5)
|
Included in Q1 2021
Adjusted EBITDA is $43.3 million from contract and legal
termination costs and $4.1 million from ongoing divested businesses
and severance and benefits costs associated with our business
transformation plan. Excluding these expenses, Adjusted EBITDA
loss, as defined under the term credit facility, is $10.5
million.
|
(6)
|
Represents total
biological assets and cannabis inventory, exclusive of merchandise,
accessories, supplies and consumables.
|
(7)
|
The kilograms sold is
offset by the grams returned during the period.
|
(8)
|
As a result of the
Company's divestment of its wholly owned subsidiaries Aurora
Larssen Projects Ltd. ("ALPS") and Aurora Hemp Europe ("AHE"), the
operations of ALPS and AHE have been presented as discontinued
operations and the Company's operational results have been
retroactively restated, as required. Refer to Note 10(b) of the
Financial Statements for more information about the
divestiture.
|
On October 27, 2020, Aurora
announced its completion of the previously filed At-The-Market
("ATM") program and the filing of a new short form base shelf
prospectus. The new base shelf prospectus is expected to provide
the Company with continued financial flexibility going forward.
Conference Call
Aurora will host a conference call today, November 9, 2020,
to discuss these results. Miguel Martin, Chief Executive
Officer, and Glen Ibbott, Chief
Financial Officer, will host the call starting at 8:30 a.m.
Eastern time. A question and answer session will follow
management's presentation.
DATE:
|
Monday, November 9,
2020
|
TIME:
|
8:30 a.m. Eastern
Time | 6:30 a.m. Mountain Time
|
WEBCAST:
|
http://public.viavid.com/index.php?id=142058
|
About Aurora
Aurora is a global leader in the cannabis industry serving both
the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in
global cannabis dedicated to helping people improve their lives.
The Company's brand portfolio includes Aurora, Aurora Drift, San
Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler,
and Reliva. Providing customers with innovative, high-quality
cannabis and hemp products, Aurora's brands continue to break
through as industry leaders in the medical, performance, wellness
and recreational markets wherever they are launched. For more
information, please visit our website at www.auroramj.com.
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.
Forward Looking Statements
This news release includes certain statements which may
constitute "forward-looking information" and "forward-looking
statements" within the meaning of Canadian securities law
requirements (collectively, "forward-looking statements" or "FLS").
These forward-looking statements are made as of the date of this
press release and the Company does not intend, and does not assume
any obligation, to update these FLS, except as required under
applicable securities legislation. FLS relate to future events or
future performance and reflect Company management's expectations or
beliefs regarding future events. In certain cases, FLS can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved" or the
negative of these terms or comparable terminology. In this
document, certain forward-looking statements are identified by
words including "may", "future", "expected", "intends" and
"estimates". By their very nature FLS involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the FLS. The Company provides
no assurance that FLS will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on FLS. Certain FLS in this press release include, but are
not limited to the following:
- pro forma measures including revenue, adjusted gross margin
before fair value adjustments, and expected SG&A run-rates, and
grams produced;
- the completion of construction of production facilities,
associated costs, and receipt of licenses from Health Canada to
produce and sell cannabis and cannabis related products from these
facilities;
- strategic investments and capital expenditures, and related
benefits;
- future strategic plans;
- growth in the global consumer use cannabis market;
- expectations regarding production capacity, costs and
yields;
- product sales expectations and corresponding forecasted
increases in net revenue; and
- the impact of the COVID-19 pandemic on the Company's business,
operations, capital resources and/or financial results.
The above and other aspects of the Company's anticipated future
operations are forward-looking in nature and, as a result, are
subject to certain risks and uncertainties. Although the Company
believes that the expectations reflected in these FLS are
reasonable, undue reliance should not be placed on them as actual
results may differ materially from the forward-looking statements.
Such FLS are estimates reflecting the Company's best judgment based
upon current information and involve a number of risks and
uncertainties, and there can be no assurance that other factors
will not affect the accuracy of such 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, management's estimates 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, management's
estimation that SG&A will grow only in proportion of revenue
growth, the ability to expand and maintain distribution
capabilities, the impact of competition, the general impact of
financial market conditions, the yield from cannabis growing
operations, product demand, changes in prices of required
commodities, competition, and the possibility for changes in laws,
rules, and regulations in the industry, epidemics, pandemics or
other public health crises, including the current outbreak of
COVID-19. Readers are urged to consider the risks, uncertainties
and assumptions carefully in evaluating the forward-looking
statements and are cautioned not to place undue reliance on such
information.
Should one or more of these risks or uncertainties materialize,
or should underlying factors or assumptions prove incorrect, actual
results may vary materially from those described in forward looking
statements. Material factors or assumptions involved in developing
forward-looking statements include, without limitation, publicly
available information from governmental sources as well as from
market research and industry analysis and on assumptions based on
data and knowledge of this industry which the Company believes to
be reasonable.
Although the Company believes that the expectations conveyed by
the forward-looking statements are reasonable based on the
information available to the Company on the date hereof, no
assurance can be given as to future results, approvals or
achievements. Forward-looking statements contained in this press
release are expressly qualified by this cautionary statement. The
Company disclaims any duty to update any of the forward-looking
statements after the date of this Annual Information form except as
otherwise required by applicable law.
Non-GAAP Measures
The Company uses certain financial performance measures that are
not recognized or defined under IFRS (termed "Non-GAAP Measures").
As a result, this data may not be comparable to data presented by
other licensed producers of cannabis and cannabis companies. For an
explanation of these measures to related comparable financial
information presented in the consolidated financial statements
prepared in accordance with IFRS, refer to the discussion below.
The Company believes that these Non-GAAP Measures are useful
indicators of operating performance and are specifically used by
management to assess the financial and operational performance of
the Company. These Non-GAAP Measures include, but are not limited,
to the following:
- Cannabis net revenue represents revenue from the sale of
cannabis products, excluding excise taxes. Cannabis net revenue is
further broken down as follows:
-
- Medical cannabis net revenue represents Canadian and
international cannabis net revenue for medical cannabis sales only,
excluding wholesale bulk cannabis net revenue.
- Consumer cannabis net revenue represents cannabis net revenue
for consumer cannabis sales only.
- Management believes the cannabis net revenue measures provide
more specific information about the net revenue purely generated
from our core cannabis business and by market type.
- Average net selling price per gram and gram equivalent is
calculated by taking cannabis net revenue divided by total grams
and grams equivalent of cannabis sold in the period. Average net
selling price per gram and gram equivalent is further broken down
as follows:
-
- Average net selling price per gram of dried cannabis represents
the average net selling price per gram for dried cannabis sales
only, excluding wholesale bulk cannabis sold in the period.
- Average net selling price per gram and gram equivalent of
consumer cannabis represents the average net selling price per gram
and gram equivalent for dried cannabis and cannabis extracts sold
in the consumer market.
- Management believes the average net selling price per gram or
gram equivalent measures provide more specific information about
the pricing trends over time by product and market type.
- Adjusted gross profit before FV adjustments on cannabis net
revenue represents cash gross profit and gross margin on cannabis
net revenue and is calculated by subtracting from total cannabis
net revenue (i) cost of sales, before the effects of changes in FV
of biological assets and inventory; (ii) cost of sales from
non-cannabis auxiliary support functions; and removing (iii)
depreciation in cost of sales; and (iv) cannabis inventory
impairment. Adjusted gross margin before FV adjustments on cannabis
net revenue is calculated by dividing adjusted gross profit before
FV adjustments on cannabis net revenue divided by cannabis net
revenue. Adjusted gross profit and gross margin before FV
adjustments on cannabis net revenue is further broken down as
follows:
-
- Adjusted gross profit and gross margin before FV adjustments on
medical cannabis net revenue represents adjusted gross profit and
gross margin before FV adjustments on sales generated in the
medical market only.
- Adjusted gross profit and gross margin before FV adjustments on
consumer cannabis net revenue represents adjusted gross profit and
gross margin before FV adjustments on sales generated in the
consumer market only.
- Management believes that these measures provide useful
information to assess the profitability of our cannabis operations
as it represents the cash gross profit and margin generated from
cannabis operations and excludes the effects of non-cash FV
adjustments on inventory and biological assets, which are required
by IFRS.
- Adjusted EBITDA is calculated as net (loss) income 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,
acquisition costs, foreign exchange, changes in fair value of
financial instruments, gains and losses on deemed disposal, and
non-cash impairment of intangibles, goodwill, inventory, property,
plant and equipment and other assets. Adjusted EBITDA is intended
to provide a proxy for the Company's operating cash flow and is
widely used by industry analysts to compare Aurora to its
competitors, and derive expectations of future financial
performance for Aurora. Adjusted EBITDA increases comparability
between comparative companies by eliminating variability resulting
from differences in capital structures, management decisions
related to resource allocation, and the impact of FV adjustments on
biological assets and inventory and financial instruments, which
may be volatile and fluctuate significantly from period to
period.
Non-GAAP measures should be considered together with other data
prepared accordance with IFRS to enable investors to evaluate the
Company's operating results, underlying performance and prospects
in a manner similar to Aurora's management. Accordingly, these
non-GAAP measures are intended to provide additional information
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
Reconciliation of Non-GAAP Measures
Net Revenue
|
Three months
ended
|
|
September 30,
2020
|
June 30,
2020(1)
|
Medical cannabis net
revenue
|
33,474
|
32,226
|
Consumer cannabis net
revenue
|
34,338
|
35,266
|
Total cannabis net
revenue
|
67,812
|
67,492
|
Ancillary net
revenue
|
-
|
1,236
|
Total net
revenue
|
67,812
|
68,728
|
|
|
(1)
|
As a result of the
Company's divestment of its wholly owned subsidiary AHE, the
operations of AHE have been presented as discontinued operations
and the Company's operational results have been retroactively
restated, as required. Refer to Note 10(b) of the Financial
Statements for more information about the divestitures.
Discontinued operations from AHE had incurred ancillary net revenue
of $0.5 million and $3.4 million for the three months ended
September 30, 2020 and June 30, 2020, respectively.
|
Adjusted Gross Margin
($
thousands)
|
Medical
Cannabis
|
Consumer
Cannabis
|
Ancillary
|
Total
|
Three months
ended September 30, 2020 (1)
|
|
|
|
|
Net
revenue
|
33,474
|
|
34,338
|
|
-
|
|
67,812
|
|
Cost of
sales
|
(18,150)
|
|
(25,144)
|
|
-
|
|
(43,294)
|
|
Gross profit
before FV adjustments
|
15,324
|
|
9,194
|
|
-
|
|
24,518
|
|
Depreciation in cost
of sales
|
4,587
|
|
3,783
|
|
—
|
|
8,370
|
|
Adjusted gross
profit before FV adjustments
|
19,911
|
|
12,977
|
|
-
|
|
32,888
|
|
Adjusted gross
margin before FV adjustments
|
59
|
%
|
38
|
%
|
-
|
%
|
48
|
%
|
|
|
|
|
|
Three months
ended June 30, 2020 (1)
|
|
|
|
|
|
|
|
|
Net
revenue
|
32,226
|
|
35,266
|
|
1,236
|
|
68,728
|
|
Cost of
sales
|
(32,118)
|
|
(100,266)
|
|
(6,448)
|
|
(138,832)
|
|
Gross profit
(loss) before FV adjustments
|
108
|
|
(65,000)
|
|
(5,212)
|
|
(70,104)
|
|
Depreciation
|
3,073
|
|
4,703
|
|
—
|
|
7,776
|
|
Inventory impairment
in cost of sales
|
18,260
|
|
72,749
|
|
5,853
|
|
96,862
|
|
Adjusted gross
profit before FV adjustments
|
21,441
|
|
12,452
|
|
641
|
|
34,534
|
|
Adjusted gross
margin before FV adjustments
|
67
|
%
|
35
|
%
|
52
|
%
|
50
|
%
|
|
|
|
|
|
|
|
(1)
|
As a result of the
Company's divestment of its wholly owned subsidiary AHE, the
operations of AHE have been presented as discontinued operations
and the Company's operational results have been retroactively
restated, as required. Please see Note 10(b) of the Financial
Statements for more information about the divestiture. Discontinued
operations from AHE had incurred a nominal adjusted gross loss
before FV adjustments for the three months ended September 30, 2020
and $1.1 million for the three months ended June 30, 2020,
respectively.
|
Adjusted EBITDA
($
thousands)
|
|
|
|
September 30, 2020
(1)
|
|
June 30, 2020
(1)
|
Net (loss) income
from continuing operations
|
(107,160)
|
|
(1,851,023)
|
Finance
costs
|
14,691
|
|
29,101
|
Interest (income)
expense
|
(1,267)
|
|
483
|
Income tax expense
(recovery)
|
611
|
|
(68,114)
|
Depreciation and
amortization
|
22,444
|
|
22,472
|
EBITDA
|
(70,681)
|
|
(1,867,081)
|
Changes in fair value
of inventory sold
|
3,304
|
|
43,153
|
Unrealized gain on
changes in fair value of biological assets
|
(5,407)
|
|
(11,879)
|
Share-based
compensation
|
6,861
|
|
6,021
|
Acquisition
costs
|
1,104
|
|
2,170
|
Foreign exchange loss
(gain)
|
(7,427)
|
|
(3,001)
|
Share of loss from
investment in associates
|
373
|
|
2,601
|
Losses (gains) on
financial instruments (2)
|
7,366
|
|
(3,265)
|
Losses (gains) on
deemed disposal of significant influence investment
|
1,443
|
|
(11,955)
|
Losses on disposal of
assets held for sale and property, plant, and
equipment
|
922
|
|
—
|
Restructuring
charges
|
210
|
|
1,947
|
Impairment of
inventory, investment in associate, property, plant and
equipment, intangibles, and goodwill
|
4,041
|
|
1,809,026
|
Adjusted EBITDA
(4)
|
(57,891)
|
|
(32,263)
|
|
|
(1)
|
As a result of the
Company's divestment of its wholly owned subsidiaries ALPS and AHE,
the operations of ALPS and AHE have been presented as discontinued
operations and the Company's operational results have been
retroactively restated, as required. Refer to Note 10(b) of the
Financial Statements for more information about the divestiture.
Including the results of ALPS and AHE, adjusted EBITDA loss would
have been $58.4 million and $34.4 million for the three months
ended September 30, 2020 and June 30, 2020,
respectively.
|
(2)
|
Includes fair value
changes on derivative investments, derivative liability, contingent
consideration, and (gain) loss on the modification of debt. Refer
to Note 19 of the Financial Statements.
|
Included in the three months ended September 30, 2020 Adjusted EBITDA loss is
$43.3 million of legal settlement and
contract termination fees (three months ended June 30, 2020 - $0.8
million) and $4.1 million
(three months ended June 30, 2020 -
$1.9 million) related restructuring
charges, severance and benefits associated with the business
transformation plan. Excluding these impacts, Adjusted EBITDA loss,
as defined under the term credit facility, is $10.5 million (three months ended June 30, 2020 - $29.6
million).
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SOURCE Aurora Cannabis Inc.