VANCOUVER, March 13, 2019 /CNW/ - Village Farms
International, Inc. ("Village Farms" or the "Company") (TSX: VFF)
(NASDAQ: VFF) today announced its financial results for the fourth
quarter and year ended December 31,
2018.
Financial and Corporate Highlights for the Fourth Quarter
Ended December 31,
2018
(All comparable figures are for the fourth
quarter ended December 31,
2017)
- Net income improved to positive US$0.3
million, or US$0.01 per share,
and included the contribution of positive net income from Pure
Sunfarms Corp. ("Pure Sunfarms") of US$2.8
million. This compares with a net loss of (US$0.6 million), or (US$0.02) per share;
- Sales, including the Company's proportionate share of Pure
Sunfarms' sales, increased to US$40.6
million compared with US$36.9
million;
- EBITDA, was US$1.5 million
compared with US$2.6 million. EBITDA
included $0.9 million from Pure
Sunfarms;
- Completed a bought deal offering of 3,097,200 common shares at
a price of $7.13 per share (for
aggregate gross proceeds to the Company of $22,083,036; and,
- The Company's common shares commenced trading on the Nasdaq
Capital Market under the symbol "VFF".
Financial Highlights for the Year Ended December 31, 2018
(All comparable
figures are for the year ended December 31,
2017)
- Net loss was (US$5.1 million), or
(US$0.11) per share, and included the
contribution of positive net income from Pure Sunfarms of
US$2.4 million. This compares with
prior year net income of US$3.8
million, or US$0.10 per
share;
- Sales, including the Company's proportionate share of Pure
Sunfarms' sales, were US$151.9
million compared with US$158.4
million; and,
- EBITDA, was US$2.9 million
compared with US$7.4 million. EBITDA
included US$0.1 million from Pure
Sunfarms.
Summary of Recent Highlights for Village Farms' Canadian
Cannabis Joint Venture, Pure Sunfarms
- Generated positive net income of US$5.5
million for the fourth quarter 2018, the first full quarter
of sales (Village Farms' proportional share is US$2.8 million);
- Received multiple amendments to its cultivation license from
Health Canada, resulting in the successive expansion of its
licensed production area to the entire growing area of 1.03 million
square feet in March 2019;
- Selected by, and has entered into a supply agreement with, the
Ontario Cannabis Retail Corporation ("OCRC"), operating as the
Ontario Cannabis Store ("OCS"), to supply the OCS with Pure
Sunfarms branded cannabis products for the non-medical market in
the Province of Ontario;
- Entered into a wholesale supply arrangement with one of the
largest online platforms for medical cannabis users in Canada, through which a selected variety of
Pure Sunfarms high-quality dried flower products will be available
for purchase;
- Entered into a credit agreement with Bank of Montreal and Farm Credit Canada ("FCC") in
respect of a CAD$20 million secured
non-revolving term loan, with the available funds to be used to
finance the final costs of converting its 1.1 million square foot
greenhouse for cannabis production, as well as general corporate
purposes.
Highlights for Village Farms' U.S. Hemp/CBD
Initiative
- Upon passage by U.S. Congress of the 2018 Farm Bill, which
legalized hemp cultivation and hemp-derived products, the Company
announced its intention to aggressively pursue opportunities to
become a vertically integrated leader in the hemp-derived
cannabidiol (CBD) market;
- Formed a joint venture (65%-owned by Village Farms) with a
Jennings Group company, Nature Crisp, LLC, for the outdoor
cultivation of high-cannabidiol (CBD) hemp and CBD extraction in
multiple states throughout the United
States. Jennings Group has extensive experience in field
agriculture across a diverse range of food and other crops,
including hemp.
"It is a remarkable achievement for Pure Sunfarms' to not only
generate positive net income in just its first full quarter of
sales but for Pure Sunfarms to be profitable for the entire year,
during most of which the Pure Sunfarms greenhouse was in the
process of being converted for cannabis production," said
Michael DeGiglio, Chief Executive
Officer, Village Farms. "It is demonstrative of the value
that Village Farms, with its 30-years of experience as a
large-scale, low-cost developer and grower, brings to the Pure
Sunfarms joint venture, as well as the advantage of pursuing the
Canadian cannabis opportunity via an established, high-performance
greenhouse operation with more than 750 years of combined grower
experience, an experienced skilled labour force already in place,
and the benefit of years of operating history across multiple crops
in multiple regions around the world."
"Pure Sunfarms is positioned for earnings growth throughout 2019
and beyond as it ramps to full run rate annual production of 75,000
kilograms by mid-year, commences sales to the Ontario Cannabis
Store upon receipt of its processing and packaging licenses, and
redirects sales to the retail market following conclusion of its
supply agreement with Emerald Health Therapeutics at the end of
this year. To this end, Pure Sunfarms is steadily advancing
its product and brand strategies to realize its vision to be a
premier vertically integrated supplier to the Canadian cannabis
market, with a reputation for quality, consistency, safety and
reliability."
"In the United States, with
hemp cultivation and hemp products now federally legal, we are
aggressively pursuing a vertically integrated hemp-derived CBD
strategy to capitalize on this significant opportunity. We
have already taken a major step in this regard with the formation
of a joint venture for outdoor hemp cultivation and CBD extraction,
Village Fields Hemp, with an experienced partner, and expect to
begin generating revenue later this year. With 5.7 million
square feet of existing technologically advanced greenhouse
operations in Texas, we stand
ready, subject to legalization in Texas, to address what we believe will be
significant demand for controlled environment-grown hemp to meet
the needs of specific customers. As a vertically integrated
produce supplier to North
America's top grocery and "big box" retailers for decades,
and with in-house expertise to navigate the evolving regulatory
environment, Village Farms is very well positioned to become a
leading supplier of branded and private label CBD products to these
retailers."
Summary Statuary Results
(in thousands of U.S.
Dollars unless otherwise indicated)
|
For the three
months
ended December 31,
|
|
For the
year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Sales
|
$38,787
|
|
$36,864
|
|
$150,000
|
|
$158,406
|
Cost of
sales
|
(36,367)
|
|
(31,908)
|
|
(140,282)
|
|
(144,433)
|
Selling, general and
administrative expenses
|
(3,622)
|
|
(4,019)
|
|
(14,108)
|
|
(13,894)
|
Stock compensation
expense
|
(1,007)
|
|
(959)
|
|
(1,454)
|
|
(1,519)
|
Change in biological
asset(1)
|
158
|
|
1,082
|
|
(843)
|
|
265
|
Interest expense,
net
|
(501)
|
|
(679)
|
|
2,407
|
|
2,695
|
Other
income
|
(70)
|
|
(50)
|
|
(131)
|
|
46
|
Foreign exchange
(loss) gain
|
(960)
|
|
(31)
|
|
(1,047)
|
|
26
|
Share of income
(loss) from joint venture
|
2,750
|
|
(35)
|
|
2,381
|
|
(255)
|
Income (loss) on
disposal of assets
|
-
|
|
(551)
|
|
-
|
|
8,013
|
(Recovery of)
provision for income taxes
|
(962)
|
|
(321)
|
|
(2,475)
|
|
138
|
Net income
(loss)
|
270
|
|
(607)
|
|
(5,145)
|
|
3,822
|
EBITDA(2)
|
1,484
|
|
2,591
|
|
$2,878
|
|
$7,363
|
Earnings (loss) per
share – basic and diluted
|
$0.01
|
|
($0.02)
|
|
($0.11)
|
|
$0.10
|
Summary Results Including Pure Sunfarms on a Proportionate
Basis
The following results reflect the Company's proportionate share
of the Pure Sunfarms joint venture operations, as this is the basis
on which management bases its operating decisions and
performance. For a reconciliation to the results in
accordance with International Financial Reporting Standards
("IFRS") refer to the "Reconciliation of IFRS to Proportionate
Results" as presented below and in Management's Discussion &
Analysis ("MD&A").
(in thousands of U.S. Dollars unless otherwise
indicated)
|
For the three
months ended
December 31,
|
|
For the year
ended
December 31,
|
|
20181
|
|
20171
|
|
20181
|
|
20171
|
Sales
|
$40,590
|
|
$36,864
|
|
$151,913
|
|
$158,406
|
Cost of
sales
|
(36,896)
|
|
(31,908)
|
|
(140,882)
|
|
(144,433)
|
Selling, general and
administrative expenses
|
(4,113)
|
|
(4,147)
|
|
(15,414)
|
|
(14,242)
|
Change in biological
asset (2)
|
3,120
|
|
1,082
|
|
2,552
|
|
265
|
Net income
(loss)
|
270
|
|
(607)
|
|
(5,145)
|
|
3,822
|
EBITDA(3)
|
$1,484
|
|
$2,591
|
|
$2,878
|
|
$7,363
|
Earning (loss) per
share – basic and diluted
|
$0.01
|
|
($0.02)
|
|
($0.11)
|
|
$0.10
|
Notes:
|
|
(1)
|
The consolidated
financial results above reflect the proportionate share of the
Company's share of revenues and expenses from its joint venture
operations, as this is the basis which management bases its
operating decisions and performance evaluation. IFRS does not
allow for the inclusion of the joint venture on a proportionate
basis. These results include additional non-IFRS measures
such as EBITDA.
|
|
|
|
The results are not
generally accepted measures of financial performance under
IFRS. The Company's method of calculating these financial
performance measures may differ from other companies and
accordingly, they may not be comparable to measures used by other
companies. Refer to the MD&A for a reconciliation of
these non-IFRS measures and proportionate results.
|
|
|
(2)
|
Biological assets
consist of the Company's produce on the vines and Pure Sunfarms'
bud and trim on the plant at the period end. Details of the
changes are described in note 6 of the Company's annual
consolidated financial statements year ended December 31,
2018.
|
|
|
(3)
|
EBITDA is not a
recognized earnings measure and does not have a standardized
meaning prescribed by IFRS. Therefore, EBITDA may not be
comparable to similar measures presented by other issuers.
See "Non-IFRS Measures". Management believes that EBITDA is a
useful supplemental measure in evaluating the performance of the
Company. Consolidated EBITDA includes the Company's 50% share of
its joint venture Pure Sunfarms.
|
Financial Highlights
(All amounts in U.S. Dollars unless otherwise
indicated.)
Cannabis
Pure Sunfarms commenced sales in late September 2018; for the year ended December 31, 2018 the Company's 50% share of
sales is $1,897.
The Company's share of net income for the three months and year
ended December 31, 2018 was
$2,750 and $2,381, respectively, Pure Sunfarms was able to
achieve net income in its first full quarter of sales.
The Company's share of EBITDA for the three months and year
ended December 31, 2018 was
$861 and $111, respectively, Pure Sunfarms was able to
achieve a positive EBITDA in its first full quarter of sales.
Vegetable
Sales for the year ended December 31,
2018 decreased (5%) from the year ended December 31, 2017, the decrease is due to the
loss of tomato production from the Delta 3 facility, which was
contributed to Pure Sunfarms in 2017 and the Company's lower
production at its Texas
facilities. Net price for tomato pounds increased 4% for the
year ended December 31, 2018 versus
the year ended December 31, 2017 due
to a higher percent of higher priced tomato production in 2018 as
compared to 2017. Pepper prices decreased (2%) over the
comparable period in 2017, and cucumber prices decreased (1%) for
the years ended December 31, 2018
over the comparable period in 2017.
Cost of sales for the year ended December
31, 2018 decreased (3%) from the year ended December 31, 2017, primarily due to the loss of
the Delta 3 facility and a decrease in costs at the Texas facilities due to a decrease in pounds
produced partially offset by an increase of 6% in contract sales
cost.
EBITDA for the year period ended December
31, 2018 decreased (62%) from the year period ended
December 31, 2017, primarily as a
result of a decrease in income from operations that was caused by
the removal of the Delta 3 facility as well as a decrease in
production for the Texas
facilities. The production shortfall at the Texas facilities resulted in decreased sales
and an increase in cost per pound for product produced as the fixed
costs were spread over less pounds.
Reconciliation of IFRS to Proportionate Results
The following tables are a reconciliation of the IFRS results to
the proportionate results (which include the Company's
proportionate share of the Pure Sunfarms operations). Refer to the
MD&A for further discussion and analysis of these results:
|
For the three
months ended December 31, 2018
|
|
For the three
months ended December 31, 2017
|
|
Produce
|
|
Cannabis4
|
|
Total
|
|
Produce
|
|
Cannabis4
|
|
Total
|
Sales
|
$38,787
|
|
$1,803
|
|
$40,590
|
|
$36,864
|
|
$-
|
|
$36,864
|
Cost of
sales
|
(36,367)
|
|
(529)
|
|
(36,896)
|
|
(31,908)
|
|
-
|
|
(31,908)
|
Selling, general and
administrative expenses
|
(3,622)
|
|
(491)
|
|
(4,113)
|
|
(4,019)
|
|
(128)
|
|
(4,147)
|
Change in biological
asset(5)
|
158
|
|
2,962
|
|
3,120
|
|
1,082
|
|
-
|
|
1,082
|
(Gain) loss on sale
of assets
|
-
|
|
-
|
|
-
|
|
(511)
|
|
-
|
|
(511)
|
(Recovery of)
provision for income taxes
|
(962)
|
|
887
|
|
(75)
|
|
321
|
|
(93)
|
|
228
|
Net (loss)
income
|
(2,480)
|
|
2,750
|
|
270
|
|
(572)
|
|
(35)
|
|
(607)
|
EBITDA(6)
|
$623
|
|
$861
|
|
$1,484
|
|
2,720
|
|
(129)
|
|
2,591
|
(Loss) earnings per
share – basic and diluted
|
($0.05)
|
|
$0.06
|
|
$0.01
|
|
($0.02)
|
|
$0.00
|
|
($0.02)
|
|
For the year
ended December 31 , 2018
|
|
For the year ended
December 31, 2017
|
|
|
Produce
|
|
Cannabis4
|
|
Total
|
|
Produce
|
|
Cannabis4
|
|
Total
|
Sales
|
$150,000
|
|
$1,897
|
|
$151,913
|
|
$158,406
|
|
$-
|
|
$158,406
|
Cost of
sales
|
(140,282)
|
|
(595)
|
|
(140,882)
|
|
(144,433)
|
|
-
|
|
(144,433)
|
Selling, general and
administrative expenses
|
(14,108)
|
|
(1,306)
|
|
(15,414)
|
|
(13,894)
|
|
(348)
|
|
(14,242)
|
Change in biological
asset(5)
|
(834)
|
|
3,386
|
|
2,552
|
|
265
|
|
-
|
|
265
|
(Gain) loss on sale
of assets
|
-
|
|
-
|
|
-
|
|
(8,013)
|
|
-
|
|
(8,013)
|
(Recovery of)
provision for income taxes
|
(2,475)
|
|
887
|
|
(1,588)
|
|
138
|
|
94
|
|
232
|
Net (loss)
income
|
(7,526)
|
|
2,381
|
|
(5,145)
|
|
4,077
|
|
(255)
|
|
3,822
|
EBITDA(6)
|
$2,767
|
|
$111
|
|
2,878
|
|
$7,456
|
|
($93)
|
|
$7,363
|
(Loss) earnings per
share – basic and diluted
|
($0.16)
|
|
$0.05
|
|
($0.11)
|
|
$0.10
|
|
$0.00
|
|
$0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
(4)
|
The consolidated
financial results above reflect the proportionate share of the
Company's share of revenues and expenses from its joint venture
operations, as this is the basis which management bases its
operating decisions and performance evaluation. IFRS does not
allow for the inclusion of the joint venture on a proportionate
basis. These results include additional non-IFRS measures
such as EBITDA.
|
|
|
|
The results are not
generally accepted measures of financial performance under
IFRS. The Company's method of calculating these financial
performance measures may differ from other companies and
accordingly, they may not be comparable to measures used by other
companies. Refer to the MD&A for a reconciliation of
these non-IFRS measures and proportionate results.
|
|
|
(5)
|
Biological assets
consist of the Company's produce on the vines and Pure Sunfarms'
crop at the period end. Details of the changes are described
in note 6 of the Company's annual consolidated financial statements
year ended December 31, 2018.
|
|
|
(6)
|
EBITDA is not a
recognized earnings measure and does not have a standardized
meaning prescribed by IFRS. Therefore, EBITDA may not be
comparable to similar measures presented by other issuers.
See "Non-IFRS Measures". Management believes that EBITDA is a
useful supplemental measure in evaluating the performance of the
Company. Consolidated EBITDA includes the Company's 50% share of
its joint venture Pure Sunfarms.
|
Conference Call
Village Farms' management team will host a conference call
tomorrow, Thursday, March 14, 2019 at
11:00 a.m. ET (8:00 a.m. PT) to discuss its year end 2018
financial results and provide an update on Pure Sunfarms.
Participants can access the conference call by telephone by dialing
(647) 427-7450 or (888) 231-8191, or via the Internet at
https://bit.ly/2GRVAcz.
For those unable to participate in the conference call at the
scheduled time, it will be archived for replay both by telephone
and via the Internet beginning approximately one hour following
completion of the call. To access the archived conference call by
telephone, dial (416) 849-0833 or (855) 859-2056 and enter the
passcode 8558907 followed by the pound key. The telephone replay
will be available until, March 21,
2019 at midnight (ET). The conference call will also
be archived on Village Farms' website
at http://villagefarms.com/investor-relations/investor-calls.
About Village Farms International, Inc.
Village Farms is one of the largest and longest-operating
vertically integrated greenhouse growers in North America and the only publicly traded
greenhouse produce company in Canada. Village Farms produces and distributes
fresh, premium-quality produce with consistency 365 days a year to
national grocers in the U.S. and Canada from more than nine million square feet
of Controlled Environment Agriculture (CEA) greenhouses in
British Columbia and Texas, as well as from its partner greenhouses
in British Columbia, Ontario and Mexico. The Company is now
leveraging its 30 years of experience as a vertically integrated
grower for the rapidly emerging global cannabis opportunity through
its 50% ownership of British
Columbia-based Pure Sunfarms Corp., one of the single
largest cannabis growing operations in the world. The Company
also intends to pursue opportunities to become a vertically
integrated leader in the U.S. hemp-derived CBD market, subject to
compliance with all applicable U.S. federal and state laws, and has
established a joint venture, Village Fields Hemp, for multi-state
outdoor hemp cultivation and CBD extraction.
Cautionary Language
Certain statements contained in this press release constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). Forward-looking
statements may relate to the Company's future outlook or financial
position and anticipated events or results and may include
statements regarding the financial position, business strategy,
budgets, litigation, projected production, projected costs, capital
expenditures, financial results, taxes, plans and objectives of or
involving the Company. Particularly, statements regarding future
results, performance, achievements, prospects or opportunities for
the Company, Pure Sunfarms, the greenhouse vegetable industry or
the cannabis and hemp industries are forward-looking statements. In
some cases, forward-looking information can be identified by such
terms as "outlook", "may", "might", "will", "could", "should",
"would", "occur", "expect", "plan", "anticipate", "believe",
"intend", "estimate", "predict", "potential", "continue", "likely",
"schedule", "objectives", or the negative or grammatical variation
thereof or other similar expressions concerning matters that are
not historical facts.
Although the forward-looking statements contained in this press
release are based upon assumptions that management believes are
reasonable based on information currently available to management,
there can be no assurance that actual results will be consistent
with these forward-looking statements. Forward-looking statements
necessarily involve known and unknown risks and uncertainties, many
of which are beyond the Company's control, that may cause the
Company's or the industry's actual results, performance,
achievements, prospects and opportunities in future periods to
differ materially from those expressed or implied by such
forward-looking statements. These risks and uncertainties include,
among other things, the factors contained in the Company's filings
with U.S. and Canadian securities regulators, including as detailed
in the Company's annual information form and management's
discussion and analysis for the year-ended December 31, 2018.
When relying on forward-looking statements to make decisions,
the Company cautions readers not to place undue reliance on these
statements, as forward-looking statements involve significant risks
and uncertainties and should not be read as guarantees of future
results, performance, achievements, prospects and opportunities.
The forward-looking statements made in this press release only
relate to events or information as of the date on which the
statements are made in this press release. Except as required by
law, the Company undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
|
|
|
|
|
|
|
Village Farms
International, Inc.
|
Condensed
Consolidated Interim Statements of Financial
Position
|
(In thousands of
United States dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018
|
|
December 31,
2017
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
11,920
|
|
$
7,091
|
|
|
Trade
receivables
|
|
11,292
|
|
11,259
|
|
|
Amounts due from
joint venture
|
|
10,873
|
|
411
|
|
|
Other
receivables
|
|
332
|
|
1,571
|
|
|
Inventories
|
|
22,485
|
|
17,309
|
|
|
Prepaid expenses and
deposits
|
|
889
|
|
810
|
|
|
Biological
asset
|
|
4,230
|
|
4,405
|
|
Total current
assets
|
|
62,021
|
|
42,856
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
77,479
|
|
81,754
|
|
|
Investment in joint
venture
|
|
18,108
|
|
15,727
|
|
|
Other
assets
|
|
2,207
|
|
2,004
|
|
Total
assets
|
|
$
159,815
|
|
$
142,341
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Line of
credit
|
|
2,000
|
|
-
|
|
|
Trade
payables
|
|
$
14,601
|
|
$
12,952
|
|
|
Accrued
liabilities
|
|
3,414
|
|
3,793
|
|
|
Current maturities of
long-term debt
|
|
3,509
|
|
2,620
|
|
|
Current maturities of
capital lease obligations
|
|
78
|
|
72
|
|
Total current
liabilities
|
|
23,602
|
|
19,437
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Long-term
debt
|
|
32,445
|
|
35,760
|
|
|
Long-term maturities
of capital lease obligations
|
|
1,920
|
|
179
|
|
|
Deferred tax
liability
|
|
1,050
|
|
4,825
|
|
|
Other
liabilities
|
|
102
|
|
1,097
|
|
Total
liabilities
|
|
59,119
|
|
61,298
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Share
capital
|
|
60,872
|
|
36,115
|
|
|
Contributed
surplus
|
|
2,198
|
|
1,726
|
|
|
Revaluation
surplus
|
|
4,321
|
|
4,321
|
|
|
Accumulated other
comprehensive loss
|
|
(562)
|
|
(391)
|
|
|
Retained
earnings
|
|
33,867
|
|
39,272
|
|
Total shareholders'
equity
|
|
100,696
|
|
81,043
|
|
Total liabilities and
shareholders' equity
|
|
$
159,815
|
|
$
142,341
|
Village Farms
International, Inc.
|
Condensed
Consolidated Interim Statements of (Loss) Income and Comprehensive
Income
|
(In thousands of
United States dollars, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Sales
|
$
38,787
|
|
$
36,864
|
|
$
150,000
|
|
$
158,406
|
Cost of
sales
|
(36,367)
|
|
(31,908)
|
|
(140,282)
|
|
(144,433)
|
Change in biological
asset
|
158
|
|
1,082
|
|
(834)
|
|
265
|
Selling, general and
administrative expenses
|
(3,622)
|
|
(4,019)
|
|
(14,108)
|
|
(13,894)
|
Stock compensation
expense
|
(1,007)
|
|
(959)
|
|
(1,454)
|
|
(1,519)
|
Loss from
operations
|
(2,051)
|
|
1,060
|
|
(6,678)
|
|
(1,175)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
501
|
|
679
|
|
2,407
|
|
2,695
|
Foreign exchange loss
(gain)
|
960
|
|
31
|
|
1,047
|
|
(26)
|
Other
income
|
(70)
|
|
50
|
|
(131)
|
|
(46)
|
Share of loss from
joint venture
|
(2,750)
|
|
35
|
|
(2,381)
|
|
255
|
Gain on sale of
assets
|
-
|
|
551
|
|
-
|
|
(8,013)
|
(Loss) income before
income taxes
|
(692)
|
|
(286)
|
|
(7,620)
|
|
3,960
|
|
|
|
|
|
|
|
|
(Recovery of)
provision for income taxes
|
(962)
|
|
321
|
|
(2,475)
|
|
138
|
Net income
(loss)
|
$
270
|
|
$
(607)
|
|
$
(5,145)
|
|
$
3,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
0.01
|
|
$
(0.02)
|
|
$
(0.11)
|
|
$
0.10
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per share
|
$
0.01
|
|
$
(0.02)
|
|
$
(0.11)
|
|
$
0.10
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment
|
$
(123)
|
|
$
12
|
|
$
(171)
|
|
$
150
|
Gain on
revaluation of land, net of tax
|
-
|
|
-
|
|
-
|
|
(1,811)
|
Comprehensive income
(loss)
|
$
147
|
|
$
(595)
|
|
$
(5,316)
|
|
$
3,972
|
Village Farms
International, Inc.
|
Condensed
Consolidated Interim Statements of Cash Flows
|
(In thousands of
United States dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cash flows used in
operating activities:
|
|
|
|
|
|
|
|
Net (loss)
income
|
270
|
|
$
(607)
|
|
$
(5,145)
|
|
$
3,822
|
Adjustments to
reconcile net (loss) income to net cash provided by
|
|
|
|
|
|
|
|
(used in) operating
activities:
|
-
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,756
|
|
1,833
|
|
7,027
|
|
7,586
|
Amortization of
deferred charges
|
-
|
|
19
|
|
-
|
|
73
|
Gain on sale of
assets
|
-
|
|
551
|
|
-
|
|
(8,013)
|
Share of loss from
joint venture
|
(2,750)
|
|
35
|
|
(2,381)
|
|
255
|
Interest
paid
|
534
|
|
658
|
|
2,407
|
|
2,614
|
Share-based
compensation
|
1,007
|
|
959
|
|
1,454
|
|
1,519
|
Deferred income
taxes
|
(605)
|
|
694
|
|
(2,906)
|
|
109
|
Change in biological
asset
|
(158)
|
|
(1,082)
|
|
834
|
|
(265)
|
Changes in non-cash
working capital items
|
943
|
|
(1,192)
|
|
(3,550)
|
|
(4,417)
|
Net cash provided by
(used in) operating activities
|
997
|
|
1,868
|
|
(2,260)
|
|
3,283
|
|
|
|
|
|
|
|
|
Cash flows used in
investing activities:
|
|
|
|
|
|
|
|
Purchases
of property, plant and equipment
|
(547)
|
|
(525)
|
|
(3,093)
|
|
(1,696)
|
Amounts
due from joint venture
|
(3,681)
|
|
-
|
|
(10,462)
|
|
-
|
Proceeds
from sale of land
|
65
|
|
-
|
|
65
|
|
-
|
Net cash used in
investing activities
|
(4,163)
|
|
(525)
|
|
(13,490)
|
|
(1,696)
|
|
|
|
|
|
|
|
|
Cash flows (used
in) provided by financing activities:
|
|
|
|
|
|
|
|
Proceeds
from borrowings
|
-
|
|
193
|
|
7,000
|
|
7,306
|
Repayments on borrowings
|
(5,940)
|
|
(7,832)
|
|
(7,706)
|
|
(14,320)
|
Interest
paid on long-term debt
|
(544)
|
|
(658)
|
|
(2,417)
|
|
(2,614)
|
Proceeds
from issuance of common stock
|
15,737
|
|
9,769
|
|
23,492
|
|
9,769
|
Proceeds
from exercise of stock options
|
8
|
|
33
|
|
283
|
|
59
|
Payments
on capital lease obligations
|
(26)
|
|
(19)
|
|
(71)
|
|
(59)
|
Net cash (used in)
provided by financing activities
|
9,235
|
|
1,486
|
|
20,581
|
|
141
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
-
|
|
(23)
|
|
(2)
|
|
(10)
|
|
|
|
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
6,069
|
|
2,806
|
|
4,829
|
|
1,718
|
Cash and cash
equivalents, beginning of year
|
5,851
|
|
4,285
|
|
7,091
|
|
5,373
|
Cash and cash
equivalents, end of year
|
$
|
11,920
|
|
$
|
7,091
|
|
$
|
11,920
|
|
$
|
7,091
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
Income
taxes paid
|
$
|
-
|
|
$
|
(61)
|
|
$
|
290
|
|
$
|
(25)
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash information:
|
|
|
|
|
|
|
|
Purchases of
capital expenditures by financing capital lease
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
190
|
Issuance of
warrants
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
148
|
View original
content:http://www.prnewswire.com/news-releases/village-farms-international-reports-fourth-quarter-and-year-end-2018-financial-results--cannabis-joint-venture-pure-sunfarms-generates-positive-net-income-in-first-full-quarter-of-sales-and-for-the-full-year-300812006.html
SOURCE Village Farms International, Inc.