Tilray, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY; TSX:
TLRY), a leading global cannabis-lifestyle and consumer packaged
goods company inspiring and empowering the worldwide community to
live their very best life, today reported financial results for the
second fiscal quarter ended November 30, 2021. All financial
information in this press release is reported in U.S. dollars,
unless otherwise indicated.
The Company also announced a new parent name,
Tilray Brands, Inc., reflecting the Company’s
evolution from a Canadian LP to a global consumer packaged goods
company powerhouse with a market leading portfolio of cannabis and
lifestyle CPG brands.
Irwin D. Simon, Tilray’s Chairman and Chief
Executive Officer, stated, “Our second quarter performance reflects
notable success building high-quality and highly sought-after
cannabis and lifestyle CPG brands which, coupled with our scale,
operational excellence and broad global distribution, enabled us to
increase sales and maintain profitability despite sector-specific
and macro-economic headwinds.”
Mr. Simon continued, “Looking at performance
highlights across key markets, we maintained our #1 cannabis market
share position in Canada – despite market saturation and related
competitive challenges -- on the strength of our brands and adept
pricing and marketing adjustments. Importantly, we believe these
adjustments will enable us to aggressively recapture share when the
market right-sizes. In Germany – Europe’s largest and most
profitable medical cannabis market – our nearly 20% share leads the
market. We believe this, coupled with our infrastructure, will also
allow us to capture the adult-use market as legalization
accelerates under the new coalition government. Turning to the
U.S., SweetWater Brewing and Manitoba Harvest continued to invest
in product innovation and acquisitions to enhance awareness and
distribution. These profitable businesses further provide an
opportunity to launch THC-based products upon federal legalization
in the U.S. Subsequent to the end of the fiscal quarter, we also
expanded our spirits portfolio through the acquisition of
Breckenridge Distillery, deepening our presence in the fast-growing
spirits sector while also providing an immediate contribution to
earnings.”
Mr. Simon concluded, “The totality of our
performance, our prospects and our global platform make Tilray
Brands' opportunity as compelling as ever, driven by our success as
a cannabis and lifestyle CPG powerhouse and our relentless focus on
delivering shareholder value.”
Financial Highlights – Second Quarter
Fiscal 2022
- Net income increased to $6 million
from a net loss of $89 million in the previous year quarter.
- Net revenue increased ~20% to $155
million during the second quarter from $129 million in the prior
year quarter. The increase was driven by 7% growth in cannabis
revenue to $58.8 million, net beverage alcohol revenue of $13.7
million from SweetWater, and wellness segment revenue of $13.8
million from Manitoba Harvest.
- Adjusted EBITDA of $13.8 million in
the second quarter 2022, 8% growth compared to the preceding prior
quarter, and the eleventh consecutive quarter of positive Adjusted
EBITDA
- Gross profit of $32.8 million, a 7%
decrease from $35.3 million in the prior year quarter.
- Adjusted gross margin in the
cannabis segment remained strong at 43%.
- Maintained #1 cannabis market share
in Canada1 with leading portfolio of comprehensive medical cannabis
and adult-use brands, including top position in cannabis flower and
pre-rolls.
- International medical cannabis
market leader and #1 in Germany2 with ~20% market share.
- Cost synergies from Aphria-Tilray
combination of $70 million achieved on a run-rate basis to date,
with actual cash-savings close to $36 million to date. Expect to
reach $80 million synergy target, ahead of schedule, by May 31,
2022 and to generate an additional $20 million in synergies in
fiscal 2023.
Strategic Growth Actions
- On December 21, 2021 – SweetWater
acquired award-winning craft-beer brands, Alpine Beer and Green
Flash Brewing.
- On December 8, 2021, Tilray
acquired Breckenridge Distillery, strengthening its strategic
position in the U.S.
- On November 4, 2021, SweetWater
entered the Spirits category with new ready-to-drink cocktail and
cross-brand collaboration with Canadian cannabis brand, RIFF.
- On October 26, 2021, Tilray
announced European expansion with medical cannabis agreement in
Luxembourg.
- On October 20, 2021, Tilray
announced an expanded distribution agreement with Great North
Distributors for adult-use cannabis sales across Canada.
Growth and High Potential Across Key
Markets
- #1 Market Leading Position
in Germany and Poised to Benefit from Recreational
Legalization –Tilray is also the only company currently
supplying the German government with medical cannabis grown
in-country. The Company’s state-of-the-art EU GMP
certified cultivation facility in Germany has additional capacity
to immediately support entry into the recreational market upon
legalization, which the new German coalition government is
accelerating.
- Ongoing Progress Across the
EU - Tilray’s success across the EU, a powerful growth
market worth potentially $1 billion for the Company, is backed by
its two state-of-the-art cultivation facilities in Portugal and
Germany that provide EU GMP certified pharmaceutical-grade medical
cannabis across the region. Tilray is also the only Company with
two EU GMP certified cannabis facilities in Europe. This
unparalleled production capability coupled with Tilray’s sales
arrangements through major distribution channels in Germany, the
UK, and other key markets, and strong relationships with local
governments and the trust of patients give Tilray the ability to
drive accelerated growth.
- #1 Leading Cannabis Market
Share in Canada – Amid an intensely competitive and
over-saturated market, Tilray remains the market leader in the
CAD$4.26 billion Canadian cannabis market, driven by a portfolio of
carefully curated brands across all consumer segments; medical,
wellness, innovative cannabis 2.0 products across concentrates,
edibles, and drinks; processing capacity; and distribution. In
order to address the saturated marketplace, Tilray has implemented
strategic price adjustments, expanded distribution through its
coast-to-coast agreement with Rose Life Sciences and Great North
Distributors, and doubled-down on and accelerated product
innovation.
- A Leading U.S. CPG Platform
that Generates Considerable Cash Flow Now and Will Be Immediately
Leveraged for Cannabis Products Upon Federal Legalization
- In the U.S., Tilray’s operating businesses include SweetWater,
the 11th largest craft brewer in the nation3 and leading lifestyle
brand, and Manitoba Harvest, a pioneer in hemp, CBD and wellness
products. Together, they generate approximately $100 million in
revenue and are EBITDA and cash flow positive and will expand in
the near term into CBD adjacencies and THC-based products upon
legalization. Further, the Company continues to build its U.S.
platform, including through its prior acquisition of a majority of
the outstanding senior secured convertible notes of MedMen
Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) – which marked a
critical step towards delivering on its objective of leading the
U.S. cannabis market upon federal legalization.
Conference CallTilray
executives will host a conference call and live audio webcast to
discuss these results at 8:30 am Eastern Time, details of which are
provided below.
Call-in Number: (877) 407-0792
from Canada and the U.S. or (201) 689-8263 from international
locations. Please dial in at least 10 minutes prior to the start
time.
A telephone replay will be available
approximately two hours after the call concludes through January
26, 2022. To access the recording dial (844)-512-2921 and use the
passcode 13725661.
There will be a simultaneous, live webcast
available on the Investors section of Tilray’s website at
www.tilray.com. The webcast will also be archived.
ICR Conference Participation
Today
Tilray executives will also host a virtual
fireside chat at the ICR Conference at 1:30 pm Eastern Time today.
There will be a simultaneous, live webcast available on the
Investors section of Tilray’s website at www.tilray.com. The
webcast will also be archived.
About Tilray
Tilray, Inc. (Nasdaq: TLRY; TSX: TLRY), is a
leading global cannabis-lifestyle and consumer packaged goods
company with operations in Canada, the United States, Europe,
Australia, and Latin America that is changing people's lives for
the better – one person at a time – by inspiring and empowering the
worldwide community to live their very best life by providing them
with products that meet the needs of their mind, body, and soul and
invoke a sense of wellbeing. Tilray’s mission is to be the trusted
partner for its patients and consumers by providing them with a
cultivated experience and health and wellbeing through
high-quality, differentiated brands and innovative products. A
pioneer in cannabis research, cultivation, and distribution,
Tilray’s unprecedented production platform supports over 20 brands
in over 20 countries, including comprehensive cannabis offerings,
hemp-based foods, and alcoholic beverages.
For more information on how we open a world of
wellbeing, visit www.Tilray.com.
Forward-Looking Statements
Certain statements in this communication that
are not historical facts constitute forward-looking information or
forward-looking statements (together, “forward-looking statements”)
under Canadian securities laws and within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, that are intended
to be subject to the “safe harbor” created by those sections and
other applicable laws. Forward-looking statements can be identified
by words such as “forecast,” “future,” “should,” “could,” “enable,”
“potential,” “contemplate,” “believe,” “anticipate,” “estimate,”
“plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and
the negative of these terms or similar expressions, although not
all forward-looking statements contain these identifying words.
Certain material factors, estimates, goals, projections or
assumptions were used in drawing the conclusions contained in the
forward-looking statements throughout this communication.
Forward-looking statements include statements regarding our
intentions, beliefs, projections, outlook, analyses or current
expectations concerning, among other things: the Company’s ability
to become the world's leading cannabis-focused consumer branded
company; expectations regarding profitable revenue growth and
expected cost savings; and the Company’s ability to commercialize
new and innovative beverage products. Many factors could cause
actual results, performance or achievement to be materially
different from any forward-looking statements, and other risks and
uncertainties not presently known to the Company or that the
Company deems immaterial could also cause actual results or events
to differ materially from those expressed in the forward-looking
statements contained herein. For a more detailed discussion of
these risks and other factors, see the most recently filed annual
information form of Tilray and the Annual Report on Form 10-K (and
other periodic reports filed with the SEC)
of Tilray made with the SEC and available on EDGAR. The
forward-looking statements included in this communication are made
as of the date of this communication and the Company does not
undertake any obligation to publicly update such forward-looking
statements to reflect new information, subsequent events or
otherwise unless required by applicable securities laws.
Use of Non-U.S. GAAP Financial
Measures
This press release and the accompanying tables
include non-GAAP financial measures, including adjusted gross
margin, Adjusted EBITDA and adjusted free cash flow. Management
believes that the non-GAAP financial measures presented provide
useful additional information to investors about current trends in
the Company's operations and are useful for period-over-period
comparisons of operations. These non-GAAP financial measures should
not be considered in isolation or as a substitute for the
comparable GAAP measures. In addition, these non-GAAP measures may
not be the same as similar measures provided by other companies due
to potential differences in methods of calculation and items being
excluded. They should be read only in connection with the Company's
Consolidated Statements of Operations and Cash Flows presented in
accordance with GAAP.
Adjusted EBITDA is calculated as net income
(loss) before finance expense, net; non-operating expense (income),
net; amortization; stock-based compensation; facility start-up and
closure costs; inventory valuation adjustment; lease expense; and
transaction costs. 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.
Gross margin, excluding inventory valuation adjustments, is
calculated as revenue less cost of sales adjusted to add back
inventory valuation adjustments and amortization of inventory
step-up, divided by revenue. A reconciliation of Gross margin,
excluding inventory valuation adjustments, to gross margin, the
most directly comparable GAAP measure, has been provided in the
financial statement tables included below in this press release.
Free cash flow is comprised of two GAAP measures deducted from each
other which are net cash flow provided by (used in) operating
activities less investments in capital and intangible assets.
Adjusted free cash flow removes the cash impact of acquisitions
from free cash flow. A reconciliation of net cash flow provided by
(used in) operating activities to free cash flow and to adjusted
cash flows, the most directly comparable GAAP measure, has been
provided in the financial statement tables included below in this
press release.
For further information:
Media: Berrin Noorata, news@tilray.com Investors: Raphael Gross,
+1-203-682-8253, Raphael.Gross@icrinc.com
1 Based on Hifyre retail data.2 Insight Health NPI: Panel data
of 5,500 pharmacies (29% coverage)3 The Brewers Association Top 50
Brewing Companies by Sales Volume Report for 2020.
Consolidated Statements of Financial
Position
(In thousands of
United States dollars) |
|
November 30,2021 |
|
|
May 31,2021 |
|
Assets |
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
331,783 |
|
|
$ |
488,466 |
|
Accounts receivable, net |
|
|
84,575 |
|
|
|
87,309 |
|
Inventory |
|
|
233,020 |
|
|
|
256,429 |
|
Prepaids and other current assets |
|
|
57,340 |
|
|
|
48,920 |
|
Convertible notes receivable |
|
|
1,560 |
|
|
|
2,485 |
|
Total current
assets |
|
|
708,278 |
|
|
|
883,609 |
|
Capital assets |
|
|
604,249 |
|
|
|
650,698 |
|
Right-of-use assets |
|
|
13,933 |
|
|
|
18,267 |
|
Intangible assets |
|
|
1,450,015 |
|
|
|
1,605,918 |
|
Goodwill |
|
|
2,814,163 |
|
|
|
2,832,794 |
|
Interest in equity investees |
|
|
4,440 |
|
|
|
8,106 |
|
Long-term investments |
|
|
168,244 |
|
|
|
17,685 |
|
Other assets |
|
|
164 |
|
|
|
8,285 |
|
Total
assets |
|
$ |
5,763,486 |
|
|
$ |
6,025,362 |
|
Liabilities |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Bank indebtedness |
|
$ |
8,736 |
|
|
$ |
8,717 |
|
Accounts payable and accrued liabilities |
|
|
168,300 |
|
|
|
212,813 |
|
Contingent consideration |
|
|
62,339 |
|
|
|
60,657 |
|
Warrant liability |
|
|
40,455 |
|
|
|
78,168 |
|
Current portion of lease liabilities |
|
|
3,588 |
|
|
|
4,264 |
|
Current portion of long-term debt |
|
|
31,510 |
|
|
|
36,622 |
|
Total current
liabilities |
|
|
314,928 |
|
|
|
401,241 |
|
Long - term
liabilities |
|
|
|
|
|
|
|
|
Lease liabilities |
|
|
49,265 |
|
|
|
53,946 |
|
Long-term debt |
|
|
151,819 |
|
|
|
167,486 |
|
Convertible debentures |
|
|
554,854 |
|
|
|
667,624 |
|
Deferred tax liability |
|
|
219,311 |
|
|
|
265,845 |
|
Other liabilities |
|
|
320 |
|
|
|
3,907 |
|
Total liabilities |
|
|
1,290,497 |
|
|
|
1,560,049 |
|
Shareholders'
equity |
|
|
|
|
|
|
|
|
Common stock ($0.0001 par value; 990,000,000 shares authorized;
463,802,393 and 265,423,304 shares issued and outstanding,
respectively) |
|
|
46 |
|
|
|
46 |
|
Additional paid-in capital |
|
|
4,954,547 |
|
|
|
4,792,406 |
|
Accumulated other comprehensive income |
|
|
9,595 |
|
|
|
152,668 |
|
Accumulated Deficit |
|
|
(527,900 |
) |
|
|
(486,050 |
) |
Total Tilray
shareholders' equity |
|
|
4,436,288 |
|
|
|
4,459,070 |
|
Non-controlling interests |
|
|
36,701 |
|
|
|
6,243 |
|
Total shareholders'
equity |
|
|
4,472,989 |
|
|
|
4,465,313 |
|
Total liabilities and
shareholders' equity |
|
$ |
5,763,486 |
|
|
$ |
6,025,362 |
|
Condensed Consolidated Statements of Net Income (Loss)
and Comprehensive (Loss)
|
|
Three months ended November 30, |
|
|
Six months endedNovember 30, |
|
|
Three months ended November 30, |
|
|
Six months ended November 30, |
|
(In thousands of
United States dollars) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Change |
|
|
%Change |
|
|
Change |
|
|
%Change |
|
Net revenue |
|
$ |
155,153 |
|
|
$ |
129,459 |
|
|
$ |
323,176 |
|
|
$ |
246,949 |
|
|
$ |
25,694 |
|
|
20 |
% |
|
|
$ |
76,227 |
|
|
31 |
% |
|
Cost of goods sold |
|
|
122,387 |
|
|
|
94,176 |
|
|
|
239,455 |
|
|
|
176,721 |
|
|
|
28,211 |
|
|
30 |
% |
|
|
|
62,734 |
|
|
35 |
% |
|
Gross profit |
|
|
32,766 |
|
|
|
35,283 |
|
|
|
83,721 |
|
|
|
70,228 |
|
|
|
(2,517 |
) |
|
(7 |
%) |
|
|
|
13,493 |
|
|
19 |
% |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
0 |
|
|
|
|
|
General and administrative |
|
|
33,469 |
|
|
|
28,273 |
|
|
|
82,956 |
|
|
|
54,245 |
|
|
|
5,196 |
|
|
18 |
% |
|
|
|
28,711 |
|
|
53 |
% |
|
Selling |
|
|
9,210 |
|
|
|
6,079 |
|
|
|
16,642 |
|
|
|
11,896 |
|
|
|
3,131 |
|
|
52 |
% |
|
|
|
4,746 |
|
|
40 |
% |
|
Amortization |
|
|
29,016 |
|
|
|
4,208 |
|
|
|
59,755 |
|
|
|
8,335 |
|
|
|
24,808 |
|
|
590 |
% |
|
|
|
51,420 |
|
|
617 |
% |
|
Marketing and promotion |
|
|
7,120 |
|
|
|
4,252 |
|
|
|
12,585 |
|
|
|
9,177 |
|
|
|
2,868 |
|
|
67 |
% |
|
|
|
3,408 |
|
|
37 |
% |
|
Research and development |
|
|
515 |
|
|
|
225 |
|
|
|
1,300 |
|
|
|
345 |
|
|
|
290 |
|
|
129 |
% |
|
|
|
955 |
|
|
277 |
% |
|
Transaction costs |
|
|
8,120 |
|
|
|
18,206 |
|
|
|
33,699 |
|
|
|
20,664 |
|
|
|
(10,086 |
) |
|
(55 |
%) |
|
|
|
13,035 |
|
|
100 |
% |
|
Total operating expenses |
|
|
87,450 |
|
|
|
61,243 |
|
|
|
206,937 |
|
|
|
104,662 |
|
|
|
26,207 |
|
|
43 |
% |
|
|
|
102,275 |
|
|
98 |
% |
|
Operating loss |
|
|
(54,684 |
) |
|
|
(25,960 |
) |
|
|
(123,216 |
) |
|
|
(34,434 |
) |
|
|
(28,724 |
) |
|
111 |
% |
|
|
|
(88,782 |
) |
|
258 |
% |
|
Interest expense, net |
|
|
(9,940 |
) |
|
|
(4,832 |
) |
|
|
(20,110 |
) |
|
|
(10,568 |
) |
|
|
(5,108 |
) |
|
106 |
% |
|
|
|
(9,542 |
) |
|
90 |
% |
|
Non-operating income (expense),
net |
|
|
64,750 |
|
|
|
(72,649 |
) |
|
|
113,610 |
|
|
|
(86,008 |
) |
|
|
137,399 |
|
|
(189 |
%) |
|
|
|
199,618 |
|
|
(232 |
%) |
|
Income (loss) before income
taxes |
|
|
126 |
|
|
|
(103,441 |
) |
|
|
(29,716 |
) |
|
|
(131,010 |
) |
|
|
103,567 |
|
|
(100 |
%) |
|
|
|
101,294 |
|
|
(77 |
%) |
|
Income taxes (recovery) |
|
|
(5,671 |
) |
|
|
(14,192 |
) |
|
|
(909 |
) |
|
|
(20,017 |
) |
|
|
8,521 |
|
|
(60 |
%) |
|
|
|
19,108 |
|
|
(95 |
%) |
|
Net income (loss) |
|
$ |
5,797 |
|
|
$ |
(89,249 |
) |
|
$ |
(28,807 |
) |
|
$ |
(110,993 |
) |
|
$ |
95,046 |
|
|
(106 |
%) |
|
|
$ |
82,186 |
|
|
(74 |
%) |
|
Total net income (loss)
attributable to Shareholders of Tilray Inc. |
|
$ |
(201 |
) |
|
$ |
(99,900 |
) |
|
$ |
(41,850 |
) |
|
$ |
(134,243 |
) |
|
$ |
99,699 |
|
|
(100 |
%) |
|
|
$ |
92,393 |
|
|
(69 |
%) |
|
Weighted average number of common
shares - basic |
|
|
460,254,275 |
|
|
|
243,477,655 |
|
|
|
454,797,598 |
|
|
|
242,207,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
shares - diluted |
|
|
460,254,275 |
|
|
|
243,477,655 |
|
|
|
454,797,598 |
|
|
|
242,207,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share -
basic |
|
$ |
(0.00 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share -
diluted |
|
$ |
(0.00 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue by Operating Segment
(In thousands of
United States dollars) |
|
Three monthsendedNovember
30,2021 |
|
|
%
ofTotalrevenue |
|
|
Three monthsendedNovember
30,2020 |
|
|
%
ofTotalrevenue |
|
|
Six monthsendedNovember
30,2021 |
|
|
%
ofTotalrevenue |
|
|
Six monthsendedNovember
30,2020 |
|
|
%
ofTotalrevenue |
|
Cannabis revenue |
|
$ |
58,775 |
|
|
38 |
% |
|
|
$ |
54,766 |
|
|
42 |
% |
|
|
$ |
129,224 |
|
|
40 |
% |
|
|
$ |
105,968 |
|
|
43 |
% |
|
Distribution revenue |
|
|
68,869 |
|
|
44 |
% |
|
|
|
73,983 |
|
|
57 |
% |
|
|
|
136,055 |
|
|
42 |
% |
|
|
|
140,271 |
|
|
57 |
% |
|
Beverage alcohol revenue |
|
|
13,707 |
|
|
9 |
% |
|
|
|
710 |
|
|
1 |
% |
|
|
|
29,168 |
|
|
9 |
% |
|
|
|
710 |
|
|
0 |
% |
|
Wellness revenue |
|
|
13,802 |
|
|
9 |
% |
|
|
|
— |
|
|
0 |
% |
|
|
|
28,729 |
|
|
9 |
% |
|
|
|
— |
|
|
0 |
% |
|
Net revenue |
|
$ |
155,153 |
|
|
100 |
% |
|
|
$ |
129,459 |
|
|
100 |
% |
|
|
$ |
323,176 |
|
|
100 |
% |
|
|
$ |
246,949 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cannabis Revenue by Market Channel
|
|
Three months ended November 30, |
|
|
Six months ended November 30, |
|
(In thousands of
United States dollars) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Revenue from Canadian medical cannabis products |
|
$ |
7,929 |
|
|
11 |
% |
|
|
$ |
6,260 |
|
|
9 |
% |
|
|
$ |
16,303 |
|
|
10 |
% |
|
|
$ |
12,640 |
|
|
9 |
% |
|
Revenue from Canadian
adult-use cannabis products |
|
|
49,535 |
|
|
67 |
% |
|
|
|
58,175 |
|
|
83 |
% |
|
|
|
119,128 |
|
|
73 |
% |
|
|
|
115,123 |
|
|
84 |
% |
|
Revenue from wholesale
cannabis products |
|
|
2,259 |
|
|
3 |
% |
|
|
|
1,440 |
|
|
2 |
% |
|
|
|
3,959 |
|
|
2 |
% |
|
|
|
5,232 |
|
|
4 |
% |
|
Revenue from international
cannabis products |
|
|
13,706 |
|
|
19 |
% |
|
|
|
4,280 |
|
|
6 |
% |
|
|
|
23,972 |
|
|
15 |
% |
|
|
|
4,280 |
|
|
3 |
% |
|
Total cannabis revenue |
|
|
73,429 |
|
|
|
|
|
|
|
70,155 |
|
|
|
|
|
|
|
163,362 |
|
|
|
|
|
|
|
137,275 |
|
|
|
|
|
Excise taxes |
|
|
(14,654 |
) |
|
(20 |
%) |
|
|
|
(15,389 |
) |
|
(22 |
%) |
|
|
|
(34,138 |
) |
|
(21 |
%) |
|
|
|
(31,307 |
) |
|
(23 |
%) |
|
Total cannabis net
revenue |
|
$ |
58,775 |
|
|
|
|
|
|
$ |
54,766 |
|
|
|
|
|
|
$ |
129,224 |
|
|
|
|
|
|
$ |
105,968 |
|
|
|
|
|
Other Financial Information: Gross Margin and Adjusted
Gross Margin
(In thousands of
United States dollars) |
|
Three months ended November 30, 2021 |
|
|
|
Cannabis |
|
|
Beverage |
|
|
Distribution |
|
|
Wellness |
|
|
Total |
|
Gross revenue |
|
$ |
73,429 |
|
|
$ |
14,544 |
|
|
$ |
68,869 |
|
|
$ |
13,802 |
|
|
$ |
170,644 |
|
Excise taxes |
|
|
(14,654 |
) |
|
|
(837 |
) |
|
|
— |
|
|
|
— |
|
|
|
(15,491 |
) |
Net revenue |
|
|
58,775 |
|
|
|
13,707 |
|
|
|
68,869 |
|
|
|
13,802 |
|
|
|
155,153 |
|
Cost of goods sold |
|
|
45,259 |
|
|
|
5,921 |
|
|
|
61,237 |
|
|
|
9,970 |
|
|
|
122,387 |
|
Gross profit |
|
$ |
13,516 |
|
|
$ |
7,786 |
|
|
$ |
7,632 |
|
|
$ |
3,832 |
|
|
$ |
32,766 |
|
Gross margin |
|
|
23 |
% |
|
|
57 |
% |
|
|
11 |
% |
|
|
28 |
% |
|
|
21 |
% |
Adjusted gross profit |
|
$ |
25,516 |
|
|
$ |
7,786 |
|
|
$ |
7,632 |
|
|
$ |
3,832 |
|
|
$ |
44,766 |
|
Adjusted gross margin |
|
|
43 |
% |
|
|
57 |
% |
|
|
11 |
% |
|
|
28 |
% |
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended November 30, 2020 |
|
|
|
Cannabis |
|
|
Beverage |
|
|
Distribution |
|
|
Wellness |
|
|
Total |
|
Gross revenue |
|
$ |
70,155 |
|
|
$ |
754 |
|
|
$ |
73,983 |
|
|
$ |
— |
|
|
$ |
144,892 |
|
Excise taxes |
|
|
(15,389 |
) |
|
|
(44 |
) |
|
|
— |
|
|
|
— |
|
|
|
(15,433 |
) |
Net revenue |
|
|
54,766 |
|
|
|
710 |
|
|
|
73,983 |
|
|
|
— |
|
|
|
129,459 |
|
Cost of goods sold |
|
|
29,632 |
|
|
|
281 |
|
|
|
64,263 |
|
|
|
— |
|
|
|
94,176 |
|
Gross profit |
|
$ |
25,134 |
|
|
$ |
429 |
|
|
$ |
9,720 |
|
|
$ |
— |
|
|
$ |
35,283 |
|
Gross margin |
|
|
46 |
% |
|
|
60 |
% |
|
|
13 |
% |
|
|
|
|
|
|
27 |
% |
Adjusted gross profit |
|
$ |
25,134 |
|
|
$ |
429 |
|
|
$ |
9,720 |
|
|
$ |
— |
|
|
$ |
35,283 |
|
Adjusted gross margin |
|
|
46 |
% |
|
|
60 |
% |
|
|
13 |
% |
|
|
|
|
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended November 30, 2021 |
|
|
|
Cannabis |
|
|
Beverage |
|
|
Distribution |
|
|
Wellness |
|
|
Total |
|
Gross revenue |
|
$ |
163,362 |
|
|
$ |
31,027 |
|
|
$ |
136,055 |
|
|
$ |
28,729 |
|
|
$ |
359,173 |
|
Excise taxes |
|
|
(34,138 |
) |
|
|
(1,859 |
) |
|
|
— |
|
|
|
— |
|
|
|
(35,997 |
) |
Net revenue |
|
|
129,224 |
|
|
|
29,168 |
|
|
|
136,055 |
|
|
|
28,729 |
|
|
|
323,176 |
|
Cost of goods sold |
|
|
85,450 |
|
|
|
12,583 |
|
|
|
120,527 |
|
|
|
20,895 |
|
|
|
239,455 |
|
Gross profit |
|
$ |
43,774 |
|
|
$ |
16,585 |
|
|
$ |
15,528 |
|
|
$ |
7,834 |
|
|
$ |
83,721 |
|
Gross margin |
|
|
34 |
% |
|
|
57 |
% |
|
|
11 |
% |
|
|
27 |
% |
|
|
26 |
% |
Adjusted gross profit |
|
$ |
55,774 |
|
|
$ |
16,585 |
|
|
$ |
15,528 |
|
|
$ |
7,834 |
|
|
$ |
95,721 |
|
Adjusted gross margin |
|
|
43 |
% |
|
|
57 |
% |
|
|
11 |
% |
|
|
27 |
% |
|
|
30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended November 30, 2020 |
|
|
|
Cannabis |
|
|
Beverage |
|
|
Distribution |
|
|
Wellness |
|
|
Total |
|
Gross revenue |
|
$ |
137,275 |
|
|
$ |
754 |
|
|
$ |
140,271 |
|
|
$ |
— |
|
|
$ |
278,300 |
|
Excise taxes |
|
|
(31,307 |
) |
|
|
(44 |
) |
|
|
— |
|
|
|
— |
|
|
|
(31,351 |
) |
Net revenue |
|
|
105,968 |
|
|
|
710 |
|
|
|
140,271 |
|
|
|
— |
|
|
|
246,949 |
|
Cost of goods sold |
|
|
55,407 |
|
|
|
281 |
|
|
|
121,033 |
|
|
|
— |
|
|
|
176,721 |
|
Gross profit |
|
$ |
50,561 |
|
|
$ |
429 |
|
|
$ |
19,238 |
|
|
$ |
— |
|
|
$ |
70,228 |
|
Gross margin |
|
|
48 |
% |
|
|
60 |
% |
|
|
14 |
% |
|
|
|
|
|
|
28 |
% |
Adjusted gross profit |
|
$ |
50,561 |
|
|
$ |
429 |
|
|
$ |
19,238 |
|
|
$ |
— |
|
|
$ |
70,228 |
|
Adjusted gross margin |
|
|
48 |
% |
|
|
60 |
% |
|
|
14 |
% |
|
|
|
|
|
|
28 |
% |
Other Financial Information: Adjusted Earnings before
Interest, Taxes, and Amortization
(In thousands of
United States dollars) |
|
For the three months endedNovember
30, |
|
|
For the six months endedNovember
30, |
|
Adjusted EBITDA
reconciliation: |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
|
|
5,797 |
|
|
|
(89,249 |
) |
|
|
(28,807 |
) |
|
|
(110,993 |
) |
Income taxes |
|
|
(5,671 |
) |
|
|
(14,192 |
) |
|
|
(909 |
) |
|
|
(20,017 |
) |
Interest expense, net |
|
|
9,940 |
|
|
|
4,832 |
|
|
|
20,110 |
|
|
|
10,568 |
|
Non-operating expense (income),
net |
|
|
(64,750 |
) |
|
|
72,649 |
|
|
|
(113,610 |
) |
|
|
86,008 |
|
Amortization |
|
|
37,471 |
|
|
|
12,031 |
|
|
|
76,804 |
|
|
|
23,010 |
|
Stock-based compensation |
|
|
8,253 |
|
|
|
5,489 |
|
|
|
17,670 |
|
|
|
8,339 |
|
Facility start-up and closure
costs |
|
|
1,700 |
|
|
|
— |
|
|
|
7,900 |
|
|
|
— |
|
Lease expense |
|
|
900 |
|
|
|
373 |
|
|
|
1,600 |
|
|
|
630 |
|
Inventory write down |
|
|
12,000 |
|
|
|
— |
|
|
|
12,000 |
|
|
|
— |
|
Transaction costs |
|
|
8,120 |
|
|
|
18,206 |
|
|
|
33,699 |
|
|
|
20,664 |
|
Adjusted EBITDA |
|
$ |
13,760 |
|
|
$ |
10,139 |
|
|
$ |
26,457 |
|
|
$ |
18,209 |
|
Other Financial Information: Free Cash Flow and Adjusted
Free Cash Flow
|
|
Three months endedNovember
30, |
|
|
Six months endedNovember 30, |
|
(In thousands of
United States dollars) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net cash provided by (used in) operating activities |
|
$ |
(17,121 |
) |
|
$ |
2,438 |
|
|
$ |
(110,348 |
) |
|
$ |
(53,662 |
) |
Less: investments in capital
and intangible assets, net |
|
|
(6,972 |
) |
|
|
(9,301 |
) |
|
|
(15,592 |
) |
|
|
(23,256 |
) |
Free cash flow |
|
$ |
(24,093 |
) |
|
$ |
(6,863 |
) |
|
$ |
(125,940 |
) |
|
$ |
(76,918 |
) |
Cash expended related to
acquisitions |
|
|
8,120 |
|
|
|
18,206 |
|
|
|
56,510 |
|
|
|
20,664 |
|
Adjusted free cash flow |
|
$ |
(15,973 |
) |
|
$ |
11,343 |
|
|
$ |
(69,430 |
) |
|
$ |
(56,254 |
) |
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