VANCOUVER, March 13, 2019 /PRNewswire/ - Village Farms
International, Inc. ("Village Farms" or the "Company") (TSX: VFF) (NASDAQ: VFF) today announced its financial results for the
fourth quarter and year ended December 31, 2018.
Financial and Corporate Highlights for the Fourth Quarter Ended December 31, 2018
(All comparable figures are for the fourth quarter ended December 31, 2017)
- Net income improved to positive US$0.3 million, or US$0.01 per
share, and included the contribution of positive net income from Pure Sunfarms Corp. ("Pure Sunfarms") of US$2.8 million. This compares with a net loss of (US$0.6 million), or
(US$0.02) per share;
- Sales, including the Company's proportionate share of Pure Sunfarms' sales, increased to US$40.6
million compared with US$36.9 million;
- EBITDA, was US$1.5 million compared with US$2.6 million. EBITDA
included $0.9 million from Pure Sunfarms;
- Completed a bought deal offering of 3,097,200 common shares at a price of $7.13 per share
(for aggregate gross proceeds to the Company of $22,083,036; and,
- The Company's common shares commenced trading on the Nasdaq Capital Market under the symbol "VFF".
Financial Highlights for the Year Ended December 31, 2018
(All comparable figures are for the year ended December 31, 2017)
- Net loss was (US$5.1 million), or (US$0.11) per share, and
included the contribution of positive net income from Pure Sunfarms of US$2.4 million. This
compares with prior year net income of US$3.8 million, or US$0.10
per share;
- Sales, including the Company's proportionate share of Pure Sunfarms' sales, were US$151.9
million compared with US$158.4 million; and,
- EBITDA, was US$2.9 million compared with US$7.4 million. EBITDA
included US$0.1 million from Pure Sunfarms.
Summary of Recent Highlights for Village Farms' Canadian Cannabis Joint Venture, Pure Sunfarms
- Generated positive net income of US$5.5 million for the fourth quarter 2018, the first full
quarter of sales (Village Farms' proportional share is US$2.8 million);
- Received multiple amendments to its cultivation license from Health Canada, resulting in the successive expansion of its
licensed production area to the entire growing area of 1.03 million square feet in March
2019;
- Selected by, and has entered into a supply agreement with, the Ontario Cannabis Retail Corporation ("OCRC"), operating as
the Ontario Cannabis Store ("OCS"), to supply the OCS with Pure Sunfarms branded cannabis products for the non-medical market
in the Province of Ontario;
- Entered into a wholesale supply arrangement with one of the largest online platforms for medical cannabis users in
Canada, through which a selected variety of Pure Sunfarms high-quality dried flower products
will be available for purchase;
- Entered into a credit agreement with Bank of Montreal and Farm Credit Canada ("FCC") in
respect of a CAD$20 million secured non-revolving term loan, with the available funds to be used
to finance the final costs of converting its 1.1 million square foot greenhouse for cannabis production, as well as general
corporate purposes.
Highlights for Village Farms' U.S. Hemp/CBD Initiative
- Upon passage by U.S. Congress of the 2018 Farm Bill, which legalized hemp cultivation and hemp-derived products, the
Company announced its intention to aggressively pursue opportunities to become a vertically integrated leader in the
hemp-derived cannabidiol (CBD) market;
- Formed a joint venture (65%-owned by Village Farms) with a Jennings Group company, Nature Crisp, LLC, for the outdoor
cultivation of high-cannabidiol (CBD) hemp and CBD extraction in multiple states throughout the
United States. Jennings Group has extensive experience in field agriculture across a diverse range of food and other
crops, including hemp.
"It is a remarkable achievement for Pure Sunfarms' to not only generate positive net income in just its first full quarter of
sales but for Pure Sunfarms to be profitable for the entire year, during most of which the Pure Sunfarms greenhouse was in the
process of being converted for cannabis production," said Michael DeGiglio, Chief Executive
Officer, Village Farms. "It is demonstrative of the value that Village Farms, with its 30-years of experience as a
large-scale, low-cost developer and grower, brings to the Pure Sunfarms joint venture, as well as the advantage of pursuing the
Canadian cannabis opportunity via an established, high-performance greenhouse operation with more than 750 years of combined
grower experience, an experienced skilled labour force already in place, and the benefit of years of operating history across
multiple crops in multiple regions around the world."
"Pure Sunfarms is positioned for earnings growth throughout 2019 and beyond as it ramps to full run rate annual production of
75,000 kilograms by mid-year, commences sales to the Ontario Cannabis Store upon receipt of its processing and packaging
licenses, and redirects sales to the retail market following conclusion of its supply agreement with Emerald Health Therapeutics
at the end of this year. To this end, Pure Sunfarms is steadily advancing its product and brand strategies to realize its
vision to be a premier vertically integrated supplier to the Canadian cannabis market, with a reputation for quality,
consistency, safety and reliability."
"In the United States, with hemp cultivation and hemp products now federally legal, we are
aggressively pursuing a vertically integrated hemp-derived CBD strategy to capitalize on this significant opportunity. We
have already taken a major step in this regard with the formation of a joint venture for outdoor hemp cultivation and CBD
extraction, Village Fields Hemp, with an experienced partner, and expect to begin generating revenue later this year. With
5.7 million square feet of existing technologically advanced greenhouse operations in Texas, we
stand ready, subject to legalization in Texas, to address what we believe will be significant
demand for controlled environment-grown hemp to meet the needs of specific customers. As a vertically integrated produce
supplier to North America's top grocery and "big box" retailers for decades, and with in-house
expertise to navigate the evolving regulatory environment, Village Farms is very well positioned to become a leading supplier of
branded and private label CBD products to these retailers."
Summary Statuary Results
(in thousands of U.S. Dollars unless otherwise indicated)
|
For the three months
ended December 31,
|
|
For the year ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Sales
|
$38,787
|
|
$36,864
|
|
$150,000
|
|
$158,406
|
Cost of sales
|
(36,367)
|
|
(31,908)
|
|
(140,282)
|
|
(144,433)
|
Selling, general and administrative expenses
|
(3,622)
|
|
(4,019)
|
|
(14,108)
|
|
(13,894)
|
Stock compensation expense
|
(1,007)
|
|
(959)
|
|
(1,454)
|
|
(1,519)
|
Change in biological asset(1)
|
158
|
|
1,082
|
|
(843)
|
|
265
|
Interest expense, net
|
(501)
|
|
(679)
|
|
2,407
|
|
2,695
|
Other income
|
(70)
|
|
(50)
|
|
(131)
|
|
46
|
Foreign exchange (loss) gain
|
(960)
|
|
(31)
|
|
(1,047)
|
|
26
|
Share of income (loss) from joint venture
|
2,750
|
|
(35)
|
|
2,381
|
|
(255)
|
Income (loss) on disposal of assets
|
-
|
|
(551)
|
|
-
|
|
8,013
|
(Recovery of) provision for income taxes
|
(962)
|
|
(321)
|
|
(2,475)
|
|
138
|
Net income (loss)
|
270
|
|
(607)
|
|
(5,145)
|
|
3,822
|
EBITDA(2)
|
1,484
|
|
2,591
|
|
$2,878
|
|
$7,363
|
Earnings (loss) per share – basic and diluted
|
$0.01
|
|
($0.02)
|
|
($0.11)
|
|
$0.10
|
Summary Results Including Pure Sunfarms on a Proportionate Basis
The following results reflect the Company's proportionate share of the Pure Sunfarms joint venture operations, as this is the
basis on which management bases its operating decisions and performance. For a reconciliation to the results in accordance
with International Financial Reporting Standards ("IFRS") refer to the "Reconciliation of IFRS to Proportionate Results" as
presented below and in Management's Discussion & Analysis ("MD&A").
(in thousands of U.S. Dollars unless otherwise indicated)
|
For the three months ended
December 31,
|
|
For the year ended
December 31,
|
|
20181
|
|
20171
|
|
20181
|
|
20171
|
Sales
|
$40,590
|
|
$36,864
|
|
$151,913
|
|
$158,406
|
Cost of sales
|
(36,896)
|
|
(31,908)
|
|
(140,882)
|
|
(144,433)
|
Selling, general and administrative expenses
|
(4,113)
|
|
(4,147)
|
|
(15,414)
|
|
(14,242)
|
Change in biological asset (2)
|
3,120
|
|
1,082
|
|
2,552
|
|
265
|
Net income (loss)
|
270
|
|
(607)
|
|
(5,145)
|
|
3,822
|
EBITDA(3)
|
$1,484
|
|
$2,591
|
|
$2,878
|
|
$7,363
|
Earning (loss) per share – basic and diluted
|
$0.01
|
|
($0.02)
|
|
($0.11)
|
|
$0.10
|
Notes:
|
|
(1)
|
The consolidated financial results above reflect the proportionate share of
the Company's share of revenues and expenses from its joint venture operations, as this is the basis which management
bases its operating decisions and performance evaluation. IFRS does not allow for the inclusion of the joint
venture on a proportionate basis. These results include additional non-IFRS measures such as EBITDA.
|
|
|
|
The results are not generally accepted measures of financial performance
under IFRS. The Company's method of calculating these financial performance measures may differ from other
companies and accordingly, they may not be comparable to measures used by other companies. Refer to the MD&A
for a reconciliation of these non-IFRS measures and proportionate results.
|
|
|
(2)
|
Biological assets consist of the Company's produce on the vines and Pure
Sunfarms' bud and trim on the plant at the period end. Details of the changes are described in note 6 of the
Company's annual consolidated financial statements year ended December 31, 2018.
|
|
|
(3)
|
EBITDA is not a recognized earnings measure and does not have a
standardized meaning prescribed by IFRS. Therefore, EBITDA may not be comparable to similar measures presented by
other issuers. See "Non-IFRS Measures". Management believes that EBITDA is a useful supplemental measure in
evaluating the performance of the Company. Consolidated EBITDA includes the Company's 50% share of its joint venture Pure
Sunfarms.
|
Financial Highlights
(All amounts in U.S. Dollars unless otherwise indicated.)
Cannabis
Pure Sunfarms commenced sales in late September 2018; for the year ended December 31, 2018 the Company's 50% share of sales is $1,897.
The Company's share of net income for the three months and year ended December 31, 2018 was
$2,750 and $2,381, respectively, Pure Sunfarms was able to achieve
net income in its first full quarter of sales.
The Company's share of EBITDA for the three months and year ended December 31, 2018 was
$861 and $111, respectively, Pure Sunfarms was able to achieve a
positive EBITDA in its first full quarter of sales.
Vegetable
Sales for the year ended December 31, 2018 decreased (5%) from the year ended December 31, 2017, the decrease is due to the loss of tomato production from the Delta 3 facility, which was
contributed to Pure Sunfarms in 2017 and the Company's lower production at its Texas
facilities. Net price for tomato pounds increased 4% for the year ended December 31, 2018
versus the year ended December 31, 2017 due to a higher percent of higher priced tomato production
in 2018 as compared to 2017. Pepper prices decreased (2%) over the comparable period in 2017, and cucumber prices decreased
(1%) for the years ended December 31, 2018 over the comparable period in 2017.
Cost of sales for the year ended December 31, 2018 decreased (3%) from the year ended
December 31, 2017, primarily due to the loss of the Delta 3 facility and a decrease in costs at the
Texas facilities due to a decrease in pounds produced partially offset by an increase of 6% in
contract sales cost.
EBITDA for the year period ended December 31, 2018 decreased (62%) from the year period ended
December 31, 2017, primarily as a result of a decrease in income from operations that was caused by
the removal of the Delta 3 facility as well as a decrease in production for the Texas
facilities. The production shortfall at the Texas facilities resulted in decreased sales
and an increase in cost per pound for product produced as the fixed costs were spread over less pounds.
Reconciliation of IFRS to Proportionate Results
The following tables are a reconciliation of the IFRS results to the proportionate results (which include the Company's
proportionate share of the Pure Sunfarms operations). Refer to the MD&A for further discussion and analysis of these
results:
|
For the three months ended December 31, 2018
|
|
For the three months ended December 31, 2017
|
|
Produce
|
|
Cannabis4
|
|
Total
|
|
Produce
|
|
Cannabis4
|
|
Total
|
Sales
|
$38,787
|
|
$1,803
|
|
$40,590
|
|
$36,864
|
|
$-
|
|
$36,864
|
Cost of sales
|
(36,367)
|
|
(529)
|
|
(36,896)
|
|
(31,908)
|
|
-
|
|
(31,908)
|
Selling, general and administrative expenses
|
(3,622)
|
|
(491)
|
|
(4,113)
|
|
(4,019)
|
|
(128)
|
|
(4,147)
|
Change in biological asset(5)
|
158
|
|
2,962
|
|
3,120
|
|
1,082
|
|
-
|
|
1,082
|
(Gain) loss on sale of assets
|
-
|
|
-
|
|
-
|
|
(511)
|
|
-
|
|
(511)
|
(Recovery of) provision for income taxes
|
(962)
|
|
887
|
|
(75)
|
|
321
|
|
(93)
|
|
228
|
Net (loss) income
|
(2,480)
|
|
2,750
|
|
270
|
|
(572)
|
|
(35)
|
|
(607)
|
EBITDA(6)
|
$623
|
|
$861
|
|
$1,484
|
|
2,720
|
|
(129)
|
|
2,591
|
(Loss) earnings per share – basic and diluted
|
($0.05)
|
|
$0.06
|
|
$0.01
|
|
($0.02)
|
|
$0.00
|
|
($0.02)
|
|
For the year ended December 31 , 2018
|
|
For the year ended December 31, 2017
|
|
|
Produce
|
|
Cannabis4
|
|
Total
|
|
Produce
|
|
Cannabis4
|
|
Total
|
Sales
|
$150,000
|
|
$1,897
|
|
$151,913
|
|
$158,406
|
|
$-
|
|
$158,406
|
Cost of sales
|
(140,282)
|
|
(595)
|
|
(140,882)
|
|
(144,433)
|
|
-
|
|
(144,433)
|
Selling, general and administrative expenses
|
(14,108)
|
|
(1,306)
|
|
(15,414)
|
|
(13,894)
|
|
(348)
|
|
(14,242)
|
Change in biological asset(5)
|
(834)
|
|
3,386
|
|
2,552
|
|
265
|
|
-
|
|
265
|
(Gain) loss on sale of assets
|
-
|
|
-
|
|
-
|
|
(8,013)
|
|
-
|
|
(8,013)
|
(Recovery of) provision for income taxes
|
(2,475)
|
|
887
|
|
(1,588)
|
|
138
|
|
94
|
|
232
|
Net (loss) income
|
(7,526)
|
|
2,381
|
|
(5,145)
|
|
4,077
|
|
(255)
|
|
3,822
|
EBITDA(6)
|
$2,767
|
|
$111
|
|
2,878
|
|
$7,456
|
|
($93)
|
|
$7,363
|
(Loss) earnings per share – basic and diluted
|
($0.16)
|
|
$0.05
|
|
($0.11)
|
|
$0.10
|
|
$0.00
|
|
$0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
(4)
|
The consolidated financial results above reflect the proportionate share of
the Company's share of revenues and expenses from its joint venture operations, as this is the basis which management
bases its operating decisions and performance evaluation. IFRS does not allow for the inclusion of the joint
venture on a proportionate basis. These results include additional non-IFRS measures such as EBITDA.
|
|
|
|
The results are not generally accepted measures of financial performance
under IFRS. The Company's method of calculating these financial performance measures may differ from other
companies and accordingly, they may not be comparable to measures used by other companies. Refer to the MD&A
for a reconciliation of these non-IFRS measures and proportionate results.
|
|
|
(5)
|
Biological assets consist of the Company's produce on the vines and Pure
Sunfarms' crop at the period end. Details of the changes are described in note 6 of the Company's annual
consolidated financial statements year ended December 31, 2018.
|
|
|
(6)
|
EBITDA is not a recognized earnings measure and does not have a
standardized meaning prescribed by IFRS. Therefore, EBITDA may not be comparable to similar measures presented by
other issuers. See "Non-IFRS Measures". Management believes that EBITDA is a useful supplemental measure in
evaluating the performance of the Company. Consolidated EBITDA includes the Company's 50% share of its joint venture Pure
Sunfarms.
|
Conference Call
Village Farms' management team will host a conference call tomorrow, Thursday, March 14, 2019 at
11:00 a.m. ET (8:00 a.m. PT) to discuss its year end 2018 financial
results and provide an update on Pure Sunfarms. Participants can access the conference call by telephone by dialing (647)
427-7450 or (888) 231-8191, or via the Internet at https://bit.ly/2GRVAcz.
For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone
and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by
telephone, dial (416) 849-0833 or (855) 859-2056 and enter the passcode 8558907 followed by the pound key. The telephone replay
will be available until, March 21, 2019 at midnight (ET). The conference call will also be
archived on Village Farms' website at http://villagefarms.com/investor-relations/investor-calls.
About Village Farms International, Inc.
Village Farms is one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada. Village Farms produces and distributes fresh, premium-quality produce with consistency 365 days a
year to national grocers in the U.S. and Canada from more than nine million square feet of
Controlled Environment Agriculture (CEA) greenhouses in British Columbia and Texas, as well as from its partner greenhouses in British Columbia,
Ontario and Mexico. The Company is now leveraging its 30 years of experience as a
vertically integrated grower for the rapidly emerging global cannabis opportunity through its 50% ownership of British Columbia-based Pure Sunfarms Corp., one of the single largest cannabis growing operations in the
world. The Company also intends to pursue opportunities to become a vertically integrated leader in the U.S. hemp-derived
CBD market, subject to compliance with all applicable U.S. federal and state laws, and has established a joint venture, Village
Fields Hemp, for multi-state outdoor hemp cultivation and CBD extraction.
Cautionary Language
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). Forward-looking statements may relate to the Company's future outlook or
financial position and anticipated events or results and may include statements regarding the financial position, business
strategy, budgets, litigation, projected production, projected costs, capital expenditures, financial results, taxes, plans and
objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects
or opportunities for the Company, Pure Sunfarms, the greenhouse vegetable industry or the cannabis and hemp industries are
forward-looking statements. In some cases, forward-looking information can be identified by such terms as "outlook", "may",
"might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict",
"potential", "continue", "likely", "schedule", "objectives", or the negative or grammatical variation thereof or other similar
expressions concerning matters that are not historical facts.
Although the forward-looking statements contained in this press release are based upon assumptions that management believes
are reasonable based on information currently available to management, there can be no assurance that actual results will be
consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and
uncertainties, many of which are beyond the Company's control, that may cause the Company's or the industry's actual results,
performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by
such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the
Company's filings with U.S. and Canadian securities regulators, including as detailed in the Company's annual information form
and management's discussion and analysis for the year-ended December 31, 2018.
When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on
these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees
of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this press
release only relate to events or information as of the date on which the statements are made in this press release. Except as
required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
|
|
|
|
|
|
|
Village Farms International, Inc.
|
Condensed Consolidated Interim Statements of Financial
Position
|
(In thousands of United States dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
ASSETS
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
11,920
|
|
$
7,091
|
|
|
Trade receivables
|
|
11,292
|
|
11,259
|
|
|
Amounts due from joint venture
|
|
10,873
|
|
411
|
|
|
Other receivables
|
|
332
|
|
1,571
|
|
|
Inventories
|
|
22,485
|
|
17,309
|
|
|
Prepaid expenses and deposits
|
|
889
|
|
810
|
|
|
Biological asset
|
|
4,230
|
|
4,405
|
|
Total current assets
|
|
62,021
|
|
42,856
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property, plant and equipment
|
|
77,479
|
|
81,754
|
|
|
Investment in joint venture
|
|
18,108
|
|
15,727
|
|
|
Other assets
|
|
2,207
|
|
2,004
|
|
Total assets
|
|
$
159,815
|
|
$
142,341
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Line of credit
|
|
2,000
|
|
-
|
|
|
Trade payables
|
|
$
14,601
|
|
$
12,952
|
|
|
Accrued liabilities
|
|
3,414
|
|
3,793
|
|
|
Current maturities of long-term debt
|
|
3,509
|
|
2,620
|
|
|
Current maturities of capital lease obligations
|
|
78
|
|
72
|
|
Total current liabilities
|
|
23,602
|
|
19,437
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Long-term debt
|
|
32,445
|
|
35,760
|
|
|
Long-term maturities of capital lease obligations
|
|
1,920
|
|
179
|
|
|
Deferred tax liability
|
|
1,050
|
|
4,825
|
|
|
Other liabilities
|
|
102
|
|
1,097
|
|
Total liabilities
|
|
59,119
|
|
61,298
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Share capital
|
|
60,872
|
|
36,115
|
|
|
Contributed surplus
|
|
2,198
|
|
1,726
|
|
|
Revaluation surplus
|
|
4,321
|
|
4,321
|
|
|
Accumulated other comprehensive loss
|
|
(562)
|
|
(391)
|
|
|
Retained earnings
|
|
33,867
|
|
39,272
|
|
Total shareholders' equity
|
|
100,696
|
|
81,043
|
|
Total liabilities and shareholders' equity
|
|
$
159,815
|
|
$
142,341
|
Village Farms International, Inc.
|
Condensed Consolidated Interim Statements of (Loss) Income and
Comprehensive Income
|
(In thousands of United States dollars, except per share
data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Sales
|
$
38,787
|
|
$
36,864
|
|
$
150,000
|
|
$
158,406
|
Cost of sales
|
(36,367)
|
|
(31,908)
|
|
(140,282)
|
|
(144,433)
|
Change in biological asset
|
158
|
|
1,082
|
|
(834)
|
|
265
|
Selling, general and administrative expenses
|
(3,622)
|
|
(4,019)
|
|
(14,108)
|
|
(13,894)
|
Stock compensation expense
|
(1,007)
|
|
(959)
|
|
(1,454)
|
|
(1,519)
|
Loss from operations
|
(2,051)
|
|
1,060
|
|
(6,678)
|
|
(1,175)
|
|
|
|
|
|
|
|
|
Interest expense, net
|
501
|
|
679
|
|
2,407
|
|
2,695
|
Foreign exchange loss (gain)
|
960
|
|
31
|
|
1,047
|
|
(26)
|
Other income
|
(70)
|
|
50
|
|
(131)
|
|
(46)
|
Share of loss from joint venture
|
(2,750)
|
|
35
|
|
(2,381)
|
|
255
|
Gain on sale of assets
|
-
|
|
551
|
|
-
|
|
(8,013)
|
(Loss) income before income taxes
|
(692)
|
|
(286)
|
|
(7,620)
|
|
3,960
|
|
|
|
|
|
|
|
|
(Recovery of) provision for income taxes
|
(962)
|
|
321
|
|
(2,475)
|
|
138
|
Net income (loss)
|
$
270
|
|
$
(607)
|
|
$
(5,145)
|
|
$
3,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
$
0.01
|
|
$
(0.02)
|
|
$
(0.11)
|
|
$
0.10
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per share
|
$
0.01
|
|
$
(0.02)
|
|
$
(0.11)
|
|
$
0.10
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
$
(123)
|
|
$
12
|
|
$
(171)
|
|
$
150
|
Gain on revaluation of land, net of tax
|
-
|
|
-
|
|
-
|
|
(1,811)
|
Comprehensive income (loss)
|
$
147
|
|
$
(595)
|
|
$
(5,316)
|
|
$
3,972
|
Village Farms International, Inc.
|
Condensed Consolidated Interim Statements of Cash Flows
|
(In thousands of United States dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cash flows used in operating activities:
|
|
|
|
|
|
|
|
Net (loss) income
|
270
|
|
$
(607)
|
|
$
(5,145)
|
|
$
3,822
|
Adjustments to reconcile net (loss) income to net cash provided
by
|
|
|
|
|
|
|
|
(used in) operating activities:
|
-
|
|
|
|
|
|
|
Depreciation and amortization
|
1,756
|
|
1,833
|
|
7,027
|
|
7,586
|
Amortization of deferred charges
|
-
|
|
19
|
|
-
|
|
73
|
Gain on sale of assets
|
-
|
|
551
|
|
-
|
|
(8,013)
|
Share of loss from joint venture
|
(2,750)
|
|
35
|
|
(2,381)
|
|
255
|
Interest paid
|
534
|
|
658
|
|
2,407
|
|
2,614
|
Share-based compensation
|
1,007
|
|
959
|
|
1,454
|
|
1,519
|
Deferred income taxes
|
(605)
|
|
694
|
|
(2,906)
|
|
109
|
Change in biological asset
|
(158)
|
|
(1,082)
|
|
834
|
|
(265)
|
Changes in non-cash working capital items
|
943
|
|
(1,192)
|
|
(3,550)
|
|
(4,417)
|
Net cash provided by (used in) operating activities
|
997
|
|
1,868
|
|
(2,260)
|
|
3,283
|
|
|
|
|
|
|
|
|
Cash flows used in investing activities:
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
(547)
|
|
(525)
|
|
(3,093)
|
|
(1,696)
|
Amounts due from joint venture
|
(3,681)
|
|
-
|
|
(10,462)
|
|
-
|
Proceeds from sale of land
|
65
|
|
-
|
|
65
|
|
-
|
Net cash used in investing activities
|
(4,163)
|
|
(525)
|
|
(13,490)
|
|
(1,696)
|
|
|
|
|
|
|
|
|
Cash flows (used in) provided by financing activities:
|
|
|
|
|
|
|
|
Proceeds from borrowings
|
-
|
|
193
|
|
7,000
|
|
7,306
|
Repayments on borrowings
|
(5,940)
|
|
(7,832)
|
|
(7,706)
|
|
(14,320)
|
Interest paid on long-term debt
|
(544)
|
|
(658)
|
|
(2,417)
|
|
(2,614)
|
Proceeds from issuance of common stock
|
15,737
|
|
9,769
|
|
23,492
|
|
9,769
|
Proceeds from exercise of stock options
|
8
|
|
33
|
|
283
|
|
59
|
Payments on capital lease obligations
|
(26)
|
|
(19)
|
|
(71)
|
|
(59)
|
Net cash (used in) provided by financing activities
|
9,235
|
|
1,486
|
|
20,581
|
|
141
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
-
|
|
(23)
|
|
(2)
|
|
(10)
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents
|
6,069
|
|
2,806
|
|
4,829
|
|
1,718
|
Cash and cash equivalents, beginning of year
|
5,851
|
|
4,285
|
|
7,091
|
|
5,373
|
Cash and cash equivalents, end of year
|
$
|
11,920
|
|
$
|
7,091
|
|
$
|
11,920
|
|
$
|
7,091
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
|
Income taxes paid
|
$
|
-
|
|
$
|
(61)
|
|
$
|
290
|
|
$
|
(25)
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash information:
|
|
|
|
|
|
|
|
Purchases of capital expenditures by financing capital
lease
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
190
|
Issuance of warrants
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
148
|
View original content:http://www.prnewswire.com/news-releases/village-farms-international-reports-fourth-quarter-and-year-end-2018-financial-results--cannabis-joint-venture-pure-sunfarms-generates-positive-net-income-in-first-full-quarter-of-sales-and-for-the-full-year-300812006.html
SOURCE Village Farms International, Inc.