GREY:ALEAF - Post by User
Comment by
rad10on Nov 11, 2021 8:13am
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Post# 34113906
RE:AH EARNINGS RELEASE NET REVENUE INCREASE OF 123%
RE:AH EARNINGS RELEASE NET REVENUE INCREASE OF 123%Humanist wrote: Aleafia Health Reports Q3 2021 NET INCOME & ADJUSTED EBITDA | | Three months ended | Nine months ended |
| ($,000s) | Sep 30, 2021 | | Sep 30, 2020 | | Sep 30, 2021 | | Sep 30, 2020 | |
| Net loss | (82,922 | ) | (19,761 | ) | (94,206 | ) | (29,937 | ) |
| Add back: | | | | |
| Depreciation and amortization1 | 2,388 | | 3,273 | | 7,338 | | 7,515 | |
| Interest expense, net | 1,982 | | 3,062 | | 5,975 | | 8,538 | |
| Income tax expense (recovery) | (2,854 | ) | (4,394 | ) | (2,854 | ) | (5,394 | ) |
| EBITDA | (81,406 | ) | (17,820 | ) | (83,747 | ) | (19,278 | ) |
| Write-down to net realizable value included in cost of sales(2) | 2,382 | | - | | - | | - | |
| FV changes in biological assets and changes in inventory sold | (3,435 | ) | 10,708 | | (6,086 | ) | 18,027 | |
| Share-based payments | 1,050 | | 648 | | 2,168 | | 2,108 | |
| Bad debt expense | 2,225 | | 500 | | 9,944 | | 904 | |
| Business transaction costs | 865 | | 816 | | 3,379 | | 3,322 | |
| Unrealized (gain) loss on marketable securities | 6,300 | | (61 | ) | 5,600 | | (66 | ) |
| Gain in sale of assets | - | | - | | (12,092 | ) | - | |
| Impairment of goodwill | 11,314 | | - | | 11,314 | | - | |
| Impairment of intangible assets | 53,093 | | - | | 53,093 | | - | |
| Non-operating expense (income) | 8 | | (4 | ) | (351 | ) | (407 | ) |
| Adjusted EBITDA(3) | (7,604 | ) | (5,213 | ) | (16,778 | ) | 4,610 | |
| 1. Includes non-cash depreciation expensed to cost of sales. |
| 2. See "Note 9" of accompanying financial statements for further discussion. |
| 3. See "Cautionary Statements Regarding Certain non-IFRS Measures" section for term definition. |
- Net loss for the three months ended September 30, 2021 was $82.9 million compared to a net loss of $19.8 million over the prior year’s quarter. The increase in net loss over the prior year’s quarter is primarily due non-cash items including a $53.1 million impairment of intangible assets and a $11.3 million impairment of goodwill.
- During Q3 2021, wages & benefits, and selling & administrative expenses were $7.0 million, a decline of 24% over the previous quarter. This follows cost review initiatives undertaken during the reporting period which remain ongoing.
- Adjusted EBITDA for the three months ended September 30, 2021 was a loss of $7.6 million, compared to a loss of $5.2 million in the prior year’s quarter. The decline over the prior year’s quarter was primarily due to an increase in cost of sales, which relates to the one-time sale of aged inventory in the bulk wholesale channel.
SELECTED BALANCE SHEET INFORMATION | ($,000s) | Sep 30, 2021 | Dec 31, 2020 |
| Cash, cash equivalents, marketable securities | 11,338 | 30,529 |
| Current assets | 69,894 | 82,923 |
| Current liabilities | 65,750 | 45,041 |
| Working capital | 4,144 | 37,882 |
| Total assets | 152,708 | 237,283 |
| Total liabilities | 67,768 | 83,062 |
| | | |
| Capitalization | | |
| Lease liability | 2,533 | 3,167 |
| Credit Facility | 9,942 | - |
| Convertible debt | 34,741 | 56,802 |
| Total debt | 47,216 | 59,969 |
| Total equity | 84,940 | 154,221 |
| Total capitalization | 132,156 | 214,190 |