The results are available to all
Big% increase Q over Q in recreational sales, but only a total of $18.5 million, so that just underlines how low there were in the Q prior. This is a pittance compared to Health Canada estimate of $5Billion gross or about $1Billion in legal sales yearly.
While it is very good for any cannabis company to have NET INCOME, a realist (not many of them long cannabis for fundamental reasons) has to look at how their adjusted EBITDA was so much lower. The company is free to define ADJUSTED EBITDA and they don't have much. If you then subtract Interest, Depreciation and Amortization, Adjusted EBT has to be a loss, not a gain.
Remember that the newer accounting rules (which IMO obscures actual operation of the business) gives the company credit for an increase in value of inventory and other things which could actually be negative for the business (excess inventory, for example, due to overproduction/lower sales than production).
Here is a copy and past from the APHA report.... I reiterate that APHA did well consideration how crappy most of its competitors have done in the past. At least they are on the right track. On the other hand, they don't deserve a $2.4 Billion market cap, with $18 million/Q in recreational sales, IMO (or an annualized net income at $64 million) until/unless they can demonstrate continuing high % growth (and that gets more difficult when the higher the revenue is).
Key Operating Highlights
- Net revenue of $128.6 million in the fourth quarter, an increase of 75% from prior quarter and 969% from prior year.
- Revenue for adult-use cannabis of $18.5 million in the fourth quarter, up 158% from prior quarter.
- Net income of $15.8 million and adjusted EBITDA of $0.2 million in the fourth quarter.
- Adjusted EBITDA from cannabis operations of $1.9 million in the fourth quarter.