UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF
FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month
of August 2023
Commission File
No. 001-38691
AURORA
CANNABIS INC.
(Translation of registrant's name into English)
3498 63 Avenue,
Leduc, Alberta,
Canada T9E 0G8
(Address of principal executive office)
Indicate by check mark whether the
registrant files or will file annual reports under cover of Form 20-F or Form 40-F
Form 20-F ☐
Form 40-F ☒
SUBMITTED HEREWITH
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AURORA CANNABIS INC.
/s/ Glen Ibbott
Glen Ibbott
Chief Financial Officer
Date: August 10, 2023
Exhibit 99.1
Aurora Cannabis Announces Fiscal 2024 First Quarter
Results, and Delivers Record Positive Adjusted EBITDA
- Achieves Quarterly Net Revenue1 of
$75.1 Million; Strong YoY Growth Across All Business Units; Global Medical Cannabis +14%, Consumer Cannabis +5%, Plant Propagation +12%
- Delivers Third Sequential Quarter of Positive Adjusted EBITDA1,
Supported by Bevo's Record Quarterly Revenue
- Cash Used in Operating Activities Reduced by $15.5 Million
YoY, Re-Affirms Target of Positive Free Cash Flow in Calendar Year 2024
NASDAQ | TSX: ACB
EDMONTON, AB, Aug. 10, 2023 /CNW/ - Aurora Cannabis
Inc. (the "Company" or "Aurora") (NASDAQ: ACB) (TSX: ACB), the Canadian company opening the world to
cannabis, today announced its financial and operational results for the first quarter of fiscal year 2024. As the fiscal year 2023 consisted
of three quarters, the year-over-year comparison quarter for Q1 2024 ending June 30, 2023 is Q4 2022 ending June 30, 2022.
"We are pleased to have generated strong net
revenue1 and record adjusted EBITDA1 during Q1 which positions us well for what we believe will be a successful
fiscal year 2024," stated Mr. Martin, CEO of Aurora Cannabis. "We have built a differentiated and growing business that is diversified
across key global cannabis and non-cannabis platforms, and I am truly delighted with the strong performance across all our business units. Following
the previously announced $40 million in annualized cost efficiencies in fiscal 2024, I believe we are in a strong position to grow and
deliver profitable results to support our target of positive free cash flow," continued Mr. Martin.
First Quarter 2024 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q1 2024, Q3 2023, and Q4 2022 results and are in Canadian dollars)
Consolidated Revenue and Adjusted Gross Profit:
Total net revenue1 was $75.1 million, as
compared to $50.1 million in the prior year period. The increase from the prior period is mainly due to growth in our global medical cannabis
business and a record high quarterly revenue in our plant propagation business.
Excluding the impact of the non-core bulk wholesales,
adjusted gross margin before fair value adjustments1 on cannabis net revenue1 for Q1 2024 remained strong and steady, and well
above the industry average at 53%.
Consolidated adjusted gross margin before fair value
adjustments1 was 44% in Q1 2024 (Q4 2022: 50%). Adjusted gross profit before FV adjustments1 was $32.6 million in Q1 2024
(Q4 2022: $25.8 million), an increase of 26%.
| 1 This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See "Non-GAAP Measures" below for reconciliations of non-GAAP financial measures to GAAP financial measures. |
Medical Cannabis:
Medical cannabis net revenue1 was $41.6
million, a 14% increase from the prior year quarter, delivering 55% of Aurora's Q1 2024 consolidated net revenue[1] and 77% of Adjusted
gross profit before fair value adjustments1.
The increase in net revenue1 of $5.1M was primarily
due to 40% growth in our international business, including our European business, which benefitted from the introduction of new proprietary
high potency cultivars, and higher volumes sold to Australia, a key export market for the Company.
Adjusted gross margin before fair value adjustments1
on medical cannabis net revenue remained strong at 61% for the three months ended June 30, 2023 as compared to 67% in the prior year period
and within the Company's target range of 60% and above. The continuing positive impact of Aurora's new higher-yielding, higher-potency
cultivars, in addition to the decision to close our Nordic facility and supply the European markets from our EU GMP facilities in Canada,
are expected to further improve margins for our medical business through the remainder of this fiscal year.
Consumer Cannabis:
Aurora's consumer cannabis net revenue1 was
$13.2 million, compared to $12.6 million in the prior year quarter, as the Company continued to introduce new and innovative cultivars
and extracts.
Adjusted gross margin before fair value adjustments[1] on
consumer cannabis net revenue[1] was 27%, increasing by 1% compared to the prior year quarter. The increase from the prior year quarter
is primarily driven by a mix shift in the quarter to core segment brands and recently-launched extract product innovation, and lower per
unit cost of goods sold from the consolidation of manufacturing assets.
Plant Propagation:
Plant propagation net revenue1 was
wholly comprised from the Bevo business, contributing $19.9 million of net revenue1 and represents the highest
quarterly revenue for Bevo to date. The Company acquired Bevo in August 2022, and as such, there are no Bevo revenues in the comparative
period. The seasonality of the current Bevo business delivers 65-75% of its annual revenues in the first half of a calendar
year as orders are fulfilled.
Adjusted gross margin before fair value adjustments1
on plant propagation revenue was 22% for the Q1 2024 period.
Selling, General and Administrative ("SG&A"):
Adjusted SG&A1, was $29.5 million in
Q1 2024, which excludes $5.2 million of restructuring, non-recurring, and out-of-period costs. Excluding the non-routine items, Adjusted
SG&A1continue to be well controlled and in line with the Company's current target of $30 million.
Adjusted R&D1, was $1.1 million in
Q1 2024, decreasing by $0.9 million compared to the prior year quarter. The decrease from the prior year quarter relates primarily to a more targeted and
gated approach to product innovation.
Net Loss:
Net loss for the three months ended June 30, 2023
was $28.3 million compared to $618.8 million in the prior year quarter. The decrease in net loss of $590.4 million from the same period
in the prior year was primarily due to a decrease in other expenses of $552.3 million, primarily consisting of (i) a decrease of $457.5
million in impairment of intangible assets and goodwill, (ii) a decrease of $78.7 million in impairment of property, plant and equipment,
(iii) an increase in gross profit of $17.9 million, and (iv) lower operating expenses of $26.1 million.
Adjusted EBITDA:
Adjusted EBITDA1 was $2.2 million for the
three months ended June 30, 2023, as compared to a loss of $8.8 million in the prior year quarter. The significant improvement in Adjusted
EBITDA is largely attributable to reductions in SG&A, and to growing revenue across all business units including the contribution
from the acquisition of Bevo.
Fiscal 2024 Expectations:
In Q2 fiscal 2024
- The Company expects cannabis net revenue1 to be largely
similar to fiscal Q1 2024, with the geographical mix slightly weighted further towards the international medical segment.
- For plant propagation, we expect to see seasonally reduced revenues
and gross profit in Q2 2024 that will be in line with historical performance as 25% – 35% of revenues are normally earned in the
second half of a calendar year.
Through the remainder of fiscal 2024
- Aurora is now realizing the benefit of its long-term commitment
to science and quality cultivation in that demand for the Company's products globally is beginning to outpace supply. Aurora is focused
on growing profitable revenue across all business units, but in particular to fully supply the growing demand now evident in Aurora's
international medical business as the Company's leading new cultivars have been introduced to our international channels.
- In plant propagation, in addition to the normal seasonal cadence
of the base business, the Company expects first sales of orchids from the 800,000 sq ft Sky facility to occur in Q3 of this fiscal year
and for the 1.6 million sq ft Aurora Sun facility to be contributing to the top line at the start of the next fiscal year.
Aurora's achievement of significant and sustainable
operating cost and SG&A reductions has now resulted in three consecutive quarters with positive Adjusted EBITDA. This has paved the
path towards positive free cashflow in calendar year 2024.
Convertible Senior Notes
During the three months ended June 30, 2023, the Company
repurchased approximately U.S$57.0 million aggregate principal amount of convertible senior notes, at a 2.3% average discount to par value,
for aggregate cash consideration of approximately U.S$46.0 million and the issuance of 18,691,770 Common Shares.
Subsequent to June 30, 2023, the Company repurchased
approximately U.S$5.0 million aggregate principal amount of convertible senior notes at a 1.5% average discount to par value, with the
issuance of 10,274,950 Common Shares.
Aurora may, from time to time and subject to market
conditions, repurchase its convertible notes, including in open market purchases and privately negotiated transactions.
Key Quarterly Financial and Operating Results
| Three months ended |
|
($ thousands, except Operational Results) |
June 30,
2023 |
June 30,
2022(6) |
$ Change |
%
Change |
March 31
, 2023(6) |
$
%
Change Change |
| Financial Results |
|
|
| Total net revenue (1)(2a) |
$75,110 |
$50,116 |
$24,994 |
50 % |
$64,043 |
$11,067 |
17 % |
| Medical cannabis net revenue (1)(2a) |
$41,615 |
$36,471 |
$5,144 |
14 % |
$38,003 |
$3,612 |
10 % |
| Consumer cannabis net revenue (1)(2a) |
$13,220 |
$12,638 |
$582 |
5 % |
$14,491 |
($1,271) |
(9 %) |
| Plant propagation net revenue (1)(2a) |
$19,904 |
$— |
$19,904 |
100 % |
$10,754 |
$9,150 |
85 % |
| Adjusted gross margin before FV adjustments on total net |
|
|
|
|
|
|
|
| revenue (2b) |
44 % |
50 % |
N/A |
(6 %) |
48 % |
N/A |
(4 %) |
| Adjusted gross margin before FV adjustments on core cannabis |
|
|
|
|
|
|
|
| net revenue (2b) |
53 % |
56 % |
N/A |
(3 %) |
51 % |
N/A |
2 % |
| Adjusted gross margin before FV adjustments on medical |
|
|
|
|
|
|
|
| cannabis net revenue (2b) |
61 % |
67 % |
N/A |
(6 %) |
61 % |
N/A |
0 % |
| Adjusted gross margin before FV adjustments on consumer |
|
|
|
|
|
|
|
| cannabis net revenue (2b) |
27 % |
26 % |
N/A |
1 % |
25 % |
N/A |
2 % |
| Adjusted gross margin before FV adjustments on plant |
|
|
|
|
|
|
|
| propagation net revenue (2b) |
22 % |
— % |
N/A |
22 % |
36 % |
N/A |
(14 %) |
| Adjusted SG&A expense(2d)(5) |
$29,480 |
$34,839 |
($5,359) |
(15 %) |
$27,902 |
$1,578 |
6 % |
| Adjusted R&D expense(2d) |
$1,101 |
$1,991 |
($890) |
(45 %) |
$1,549 |
($448) |
(29 %) |
| Adjusted EBITDA (2c)(5) |
$2,155 |
($8,757) |
$10,912 |
125 % |
$1,254 |
$901 |
72 % |
| Balance Sheet |
|
|
|
|
|
|
|
| Working capital (2e,f) |
$227,312 |
$614,264 |
($386,952) |
(63 %) |
$237,622 |
($10,310) |
(4) % |
| Cannabis inventory and biological assets (3) |
$100,846 |
$127,836 |
($26,990) |
(21 %) |
$93,081 |
$7,765 |
8 % |
| Total assets |
$832,188 |
$1,084,356 |
($252,168) |
(23 %) |
$926,322 |
($94,134) |
(10) % |
| Operational Results – Cannabis |
|
|
|
|
|
|
|
| Average net selling price of dried cannabis excluding bulk sales |
|
|
|
|
|
|
|
| (2g) |
$4.81 |
$5.09 |
($0.28) |
(6 %) |
$4.76 |
$0.05 |
1 % |
| Kilograms sold (4) |
15,682 |
13,130 |
2,552 |
19 % |
16,578 |
(896) |
(5) % |
| (1) |
Includes the impact of actual and expected product returns and price adjustments (Q1 2024 - $0.6 million; Q3 2023 - $0.3 million; Q4 2022 - $1.8 million). |
| (2) |
These terms are defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. Refer to the following sections for reconciliation of Non-GAAP Measures to the IFRS equivalent measure: |
| |
a. |
Refer to the "Revenue" and "Cost of Sales and Gross Margin" section for a reconciliation of cannabis net revenue to the IFRS equivalent. |
| |
b. |
Refer to the "Adjusted Gross Margin" section for reconciliation to the IFRS equivalent. |
| |
c. |
Refer to the "Adjusted EBITDA" section for reconciliation to the IFRS equivalent. |
| |
d. |
Refer to the "Operating Expenses" section for reconciliation to the IFRS equivalent. |
| |
e. |
"Working capital" is defined as Current Assets less Current Liabilities as reported on the Company's Consolidated Statements of Financial Position. |
| |
f. |
Current liabilities includes the current portion of convertible debentures. As at March 31, 2023, the remaining balance of convertible debentures outstanding is included in current liabilities. |
| |
g. |
Net selling price of dried cannabis excluding bulk sales is comprised of revenue from dried cannabis excluding bulk sales (Q1 2024 - $39.6 million; Q3 2023 - $37.2 million; Q4 2022 - $39.0 million) less excise taxes on dried cannabis revenue excluding bulk sales (Q1 2024 - $4.2 million; Q3 2023 |
| |
|
- $4.5 million; Q4 2022 - $5.1 million). |
| (3) |
Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets. |
| (4) |
The kilograms sold is offset by the grams returned during the period. |
| (5) |
Prior period comparatives were recast to include the adjustments for markets under development, business transformation costs, and non-recurring charges related to non-core bulk cannabis wholesales to be comparable to the current period presentation. |
| (6) |
Comparative information has been re-presented due to discontinued operations. |
Conference Call
Aurora will host a conference call today, Thursday,
August 10, 2023, to discuss these results. Miguel Martin, Chief Executive Officer, and Glen Ibbott, Chief Financial Officer,
will host the call starting at 5:00 p.m. Eastern time | 3:00 p.m. Mountain Time. A question and answer session will follow management's
presentation.
Conference Call Details
| DATE: |
Thursday, August 10, 2023 |
| TIME: |
5:00 p.m. Eastern Time | 3:00 p.m. Mountain Time |
| WEBCAST: |
Click Here |
This weblink has also been posted to the Company's "Investor Info" link at https://auroramj.com/investors under "Events".
About Aurora
Aurora is opening the world to cannabis, serving both
the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people
improve their lives. The Company's adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, Whistler, Being and
Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co, as well as international
brands, Pedanios, Bidiol and CraftPlant. Aurora also has a controlling interest in Bevo Farms Ltd., North America's leading supplier of
propagated agricultural plants. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora's brands
continue to break through as industry leaders in the medical, performance, wellness and adult recreational markets wherever they are launched.
Learn more at www.auroramj.com and follow us on Twitter and LinkedIn. Aurora's common shares trade on the NASDAQ and TSX under the symbol
"ACB".
Forward Looking Statements
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking
statements are frequently characterized by words such as "plan", "continue", "expect", "project",
"intend", "believe", "anticipate", "estimate", "may", "will", "potential",
"proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur.
Forward-looking statements made in this news release include statements regarding pro forma measures including revenue, cash flow, Adjusted
gross margin before fair value adjustments, and expected SG&A run-rates; ongoing cost efficiencies and the Company's path and timing
to achieve positive free cash flow; the Company's ability to deliver profitable results; statements under the heading "Fiscal 2024
Expectations" including, but not limited to, those with respect to cannabis and plant propagation revenues, supply for demand in
the growing international medical cannabis segment and expectations in the plant propagation segment, including timing for the first sales
of orchids from the Sky facility and contributions from the Sun facility; plans to repurchase convertible notes prior to maturity; product
innovation; and timing for a conference call to discuss the Q1 fiscal 2024 results.
These forward-looking statements are only predictions.
Forward looking information or statements contained in this news release have been developed based on assumptions management considers
to be reasonable. Material factors or assumptions involved in developing forward-looking statements include, without limitation, publicly
available information from governmental sources as well as from market research and industry analysis and on assumptions based on data
and knowledge of this industry which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks,
uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events,
results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking
statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure
to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and
retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand
in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the risk of successful integration
of acquired business and operations, management's estimation that SG&A will grow only in proportion of revenue growth, the ability
to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield
from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes
in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises, including the current outbreak of
COVID-19, and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information
form dated June 14, 2023 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile
on SEDAR at www.sedarplus.com and filed with and available on the SEC's website at www.sec.gov. The Company cautions that the list of
risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results.
Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are
cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or
obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except
as expressly required by applicable securities law.
Non-GAAP Measures
This news release contains reference to certain financial
performance measures that are not recognized or defined under IFRS (termed "Non-GAAP Measures"). As a result, this data
may not be comparable to data presented by other licensed producers of cannabis and cannabis companies. Non-GAAP Measures should be considered
together with other data prepared in accordance with IFRS to enable investors to evaluate the Company's operating results, underlying
performance and prospects in a manner similar to Aurora's management. Accordingly, these non-GAAP Measures are intended to provide additional
information and to assist management and investors in assessing financial performance and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance with IFRS.
The information included under the heading "Cautionary
Statement Regarding Certain Non-GAAP Performance Measures" in the Company's management's discussion and analysis for the three
months ended June 30, 2023 and 2022 (the "MD&A") is incorporated by reference into this news release. The MD&A
is available on the Company's issuer profile on SEDAR at www.sedarplus.com.
Net Revenue, Adjusted Gross Profit and Margin
Net revenue, adjusted gross profit before FV adjustments,
and adjusted gross margin before FV adjustments are Non-GAAP Measures and can be reconciled with revenue, gross profit and gross margin,
the most directly comparable GAAP financial measures, respectively, as follows:
|
($ thousands) |
Medical
Cannabis |
Consumer
Cannabis |
Core
Wholesale
Bulk
Cannabis |
Total Core
Cannabis |
Non-Core
Wholesale
Bulk
Cannabis |
Plant
Propagation |
Total |
| Three months ended June 30, 2023 |
|
|
|
|
|
|
|
| Gross revenue |
43,872 |
17,429 |
47 |
61,348 |
324 |
19,904 |
81,576 |
| Excise taxes |
(2,257) |
(4,209) |
— |
(6,466) |
— |
— |
(6,466) |
| Net revenue (1) |
41,615 |
13,220 |
47 |
54,882 |
324 |
19,904 |
75,110 |
| Non-recurring net revenue adjustments (4) |
(598) |
(249) |
— |
(847) |
— |
— |
(847) |
| Adjusted net revenue |
41,017 |
12,971 |
47 |
54,035 |
324 |
19,904 |
74,263 |
| Cost of sales |
(24,547) |
(17,053) |
(70) |
(41,670) |
(752) |
(18,951) |
(61,373) |
| Depreciation |
2,776 |
1,643 |
7 |
4,426 |
78 |
870 |
5,374 |
| Inventory impairment and non-recurring |
|
|
|
|
|
|
|
| costs included in cost of sales (2)(5) |
5,692 |
5,889 |
21 |
11,602 |
221 |
2,501 |
14,324 |
| Adjusted gross profit (loss) before FV |
|
|
|
|
|
|
|
| adjustments (1) |
24,938 |
3,450 |
5 |
28,393 |
(129) |
4,324 |
32,588 |
| Adjusted gross margin before FV |
|
|
|
|
|
|
|
| adjustments (1) |
61 % |
27 % |
11 % |
53 % |
(40 %) |
22 % |
44 % |
|
Three months ended March 31, 2023(7) |
|
|
|
|
|
|
|
| Gross revenue |
40,684 |
18,956 |
307 |
59,947 |
488 |
10,754 |
71,189 |
| Excise taxes |
(2,681) |
(4,465) |
— |
(7,146) |
— |
— |
(7,146) |
| Net revenue(1) |
38,003 |
14,491 |
307 |
52,801 |
488 |
10,754 |
64,043 |
| Cost of sales |
(19,938) |
(14,556) |
(173) |
(34,667) |
(646) |
(8,032) |
(43,345) |
| Depreciation |
2,453 |
1,773 |
21 |
4,247 |
77 |
877 |
5,201 |
| Inventory impairment, non-recurring, out-of- |
|
|
|
|
|
|
|
| period, and market development costs |
|
|
|
|
|
|
|
| included in cost of sales (2)(3)(4)(6) |
2,555 |
1,912 |
25 |
4,492 |
96 |
233 |
4,821 |
| Adjusted gross profit (loss) before FV |
|
|
|
|
|
|
|
| adjustments (1) |
23,073 |
3,620 |
180 |
26,873 |
15 |
3,832 |
30,720 |
| Adjusted gross margin before FV |
|
|
|
|
|
|
|
| adjustments (1) |
61 % |
25 % |
59 % |
51 % |
3 % |
36 % |
48 % |
|
Three months ended June 30, 2022(7) |
|
|
|
|
|
|
|
| Gross revenue |
39,454 |
16,994 |
— |
56,448 |
1,007 |
— |
57,455 |
| Excise taxes |
(2,983) |
(4,356) |
— |
(7,339) |
— |
— |
(7,339) |
| Net revenue(1) |
36,471 |
12,638 |
— |
49,109 |
1,007 |
— |
50,116 |
| Non-recurring net revenue adjustments (4) |
— |
1,023 |
|
1,023 |
— |
— |
1,023 |
| Adjusted net revenue |
36,471 |
13,661 |
|
50,132 |
1,007 |
— |
51,139 |
| Cost of sales |
(21,271) |
(17,700) |
— |
(38,971) |
(6,323) |
— |
(45,294) |
| Depreciation |
3,489 |
2,506 |
— |
5,995 |
816 |
— |
6,811 |
| Inventory impairment, out-of-period, and |
|
|
|
|
|
|
|
| non-recurring adjustments included in cost |
|
|
|
|
|
|
|
| of sales (2)(4)(6) |
5,747 |
5,118 |
— |
10,865 |
2,230 |
— |
13,095 |
| Adjusted gross profit (loss) before FV |
|
|
|
|
|
|
|
| adjustments (1) |
24,436 |
3,585 |
— |
28,021 |
(2,270) |
— |
25,751 |
| Adjusted gross margin before FV |
|
|
|
|
|
|
|
| adjustments (1) |
67 % |
26 % |
— % |
56 % |
(225 %) |
— % |
50 % |
| (1) |
These terms are Non-GAAP Measures and are defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. |
| (2) |
Inventory impairment includes inventory write-downs due to lower of cost or net realizable value adjustments, obsolescence provision adjustments, and inventory destruction. |
| (3) |
Markets under development represents the adjustment for business operations focused on developing international markets prior to commercialization. |
| (4) |
Non-recurring items includes one-time excise tax refunds, one-time Reliva returns, inventory count adjustments resulting from facility shutdowns and inter- site transfers, and abnormal spikes to utilities costs on its plant propagation business. |
| (5) |
Non recurring items includes business transformation costs in connection with the re-purposing and ramp-up of the Company's Sky facility. Inventory provision in Q1 2024 includes a provision of $0.9 million for the potential return and destruction of Reliva CBD inventory resulting from the Company's decision to wind down its Reliva operations. |
| (6) |
Out-of-period adjustments include adjustments to year-end bonus accruals included in the current quarter but relating to prior quarters and adjustments to input assumptions related to fair value of biological assets. |
| (7) |
Comparative information has been re-presented due to discontinued operations. |
Adjusted EBITDA
Adjusted EBITDA is a Non-GAAP Measure and can be reconciled
with net income (loss), the most directly comparable GAAP financial measure, as follows:
| |
Three months ended |
|
| ($ thousands) |
June 30, 2023 |
March 31, 2023 |
June 30, 2022 |
|
| Net loss from continuing operations |
(22,204) |
(76,884) |
(617,022) |
|
| Income tax expense (recovery) |
96 |
(3,109) |
(1,363) |
|
| Other income (expense) |
5,994 |
48,154 |
558,301 |
|
| Share-based compensation |
2,281 |
3,620 |
3,472 |
|
| Depreciation and amortization |
8,288 |
9,875 |
18,459 |
|
| Acquisition costs |
226 |
696 |
3,720 |
|
| Inventory and biological assets fair value and impairment adjustments(6) |
(2,436) |
6,719 |
9,007 |
|
| Business transformation related charges (1) |
6,564 |
7,253 |
6,812 |
|
| Out-of-period adjustments (2) |
544 |
1,333 |
1,833 |
|
| Non-recurring items (3) |
2,802 |
2,425 |
6,736 |
|
| Markets under development (4) |
— |
1,172 |
1,288 |
|
| Adjusted EBITDA (5) |
2,155 |
1,254 |
(8,757) |
|
| (1) |
Business transformation related charges includes costs related to closed facilities, certain IT project costs, costs associated with the repurposing of Sky, severance and retention costs in connection with the business transformation plan, costs associated with the retention of certain medical aggregators, and payroll costs exited prior to the end of Q2 2023 associated with the medical cannabis business. |
| (2) |
Out-of-period adjustments reflect adjustments to net loss for the financial impact of transactions recorded in the current period that relate to prior periods. |
| (3) |
Non-recurring items includes one-time excise tax refunds, non-core adjusted wholesale bulk margins, inventory count adjustments resulting from facility shutdowns and inter-site transfers, litigation and non-recurring project costs, an abnormal mildew issue on certain cultivation lots, additional expenses associated with the change in fiscal year end to March 31, 2023, one-time break fees with certain vendors, and temporary abnormal utilities costs within the plant propagation business. |
| (4) |
Markets under development represents the adjustment for business operations focused on developing international markets prior to commercialization. |
| (5) |
Adjusted EBITDA is a Non-GAAP Measure and is not a recognized, defined, or standardized measure under IFRS. Refer to "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the MD&A. Prior period comparatives were recast to include the adjustments for markets under development, business transformation costs, and non-recurring charges related to non-core bulk cannabis wholesales to be comparable to the current period presentation. |
| (6) |
Year ended June 30, 2022 comparative was recasted to include inventory impairment adjustments to be comparable to the current period presentation. |
Adjusted SG&A
Adjusted SG&A is a Non-GAAP Measure and can be
reconciled with sales and marketing and general and administrative expenses, the most directly comparable GAAP financial measure, as follows:
| |
Three months ended |
| ($ thousands) |
June 30, 2023 |
March 31, 2023 |
June 30, 2022 |
| Sales and marketing |
12,806 |
13,408 |
16,276 |
| General and administration |
21,874 |
26,316 |
30,139 |
| Business transformation costs |
(4,063) |
(7,209) |
(6,812) |
| Out-of-period adjustments |
(544) |
(818) |
(2,349) |
| Non-recurring costs |
(593) |
(2,837) |
(1,127) |
| Market development costs |
— |
(958) |
(1,288) |
| Adjusted SG&A (1) |
29,480 |
27,902 |
34,839 |
| (1) |
These terms are defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. |
Adjusted R&D
Adjusted R&D is a Non-GAAP Measure and can be
reconciled with research and development expenses, the most directly comparable GAAP financial measure, as follows:
|
($ thousands) |
June 30, 2023 |
Three months ended
March 31, 2023 |
June 30, 2022 |
| Research and development |
1,101 |
1,656 |
1,991 |
| Out-of-period adjustments |
— |
(63) |
— |
| Share-based compensation |
— |
(44) |
— |
| Adjusted R&D (1) |
1,101 |
1,549 |
1,991 |
| |
|
| |
|
|
|
|
| (1) |
Adjusted SG&A is a Non-GAAP Measure and is not a recognized, defined, or standardized measure under IFRS. Refer to the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. |
Working Capital
Working capital is a Non-GAAP Measure and can be reconciled
with total current assets and total current liabilities, the most directly comparable GAAP financial measure, as follows:
|
($ thousands) |
June 30, 2023 |
Three months ended
March 31, 2023 |
June 30, 2022 |
| Total current assets |
399,311 |
479,927 |
745,121 |
| Total current liabilities |
(171,999) |
(242,305) |
(130,857) |
| Working capital |
227,312 |
237,622 |
614,264 |
| |
|
|
|
|
View original content to download multimedia:https://www.prnewswire.com/news-releases/aurora-cannabis-announces-fiscal-2024-first-quarter-results-and-delivers-record-positive-adjusted-ebitda-301898283.html
SOURCE Aurora Cannabis Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2023/10/c0128.html
%CIK: 0001683541
For further information: For Media: Michelle Lefler, VP, Communications
& PR, media@auroramj.com; For Investors: ICR, Inc., Investor Relations, aurora@icrinc.com
CO: Aurora Cannabis Inc.
CNW 16:15e 10-AUG-23
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