Tilray loses $336.01-million (U.S.) in fiscal 2021
2021-07-28 07:16 ET - News Release
Mr. Irwin Simon reports
TILRAY, INC. REPORTS 2021 FISCAL YEAR AND FOURTH QUARTER RESULTS
Tilray Inc. has released financial results for the full fiscal year and fourth quarter ended May 31, 2021. Results for the full year and fourth quarter include legacy-Aphria's fiscal 2021 financial results and four weeks of Tilray. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated, and presented in accordance with accounting principles generally accepted in the U.S. ("GAAP").
Irwin D. Simon, Tilray's Chairman and Chief Executive Officer, stated, "Early results from the new Tilray affirm that, while the global cannabis market remains in its early stages, our vision, scale, access to resources and operational excellence position us optimally to capitalize on the opportunity. In a very short period of time since our business combination was finalized, we transformed and strengthened Tilray, delivered solid results amid continued COVID-19 lockdowns and restrictions and achieved $35 million in synergies to date {঻ –} well on our way to delivering $80 million in cost savings over the next 16 months."
Mr. Simon continued, "These are early achievements but they provide the roadmap for our strategy and priorities moving forward. Tilray is now truly leading the global cannabis industry with low cost of production, leading brands, a well-developed distribution network, and unique partnerships that we believe will drive sustainable shareholder value in the quarters to come. We look forward to accelerating and refining our business-level strategies and roadmaps and to ensuring unmistakable, measurable progress as we build the leading consumer-packaged goods business in the cannabis industry."
Financial Highlights - 2021 Fiscal Fourth Quarter1
- Net revenue increased 25% to $142.2 million during the fourth quarter from $113.5 million in the prior year quarter. The increase was driven by 36% growth in net cannabis revenue to $53.7 million, which included four weeks of contribution from legacy-Tilray, a 10% decline in distribution revenue, net beverage alcohol revenue of $15.9 million following our SweetWater acquisition on November 25, 2020, and wellness revenue of $5.8 million from Manitoba Harvest.
- Net income of $33.6 million during the fourth quarter compared to net loss of $84.3 million in the prior year quarter.
- Adjusted EBITDA increased 285% to $12.3 million during the fourth quarter from $3.2 million in the prior year quarter marking the ninth consecutive quarter of positive Adjusted EBITDA.
- Gross profit decreased 19% to $22.5 million during the fourth quarter from $27.8 million in the prior year quarter. Included in gross profit was a one-time inventory valuation adjustment of $19.9 million resulting from excess inventory quantities upon the business combination with Aphria. Adjusted gross profit, excluding inventory valuation adjustment, increased 53% to $42.4 million during the fourth quarter from $27.8 million in the prior year quarter.
- Free cash flow increased 112% to $3.3 million in the fourth quarter from ($28.3) million in the prior year quarter.
Financial Highlights- 2021 Fiscal Year
- Net revenue increased 27% to $513.1 million during 2021 from $405.3 million in 2020. The increase was driven by 55% growth in net cannabis revenue to $201.4 million, which included four weeks of contribution from legacy-Tilray, 1% growth in distribution revenue to $277.3 million, net beverage alcohol revenue of $28.6 million following our SweetWater acquisition on November 25, 2020, and wellness revenue of $5.8 million from Manitoba Harvest due to our Tilray reverse acquisition on April 30, 2021.
- Net loss of $336.0 million in 2021 compared to net loss of $100.8 million in 2020 was driven by $63.6 million of transaction costs related to out-of-pocket fees to consummate our business combinations, and $170.5 million of non-cash unrealized loss on our convertible debentures.
- Adjusted EBITDA increased 598% to $40.8 million in 2021 from $5.8 million in 2020.
- Gross profit increased 28% to $123.2 million during 2021 from $96.1 million in the prior year. Included in gross profit was a one-time inventory valuation adjustment of $19.9 million in Q4 resulting from excess inventory quantities upon the business combination with Aphria. Adjusted gross profit, excluding inventory valuation adjustment, increased 50% to $143.9 million in 2021 from $96.1 million in 2020.
- Ended the year with a strong balance sheet and liquidity, including cash and cash equivalents of $488.5 million.
Progress on Cost-Saving Synergies and Strengthening Financial Condition
The Company expects to deliver significant cost synergies totaling approximately $80 million within eighteen months of closing the Aphria Tilray business combination and plans to achieve cost synergies in the key areas of cultivation and production, cannabis and product purchasing, sales, and marketing, and corporate expenses. To date, the Company has achieved $35 million in synergies.
Recent Business Developments Reflect Strong, Ongoing Global Growth and Opportunity
Recent Progress on Expanding International Medical Business and Canadian Adult-Use Product Line
- Tilray has been gaining market share nationally in Canada month-over-month since April 2021.
- On July 19, 2021, our wholly-own subsidiary, SweetWater Brewing Company, the 11th largest craft brewer in the U.S.2, announced the launch of 420 Imperial IPA, the first line extension off of its flagship 420 brand.
- On July 12, 2021, SweetWater Brewing Company announced its West Coast expansion including a new Colorado Brewery and the opening of SweetWater Mountain Taphouse at Denver International Airport.
- On July 7, 2021, we announced the completion and shipment of the first successful EU GMP-certified medical cannabis harvest grown in Germany for German distribution.
- On June 30, 2021, we announced the first cross-brand product collaboration between Canadian craft-cannabis brand Broken Coast and SweetWater to launch U.S. distribution of "Broken Coast BC Lager" and introduce the cannabis brand to consumers across the country.
- On June 25, 2021, our leading Canadian cannabis brand, RIFF, launched new multi-pack of cannabis pre-rolls across Canada.
- On June 8, 2021, we launched our new medical cannabis brand, Symbios, across Canada. Symbios is the inaugural brand from the 'new' Tilray developed to offer patients a broader spectrum of medical cannabis formats and cannabinoid ratios at a better price point.
- On April 27, 2021, Tilray was named to TIME's inaugural list of the TIME100 Most Influential Companies in the world.
Conference Call
Tilray will host a conference call to discuss these results today at 8:30 a.m. ET. Investors interested in participating in the live call can dial (877) 407-0792 from Canada and the U.S. or (201) 689-8263 from international locations.
There will also be a simultaneous, live webcast available on the Investors section of the Company's website at www.tilray.com. The webcast will also be archived after the call concludes.
About Tilray
Tilray, Inc. is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better {☨ –} one person at a time {♈ –} by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body, and soul and invoke a sense of wellbeing. Tilray's mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation, and distribution, Tilray's unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages.
Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) (In thousands of United States dollars, except for per share data) Three months ended May 31, Years ended May 31, 2021 2020 2021 2020 Net revenue $142,236 $113,542 $513,085 $405,326 Cost of goods sold 119,738 85,735 389,903 309,273 Gross profit 22,498 27,807 123,182 96,053 Operating expenses: General and administrative 32,847 24,913 111,575 93,789 Selling 8,525 7,320 26,576 18,975 Amortization 16,100 3,645 35,221 15,138 Marketing and promotion 5,103 2,874 17,539 15,266 Research and development 358 430 830 1,916 Impairment - 50,679 - 50,679 Transaction costs 33,260 1,387 63,612 4,299 Total operating expenses 96,193 91,248 255,353 200,062 Operating loss (73,695) (63,441) (132,171) (104,009) Finance income (expense), net (9,466) (6,411) (27,977) (19,371) Non-operating income (expense), net 121,510 (17,351) (184,838) 14,195 Income (loss) before income taxes 38,349 (87,203) (344,986) (109,185) Income taxes (recovery) 4,744 (2,897) (8,972) (8,352) Net income (loss) 33,605 (84,306) (336,014) (100,833) Earnings (Loss) per share - basic and diluted 0.18 (0.39) (1.25) (0.47)
We seek Safe Harbor.
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