Aphria (APHA) Reports Q3 Loss of Cdn$0.15 on Revenues of Cdn$153.64M

April 12, 2021 7:03 AM EDT
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Aphria (NASDAQ: APHA) reported Q3 EPS of (Cdn$0.15), versus (Cdn$0.04) reported last year. Revenue for the quarter came in at Cdn$153.64 million, versus Cdn$144.42 million reported last year.

Key Operating Highlights – Third Quarter Fiscal 2021

  • Reached a definitive agreement to combine with Tilray, Inc. ("Tilray") to create the world's largest global cannabis company based on pro forma revenue1,
  • Closed a USD $120 million financing with BMO, providing a USD $20 million revolving facility and USD $100 million term debt facility;
  • Maintained its #1 licensed producer status in Ontario and Alberta in terms of sales to the provincial boards, based on Headset data for the period December 2020 to February 2021, the same as its prior fiscal quarter;
  • Improved its market share in Quebec, rising to #2 licensed producer in terms of sales to the provincial board, based on internal analyses;
  • Recorded eighth consecutive quarter of positive adjusted EBITDA2 and positive adjusted EBITDA from cannabis business2;
  • Adjusted EBITDA from cannabis business2 of $7.9 million in the third quarter compared to $12.9 million in the prior quarter;
  • Adjusted EBITDA2 increased to $12.7 million in the third quarter compared to $12.6 million in the prior quarter;
  • Free cash flow2 improved $12.4 million during the third quarter predominantly as a result of increased cash provided by operating activities, as the Company better managed its working capital;
  • Third quarter revenues were impacted by lockdowns in the major Canadian provinces, particularly Ontario, which was in a lockdown for nearly the entire quarter, and in Germany;
  • Gross revenue for adult-use cannabis of $59.6 million in the third quarter, an increase of 33.4% from the prior year quarter, and a decrease of 17.3% from the prior quarter;
  • Net cannabis revenue of $51.7 million in the third quarter, a decrease of 7.8% from the prior year quarter, and a decrease 23.8% from the prior quarter;
  • Net revenue of $153.6 million in the third quarter, an increase of 6.4% from the prior year quarter, and a decrease of 4.3% from the prior quarter;
  • Ended the third quarter with a strong balance sheet and liquidity, including $267.1 million of cash and cash equivalents to fund planned Canadian and international growth;
  • Broken Coast expanded its premium cannabis offering with introduction of newly developed strain "Pipe Dream;"
  • Launched SweetWater Brewing Company, LLC ("SweetWater") beverages statewide in Colorado, the first U.S. state to legalize adult-use cannabis; and,
  • Introduced the Solei brand topical, a high potency topical available in the Canadian market.

Irwin D. Simon, Chairman and Chief Executive Officer, commented, "Our global team executed well in the very fluid, ongoing COVID-19 operating environment. We proactively managed our expenses and maintained our positive adjusted EBITDA for the third quarter of fiscal 2021. The duration and impact of lockdowns across many of the regions we operate in, particularly in Canada, were greater than we initially anticipated for the cannabis industry and our business; however, we believe Aphria remains well-positioned with our leading brands and market share to experience a robust increase in our top-line as the market improves. In the U.S., we had a solid first full quarter of contribution from SweetWater even with lower on-premise sales compared to the prior year quarter as many foodservice industry establishments were still operating with limited capacity. Going forward, we are excited about the strategic opportunities for incremental growth as we look to parlay our branded consumer products into additional complementary product offerings in Canada, the U.S. and internationally."

Mr. Simon continued, "We remain excited with the opportunities created for both Aphria shareholders and Tilray stockholders in completing our proposed business combination with Tilray, and believe that together, we will create one of the strongest global cannabis and consumer packaged goods companies in the world. We expect to have a tremendous runway for long-term sustainable growth as we build upon our existing foundation in Canada and internationally by increasing the scale of our global operations. We expect Aphria and Tilray's complementary cultures of innovation, brand development and cultivation to further set us apart from others in the industry along with the strength of our balance sheet and cash availability as we enhance value for all stakeholders."

For earnings history and earnings-related data on Aphria (APHA) click here.



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