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Delta 9 Cannabis Inc DLTNF

Delta 9 Cannabis Inc. is a Canada-based vertically integrated cannabis company. The Company operates through three segments: Wholesale Cannabis, Retail Cannabis and Merchandise and Devices, and Business to Business. The Company sells cannabis products through its wholesale and retail sales channels and sells its cannabis growing pods to other businesses. Its cannabis products include dried cannabis and pre-rolled joints. Its edibles and vapes include vape pens and concentrates, edibles, and drinkables. The Company, through its wholly owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis products and operates a 95,000-square-foot Health Canada licensed production facility in Winnipeg, Manitoba, Canada. It also owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. It is focused on producing and selling cannabis oils, extracts, and derivative products.


GREY:DLTNF - Post by User

Bullboard Posts
Post by MickeyTJon Aug 15, 2020 2:36pm
281 Views
Post# 31413001

Net Income Question

Net Income QuestionAll in all, pretty much as expected. Record overall revenue for the Q, postive EPS, and a postivie net income from operations. 

Slow and steady, and I am staying long.

One tiny blemish. Net income was about $1.4 million from $13 million in Revenue. Last Q they had about $2.9 Net income from $11.7M in revenue. And form my glancing at the statements I couldnt quite tell why the net income was half (!?). They do mention in the management discussion release that as a result of covid they estimate an extra $500k was spent on wage top-ups, PPE, added safety protocols, etc.  But I didn't see a full explanation of the substantial reduction in net income.

Anyone else know?

All that to be said, to show record revenue in a quarter entirely embedded within the pandemic is absolutely stellar. They have now sped past the $50M in annual revenue (which will come this year), and the next milestone will be $100M in annual net revenue. I believe this will come in short order.
Bullboard Posts