Vic Neufeld on Q4 2018 Results - Earnings Call Transcript Operator
Good morning. My name is Jamie and I will be your conference operator today. At this time, I would like to welcome everyone to the Aphria Inc. Q4 Quarterly Investors Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]
Mr. Carl Merton, you may begin your conference.
Carl Merton
Good morning everyone. Thank you for joining us to discuss our Q4 financial results. With me on the call is Vic Neufeld, Chief Executive Officer of Aphria. I trust that you all had the opportunity to read our press release this morning. Today’s call is intended to give you more color about the results and to answer any questions you may have in our allotted 45 minutes.
Before we get started, I am required to read the following cautionary statement. In talking about our financial and operating performance and in responding to your questions, we may make forward-looking statements, including statements concerning Aphria’s objectives, its strategies to achieve those objectives, as well as statements with respect to management’s beliefs, plans, estimates, intentions, and similar statements concerning anticipated future results, circumstances and performances or expectations that are not historical facts.
These statements are based on our current estimates and assumptions and are subject to risk and uncertainties that could cause our actual results to differ materially from the conclusions in these forward-looking statements. The forward-looking statements in this discussion speak only as of today’s date and we undertake no obligation to update or revise any of these statements.
Now, I would like to turn the call over to Vic Neufeld, Chief Executive Officer of Aphria.
Vic Neufeld
Thank you, Carl, and good morning everyone. As you’ve read in today’s press release, Q4 was a healthy quarter. The results of exceptional performance by the Aphria leadership team. Regardless of how one creatively reports various costs of goods sold, the end results, which reflects the total corporate results is EBITDA, and more specifically adjusted EBITDA.
When setting aside these significant investments made in our many international markets, the quarter highlighted our eleventh consecutive quarter of positive EBITDA. An accomplishment we do not believe has ever been achieved by any other licensed producer. And as I often convey, it is important that [indiscernible] begin to focus on their bottom lines.
How many more quarters of unacceptable low gross margins and sky rocketing SG&A cost could be sustained before prudent investment logic will prevail. Aphria has and will continue to be focused on delivering solid revenue growth, while managing the costs necessary to support the Aphria growth story. Responsible stewardship of shareholder investments will win the day.
Carl will shortly talk about the quarter just ended, but I want to address the Aphria story of tomorrow. Starting with capacity. Our Part IV expansion at Aphria One and retrofit at Aphria Diamond is on track and on budget. Both projected to be construction complete by September to mid-October yet known as a time lag for an onsite Health Canada inspection.
It is still our expectations and calibrated in our commitments and planning to all prudential regulators that by the end of January 2019, Aphria will be generating increased harvest to further support the recreational markets. By June of 2019, Aphria will be harvesting in excess of 20,000 kilos per month.
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