Initiates Expansion of Extraction Capacity
to 1,500,000 kg Along With Additional Packaging
and Finished Forms Capabilities
Creates
a One-Stop Shop for Licenced Cannabis
Producers
Fiscal Year 2019 and Fourth Quarter Financial
Highlights:
- Neptune began commercial production and shipping of cannabis
extracts during the last weeks of the fourth quarter, recording its
first cannabis revenues.
- Nutraceutical revenues of $24.4
million for fiscal year ended March
31, 2019, were stable with last year (excluding krill oil
manufacturing business); revenues of $5.7
million in the fourth quarter of fiscal 2019 decreased
versus $7.0 million for the fourth
quarter of fiscal 2018.
- Net loss of $23.2 million for the
fiscal year ended March 31, 2019,
versus a net income of $20 million
for the fiscal year ended March 31,
2018; net loss of $12.4
million in the fourth quarter of fiscal 2019 versus a net
loss of $4.8 million in the fourth
quarter of fiscal 2018; variation reflecting litigation provisions
of $7.9 million in the fourth quarter
of fiscal 2019, gain on sale of assets and a gain on loss of
control of a subsidiary totalling $32.5
million in the fourth quarter of fiscal 2018.
- Non-IFRS operating loss1 was $8.1 million for the fiscal year ended
March 31, 2019, compared with a loss
of $2.6 million in the fiscal year
ended March 31, 2018; a non-IFRS
operating loss1 of $2.7
million in the fourth quarter of 2019 compared to a non-IRFS
operating loss of $1.8 million in the
fourth quarter of fiscal year 2018.
Subsequent to Quarter-end:
- Neptune's Board of Directors approved an $11 million investment to increase extraction
capacity from 200,000 kg to 1,500,000 kg and to establish
formulation, manufacturing and packaging capabilities in
preparation for new product forms currently expected to be
authorized by Health Canada this fall.
- Neptune signed a three-year contract with The Green Organic
Dutchman ("TGOD") for a minimum of 230,000 kg of cannabis and hemp
biomass. Neptune will provide extraction services as well as
turnkey packaging solutions to TGOD covering a range of finished
products.
- Neptune signed a contract with Tilray Inc. for the extraction
of cannabinoids from cannabis and hemp biomass. Tilray has
committed to provide minimum biomass volumes of 125,000 kg over a
three-year period.
- Neptune announced a definitive agreement to acquire the assets
of SugarLeaf Labs a U.S.-based hemp processor with an extraction
capacity of 1,500,000 kg. SugarLeaf will provide Neptune with a
platform to capture the significant CBD wellness opportunity in the
U.S.
LAVAL, QC, June 12, 2019 /CNW Telbec/ - Neptune
Wellness Solutions Inc. ("Neptune" or the "Corporation") (NASDAQ:
NEPT) (TSX: NEPT), today announced it's financial and operating
results for the 3-month period and full year ended March 31, 2019. All amounts are in Canadian
dollars.
Management Commentary
"Fiscal 2019 was a pivotal year for Neptune, with our team's
efforts recently culminating in material contract announcements and
a U.S.-based acquisition. Reflecting on the last year, I am proud
of what we have accomplished, building a powerful, differentiated
value proposition and even more excited about what our expanded
talent team will accomplish in the current year to accelerate our
growth in the developing global cannabis marketplace," stated
Jim Hamilton, CEO of Neptune.
"Looking into this fiscal year and beyond, we are in the enviable
position of having more contracted demand in hand than our approved
capacity can satisfy. The capacity amendments and security
clearance applications we have submitted to Health Canada, when
approved, will alleviate the constraints we are currently facing
and support our growth. In addition, the expansion plans just
approved by our Board of Directors will increase our available
processing capability and broaden our service offering to transform
Neptune into a one-stop shop for Licenced Cannabis Producers. We
are also pursuing our EU GMP certification as well as our organic
certification, both of which should unlock incremental markets and
revenue opportunities."
"In summary, we are on track to achieve positive EBITDA this year,
and on the threshold of creating a profitable, cash-generating
business model. With the largest extraction facility in
Canada, with a licence, and a
transaction pending for a second facility in the United States, multiple supply
partnerships now in hand, and solid and growing relationships with
new clients, we are on our way to realizing our objective to become
the global leader in cannabis extraction."
Financial Results Highlights
Cannabis investments were initiated during the three-month
period ended December 31, 2017.
Therefore, 6 months of cannabis results are included in the
comparative results indicated below. The fourth quarter ended
March 31, 2018, does not include any
financial results of Acasti.
Fourth Quarter Financial Results
- Revenues decreased to $5.7
million for the three-month period ended March 31, 2019, versus revenues of $6.8 million for the three-month period ended
March 31, 2018. Neptune began
commercial production and shipping of cannabis extracts during the
last weeks of the fourth quarter, recording its first cannabis
revenues.
- Net loss was $12.4 million for
the current quarter, versus $4.8
million for the three-month period ended March 31, 2018, reflecting litigation provisions
of $7.9 million in the current
quarter.
- Non-IFRS operating loss1 was $2.7 million for the current quarter, compared to
$1.8 million for the three-month
period ended March 31, 2018.
Year Ended Financial Results
- Revenues reached $24.4 million
for the fiscal year ended March 31,
2019, versus revenues of $24.4
million for the fiscal year ended March 31, 2018, when excluding the krill oil
manufacturing business sold on August 7,
2017.
- Net loss was $23.2 million for
the fiscal year ended March 31, 2019,
versus a net income of $20.0 million
for the fiscal year ended March 31,
2018. The net loss for the year ended March 31, 2019, includes litigation provisions of
$7.9 million. The net income for the
year ended March 31, 2018, includes a
gain on sale of assets of $23.7
million, a gain on loss of control of a subsidiary of
$8.8 million, derecognition of tax
credits of $1.9 million, an income
taxes recovery of $1.6 million and an
impairment loss on inventories of $2.4
million.
- Non-IFRS operating loss1 was $8.1 million for the fiscal year ended
March 31, 2019, compared to
$2.6 million for the fiscal year
ended March 31, 2018. The variation
of $5.5 million principally relates
to the investment in the cannabis business.
Consolidated Results
The Corporation realized a net loss for the three-month period
ended March 31, 2019, of $12.4 million compared to $4.8 million for the three-month period ended
March 31, 2018, an increase of
$7.6 million. The Corporation
realized a net loss for the year ended March 31, 2019, of
$23.2 million compared to a net
income of $9.3 million for the year
ended March 31, 2018, an increase of
$32.5 million. The net income was
$20 million before consideration of Acasti's net loss for the
year ended March 31, 2018.
Cash and cash equivalents were $9.8
million as at March 31, 2019.
Neptune is evaluating options to fund its growth with a focus on
prudence and minimizing equity dilution.
Phase IIIA Extraction Capacity Expansion
In April 2019, Neptune finalized
its Phase II ethanol-based extraction capacity expansion to 200,000
kg at the Corporation's facility in Sherbrooke, Québec, which is awaiting licence
amendment approval from Health Canada. With the recent extraction
contract announcements, Neptune's capacity for Phase II is already
fulfilled for both fiscal 2020 and 2021. Therefore, in June,
Neptune's Board of Directors approved the Phase IIIA extraction
capacity expansion which, once completed, will add 1,300,000 kg of
ethanol extraction capacity for a total extraction capacity of
1,500,000 kg in Canada. This
capacity expansion is necessary to support the execution of
Neptune's growth strategy to become the global leader in cannabis
extraction and purification.
A staggered capacity expansion strategy has been chosen to
accelerate our time to market. The Phase IIIA expansion reduces our
commercialization timeframe significantly versus a full capacity
expansion to 6,000,000 kg. Neptune will revisit further
expansion plans as the global market evolves and demand for
cannabis and hemp extracts increase. The projected investment
required to complete the Phase IIIA expansion is $4 million, providing the Corporation with a very
attractive return on investment. The extraction equipment already
installed reduces greatly our investment needs and time to market.
Phase IIIA is expected to be completed before the end of calendar
year 2019.
Establishing Turnkey Formulation and Packaging
Solutions
Neptune's strategic plan is to provide differentiated, value
added services to its clients. To service newly signed commercial
agreements, which include formulation and packaging services, and
to deepen its relationships with Licenced Producers, the
Corporation is establishing turnkey packaging solutions
capabilities. Neptune's Board of Director approved an investment of
$7 million to establish additional
formulation, manufacturing and packaging infrastructure. This
investment will allow Neptune to provide formulation services for
new expected product forms such as vape pens, topicals, beverages,
sprays and others, which are expected to take into effect this fall
under new Health Canada regulations.
Neptune will also have filling, packaging and labeling abilities
in order to become a one-stop shop for Licensed Cannabis Producers
in addition to our existing capabilities with capsules. Neptune's
turnkey solutions are anticipated to be available this fall and
will deepen our relationships with Licenced Producers.
SugarLeaf Labs
On May 9, 2019, Neptune announced
the signing of a definitive agreement to acquire the assets of U.S.
based hemp processor SugarLeaf Labs and Forest Remedies LLC
(collectively, "SugarLeaf"). Neptune will acquire SugarLeaf on a
debt-free basis for initial consideration at closing of
US$18 million, paid as US$12 million in cash and US$6 million in common shares. By achieving
certain annual adjusted EBITDA and other performance targets,
additional consideration of up to US$132
million would be paid over each of the next three years as a
combination of cash and shares for a maximum aggregate purchase
price of up to US$150 million. The
transaction is expected to close on or before July 31, 2019, upon completion of standard
closing requirements, including regulatory and stock exchange
(NASDAQ and TSX) approvals.
Outlook
During the first quarter of fiscal year 2020, cannabis
extraction operations have been constrained by several factors
including limited biomass inventory to extract and constrained
extraction capacity. As such, we expect our cannabis extraction
revenues for the first quarter of fiscal year 2020 to be lower than
$1 million. Pending Health Canada
approval of expansion amendments and additional security personnel
clearance should alleviate our capacity constraints.
Based on the total value of extraction and packaging contracts
signed to date, we expect that our revenues growth from cannabis
extraction and packaging will ramp significantly from the second
quarter of fiscal 2020 and onwards.
________________________
1 See "Caution Regarding Non-IFRS Financial Measures"
and "Reconciliation of Segment income (loss) from operating
activities before corporate expenses to Adjusted Segment EBITDA
(non-IFRS operating segment loss) and net income (loss) to non-IFRS
operating loss" which follow.
|
About Neptune Wellness Solutions Inc.
Neptune Wellness Solutions specializes in the extraction,
purification and formulation of health and wellness products.
Neptune's wholly owned subsidiary, 9354-7537 Québec Inc., is
licenced by Health Canada to process cannabis at its 50,000 square
foot facility located in Sherbrooke,
Quebec. Neptune brings decades of experience in the natural
products sector to the legal cannabis industry. Leveraging its
scientific and technological expertise, Neptune focuses on the
development of value-added and differentiated products for the
Canadian and global cannabis markets. Neptune's activities also
include the development and commercialization of turnkey nutrition
solutions and patented ingredients such as MaxSimil®, and of a
variety of marine and seed oils. Its head office is located in
Laval, Quebec.
Caution Regarding Non-IFRS Financial
Measures
The Corporation uses two adjusted financial
measures, Adjusted Segment Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) called non-IFRS operating
segment loss when a segment is in a loss position, and Adjusted
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) called non-IFRS operating loss when the Corporation is in
a loss position, to assess its operating performance. These
non-IFRS financial measures are directly derived from the
Corporation's financial statements and are presented in a
consistent manner. The Corporation uses these measures for the
purposes of evaluating its historical and prospective financial
performance, as well as its performance relative to competitors.
These measures also help the Corporation to plan and forecast for
future periods as well as to make operational and strategic
decisions. The Corporation believes that providing this information
to investors, in addition to IFRS measures, allows them to see the
Corporation's results through the eyes of management, and to better
understand its historical and future financial performance.
Securities regulations require that companies caution readers
that earnings and other measures adjusted to a basis other than
IFRS do not have standardized meanings and are unlikely to be
comparable to similar measures used by other companies.
Accordingly, they should not be considered in isolation. The
Corporation uses Adjusted Segment EBITDA (or non-IFRS operating
segment loss when in a loss position) and Adjusted EBITDA (or
non-IFRS operating loss when in a loss position) to measure its
performance from one period to the next without the variation
caused by certain adjustments that could potentially distort the
analysis of trends in our operating performance, and because the
Corporation believes it provides meaningful information on the
Corporation's financial condition and operating results. Neptune's
method for calculating Adjusted Segment EBITDA (or non-IFRS
operating segment loss) and Adjusted EBITDA (or non-IFRS operating
loss) may differ from that used by other corporations.
Neptune obtains its Adjusted Segment EBITDA (or non-IFRS
operating segment loss) measurement by adding depreciation and
amortization and stock-based compensation to segment income (loss)
from operating activities before corporate expenses. Neptune
obtains its Adjusted EBITDA (or non-IFRS operating loss)
measurement by adding to net income (loss), net finance costs,
depreciation and amortization, income tax expense and by
subtracting income tax recovery and net finance income. Other items
such as stock-based compensation, litigation provisions, impairment
loss on inventories, net gain on sale of assets, gain on loss of
control of subsidiary, tax credits reversal from prior years and
legal fees related to royalty settlements that do not impact core
operating performance of the Corporation are excluded from the
calculation as they may vary significantly from one period to
another. Excluding these items does not imply they are
non-recurring.
Forward Looking Statements
Statements in this press
release that are not statements of historical or current fact
constitute "forward-looking statements" within the meaning of the
U.S. securities laws and Canadian securities laws. Such
forward-looking statements involve known and unknown risks,
uncertainties, and other unknown factors that could cause the
actual results of Neptune to be materially different from
historical results or from any future results expressed or implied
by such forward-looking statements. In addition to statements which
explicitly describe such risks and uncertainties, readers are urged
to consider statements labeled with the terms "believes," "belief,"
"expects," "intends," "projects," "anticipates," "will," "should,"
or "plans" to be uncertain and forward-looking. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Forward-looking information in this press release includes, but is
not limited to, information or statements about our ability to
successfully develop, produce, supply, promote or generate any
revenue from the sale of any cannabis-based products in the legal
cannabis market.
The forward-looking statements contained in this press
release are expressly qualified in their entirety by this
cautionary statement and the "Cautionary Note Regarding
Forward-Looking Information" section contained in Neptune's latest
Annual Information Form (the "AIF"), which also forms part of
Neptune's latest annual report on Form 40-F, and which is available
on SEDAR at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and
on the Investor section of Neptune's website at
www.neptunecorp.com. All forward-looking statements in this press
release are made as of the date of this press release. Neptune does
not undertake to update any such forward-looking statements whether
as a result of new information, future events or otherwise, except
as required by law. The forward-looking statements contained herein
are also subject generally to other risks and uncertainties that
are described from time to time in Neptune public securities
filings with the Securities and Exchange Commission and the
Canadian securities commissions. Additional information about these
assumptions and risks and uncertainties is contained in the AIF
under "Risk Factors".
Neither NASDAQ nor the Toronto Stock Exchange accepts
responsibility for the adequacy or accuracy of this
release.
Conference Call Details
Neptune will be holding a
conference call on June 12, 2019, at
5:00 PM (EST) to discuss its fourth
quarter and fiscal year-end results ended March 31, 2019.
Date:
|
Wednesday, June 12,
2019
|
|
|
Time:
|
5:00 PM Eastern
Standard Time
|
|
|
Call:
|
1-888-231-8191
(Canada and U.S.)
|
|
1-647-427-7450
(International)
|
|
|
Webcast:
|
A live webcast and
presentation of the results can be accessed at:
|
|
https://neptunecorp.com/en/investors/events-and-presentations/
|
A replay of the call will be available for replay shortly after
the call's completion, until July 12,
2019. The replay can be accessed online in the Investors
section of Neptune's website under Investor Events and
Presentations. It is also under this section that you will find the
archive of the webcast, along with its accompanying
presentation.
Reconciliation of
Segment income (loss) from operating activities before corporate
expenses to Adjusted Segment EBITDA1 (non-IFRS operating
segment loss)1 and net loss to non-IFRS operating
loss1 (Expressed in thousands of
dollars)
|
|
|
|
|
|
|
|
|
Three-month period
ended March 31, 2019
|
|
|
|
|
|
|
|
|
Nutraceutical
|
|
Cannabis
|
|
Corporate
|
|
Total
|
|
$
|
|
$
|
|
$
|
|
$
|
Total
revenues
|
|
5,652
|
|
12
|
|
|
|
|
|
5,664
|
Gross
margin
|
|
1,523
|
|
12
|
|
|
|
|
|
1,535
|
|
|
|
|
|
|
|
|
|
|
|
|
R&D expenses, net
of tax credits and grants
|
|
(172)
|
|
|
(1,898)
|
|
|
|
|
|
(2,070)
|
SG&A
expenses
|
|
(1,138)
|
|
|
(373)
|
|
|
|
|
|
(1,511)
|
Segment income (loss)
from operating activities before
corporate expenses
|
|
213
|
|
|
(2,259)
|
|
|
|
|
|
(2,046)
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
costs:
|
|
|
|
|
|
|
|
|
|
|
|
Corporate general and
administrative expenses
|
|
|
|
|
|
|
|
(2,354)
|
|
|
(2,354)
|
Litigation
provisions
|
|
|
|
|
|
|
|
(7,930)
|
|
|
(7,930)
|
Net finance
costs
|
|
|
|
|
|
|
|
(38)
|
|
|
(38)
|
Income tax
expense
|
|
|
|
|
|
|
|
(16)
|
|
|
(16)
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
(12,384)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITDA1 (non-IFRS operating
segment loss)1 reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss)
from operating activities before
corporate expenses
|
|
213
|
|
|
(2,259)
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
156
|
|
|
554
|
|
|
|
|
|
|
Stock-based
compensation
|
|
123
|
|
|
245
|
|
|
|
|
|
|
Adjusted Segment
EBITDA1 (non-IFRS operating
segment loss)1
|
|
492
|
|
|
(1,460)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS operating
loss1 reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
(12,384)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
765
|
Net finance
costs
|
|
|
|
|
|
|
|
|
|
|
38
|
Stock-based
compensation
|
|
|
|
|
|
|
|
|
|
|
928
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
|
16
|
Litigation
provisions
|
|
|
|
|
|
|
|
|
|
|
7,930
|
Non-IFRS operating
loss1
|
|
|
|
|
|
|
|
|
|
|
(2,707)
|
________________________
1 See "Caution Regarding Non-IFRS Financial
Measures".
|
Reconciliation of
Segment loss from operating activities before corporate expenses to
Adjusted Segment EBITDA1 (non-IFRS operating segment
loss)1 and net loss to non-IFRS operating
loss1
(Expressed in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month period
ended March 31, 2018
|
|
Nutraceutical
|
|
Cannabis
|
|
Corporate
|
|
Total
|
|
$
|
|
$
|
|
$
|
|
$
|
Total
revenues
|
|
7,005
|
|
–
|
|
|
|
|
|
7,005
|
Gross
margin
|
|
1,458
|
|
–
|
|
|
|
|
|
1,458
|
|
|
|
|
|
|
|
|
|
|
|
|
R&D expenses, net
of tax credits and grants
|
|
(1,952)
|
|
|
(1,528)
|
|
|
|
|
|
(3,480)
|
SG&A
expenses
|
|
(1,255)
|
|
|
(308)
|
|
|
|
|
|
(1,563)
|
Net gain on sale of
assets
|
|
(21)
|
|
|
–
|
|
|
|
|
|
(21)
|
Segment loss from
operating activities before corporate expenses
|
|
(1,770)
|
|
|
(1,836)
|
|
|
|
|
|
(3,606)
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
costs:
|
|
|
|
|
|
|
|
|
|
|
|
Corporate general and
administrative expenses
|
|
|
|
|
|
|
|
(2,418)
|
|
|
(2,418)
|
Net finance
costs
|
|
|
|
|
|
|
|
(408)
|
|
|
(408)
|
Income tax
recovery
|
|
|
|
|
|
|
|
1,680
|
|
|
1,680
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
(4,752)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITDA1 (non-IFRS operating segment loss)1
reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Segment loss from
operating activities before corporate expenses
|
|
(1,770)
|
|
|
(1,836)
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
186
|
|
|
530
|
|
|
|
|
|
|
Stock-based
compensation
|
|
160
|
|
|
186
|
|
|
|
|
|
|
Net gain on sale of
assets
|
|
21
|
|
|
–
|
|
|
|
|
|
|
Impairment loss on
inventories
|
|
658
|
|
|
–
|
|
|
|
|
|
|
Tax credits reversal
from prior years
|
|
1,933
|
|
|
–
|
|
|
|
|
|
|
Adjusted Segment
EBITDA1 (non-IFRS operating segment
loss)1
|
|
1,188
|
|
|
(1,120)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS operating
loss1 reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
(4,752)
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
768
|
Net finance
costs
|
|
|
|
|
|
|
|
|
|
|
408
|
Stock-based
compensation
|
|
|
|
|
|
|
|
|
|
|
842
|
Net gain on sale of
assets
|
|
|
|
|
|
|
|
|
|
|
21
|
Impairment loss on
inventories
|
|
|
|
|
|
|
|
|
|
|
658
|
Income tax
recovery
|
|
|
|
|
|
|
|
|
|
|
(1,680)
|
Tax credits reversal
from prior years
|
|
|
|
|
|
|
|
|
|
|
1,933
|
Non-IFRS operating
loss1
|
|
|
|
|
|
|
|
|
|
|
(1,802)
|
________________________
1 See "Caution Regarding Non-IFRS Financial
Measures".
|
Reconciliation of
Segment income (loss) from operating activities before corporate
expenses to Adjusted Segment EBITDA1 (non-IFRS operating
segment loss)1 and net loss to non-IFRS operating
loss1 (Expressed in thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March
31, 2019
|
|
Nutraceutical
|
|
Cannabis
|
|
Corporate
|
|
Total
|
|
$
|
|
$
|
|
$
|
|
$
|
Total
revenues
|
|
24,430
|
|
12
|
|
|
|
|
|
24,442
|
Gross
margin
|
|
7,602
|
|
12
|
|
|
|
|
|
7,614
|
|
|
|
|
|
|
|
|
|
|
|
|
R&D expenses, net
of tax credits and grants
|
|
(488)
|
|
|
(6,723)
|
|
|
|
|
|
(7,211)
|
SG&A
expenses
|
|
(4,525)
|
|
|
(1,846)
|
|
|
|
|
|
(6,371)
|
Segment income (loss)
from operating activities before corporate expenses
|
|
2,589
|
|
|
(8,557)
|
|
|
|
|
|
(5,968)
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
costs:
|
|
|
|
|
|
|
|
|
|
|
|
Corporate general and
administrative expenses
|
|
|
|
|
|
|
|
(8,915)
|
|
|
(8,915)
|
Litigation
provisions
|
|
|
|
|
|
|
|
(7,930)
|
|
|
(7,930)
|
Net finance
costs
|
|
|
|
|
|
|
|
(209)
|
|
|
(209)
|
Income tax
expense
|
|
|
|
|
|
|
|
(170)
|
|
|
(170)
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
(23,192)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITDA1 (non-IFRS operating segment loss)1
reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss)
from operating activities before corporate expenses
|
|
2,589
|
|
|
(8,557)
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
719
|
|
|
2,126
|
|
|
|
|
|
|
Stock-based
compensation
|
|
492
|
|
|
1,046
|
|
|
|
|
|
|
Adjusted Segment
EBITDA1 (non-IFRS operating segment
loss)1
|
|
3,800
|
|
|
(5,385)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS operating
loss1 reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
(23,192)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
3,056
|
Net finance
costs
|
|
|
|
|
|
|
|
|
|
|
209
|
Stock-based
compensation
|
|
|
|
|
|
|
|
|
|
|
3,713
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
|
170
|
Litigation
provisions
|
|
|
|
|
|
|
|
|
|
|
7,930
|
Non-IFRS operating
loss1
|
|
|
|
|
|
|
|
|
|
|
(8,114)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets3
|
|
21,007
|
|
|
50,981
|
|
|
18,232
|
|
|
90,220
|
Cash, cash
equivalents and short-term investment
|
|
276
|
|
–
|
|
|
9,591
|
|
|
9,867
|
Working
capital2
|
|
2,543
|
|
|
(629)
|
|
|
2,751
|
|
|
4,665
|
________________________
1 See "Caution Regarding Non-IFRS Financial
Measures".
|
2 The
working capital is presented for information purposes only and
represents a measurement of the Corporation's short-term financial
health mostly used in financial circles. The working capital is
calculated by subtracting current liabilities from current assets.
Because there is no standard method endorsed by IFRS, the results
may not be comparable to similar measurements presented by other
public companies.
|
3 The
corporate reportable segment assets include the investment in
Acasti.
|
Reconciliation of
Segment income (loss) from operating activities before corporate
expenses to Adjusted Segment EBITDA1 (non-IFRS operating
segment loss)1 and net income to non-IFRS operating
loss1
(Expressed in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March
31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
|
|
|
|
Nutraceutical
|
|
Cannabis
|
|
Cardiovascular
|
|
Corporate
|
|
eliminations
|
|
Total
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
Total
revenues
|
|
27,646
|
|
–
|
|
–
|
|
|
|
|
–
|
|
|
27,646
|
Gross
margin
|
|
6,324
|
|
–
|
|
–
|
|
|
|
|
–
|
|
|
6,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R&D expenses, net
of tax credits and grants
|
|
(2,732)
|
|
(2,969)
|
|
|
(9,592)
|
|
|
|
|
|
1,742
|
|
|
(13,551)
|
SG&A
expenses
|
|
(5,204)
|
|
(597)
|
|
|
(2,761)
|
|
|
|
|
–
|
|
|
(8,562)
|
Net gain on sale of
assets
|
|
23,702
|
|
–
|
|
–
|
|
|
|
|
–
|
|
|
23,702
|
Segment income (loss)
from operating activities before corporate expenses
|
|
22,090
|
|
(3,566)
|
|
|
(12,353)
|
|
|
|
|
|
1,742
|
|
|
7,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on loss of
control of subsidiary
|
|
–
|
|
–
|
|
|
–
|
|
|
8,784
|
|
|
–
|
|
|
8,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate general and
administrative expenses
|
|
|
|
|
|
|
|
|
|
(6,743)
|
|
|
|
|
|
(6,743)
|
Net finance
costs
|
|
|
|
|
|
|
|
|
|
(2,255)
|
|
|
|
|
|
(2,255)
|
Income tax
recovery
|
|
|
|
|
|
|
|
|
|
1,640
|
|
|
|
|
|
1,640
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITDA1 (non-IFRS operating segment
loss)1 reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment income (loss)
from operating activities before corporate expenses
|
|
22,090
|
|
(3,566)
|
|
|
(12,353)
|
|
|
|
|
|
1,742
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,817
|
|
1,054
|
|
|
2,005
|
|
|
|
|
|
(1,742)
|
|
|
|
Stock-based
compensation
|
|
317
|
|
252
|
|
|
661
|
|
|
|
|
–
|
|
|
|
Net gain on sale of
assets
|
|
(23,702)
|
|
–
|
|
–
|
|
|
|
|
–
|
|
|
|
Impairment loss on
inventories
|
|
2,377
|
|
–
|
|
–
|
|
|
|
|
–
|
|
|
|
Tax credits reversal
from prior years
|
|
1,933
|
|
–
|
|
–
|
|
|
|
|
–
|
|
|
|
Legal fees related to
royalty settlements
|
|
90
|
|
–
|
|
–
|
|
|
|
|
–
|
|
|
|
Adjusted Segment
EBITDA1 (non-IFRS operating segment
loss)1
|
|
4,922
|
|
(2,260)
|
|
|
(9,687)
|
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS operating
loss1 reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,339
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,542
|
Net finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,255
|
Stock-based
compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,884
|
Net gain on sale of
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23,702)
|
Gain on loss of
control of subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,784)
|
Impairment loss on
inventories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,377
|
Income tax
recovery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,640)
|
Tax credits reversal
from prior years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,933
|
Legal fees related to
royalty settlements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90
|
Non-IFRS operating
loss1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12,306)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
24,412
|
|
42,015
|
|
|
6,586
|
|
|
25,584
|
|
|
–
|
|
|
98,597
|
Cash, cash
equivalents and short-term investments
|
|
2,525
|
|
–
|
|
|
–
|
|
|
24,172
|
|
|
–
|
|
|
26,697
|
Working
capital2
|
|
4,014
|
|
2
|
|
|
–
|
|
|
22,456
|
|
|
–
|
|
|
26,472
|
________________________
1 See "Caution Regarding Non-IFRS Financial
Measures".
|
2 The
working capital is presented for information purposes only and
represents a measurement of the Corporation's short-term financial
health mostly used in financial circles. The working capital is
calculated by subtracting current liabilities from current assets.
Because there is no standard method endorsed by IFRS, the results
may not be comparable to similar measurements presented by other
public companies.
|
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SOURCE Neptune Wellness Solutions Inc.