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Msg  608 of 609  at  5/14/2019 7:13:05 PM  by

CHM_760


3Q Financial Results

Aurora Cannabis Announces Financial Results for the Third Quarter of Fiscal 2019

Aurora Cannabis Inc. (NYSE:ACB)
Intraday Stock Chart

Today : Tuesday 14 May 2019

Click Here for more Aurora Cannabis Inc. Charts.

Solid Net Revenue Growth Across All Channels to $65.1 Million
Production Volumes Double While Per-Unit Production Costs Decline
On Track to Deliver Positive EBITDA Beginning in Fiscal Q4 2019

TSX: ACB | NYSE: ACB

EDMONTON, May 14, 2019 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (NYSE:ACB) (TSX: ACB), announced today its financial and operational results for the third quarter ended March 31st, 2019.

Third Quarter 2019 Highlights

(Unless otherwise stated, comparisons are made between Fiscal Q3 2019 and Fiscal Q2 2019 results)

  • Continued solid revenue growth averaging 20% across all key markets, driven by successful scale up of the Company's production and continued strong performance across the Canadian consumer, and Canadian and International medical cannabis markets: 
    • Canadian Consumer up 37%
    • Canadian Medical up 8%
    • International Medical up 40%  

                                                                                              
  • Growth of the Company's medical patient base, up by 5% to 77,136. As at the date of this release, Aurora has 82,745 active registered patients, a further increase of 7%, and continues to register new patients as product availability ramps up.

  • Cash cost to produce per gram declined 26% to $1.42 per gram, as the initial impact of Aurora Sky's scale and efficiency began to be realized.

  • Production volume increased 99% to 15,590 kgs, up 1,200% year-over-year. The increase in production accelerated through the quarter, with the majority of the harvested volume realized in the last half of the quarter.

  • SG&A expenses have stabilized with a modest increase of 1%, reflecting Aurora's ongoing commitment to disciplined cost management.

  • Average selling price per gram decreased marginally due to product mix effects (higher contribution from wholesale consumer), extraction capacity constraints resulting in extract-based products comprising 18% of net cannabis sales, and the first full quarter impact of excise tax on medical cannabis.

  • Adjusted EBITDA loss improved by 20% to $36.6 million as the company continues to track towards achieving EBITDA positive results beginning in Q4 2019 as operations continue to ramp up.

  • In January 2019, Aurora completed a US$345 million Convertible Notes offering, with the proceeds earmarked to continue the Company's pace of growth in Canada and internationally.  IFRS accounting standards require a mark-to-market adjustment at each period end for the derivative portion of these notes.  Due to the increase in Aurora's stock price since the issuance of the notes, the Company recorded a $102 million non-cash fair value loss in the Q3 2019 profit and loss statement.

Management Commentary

"I'm exceptionally proud of our company and team as Aurora continues to deliver on our domestic and international growth strategy. We achieved solid revenue growth and strong operating results in a quarter proven challenging across the industry.  We are laser focused on building a long-term sustainable business," said Terry Booth, CEO. "During the quarter, we formally welcomed Nelson Peltz a key strategic advisor.  He has been incredibly engaged, collaborative, and strategically focused on assisting our pursuit of growth in global markets and with mature companies in adjacent industries."

Glen Ibbott, CFO, added, "Aurora is an extremely active and diversified company, leading the industry in cannabis research, product development, cultivation, global scale, and revenue growth.  With a solid Q3 on all fronts, it's time to move the yardsticks for the industry again.  The company we have built with purpose through both organic growth and targeted acquisitions has provided a unique opportunity: continue to lead the industry in revenue growth while also progressing to positive operating earnings in the near term."

Q3 2019 Key Financial and Operational Metrics

($ thousands, unless otherwise noted)

Q3 2019

Q2 2019

% Change

Q3 2018

% Change

Financial Results






Gross revenue

$75,238

$62,000

21%

$16,100

367%

Net revenue (1)

$65,145

$54,178

20%

$16,100

305%

Cannabis net revenue (1)

$58,652

$47,577

23%

$10,810

443%

Medical cannabis net revenue

$29,075

$25,994

12%

$10,810

169%

Consumer cannabis net revenue

$29,577

$21,583

37%

NA

NA

Gross margin on cannabis net revenue (1)

55%

54%

1%

59%

(4)%

Selling, general and administration expense

$67,104

$66,362

1%

$15,727

(327)%

Adjusted EBITDA (2)

($36,617)

($45,524)

(20)%

($12,904)

184%

(Loss) earnings attributable to common shareholders

($158,354)

($237,752)

(33)%

($19,215)

724%







Balance Sheet






Working capital

$469,729

$274,629

71%

$338,476

39%

Cannabis inventory and biological assets (2)

$118,023

$79,924

48%

$28,478

314%

Total assets

$5,549,780

$4,875,884

14%

$1,671,400

232%







Operational Results – Cannabis






Cash cost to produce per gram of dried sold (2)

$1.42

$1.92

(26)%

$1.53

(7)%

Active registered patients

77,136

73,579

5%

45,776

69%

Average net selling price per gram (2)

$6.40

$6.80

(6)%

$7.99

(20)%

Kilograms produced

15,590

7,822

99%

1,206

1,193%

Kilograms sold

9,160

6,999

31%

1,353

577%



(1)     

Net revenue represents our total gross revenue exclusive of excise taxes levied by the Canada Revenue Agency ("CRA") on the sale of medical and recreational cannabis products effective October 17, 2018.

(2)   

These terms and non-GAAP measures are defined or reconciled in Aurora's Q3 2019 MD&A.

 

Outlook 

The Aurora Sky and Bradford facilities are now operating at full capacity. With this, the Company's annualized production run rate across its operational facilities is in excess of 150,000 kg per annum, based on planted rooms.

Aurora reiterates its target for Q4 with production available for sale in excess of 25,000 kg. Management intends to allocate a portion of this capacity to its inventory for manufacturing new products. Aurora remains focused on having vapes and certain edibles ready for launch under new regulations in the Canadian consumer market which are expected toward the end of the calendar year.

With production ramping up, the Company continues to scale up manufacturing capacity, with innovation and technologies aimed at reducing time from harvest to market. The Company anticipates that increased processing, packaging and delivery efficiencies in Q4 and beyond will accelerate availability of product.

Supply to Europe and other international markets is expected to increase as more of Aurora's production facilities receive EU GMP certification. The Bradford facility has recently undergone an audit to obtain EU GMP certification. In Q3, the Company began exports of full spectrum cannabis extracts in Germany. Management anticipates these sales will contribute to growth given the higher margins in extracts.

Oil extraction capacity has been a constraint during the second and third fiscal quarters of 2019. Subsequent to quarter's end, Aurora expanded its internal extraction capacity to almost 7,000 kgs per quarter currently and will reach almost 16,000 kgs per quarter in fiscal Q1. As well, the Company's extraction partner Radient Technologies is scaling up commercial production at its Edmonton facility. Consequently, Aurora anticipates production of extract-based products to increase, with the full impact starting to materialize towards the end of fiscal Q4. This increase in internal and external extraction capacity will enhance Aurora's ability to produce derivative products at scale, which management expects will have a positive impact on both revenues and gross margin.

With Aurora Sky now operating at full capacity, the Company anticipates continued reduction in production and manufacturing costs allowing cash costs per gram to continue to trend lower. Management reiterates its expectation that the average cash cost to produce per gram at its Sky Class facilities will be below $1.

With disciplined cost management, the Company expects SG&A costs to grow modestly over the remainder of the fiscal year. Consequently, management anticipates that with sustained revenue growth and lower cash costs per gram, Aurora is well positioned to achieve positive EBITDA beginning in fiscal Q4 2019 (calendar Q2 2019).

Aurora Cannabis Announces Financial Results for the Third Quarter of Fiscal 2019

Date : 05/14/2019 @ 7:08PM
Source : PR Newswire (Canada)
Stock : Aurora Cannabis Inc. (ACB)
Quote : 8.38  0.36 (4.49%) @ 6:56PM



 


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