Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

Tilray, Inc. Reports Fourth Quarter and Full Fiscal Year 2019 Financial Results


Tilray, Inc. ("Tilray" or the "Company") (Nasdaq: TLRY), a global pioneer in cannabis production, research, cultivation and distribution, reports financial results for the fourth quarter and full fiscal year ended December 31, 2019. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

"Our full year results demonstrate strong sales growth momentum, which we expect to continue in 2020," said Brendan Kennedy, Tilray's Chief Executive Officer. "Like our peers, we have faced industry challenges, but we remain committed to driving long-term value for our shareholders. Tilray has a diversified business model comprised of global medical, Canada adult-use and hemp products which positions us well in the current volatile market environment. We are still in the early days of this emerging growth industry and will continue being good stewards of shareholder capital as we aim to build the world's most trusted and valued cannabis and hemp company."

2019 Financial Highlights

For the three months ended December 31,

 

For the year ended December 31,

2019

 

2018

 

$ Change

 

% Change

 

2019

 

2018

 

$ Change

 

% Change

Cannabis
Adult-use

$

17,007

$

4,660

$

12,347

 

265%

$

55,763

$

3,521

$

52,242

 

N/A

Canada - medical

 

3,332

 

2,845

 

487

 

17%

 

12,556

 

18,052

 

(5,496

)

(30)%

International - medical

 

4,008

 

1,056

 

2,952

 

280%

 

13,378

 

2,912

 

10,466

 

359%

Bulk

 

3,924

 

6,970

 

(3,046

)

(44)%

 

25,450

 

18,645

 

6,805

 

36%

Total cannabis revenue

 

28,271

 

15,531

 

12,740

 

82%

 

107,147

 

43,130

 

64,017

 

148%

Hemp

 

18,665

?

 

18,665

 

N/A

 

59,832

?

 

59,832

 

N/A

Total revenue

$

46,936

$

15,531

$

31,405

 

202%

$

166,979

$

43,130

$

123,849

 

287%

Excise tax included in revenue

$

4,429

$

1,203

$

3,226

 

268%

$

13,136

$

1,200

$

11,936

 

N/A

N/A: Not a meaningful percentage.

Fourth Quarter 2019 Financial Highlights

Three months ended
March 31, June 30, September 30, December 31,
Cannabis
Adult-use

$

7,881

$

15,041

$

15,834

$

17,007

Canada - medical

 

2,997

 

2,328

 

3,899

 

3,332

International - medical

 

1,812

 

1,850

 

5,708

 

4,008

Bulk

 

4,766

 

6,750

 

10,010

 

3,924

Total cannabis revenue

 

17,456

 

25,969

 

35,451

 

28,271

Hemp

 

5,582

 

19,935

 

15,650

 

18,665

Total revenue

$

23,038

$

45,904

$

51,101

$

46,936

Excise tax included in revenue

$

1,914

$

3,862

$

2,931

$

4,429

Senior Credit Facility

The Company closed a $60 million senior credit facility on February 28, 2020 that bears interest at prime plus 8% and has a two year term. The Company ended 2019 with $97 million in cash.

2019 Business Highlights

__________
1
Announced January 14, 2020

Conference Call

The Company will host a conference call to discuss these results today at 5:00 p.m. ET. Investors interested in participating in the live call can dial 877-489-6528 from the U.S. and 629-228-0736 internationally. A telephone replay will be available approximately two hours after the call concludes through Monday, March 16, 2020, by dialing 855-859-2056 from the U.S., or 404-537-3406 from international locations, and entering confirmation code 8197352.

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 be archived for 30 days.

About Tilray®

Tilray (Nasdaq: TLRY) is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients and consumers in 15 countries spanning five continents.

Forward-Looking Statements

This press release contains "forward-looking statements", which may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions, including statements regarding our growth potential, the sustainability of growth, demand for our products and the medical and adult-use cannabis markets, anticipated plans for strategic partnerships and acquisitions, and future sales of our common stock. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including assumptions in respect of current and future market conditions. Actual results, performance or achievement could differ materially from that expressed in, or implied by, any forward-looking statements in this press release, and, accordingly, you should not place undue reliance on any such forward-looking statements and they are not guarantees of future results. Forward-looking statements involve significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements. Please see the heading "Risk Factors" in Tilray's Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 2, 2020, for a discussion of the material risk factors that could cause actual results to differ materially from the forward-looking information. Tilray does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

Use of Non-U.S. GAAP Financial Measures

To supplement its financial statements, the Company provides investors with information related to Adjusted EBITDA, which is not a financial measure calculated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). Adjusted EBITDA is calculated as net income (loss) before inventory valuation adjustments; interest expenses, net; other income, net; deferred income tax (recoveries) expenses, current income tax expenses; foreign exchange gain (loss), net; depreciation and amortization expenses; stock-based compensation expenses; other stock-based compensation related expenses; loss from equity method investments; finance income from ABG; loss on disposal of property and equipment; acquisition-related (income) expense; and amortization of inventory step-up. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. The Company believes Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. Management uses Adjusted EBITDA to compare the Company's performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also presented to the Company's Board of Directors.

Non-U.S. GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. Non-U.S. GAAP measures exclude significant expenses that are required by U.S. GAAP to be recorded in the Company's financial statements and are subject to inherent limitations.

TILRAY, INC.

Consolidated Statements of Net Loss and Comprehensive Loss

(in thousands of U.S. dollars, except for share and per share data)

 

Three months ended December 31,

 

Twelve months ended December 31,

2019

 

2018

 

2019

 

2018

Revenue (inclusive of excise duties of $4,429, $1,203, $13,136, and $1,200, respectively)

$

46,936

 

$

15,531

 

$

166,979

 

$

43,130

 

Cost of sales
Product costs

 

35,870

 

 

8,117

 

 

121,892

 

 

24,294

 

Inventory valuation adjustments

 

68,073

 

 

4,280

 

 

68,583

 

 

4,561

 

Gross (loss) profit

 

(57,007

)

 

3,134

 

 

(23,496

)

 

14,275

 

General and administrative expenses

 

32,462

 

 

12,973

 

 

81,968

 

 

29,461

 

Sales and marketing expenses

 

21,923

 

 

6,305

 

 

61,084

 

 

15,366

 

Research and development expenses

 

1,667

 

 

1,848

 

 

6,558

 

 

4,264

 

Stock-based compensation

 

9,539

 

 

4,111

 

 

31,842

 

 

20,988

 

Depreciation and amortization expenses

 

4,150

 

 

566

 

 

11,607

 

 

1,598

 

Impairment of assets

 

112,070

 

?

 

112,070

 

?
Acquisition-related (income) expenses, net

 

(24,861

)

 

239

 

 

(31,427

)

 

248

 

Loss from equity method investments

 

2,667

 

?

 

4,504

 

?
Operating loss

 

(216,624

)

 

(22,908

)

 

(301,702

)

 

(57,650

)

Foreign exchange (gain) loss, net

 

(7,097

)

 

6,321

 

 

(5,944

)

 

7,234

 

Interest expenses, net

 

8,685

 

 

7,717

 

 

34,690

 

 

9,110

 

Finance income from ABG

 

(207

)

?

 

(764

)

?
Loss on disposal of property and equipment

 

2,436

 

 

190

 

 

2,436

 

 

190

 

Other income, net

 

3,572

 

 

(1,588

)

 

(2,501

)

 

(2,010

)

Loss before income taxes

 

(224,013

)

 

(35,548

)

 

(329,619

)

 

(72,174

)

Deferred income tax recoveries

 

(4,860

)

 

(4,485

)

 

(8,847

)

 

(4,485

)

Current income tax (recoveries) expenses

 

(5

)

 

(53

)

 

397

 

 

34

 

Net loss

 

(219,148

)

 

(31,010

)

 

(321,169

)

 

(67,723

)

Net loss per share - basic and diluted

$

(2.14

)

$

(0.33

)

$

(3.20

)

$

(0.82

)

Weighted average shares used in computation of net loss per share - basic and diluted

 

102,405,646

 

 

93,169,688

 

 

100,455,677

 

 

83,009,656

 

Net loss

 

(219,148

)

 

(31,010

)

 

(321,169

)

 

(67,723

)

Foreign currency translation gain, net

 

7,588

 

 

127

 

 

5,174

 

 

662

 

Unrealized loss on investments

 

(101

)

 

(765

)

 

(21

)

 

(765

)

Other comprehensive income (loss)

 

7,487

 

 

(638

)

 

5,153

 

 

(103

)

Comprehensive loss

$

(211,661

)

$

(31,648

)

$

(316,016

)

$

(67,826

)

 
In the fourth quarter of 2019, the Company adopted ASU 2016-01, ASC 842, ASC 606 and ASU 2018-07. Each interim period in 2019 has been recast to reflect the effects of this adoption.

TILRAY, INC.

Consolidated Balance Sheets

(in thousands of U.S. dollars, except for share and par value data)

 
December 31, 2019 December 31, 2018
Assets
Current assets:
Cash and cash equivalents

$

96,791

 

$

487,255

 

Short-term investments ?

 

30,335

 

Accounts receivable, net of allowance for doubtful accounts of $2,015 and $292, respectively

 

36,202

 

 

16,525

 

Inventory

 

87,861

 

 

16,211

 

Prepayments and other current assets

 

38,173

 

 

3,976

 

Total current assets

 

259,027

 

 

554,302

 

Property and equipment, net

 

184,217

 

 

80,214

 

Operating lease, right-of-use assets

 

17,514

 

?
Intangible assets, net

 

228,828

 

 

4,486

 

Goodwill

 

163,251

 

?
Equity method investments

 

11,448

 

?
Other investments

 

24,184

 

 

16,911

 

ABG finance receivable and other assets

 

7,861

 

 

754

 

Total assets

$

896,330

 

$

656,667

 

Liabilities
Current liabilities
Accounts payable

 

39,125

 

 

10,649

 

Accrued expenses and other current liabilities

 

50,829

 

 

14,818

 

Accrued obligations under finance lease ?

 

470

 

Accrued obligations under operating lease

 

2,473

 

?
Total current liabilities

 

92,427

 

 

25,937

 

Accrued obligations under finance lease

 

14,152

 

 

8,286

 

Accrued obligations under operating lease

 

15,255

 

?
ABG finance liability

 

5,566

 

?
Deferred tax liability

 

53,363

 

 

4,424

 

Convertible notes, net of issuance costs

 

430,210

 

 

420,367

 

Other liabilities

 

86

 

?
Total liabilities

$

611,059

 

$

459,014

 

 
Commitments and contingent liabilities
 
Stockholders' equity
Class 1 common stock ($0.0001 par value, 250,000,000 shares authorized; 16,666,667 shares issued and outstanding)

 

2

 

 

2

 

Class 2 common stock ($0.0001 par value; 500,000,000 shares authorized; 86,114,558 and 76,504,200 shares issued and outstanding, respectively)

 

9

 

 

8

 

Additional paid-in capital

 

705,671

 

 

302,057

 

Accumulated other comprehensive income

 

9,719

 

 

3,763

 

Accumulated deficit

 

(430,130

)

 

(108,177

)

Total stockholders' equity

$

285,271

 

$

197,653

 

Total liabilities and stockholders' equity

$

896,330

 

$

656,667

 

Three months ended December 31,

 

Twelve months ended December 31,

2019

 

2018

 

2019

 

2018

Adjusted EBITDA reconciliation:
Net loss

$

(219,148

)

$

(31,010

)

$

(321,169

)

$

(67,723

)

Inventory valuation adjustments

 

68,073

 

 

4,280

 

 

68,583

 

 

4,561

 

Depreciation and amortization expenses

 

5,421

 

 

1,009

 

 

15,849

 

 

3,562

 

Stock-based compensation expenses

 

9,539

 

 

4,111

 

 

31,842

 

 

20,988

 

Other stock-based compensation related expenses

 

8,411

 

?

 

8,411

 

?
Impairment of assets

 

112,070

 

?

 

112,070

 

?
Acquisition-related (income) expenses, net

 

(24,861

)

 

239

 

 

(31,427

)

 

248

 

Loss from equity method investments

 

2,667

 

?

 

4,504

 

?
Foreign exchange (gain) loss, net

 

(7,097

)

 

6,321

 

 

(5,944

)

 

7,234

 

Interest expenses, net

 

8,685

 

 

7,717

 

 

34,690

 

 

9,110

 

Finance income from ABG

 

(207

)

?

 

(764

)

?
Loss on disposal of property and equipment

 

2,436

 

 

190

 

 

2,436

 

 

190

 

Other income, net

 

3,572

 

 

(1,588

)

 

(2,501

)

 

(2,010

)

Amortization of inventory step-up ? ?

 

2,041

 

?
Deferred income tax (recoveries) expenses

 

(4,860

)

 

(4,485

)

 

(8,847

)

 

(4,485

)

Current income tax expenses

 

(5

)

 

(53

)

 

397

 

 

34

 

Adjusted EBITDA

$

(35,304

)

$

(13,269

)

$

(89,829

)

$

(28,291

)

 

Three months ended December 31,

Twelve months ended December 31,

2019

2018

2019

2018

Adjusted net loss reconciliation:
Net loss

$

(219,148

)

$

(31,010

)

$

(321,169

)

$

(67,723

)

Inventory valuation adjustments

 

68,073

 

 

4,280

 

 

68,583

 

 

4,561

 

Impairment of assets

 

112,070

 

?

 

112,070

 

?
Acquisition-related (income) expenses, net

 

(24,861

)

 

239

 

 

(31,427

)

?
Amortization of inventory step-up ? ?

 

2,041

 

?
Adjusted net loss

$

(63,866

)

$

(26,491

)

$

(169,902

)

$

(63,162

)

Adjusted net loss per share - basic and diluted

 

(0.62

)

 

(0.28

)

 

(1.69

)

 

(0.76

)

Weighted average shares used in computation of adjusted
Net loss per share - basic and diluted

 

102,405,646

 

 

93,169,688

 

 

100,455,677

 

 

83,009,656

 

 


These press releases may also interest you

at 08:43
WIN (Women In Negotiation) is pleased to announce Walmart Connect as its presenting sponsor - for its eighth annual WIN Summit to be held Thursday, May 30, 2024 in New York City....

at 08:38
Staffing Industry Analysts announced its 2024 Best Staffing Firms to Work For list this week, honoring Omaha-based healthcare company Fusion as a winner in the category of staffing firms with more than 500 employees. SIA's Best Staffing Firms to...

at 08:37
In a landmark move, Greenlight Commercial Funding (GCF) has announced its support for Audacity Zone Developments, INC. through an $11 million Series A Preferred Equity Offering. This underscores the company's unwavering commitment to fostering...

at 08:36
Brody's Crafted Cocktails, the highly-acclaimed premium ready-to-serve craft cocktails, proudly announces its latest addition to an ambitious 2024 expansion strategy in collaboration with Savannah Distributing Company. This family-operated wholesale...

at 08:35
SatixFy Communications Ltd. (the "Company" or "SatixFy") , a pioneering force in next-generation satellite communication systems driven by in-house developed chipsets, has released its consolidated financial results for the full year period ended...

at 08:34
AVO Cigars, a leader in hand-made premium cigars announces the release of the "Avo Expressions 2024." This highly anticipated blend is a collaboration with world-renowned DJ D-NICE. Only 6,900 boxes containing fifteen cigars were created of this...



News published on and distributed by: