Fourth quarter revenue increases 68% year over
year
Reiterates Q1 fiscal 2021 revenue guidance
LAVAL, QC, June 10, 2020 /CNW Telbec/ - Neptune Wellness
Solutions Inc. ("Neptune" or the "Company") (NASDAQ: NEPT) (TSX:
NEPT), a diversified and fully integrated health and wellness
company, today announced its financial and operating results for
the three-month period and year ended March
31, 2020. All amounts are in thousands of Canadian dollars
except if specified otherwise.
Fourth Quarter 2020 Financial Highlights:
- Total revenues for the three-month period ended March 31, 2020 amounted to $9,530, representing a sequential increase of
$355, or 4%, over the third quarter
ended December 31, 2019 and an
increase of $3,866, or 68%, compared
to $5,664 for the three-month period
ended March 31, 2019.
- Revenues from the Cannabis segment reached $4,006, an increase of $1,195, or 43%, sequentially from the three-month
period ended December 31, 2019 and an
increase of $3,994 from the
three-month period ended March 31,
2019.
- Revenues from the Nutraceutical segment for the three-month
period ended March 31, 2020 amounted
to $5,500, a decrease of $836, or 13%, sequentially from the third quarter
ended December 31, 2019 and a slight
decrease of $152, or 3%, compared to
$5,652 for the three-month period
ended March 31, 2019.
- Net loss for the three-month period ended March 31, 2020 amounted to $39,239 compared to a net loss of $12,384 for the three-month period ended
March 31, 2019. The net loss includes
an impairment of goodwill of $41,451,
which was partially offset by a gain of $36,782 related to a reduction in the fair value
of the contingent consideration in connection to the acquisition of
SugarLeaf Labs. In addition, Neptune incurred an increase in
non-cash expenses related to stock-based compensation expense,
non-cash marketing and co-development expenses and depreciation and
amortization combined with a lower Adjusted
EBITDA1.
- Adjusted EBITDA1 decreased by $22,647 for the three-month period ended
March 31, 2020 to a loss of
$25,354 compared to the three-month
period ended March 31, 2019. The
decrease in Adjusted EBITDA1 is mainly attributable to
investments made in the cannabis segment to grow the workforce in
anticipation of increased sales volumes, start-up costs associated
with expanded capacity and increased SG&A investments to
support the commercialization of new brands and products, as well
as an increase in salaries and benefits at the corporate
level.
- Neptune reiterates its first quarter fiscal 2021 revenue
guidance where it anticipates achieving consolidated revenue of
between $18,000 and $22,000, representing approximately 300% to 400%
growth over the prior year period.
____________________
|
1
See "Caution Regarding Non-IFRS Financial
Measures" and "Reconciliation of Segment income (loss) before
corporate expenses to Adjusted Segment EBITDA and net loss to
Adjusted EBITDA" which follow.
|
Recent Corporate Highlights:
- On February 5, 2020, Neptune
announced the expansion of its strategic partnership with American
Media LLC ("AMI") to help support the U.S. launch and growth of
Neptune's Ocean Remedies™ brand and product line. The expansion
follows a previous partnership with AMI to support the growth of
Neptune's Forest Remedies™ brand.
- On February 13, 2020, Neptune
announced the official launch of the Forest Remedies™ and Ocean
Remedies™ brands. Neptune launched an initial 11 SKUs of hemp
extracts, including six ingestible oils, two soothing balms, one
soft gel bottle, a massage oil and a pet soother, and continues to
broaden the product offering. Furthermore, in collaboration with
IFF, as of March 31, 2020, Neptune
launched eighteen essential oils SKUs, which are commercialized
under the Forest Remedies brand. Ocean Remedies™ is the brand under
which the Company's omega-3 products will be commercialized. The
omega-3 fatty acids in the Ocean Remedies krill oil have been
demonstrated to be 2.5 times better absorbed than fish
oil2. Ocean Remedies™ krill oil offers high EPA, DHA,
phospholipid levels and astaxanthin, a natural antioxidant. Ocean
Remedies has been certified by Friend of the Sea for sustainable
krill harvesting.
- On March 9, 2020, Neptune
announced the appointment of David
Mayers as Chief Operating Officer. Mr. Mayers brings to
Neptune 30 years of senior level executive leadership experience
and expertise in Corporate Strategy execution, M&A
implementation, R&D, Quality, Supply Chain, Operations and
Facility Expansion across several industries, including cannabis
extraction, pharmaceuticals, healthcare, and health and
wellness.
- On March 11, 2020, Neptune
announced it had entered into an Open Market Sale Agreement with
Jefferies LLC ("Jefferies") pursuant to which the Company may from
time to time sell, through at-the-market ("ATM") offerings with
Jefferies acting as sales agent, such common shares as would have
an aggregate offer price of up to US$50,000. During the three-month period ended
March 31, 2020, Neptune sold an
aggregate of 4,159,086 shares resulting in gross proceeds of
$7,069.
- On April 2, 2020, Neptune
announced it had received Health Canada's authorization to
commercialize natural, plant-based hand sanitizer products. The
Company also announced it had engaged with the National Research Council of Canada (NRC), Canada's largest federal research and
development organization, to support NRC's efforts to facilitate
the development, manufacturing and ultimately commercialization of
solutions to meet COVID-19 related needs.
- April 7, 2020, Neptune announced
the appointment of Dr. Toni Rinow,
MBA as Chief Financial Officer. Dr. Toni
Rinow is a transformational finance and business leader with
20 years of experience and a proven track record in international
corporate development and sales and financing of companies.
- April 8, 2020, Neptune announced
that its phase II expansion at its Sherbrooke, Quebec facility is operational and
has been approved to run product for customers bringing the
Company's capacity to 200,000 kg.
- April 21, 2020, Neptune announced
it had entered into an exclusive partnership with legendary
wildlife conservationist, Dr. Jane
Goodall to co-develop natural health and wellness products
under the Forest Remedies™ brand, the plant-based wellness brand
with naturally sourced hemp extract and essential oils sourced from
the highest-quality botanicals from around the world. As part of
this partnership, a percentage of all products will be donated to
support Dr. Goodall's environmental conservation and reforestation
initiatives.
- May 12, 2020, Neptune announced
the launch of Neptune Air, a non-contact infrared thermometer
(NCIT) optimized for measuring a person's temperature while
reducing cross-contamination risk and minimizing the risk of
spreading disease. Neptune is developing multiple versions of
Neptune Air for consumers, businesses and government customers,
including white label turnkey solutions.
- May 19, 2020, Neptune announced
that it has entered into an extraction partnership for hemp
processing resulting in revenues to the Company of a minimum of
$16.5 million over the first six
month period. Under the terms of the agreement, Neptune will
process 44,000 kg of crude and distillate extracts from hemp
biomass in four installments over six months.
2
Clinical Study Report. NO. BTS 275/07,
Feb. 16, 2009. Esslingen, Germany.
|
Management Commentary
Michael
Cammarata, Chief Executive Officer of Neptune, stated: "We
made significant progress in the ongoing transformation of Neptune
to a diversified and fully integrated health and wellness company
during the fourth quarter and throughout fiscal 2020. Neptune is a
very different company than it was just one year ago. We have
leaned into our health and wellness roots, our team's deep
experience in consumer packaged goods, and significantly broadened
our business beyond extraction. We have a new structure, new
purpose-driven consumer brands and a world-class leadership team.
In the U.S., we are moving toward a brand strategy to drive growth
and effectively meet the needs of the market. In Canada, we plan to launch our first cannabis
brand and are accelerating our B2B cannabis revenue. We anticipate
accelerated revenue growth in the first quarter of fiscal year 2021
and beyond."
"Reflecting our rapidly expanding health and wellness platform,
we have recently realigned our company into six business units
including Consumer Brands, Cannabis and Hemp, Turnkey Solutions,
Health and Wellness Innovations, Neptune Ventures, and Neptune
Royalties. Each business unit has dedicated sales efforts to
maximize revenue development and fully capitalize on each and every
business opportunity. We are now structured, staffed and equipped
to drive accelerated growth across the health and wellness
landscape," continued Cammarata.
Dr. Toni Rinow, Chief Financial
Officer of Neptune, commented "We have made investments to expand
capacity, which is now operational, to launch new brands, to
innovate new products with the marketing and sales support to drive
distribution and sales. While these investments have negatively
impacted near-term profitability, we have built the platform to
drive accelerated growth and leverage these investments. As we
continue to broaden our portfolio and capitalize on incremental
opportunities, we will look to expand with strong incremental
margins and an asset-light strategy to new business development. We
have completed our phase of heightened capital investment and have
the assets in place to drive an improving margin profile and higher
capital returns. The recent launches of Neptune Air and hand
sanitizers, which are both contributing to the significant growth
acceleration we are forecasting in the first quarter, are examples
of higher margin, asset-light innovations."
Fourth Quarter 2020 Financial Results
Total revenues
for the three-month period ended March 31,
2020 increased 68% to $9,530
compared $5,664 in the prior year
period. The increase in revenue was primarily a result of revenue
from the cannabis segment, which had revenue of $12 during the fourth quarter of last year,
partially offset by a modest 3% decline in the nutraceutical
segment.
Neptune reported a net loss of $39,239 for the three-month period ended
March 31, 2020, compared to a net
loss of $12,384 in the prior year
period. Net loss includes an impairment of goodwill of $41,451, which was partially offset by a gain of
$36,782 related to a reduction in the
fair value of the contingent consideration in connection to the
acquisition of SugarLeaf Labs. The increase in net loss was also
driven by investments in the associated with new capacity start-up,
investments in staffing and other overhead to support cannabis
operations, as well as co-development expenses to support
innovation and non-cash marketing expense.
For the three-month period ended March
31, 2020, adjusted EBITDA1 was a loss of
$25,354 compared with a loss of
$2,707 in the prior year period.
Fiscal Year 2020 Financial Results
Total revenues for
the twelve-month period ended March 31,
2020 increased 21% to $29,578
compared to $24,442 in the prior year
period. The increase in revenue was a primarily driven by revenues
in the cannabis segment, which were $12 in the same period last year, partially
offset by a 13% decrease in the nutraceutical segment.
Neptune reported a net loss of $60,863 for the twelve-month period ended
March 31, 2020, compared to a net
loss of $23,192 last year.
For the twelve-month period ended March
31, 2020, adjusted EBITDA1 was a loss of
$40,572 compared with a loss of
$8,114 in the prior year period.
_________________________
|
1
See "Caution Regarding Non-IFRS Financial
Measures" and "Reconciliation of Segment income (loss) before
corporate expenses to Adjusted Segment EBITDA and net loss to
Adjusted EBITDA" which follow.
|
Cash, cash equivalents and short-term investment were
$16,613 as of March 31, 2020. During the fourth quarter of
fiscal 2020, the Company raised gross proceeds of $7,069 through the sale of 4,159 share of common
stock under its At-the-Market program.
Outlook
For the first quarter of fiscal 2021, the
Company is reiterating its guidance for revenue of between
$18,000 and $22,000, reflecting accelerated growth across
several of the Company's business units.
COVID-19 Update
Neptune's operations have been deemed
essential and thus its facility in both Canada and the
United States continued to operate without any material
disruption, reflecting existing high operating standards and a
rapid response to the pandemic. While the global health crisis had
negative impacts on certain aspects of the business, including the
pace of retailers accepting new products and other disruptions, the
Company was able to continue to service its customers.
Additionally, Neptune has launched a new line of hand sanitizers
and has begun marketing Neptune Air, a non-contact infrared
thermometer (NCIT) optimized for measuring a person's temperature
while reducing cross-contamination risk and minimizing the risk of
spreading disease. Neptune will continue to focus on identifying
incremental health and wellness innovations that reflect strong
consumer demand.
Establishment of Six Business Units to Support Accelerated
Growth
Reflecting the broadening category and product
portfolio that has and will continue to be developed, the Company
has recently restructured its business into six business units.
Each unit has dedicated sales resources to drive accelerated growth
and innovation across each of the business platforms. The six
business units include:
- Consumer Brands includes the Forest Remedies and Ocean
Remedies brands. The recently announced partnership with Dr.
Jane Goodall to co-create products
that are good for consumers and benefit the Jane Goodall Foundation
is also included in this business unit.
- Cannabis and Hemp includes extraction operations in both
Canada and the U.S. The Phase II
expansion in Sherbrooke became
operational at the beginning of fiscal 2021, providing incremental
capacity to support existing and new extraction clients.
- Turnkey Solutions is built on the Biodroga business and
an important asset that is positioned to drive product development
with extensive supply chain capabilities to provide end-to-end
consumer solutions across the health and wellness industry.
- Health and Wellness Innovations is the unit positioned
to rapidly respond to evolving consumer trends. The recent launches
of hand sanitizers and Neptune Air non-contact thermometer are two
of the first significant innovations in this business unit.
- Neptune Ventures is the platform for strategic
investments and provides an incubator for emerging technologies,
brands and other innovations. Neptune Ventures is an important
contributor to our long-term growth and shareholder value
creation.
- Neptune Royalties is focused on growing and capitalizing
on intellectual property and licensing opportunities.
Conference Call
Details
|
Date:
|
Wednesday, June 10,
2020
|
|
|
Time:
|
4:30 PM Eastern
Daylight Time
|
|
|
Call:
|
1 (888) 231-8191
(Canada and U.S.)
1 (647) 427-7450 (International)
|
|
|
Conference ID:
9282248
|
A webcast of the call can be accessed through the Investors
section of Neptune's website under Investor Events and
Presentations.
A replay of the call will be available shortly after the call's
completion and until July 10, 2020.
The replay can be accessed online in the Investors section of
Neptune's website under Investor Events and Presentations.
About Neptune Wellness Solutions Inc.
Neptune Wellness Solutions is a diversified and fully integrated
health and wellness company. Through its flagship consumer-facing
brands, Forest Remedies™ and Ocean Remedies™, Neptune is redefining
health and wellness by building a broad portfolio of natural,
plant-based, sustainable and purpose-driven lifestyle brands and
consumer packaged goods products in key health and wellness
markets, including hemp, nutraceuticals, personal care and home
care. Leveraging decades of expertise in extraction and
specialty ingredient formulation, Neptune is a leading provider of
turnkey product development and supply chain solutions to
businesses and government customers across several health and
wellness verticals, including legal cannabis and hemp,
nutraceuticals and white label consumer packaged goods. The
Company utilizes a highly flexible and low cost supply chain
infrastructure that can be scaled up and down or into adjacent
product categories to quickly adapt to market demand. Neptune's
corporate headquarters is located in Laval, Quebec, with a 50,000-square-foot
production facility located in Sherbrooke, Quebec and a 24,000 square-foot
facility located in North Carolina. For additional
information, please visit: https://neptunecorp.com/
Caution Regarding Non-IFRS Financial Measures
The Corporation uses two adjusted financial measures,
Adjusted Segment Earnings Before Interest, Taxes, Depreciation and
Amortization (Adjusted Segment EBITDA) and Adjusted Earnings Before
Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) to
assess its operating performance. These non-IFRS financial measures
are comprised of adjustments that are derived from the
Corporation's financial statements and are presented in a
consistent manner. The Corporation uses these measures for the
purposes of evaluating its historical and prospective financial
performance, as well as its performance relative to competitors.
These measures also help the Corporation to plan and forecast for
future periods as well as to make operational and strategic
decisions. The Corporation believes that providing this information
to investors, in addition to IFRS measures, allows them to see the
Corporation's results through the eyes of management, and to better
understand its historical and future financial performance.
Securities regulations require that companies caution readers
that earnings and other measures adjusted to a basis other than
IFRS do not have standardized meanings and are unlikely to be
comparable to similar measures used by other companies.
Accordingly, they should not be considered in isolation. The
Corporation uses Adjusted Segment EBITDA and Adjusted EBITDA to
measure its performance from one period to the next without the
variation caused by certain adjustments that could potentially
distort the analysis of trends in our operating performance, and
because the Corporation believes it provides meaningful information
on the Corporation's financial condition and operating results.
Neptune's method for calculating Adjusted Segment EBITDA and
Adjusted EBITDA may differ from that used by other
corporations.
Neptune obtains its Adjusted Segment EBITDA measurement by
adding depreciation and amortization, stock-based compensation and
impairment loss on goodwill to segment income (loss) before
corporate expenses. Neptune obtains its Adjusted EBITDA measurement
by adding to net income (loss), net finance costs, depreciation and
amortization and income tax expense and by subtracting income tax
recovery and net finance income. Other items such as stock-based
compensation, litigation provisions, acquisition costs, change in
fair value of contingent consideration, impairment loss on goodwill
and severance and related costs that do not impact core operating
performance of the Corporation are also added back as they may vary
significantly from one period to another. Adjusting for these items
does not imply they are non-recurring.
Forward Looking Statements
Statements in this press release that are not statements of
historical or current fact constitute "forward-looking statements"
within the meaning of the U.S. securities laws and Canadian
securities laws. Such forward-looking statements involve known and
unknown risks, uncertainties, and other unknown factors that could
cause the actual results of Neptune to be materially different from
historical results or from any future results expressed or implied
by such forward-looking statements. In addition to statements which
explicitly describe such risks and uncertainties, readers are urged
to consider statements labeled with the terms "believes", "belief",
"expects", "intends", "projects", "anticipates", "will", "should"
or "plans" to be uncertain and forward-looking. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release.
The forward-looking statements contained in this press
release are expressly qualified in their entirety by this
cautionary statement and the "Cautionary Note Regarding
Forward-Looking Information" section contained in Neptune's latest
Annual Information Form (the "AIF"), which also forms part of
Neptune's latest annual report on Form 40-F, and which is available
on SEDAR at www.sedar.com, on EDGAR
at https://www.sec.gov/edgar.shtml and on the investor
section of Neptune's website at www.neptunecorp.com. All
forward-looking statements in this press release are made as of the
date of this press release. Neptune does not undertake to update
any such forward-looking statements whether as a result of new
information, future events or otherwise, except as required by law.
The forward-looking statements contained herein are also subject
generally to other risks and uncertainties that are described from
time to time in Neptune public securities filings with the
Securities and Exchange Commission and the Canadian securities
commissions. Additional information about these assumptions and
risks and uncertainties is contained in the AIF under "Risk
Factors".
Neither NASDAQ nor the Toronto Stock Exchange accepts
responsibility for the adequacy or accuracy of this
release.
Reconciliation of
Segment income (loss) before corporate expenses to Adjusted Segment
EBITDA1 and net loss to Adjusted
EBITDA1
|
|
Three-month period
ended March 31, 2020
|
|
|
|
|
Nutraceutical
|
Cannabis
|
Corporate
|
Total
|
|
$
|
$
|
$
|
$
|
Total
revenues
|
5,500
|
4,006
|
24
|
9,530
|
Gross
profit
|
1,760
|
(2,881)
|
24
|
(1,097)
|
|
|
|
|
|
R&D expenses, net
of tax credits and grants
|
(36)
|
(910)
|
|
(946)
|
SG&A
expenses
|
(7,900)
|
(13,490)
|
|
(21,390)
|
Impairment loss on
goodwill
|
(3,467)
|
(37,984)
|
|
(41,451)
|
Segment income (loss)
before contingent consideration and corporate expenses
|
(9,643)
|
(55,265)
|
24
|
(64,884)
|
|
|
|
|
|
Change in fair value
of contingent consideration
|
–
|
36,782
|
|
36,782
|
Segment income (loss)
before corporate expenses
|
(9,643)
|
(18,483)
|
24
|
(28,102)
|
|
|
|
|
|
Unallocated
costs:
|
|
|
|
|
Corporate general and
administrative expenses
|
|
|
(8,007)
|
(8,007)
|
Net finance
income
|
|
|
1,545
|
1,545
|
Income tax
expense
|
|
|
(4,675)
|
(4,675)
|
Net loss
|
|
|
|
(39,239)
|
|
|
|
|
|
Adjusted Segment
EBITDA1 reconciliation
|
|
|
|
|
Segment loss before
corporate expenses
|
(9,643)
|
(18,483)
|
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
169
|
2,316
|
|
|
Impairment loss on
goodwill
|
3,467
|
37,984
|
|
|
Change in fair value
of contingent consideration
|
–
|
(36,782)
|
|
|
Stock-based
compensation
|
127
|
418
|
|
|
Adjusted Segment
EBITDA1
|
(5,880)
|
(14,547)
|
|
|
|
|
|
|
|
Adjusted
EBITDA1 reconciliation
|
|
|
|
|
Net loss
|
|
|
|
(39,239)
|
Add
(deduct):
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
2,612
|
Net finance
income
|
|
|
|
(1,545)
|
Change in fair value
of contingent consideration
|
|
|
|
(36,782)
|
Stock-based
compensation
|
|
|
|
3,356
|
Litigation
provisions
|
|
|
|
118
|
Impairment loss on
goodwill
|
|
|
|
41,451
|
Income tax
expense
|
|
|
|
4,675
|
Adjusted
EBITDA1
|
|
|
|
(25,354)
|
|
|
1
The Adjusted Segment EBITDA and the
Adjusted EBITDA are not standard measures endorsed by IFRS
requirements.
|
Reconciliation of
Segment income (loss) before corporate expenses to Adjusted Segment
EBITDA1 and net loss to Adjusted EBITDA1
|
|
Three-month period
ended March 31, 2019
|
|
|
|
|
Nutraceutical
|
Cannabis
|
Corporate
|
Total
|
|
$
|
$
|
$
|
$
|
Total
revenues
|
5,652
|
12
|
|
5,664
|
Gross
profit
|
1,523
|
12
|
|
1,535
|
|
|
|
|
|
R&D expenses, net
of tax credits and grants
|
(172)
|
(1,898)
|
|
(2,070)
|
SG&A
expenses
|
(1,138)
|
(373)
|
|
(1,511)
|
Segment income (loss)
before corporate expenses
|
213
|
(2,259)
|
|
(2,046)
|
|
|
|
|
|
Unallocated
costs:
|
|
|
|
|
Corporate general and
administrative expenses
|
|
|
(2,354)
|
(2,354)
|
Litigation
provisions
|
|
|
(7,930)
|
(7,930)
|
Net finance
costs
|
|
|
(38)
|
(38)
|
Income tax
expense
|
|
|
(16)
|
(16)
|
Net loss
|
|
|
|
(12,384)
|
|
|
|
|
|
Adjusted Segment
EBITDA1 reconciliation
|
|
|
|
|
Segment income (loss)
before corporate expenses
|
213
|
(2,259)
|
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
156
|
554
|
|
|
Stock-based
compensation
|
123
|
245
|
|
|
Adjusted Segment
EBITDA1
|
492
|
(1,460)
|
|
|
|
|
|
|
|
Adjusted
EBITDA1 reconciliation
|
|
|
|
|
Net loss
|
|
|
|
(12,384)
|
Add
(deduct):
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
765
|
Net finance
costs
|
|
|
|
38
|
Stock-based
compensation
|
|
|
|
928
|
Income tax
expense
|
|
|
|
16
|
Litigation
provisions
|
|
|
|
7,930
|
Adjusted
EBITDA1
|
|
|
|
(2,707)
|
|
|
1
The Adjusted Segment EBITDA and the
Adjusted EBITDA are not standard measures endorsed by IFRS
requirements.
|
Reconciliation of
Segment income (loss) before corporate expenses to Adjusted Segment
EBITDA1 and net loss to Adjusted
EBITDA1
|
|
Twelve-month
period ended March 31, 2020
|
|
|
|
|
|
Nutraceutical
|
Cannabis
|
Corporate
|
Total
|
|
$
|
$
|
$
|
$
|
Total
revenues
|
21,278
|
8,075
|
225
|
29,578
|
Gross
profit
|
6,573
|
(8,636)
|
225
|
(1,838)
|
|
|
|
|
|
R&D expenses, net
of tax credits and grants
|
(456)
|
(2,414)
|
|
(2,870)
|
SG&A
expenses
|
(11,242)
|
(18,830)
|
|
(30,072)
|
Impairment loss on
goodwill
|
(3,467)
|
(82,081)
|
|
(85,548)
|
Segment income (loss)
before contingent consideration and corporate expenses
|
(8,592)
|
(111,961)
|
225
|
(120,328)
|
|
|
|
|
|
Change in fair value
of contingent consideration
|
–
|
97,208
|
|
97,208
|
Segment income (loss)
before corporate expenses
|
(8,592)
|
(14,753)
|
225
|
(23,120)
|
|
|
|
|
|
Unallocated
costs:
|
|
|
|
|
Corporate general and
administrative expenses
|
|
|
(34,593)
|
(34,593)
|
Net finance
income
|
|
|
1,451
|
1,451
|
Income tax
expense
|
|
|
(4,601)
|
(4,601)
|
Net loss
|
|
|
|
(60,863)
|
Adjusted Segment
EBITDA1 reconciliation
|
|
|
|
|
Segment loss before
corporate expenses
|
(8,592)
|
(14,753)
|
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
675
|
7,213
|
|
|
Impairment loss on
goodwill
|
3,467
|
82,081
|
|
|
Change in fair value
of contingent consideration
|
–
|
(97,208)
|
|
|
Stock-based
compensation
|
490
|
1,243
|
|
|
Adjusted Segment
EBITDA1
|
(3,960)
|
(21,424)
|
|
|
Adjusted
EBITDA1 reconciliation
|
|
|
|
|
Net loss
|
|
|
|
(60,863)
|
Add
(deduct):
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
8,384
|
Net finance
income
|
|
|
|
(1,451)
|
Change in fair value
of contingent consideration
|
|
|
|
(97,208)
|
Stock-based
compensation
|
|
|
|
16,594
|
Litigation
provisions
|
|
|
|
349
|
Impairment loss on
goodwill
|
|
|
|
85,548
|
Acquisition
costs
|
|
|
|
2,211
|
Severance and related
costs3
|
|
|
|
1,263
|
Income tax
expense
|
|
|
|
4,601
|
Adjusted
EBITDA1
|
|
|
|
(40,572)
|
|
|
|
|
|
Total
assets
|
18,031
|
132,284
|
18,461
|
168,776
|
Cash, cash
equivalents and short-term investment
|
1,395
|
30
|
15,188
|
16,613
|
Working
capital2
|
4,011
|
7,762
|
9,806
|
21,579
|
|
1
The Adjusted Segment EBITDA and the
Adjusted EBITDA are not standard measures endorsed by IFRS
requirements.
|
2
Working capital is presented for
information purposes only and represents a measurement of the
Corporation's short-term financial health mostly used in financial
circles. The working capital is calculated by subtracting current
liabilities from current assets. Because there is no standard
method endorsed by IFRS, the results may not be comparable to
similar measurements presented by other public
companies.
|
3On July
8, 2019, Neptune appointed a new Chief Executive Officer ("CEO")
and Member of the Board of Directors. Jim Hamilton stepped down
from his role as CEO. According to his amended employment
agreement, Jim Hamilton was entitled to a termination severance and
his unvested options vested based on a prorate basis of his
termination employment date.
|
Reconciliation of Segment income (loss)
before corporate expenses to Adjusted Segment EBITDA1
and net loss to Adjusted EBITDA1
|
|
Twelve-month
period ended March 31, 2019
|
|
|
|
|
|
Nutraceutical
|
Cannabis
|
Corporate
|
Total
|
|
$
|
$
|
$
|
$
|
Total
revenues
|
24,430
|
12
|
|
24,442
|
Gross
profit
|
7,602
|
12
|
|
7,614
|
|
|
|
|
|
R&D expenses, net
of tax credits and grants
|
(488)
|
(6,723)
|
|
(7,211)
|
SG&A
expenses
|
(4,525)
|
(1,846)
|
|
(6,371)
|
Segment income (loss)
before corporate expenses
|
2,589
|
(8,557)
|
|
(5,968)
|
|
|
|
|
|
Unallocated
costs:
|
|
|
|
|
Corporate general and
administrative expenses
|
|
|
(8,915)
|
(8,915)
|
Litigation
provisions
|
|
|
(7,930)
|
(7,930)
|
Net finance
costs
|
|
|
(209)
|
(209)
|
Income tax
expense
|
|
|
(170)
|
(170)
|
Net loss
|
|
|
|
(23,192)
|
|
|
|
|
|
Adjusted Segment
EBITDA1 reconciliation
|
|
|
|
|
Segment income (loss)
before corporate expenses
|
2,589
|
(8,557)
|
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
719
|
2,126
|
|
|
Stock-based
compensation
|
492
|
1,046
|
|
|
Adjusted Segment
EBITDA1
|
3,800
|
(5,385)
|
|
|
|
|
|
|
|
Adjusted
EBITDA1 reconciliation
|
|
|
|
|
Net loss
|
|
|
|
(23,192)
|
Add
(deduct):
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
3,056
|
Net finance
costs
|
|
|
|
209
|
Stock-based
compensation
|
|
|
|
3,713
|
Income tax
expense
|
|
|
|
170
|
Litigation
provisions
|
|
|
|
7,930
|
Adjusted
EBITDA1
|
|
|
|
(8,114)
|
|
|
|
|
|
Total
assets
|
21,007
|
50,981
|
18,232
|
90,220
|
Cash, cash
equivalents and short-term investments
|
276
|
–
|
9,591
|
9,867
|
Working
capital2
|
2,543
|
(629)
|
2,751
|
4,665
|
_____________________
|
1
The Adjusted Segment EBITDA and the
Adjusted EBITDA are not standard measures endorsed by IFRS
requirements.
|
|
2
The working capital is presented for
information purposes only and represents a measurement of the
Corporation's short-term financial health mostly used in financial
circles. The working capital is calculated by subtracting current
liabilities from current assets. Because there is no standard
method endorsed by IFRS, the results may not be comparable to
similar measurements presented by other public
companies.
|
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SOURCE Neptune Wellness Solutions Inc.