RE:RE:HEXO 2020 Year End Comments / EPS Positive Outlook A little over 50 government dispensaries in Qubec at the moment and the target is approximately 70 SQDC outlets by the end of March, so that's a potential 40% increase this fiscal alone (HEXO has a 30%+ market share there). The greater number of private brick and mortar stores in Ontario is growing even faster (HEXO's current 5%+ market share is also increasing from quarter to quarter). Products have also found their way to other provinces and Alberta comes to mind. Then there are the exports to Isral that could be growing as well. Beverages will be fully deployed by the end of Q2 and 2.0 products such as Hash and Vapes are well received too, not to mention the entire Original Stash and just re-launched Up lines. So yeah, looking forward to Q1 earnings, but the growth in revenue will be on-going all year long.
One more thing. The JV with Molson-Coors was a surprise when announced and so was the export deal to Isral. So when we least expect it, SSL may pull another rabbit out of his hat.
Yes, exciting times starting Monday and all 2021 long . . .
quinlash wrote: Am I the only one looking forward to Monday's Earnings call ? :-D
quinlash wrote: HEXO's last QTR report was the 2020 Year End, the upcoming one this monday will be 2021 Q1 Report. The following was taken from the 2020 Year End Call Transcript: At HEXO, we feel we are extremely well-positioned in this regard. With today's PP&E impairments, we believe we are or are near best-in-class in terms of reachable asset base, especially when compared to our potential future EBITDA, which, again, is clearing the path for positive EPS. Unlike many LPs, we wanted to stop piecemealing our inventory writedowns, PP&E impairments and goodwill and intangible impairments. We truly wanted to go into the next fiscal year with a strong balance sheet, putting the path behind us so we can focus on the future.
I believe we've done just that. And so, my top goals are to ensure we optimize the business, not just to get to adjusted EBITDA positive, but to achieve meaningful profitability on a per-share basis, and I see plenty of opportunities to do this. Starting at the top. This was a record quarter and year for sales.
Link to 2020 Year End Call Transcript:
https://www.fool.com/earnings/call-transcripts/2020/10/30/hexo-corp-hexo-q4-2020-earnings-call-transcript/
Assuming the 4:1 Stock Consolidation is approved on Friday and that it takes affect in early 2021 (Feb 1st, being my guess). HEXO will be going from a current outstanding share count of 488 Million down to 122 Million.
If, post-RS they do not issue any more shares OR only issue a limited number of shares for the purpose of either raising capitial or for a M&A deal to the amount LESS THAN 488 Million the company will be setting themselves up to be reporting a positive EPS as their revenue will be higher however their sharecount will be lower.
HEXO reported a cash position of 180 Million on the 2020 Year end with a cash burn rate of 3.8 million. IMHO, unless they are buying someone out, they have no need to raise capitial for the purpose of maintaining the operation. This may leave HEXO with no other option than to proceed with a M&A deal for a smaller company if they wish to increase sharecount while providing value to shareholders.
Link to HEXO 2020 Year End / Q4 Report
https://staticproduction.s3.amazonaws.com/financial-statements/2020/Q4/FY20+ANNUAL+FS+MASTER+FINAL.pdf
Link to HEXO 2020 Year End / Q4 Summary
https://www.newcannabisventures.com/hexo-q4-revenue-increases-22-sequentially-as-company-writes-down-assets-by-87-4-million/
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