Company Provides Production Guidance and is
Tracking to Achieve Positive EBITDA in Second Calendar Quarter
2019
TSX | NYSE: ACB
EDMONTON, Jan. 8, 2019
/CNW/ - Aurora Cannabis Inc. ("Aurora" or the "Company") (TSX:
ACB) (NYSE: ACB) (Frankfurt: 21P;
WKN: A1C4WM) today provided an expected revenue range for the
second quarter of the Company's Fiscal 2019 ("Q2 2019"), the period
ended December 31, 2018. Full results
will be published on Monday, February 11,
2019 pre-market, followed by a conference call later that
day, details for which can be found at the end of this release.
Based on preliminary (unaudited) results, the Company
anticipates revenues for Q2 2019 of between $50 million and $55
million (net of excise taxes), compared to $11.7 million for the same quarter in the prior
year, and compared to $29.7 million
for the previous quarter ended September 30,
2018 ("Q1 2019"). The results reflect an anticipated revenue
growth rate in excess of 327% compared to Q2 2018 and in excess of
68% compared to Q1 2019.
Revenue growth for the quarter was driven by the Company's
strong position in the adult consumer use market in Canada, continued shipments of medical
cannabis to Aurora's expanding base of approximately 71,000
patients in Canada, and relatively
stable, supply restricted shipments, to its growing international
markets.
The Company continues to ramp its production capacity up from
70,000 kg / annum as reported in November
2018, to approximately 100,000 kg / annum today and
reaffirms its expectation to achieve at least 150,000 kg / annum of
production capacity within the first calendar quarter of 2019 ("Q3
2019"). Aurora defines production capacity as representing all
planted rooms approved by Health Canada, factoring in anticipated
harvests at maturity annualized for the following twelve (12) month
period, based on an average historical yield per plant.
Based on its current production capacity of 100,000 kg / annum
and the Company's cultivation and harvest schedules, Aurora expects
its production available for sale will be approximately 25,000 kg
equivalent of cannabis in the Company's Q4 2019, the period ending
June 30, 2019, with continued
production volume increases in subsequent quarters. Aurora
defines production available for sale as representing the Company's
production capacity harvested and processed into a final product
for sale. Paired with strong current and future anticipated demand
for the Company's products across its different market segments,
this is expected to result in continued strong revenue growth.
The market introduction of higher-margin products, such as
softgels, as well as its vape-ready CBD oil cartridge product
Aurora Cloud, is expected to
contribute to sustained strong gross margins during fiscal
2019. Additionally, Aurora is looking forward to the upcoming
finalization of the draft regulations which will allow derivative,
higher margin products such as vape pens, beverages, and edibles to
be sold in the Canadian adult use market during 2019.
Additionally, disciplined cost management is anticipated to
result in SG&A costs to be roughly consistent with the previous
quarter, including a full quarter of costs related to all
integrated subsidiaries in MedReleaf, Anandia and Agropro.
Consequently, management believes the combination of substantial
revenue growth and disciplined cost management positions the
Company well to achieve sustained positive EBITDA beginning in
Fiscal Q4 2019 (Calendar Q2 2019).
The preliminary estimated financial results and other data for
the three months ended December 31,
2018 set forth above are subject to the completion of the
Company's financial closing procedures. These data have been
prepared by, and is the responsibility of, the Company's
management, and was approved by management on January 7, 2019. Aurora's independent registered
public accounting firm, KPMG LLP, has not audited, reviewed or
performed any 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 financial closing
procedures, final adjustments and other developments that may arise
between now and the time such unaudited interim consolidated
financial statements for the three months ended December 31, 2018 are issued.
Management Commentary
"Aurora continues to execute effectively across all market
segments, as demonstrated by its revenue growth anticipated to
exceed 68% as compared to last quarter, supported by continued
strong performance in the Canadian adult consumer use market," said
Terry Booth, CEO of Aurora. "Our
consistent and high-quality production continues to significantly
ramp up as expected, fueling even further growth. Going forward, we
see sustained strong demand from the adult usage market, as
evidenced by public statements from the Canadian provinces, as well
as strong patient-driven demand for medical cannabis in
Canada and abroad. These factors,
together with our focus on disciplined management of operating
expenses, and our growing portfolio of higher margin products, put
us in a position to rapidly achieve positive EBITDA within the next
two quarters."
Facilities Video
The Company today released updated video of its production
facilities, including Aurora Sky, Aurora Eau, Aurora Vie, MedReleaf
Bradford, Aurora Mountain, ICC Labs,
and Agropro. The footage demonstrates the technologically advanced
nature of Aurora's diverse production assets, as well as the mature
nature of its operations. The video material may be viewed here:
https://www.dropbox.com/s/o517edo5l9n2v5r/AURORA_FACILITIES_V06.mp4?dl=0
Second Quarter 2019 Conference Call
Aurora has scheduled its conference call to discuss the results
for its second quarter ended December 31,
2018, which will be released on Monday, February 11th, 2019
pre-market, The conference call will be hosted that day at
10:30 a.m. Eastern Time by
Terry Booth, Chief Executive
Officer, Glen Ibbott, Chief
Financial Officer, Cam Battley,
Chief Corporate Officer, and Michael
Singer, Chairman of the Board, followed by a question and
answer period.
|
|
DATE:
|
Monday, February
11th, 2019
|
TIME:
|
10:30 a.m. Eastern
Time | 8:30 a.m. Mountain Time
|
WEBCAST:
|
https://bit.ly/2VvfrlA
|
REPLAY:
|
(416) 849-0833 or
(855) 859-2056
Available until 12:00 midnight Eastern Time Monday, February 18,
2019
|
REFERENCE
NUMBER:
|
2474319
|
About Aurora
Headquartered in Edmonton, Alberta,
Canada with funded capacity in excess of 500,000 kg per
annum and sales and operations in 22 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 product at low cost. Intended to be replicable and
scalable globally, our production facilities are designed to
produce cannabis of significant scale, with high quality,
industry-leading yields, and low per gram production costs. Each of
Aurora's facilities is built to meet EU GMP standards, and its
first production facility, the recently acquired MedReleaf Markham
facility, and its wholly owned European medical cannabis
distributor Aurora Deutschland, have achieved this level of
certification.
In addition to the Company's rapid organic growth and strong
execution on strategic M&A, which to date includes 15 wholly
owned subsidiary companies – MedReleaf, CanvasRx, Peloton
Pharmaceutical, Aurora Deutschland , H2 Biopharma, Urban
Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed
Therapeutics, Anandia Labs, HotHouse Consulting, MED Colombia,
Agropro, Borela, and ICC Labs – 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), Capcium Inc.
(private), Evio Beauty Group (private), Wagner Dimas (private), CTT
Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX: CLIQ).
Aurora's Common Shares trade on the TSX and NYSE under the
symbol "ACB", and are 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", "production capacity", "production available
for sale" and "SG&A". Production capacity 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 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. 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
personal, 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 adult-use 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, 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, and the possibility for
changes in laws, rules, and regulations in the industry, as well as
the risks identified under the heading "Risk Factors" in the
company's Annual Information Form for the financial year ended
June 30, 2018 filed in Canada on SEDAR at www.sedar.com and in
the United States on Edgar under
Form 40-F at www.sec.gov. 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 nor its Regulation Services Provider (as that term
is defined in the policies of Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this release.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/aurora-cannabis-provides-guidance-for-the-second-quarter-of-fiscal-2019-anticipating-net-revenues-of-50m-to-55m-300774575.html
SOURCE Aurora Cannabis Inc.