Knight Therapeutics Inc. (TSX: GUD) ("Knight" or “the Company”), a
leading Pan-American (ex-US) specialty pharmaceutical company,
today reported financial results for its fourth quarter and year
ended December 31, 2022. All currency amounts are in thousands
except for share and per share amounts. All currencies are Canadian
unless otherwise specified.
Financial information as at and for the year ended December 31,
2022 is unaudited.
2022 Highlights
Financials
- Revenues were $293,563, an increase
of $50,085 or 21% over prior year.
- Gross margin of $138,061 or 47% of
revenues compared to $115,412 or 47% of revenues in prior
year.
- Adjusted EBITDA1 was $54,032, an
increase of $16,027 or 42% over prior year.
- Net loss on financial assets
measured at fair value through profit or loss of $20,677.
- Net loss was $29,892, compared to
net income of $15,675 in prior year.
- Cash inflow from operations was
$40,481, compared to a cash inflow from operations of $44,618 in
prior year.
Corporate Developments
- Entered into a five-year secured
loan of $52,416 (US$38,500) loan denominated in select LATAM
currencies with International Finance Corporation (“IFC”).
- Executed a settlement agreement
with former controlling shareholders of GBT and received $6,030
(US$4,600).
- Launched a NCIB in July 2022 to
purchase up to 7,988,986 common shares of the Company over the next
12 months.
- Purchased 5,649,189 common shares
through Knight’s through Normal Course Issuer Bid (“NCIB”) at an
average price of $5.34 for an aggregate cash consideration of
$30,069.
- Shareholders re-elected Jonathan
Ross Goodman, Samira Sakhia, James C. Gale, Robert N. Lande,
Michael J. Tremblay, Nicolás Sujoy and Janice Murray on the Board
of Directors.
- Hired Leopoldo Bosano as VP
Manufacturing and Operations.
Products
- Launched Lenvima®, Halaven® and
Rembre® in Colombia in Q1-22.
- Entered into exclusive license and
supply agreements with Rigel Pharmaceuticals to commercialize
fostamatinib in LATAM in May 2022.
- Entered into an exclusive license,
distribution and supply agreement with Helsinn for AKYNZEO® oral/IV
(netupitant/palonosetron/fosnetupitant/palonosetron) in Canada,
Brazil and select LATAM countries and ALOXI® oral/IV (palonosetron)
in Canada in May 2022.
- Relaunched AKYNZEO® in Canada,
Brazil and Argentina, and ALOXI® oral/IV in Canada in second half
of 2022.
- Transferred marketing authorization
of Exelon® (rivastigmine) and assumed commercial activities in
Brazil, Colombia, Argentina, Mexico, Chile, Peru, Ecuador, Canada
and re-launched Exelon® in Brazil and certain other LATAM
countries.
- Submitted tafasitamab in
combination with lenalidomide for the treatment of adult patients
with relapsed or refractory diffuse large B-cell lymphoma (DLBCL)
who are not eligible for autologous stem cell transplantation
(ASCT) to ANVISA for regulatory approval in Brazil and Colombia in
Q4-22 and Argentina in Q1-23.
- In-license three branded generics
products for key territories in LATAM.
- Obtained regulatory approval for
Palbocil® (palbociclib) in Argentina in Q4-22.
- Submitted two branded generic
products (palbociclib and pomalidomide) for regulatory approval in
Chile and Colombia in Q4-2022.
Subsequent Event
- Purchased an additional 1,279,900
common shares through NCIB for an aggregate cash consideration of
$6,577.
_______________________
1 Adjusted EBITDA is a non-GAPP measure, refer
to the definitions below in section “Non-Gaap measures” for
additional details
“I am excited to announce that we delivered
another record year in 2022, with revenues of over $290,000, an
increase of 21% over last year and record adjusted EBITDA of over
$54,000, an increase of 42% over last year. This growth was
generated by the full year effect of Exelon® and the continued
performance of our recent launches, including Lenvima®, Halaven®
and Rembre® in Colombia. While delivering on record results, we
have completed the transfer of the commercial activities to Knight
for Exelon® and Akynzeo® in our key markets. We continued to
advance our pipeline with the regulatory submission of tafasitamab
in Brazil, Colombia and Argentina as well as two branded generic
products in Chile and Colombia. In addition, to the in-licensing of
Akynzeo®, we have expanded our pipeline portfolio in our key Latin
America markets with fostamatinib and three branded generic
products,” said Samira Sakhia, President and Chief Executive
Officer of Knight Therapeutics Inc.
SELECT FINANCIAL RESULTS REPORTED UNDER
IFRS[In thousands of Canadian dollars]
[Unaudited]
| |
|
|
Change |
|
|
Change |
|
|
Q4-22 |
Q4-21 |
|
$1 |
|
%2 |
YTD-22 |
YTD-21 |
|
$1 |
|
%2 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
81,655 |
|
58,273 |
|
|
23,382 |
|
40 |
% |
293,563 |
|
243,478 |
|
50,085 |
|
21 |
% |
| Gross margin |
36,888 |
|
28,195 |
|
|
8,693 |
|
31 |
% |
138,061 |
|
115,412 |
|
22,649 |
|
20 |
% |
| Operating expenses4 |
67,938 |
|
42,829 |
|
|
(25,109 |
) |
59 |
% |
179,105 |
|
128,244 |
|
(50,861 |
) |
40 |
% |
|
Net (loss) income |
(15,188 |
) |
(8,301 |
) |
|
(6,887 |
) |
83 |
% |
(29,892 |
) |
15,675 |
N/A |
N/A |
|
EBITDA3 |
13,330 |
|
4,101 |
|
|
9,229 |
|
225 |
% |
53,541 |
|
35,865 |
|
17,676 |
|
49 |
% |
|
Adjusted EBITDA3 |
13,821 |
|
5,696 |
|
|
8,125 |
|
143 |
% |
54,032 |
|
38,005 |
|
16,027 |
|
42 |
% |
1 A positive variance represents a positive
impact to net income (loss) and a negative variance represents a
negative impact to net income (loss) 2 Percentage change is
presented in absolute values3 EBITDA and adjusted EBITDA are
non-GAAP measures, refer to the definitions in section “Non-Gaap
measures” for additional details4 Operating expenses
include selling and marketing expenses, general and
administrative expenses, research and development expenses,
amortization and impairment of non current assets
SELECT FINANCIAL RESULTS AT CONSTANT
CURRENCY[In thousands of Canadian dollars]
[Unaudited]
|
|
Q4-22 |
Q4-21 |
Variance |
YTD-22 |
YTD-21 |
Variance |
|
|
Excluding impact of IAS 293 |
|
|
Constant Currency3 |
|
$1 |
|
%2 |
|
Constant Currency3 |
|
$1 |
|
%2 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
83,806 |
58,370 |
|
25,436 |
|
44 |
% |
291,770 |
243,731 |
|
48,039 |
|
20 |
% |
| Gross margin |
41,931 |
29,692 |
|
12,239 |
|
41 |
% |
150,359 |
120,694 |
|
29,665 |
|
25 |
% |
|
Operating expenses4 |
46,173 |
42,509 |
|
(3,664 |
) |
9 |
% |
151,158 |
124,865 |
|
(26,293 |
) |
21 |
% |
|
EBITDA3 |
13,330 |
4,258 |
|
9,072 |
|
213 |
% |
53,541 |
36,376 |
|
17,165 |
|
47 |
% |
|
Adjusted EBITDA3 |
13,821 |
5,884 |
|
7,937 |
|
135 |
% |
54,032 |
38,551 |
|
15,481 |
|
40 |
% |
1 A positive variance represents a positive
impact to adjusted EBITDA and a negative variance represents a
negative impact to adjusted EBITDA2 Percentage change is
presented in absolute values3 Financial results at constant
currency and excluding impact of IAS 29, EBITDA and adjusted EBITDA
are non GAAP measures, refer to the specific sections for
additional details4 Operating expenses include selling and
marketing expenses, general and administrative expenses,
research and development expenses, amortization and
impairment of non-current assets
SELECT BALANCE SHEET ITEMS[In
thousands of Canadian dollars]
[Unaudited]
| |
|
|
Change |
|
|
12-31-22 |
12-31-21 |
$ |
%1 |
| |
|
|
|
|
| Cash, cash equivalents and
marketable securities |
172,674 |
149,502 |
23,172 |
|
15 |
% |
| Trade and other receivables |
151,669 |
103,875 |
47,794 |
|
46 |
% |
| Inventory |
92,489 |
72,397 |
20,092 |
|
28 |
% |
| Financial assets |
176,563 |
192,443 |
(15,880 |
) |
8 |
% |
| Accounts payable and accrued
liabilities |
108,730 |
65,590 |
43,140 |
|
66 |
% |
|
Bank loans |
70,072 |
35,927 |
34,145 |
|
95 |
% |
1 Percentage change is presented in absolute values
Revenues: For the quarter ended
December 31, 2022, excluding the impact of hyperinflation, revenues
increased by $27,448 or 49% compared to the same period in prior
year. The increase in revenues excluding the impact of
hyperinflation is explained by the following:
| |
Excluding impact of IAS 293 |
| |
Q4-22 |
Q4-21 |
Change |
|
Therapeutic Area |
$ |
$ |
|
$1 |
%2 |
|
Oncology/Hematology |
29,343 |
23,534 |
|
5,809 |
25 |
% |
| Infectious Diseases |
32,744 |
20,211 |
|
12,533 |
62 |
% |
| Other Specialty |
21,760 |
12,613 |
|
9,147 |
73 |
% |
|
Total |
83,806 |
56,358 |
|
27,448 |
49 |
% |
1 A positive variance represents a positive impact to net income
due to the application of IAS 29 and a negative variance represents
a negative impact to net income due to the application of IAS
292 Percentage change is presented in absolute
values3 Revenues excluding the impact of IAS 29 is a non-GAAP
measure, refer to section “Non-GAAP measures” for additional
details.
-
Oncology/hematology: The increase in revenues of
$5,809 is driven by growth in our key promoted brands, including
new launches of Lenvima® and Halaven® in Colombia in Q1-22, the
growth of key promoted products including Lenvima® and Trelstar®
and the assumption of commercial activities of Akynzeo® in Brazil
and Canada. This increase is offset by a reduction in revenues of
our branded generics products due to their lifecycle including the
market entrance of new competitors.
- Infectious
disease: The portfolio grew by approximately $15,900,
excluding the impact of the planned transition and termination of
the Gilead Amendment. This growth is due to an increase in patient
treatments as our markets reduce COVID-19 restrictions, growth of
our key promoted products and a one-time sales contract with the
Ministry of Health in Brazil for Ambisome® (“MOH Contract”). Knight
recorded $7,500 in revenues, which represents 40% of the expected
deliveries under the MOH contract in Q4-22 and the balance of the
contract is expected to be delivered in the first six months of
2023
- Other specialty:
The growth is mainly due to the incremental revenue of $5,092 due
to the change in accounting treatment of Exelon® from net profit
transfer from Novartis to revenues with related cost of sales upon
the transition of commercial activities to Knight as well as the
timing of purchases of products by certain customers.
For the year ended December 31, 2022, excluding
the impact of hyperinflation, revenues increased by $52,532 or 22%
compared to the same period in prior year. The growth in revenues
excluding the impact of hyperinflation is explained by the
following:
| |
Excluding impact of IAS 293 |
| |
YTD-22 |
YTD-21 |
Change |
|
Therapeutic Area |
$ |
$ |
|
$1 |
%2 |
|
Oncology/Hematology |
105,464 |
89,079 |
|
16,385 |
18 |
% |
| Infectious Diseases |
116,530 |
101,650 |
|
14,880 |
15 |
% |
| Other Specialty |
69,776 |
48,509 |
|
21,267 |
44 |
% |
|
Total |
291,770 |
239,238 |
|
52,532 |
22 |
% |
1 A positive variance represents a positive impact to net
income due to the application of IAS 29 and a negative variance
represents a negative impact to net income due to the application
of IAS 292 Percentage change is presented in absolute
values3 Revenues excluding the impact of IAS 29 is a non-GAAP
measure, refer to section “Non-GAAP measures” for additional
details
-
Oncology/hematology: The increase in revenues of
$15,960 is driven by growth in our key promoted brands, including
the launches of Lenvima® and Halaven® in Colombia in Q1-22, the
continued growth of key promoted products including Lenvima®,
Halaven® and Trelstar® and the assumption of commercial activities
of Akynzeo® in Brazil and Canada. This increase is offset by a
reduction in revenues of our branded generics products due to their
lifecycle including the market entrance of new competitors.
- Infectious
disease: The portfolio grew by approximately $29,080 due
to increase in patient treatments as our markets reduce COVID-19
restrictions, growth of our key promoted products and a one-time
sales contract with the Ministry of Health in Brazil for Ambisome®
(“MOH Contract”). Knight recorded $7,500 in revenues, which
represents 40% of the expected deliveries under the MOH contract in
Q4-22 and the balance of the contract is expected to be delivered
in the first six months of 2023. The growth is offset by an
estimated $14,200 due to lower demand for certain of our infectious
diseases products to treat invasive fungal infections associated
with COVID-19 as well as the planned transition and termination
agreement of the Gilead Amendment effective July 1, 2022.
- Other specialty:
The increase is mainly driven by the timing of the acquisition of
Exelon® as well as a change in the accounting treatment of Exelon®.
The full year effect of the Exelon® transaction executed on May 26,
2021, represents an incremental revenue of $15,282. The change in
accounting treatment from net profit transfer from Novartis to
recognition of revenues with related cost of sales upon transition
of commercial activities to Knight led to an increase of $6,427 in
revenues.
Gross margin: For the quarter ended December
31, 2022, gross margin as a percentage of revenues was 45% compared
to 48% in the same prior year period. The decrease in the gross
margin, as a percentage of revenues, is explained by the impact of
hyperinflation. Excluding the impact of IAS 29, gross margin, as a
percentage of revenues, was 50% in Q4-22 and 51% in Q4-21.
For the year ended December 31, 2022, there was no significant
difference in gross margin, as a percentage of revenues, compared
to the same prior year period. Excluding the impact of IAS 29,
gross margin, as a percentage of revenues, was 52% for year ended
December 31, 2022 compared to 50% in prior year. The increase in
the gross margin is explained by the change in product mix
including the full year effect of the acquisition of Exelon®.
Selling and marketing: For the
quarter ended December 31, 2022, S&M increased by $2,111 or
17%. Excluding the impact of IAS 29, the increase was $3,162 or 27%
driven by an increase in compensation expenses including severance
cost of $1,116 due to certain restructuring activities, an increase
in selling and marketing activities related to key promoted
products including spend on Exelon® and Akynzeo® as well as certain
variable costs such as logistics fees due to higher sales.
For the year ended December 31, 2022, S&M
increased by $9,396 or 24%. Excluding the impact of IAS 29, the
increase is $9,827 or 26% mainly driven by an increase in
compensation expenses including severances of $1,146, an increase
in selling and marketing activities related to key promoted
products including the spend on Exelon® and Akynzeo as well as
certain variable costs such as logistics fees due to higher
sales.
General and administrative: For
the quarter ended on December 31, 2022, there was no significant
variation in General and administrative expenses. For the year
ended December 31, 2022, G&A increased by $4,852 or 14%.
Excluding the impact of IAS 29, the increase is $3,721 or 11%,
mainly driven by an increase in compensation expense certain
consulting and professional fees offset by the lower costs related
to the long-term incentive plan.
Research and development
expenses: For the quarter ended on December 31, 2022,
there was no significant variation in Research and development
expenses. For the year ended December 31, 2022, R&D increased
by $2,063 or 16%. Excluding the impact of IAS 29, the increase is
$1,653 or 14%, mainly driven by an increase in compensation
expenses and medical initiatives.
Amortization of intangible
assets: For the year ended December 31, 2022, amortization
of intangible assets increased by $10,566 or 26%, mainly explained
by the amortization of $11,667 related to the full year effect of
the acquisition of Exelon®.
Impairment of non-current
assets: Under hyperinflation accounting, non-monetary
assets including property plant and equipment, right-of-use assets
and intangible assets are adjusted by the inflation index and
converted back to Canadian Dollar (“CAD”) at the closing rate of
the reporting period. During a period where the inflation index is
higher than devaluation of the Argentine peso relative to the CAD,
the value of the non-monetary assets increases when converted to
CAD. During 2022, the increase in the value of non-monetary assets
in Argentina due to hyperinflation accounting, resulted in an
impairment of $21,654. The loss represents a write-down of certain
right-of-use assets, property, plant and equipment in Argentina,
and intangible assets related to branded generics intellectual
property to its recoverable amount.
In addition, during 2022, the Company recorded
an additional impairment loss of $2,330 representing the write-down
of the upfront and certain milestones payments made under certain
product license agreements as a result of changes in commercial
expectations.Interest income: Interest income is
the sum of interest income on financial instruments measured at
amortized cost and other interest income. For the quarter and year
ended December 31, 2022, interest income was $4,263 and $10,632, an
increase of 94% or $2,067 and 44% or $3,250 respectively, compared
to the same period in prior year due to higher interest rates on
cash and marketable securities as well as interest earned on
strategic loans.
Interest expense: The increase
for the quarter and year ended December 31, 2022, is due to the
increase of the Certificados de Depositos Interfinancieros (Brazil
interbank lending rate) (“CDI”) and Indicador Bancario de
Referencia (Colombia interbank lending rate) (“IBR”) rates
throughout 2022, partially offset by lower average loan balance due
to partial repayment of Itaú Unibanco Brasil and Bancolombia bank
loans.
In December 2022, the Company entered into a
loan with IFC for an amount of $52,416 denominated in BRL, COP, CLP
and MXN with interest rates ranging between 7.86% and 15.83% (“IFC
Loan”). The interest expense on bank loans is expected to increase
in 2023 due the IFC Loan as well as any future increases in
variable interest rates.
Adjusted EBITDA: For the
quarter ended December 31, 2022, adjusted EBITDA increased by
$8,125 or 143%. The growth in adjusted EBITDA is driven by an
increase in gross margin of $8,693, offset by an increase in
operating expenses.
For the year ended December 31, 2022 adjusted
EBITDA increased by $16,027 or 42%. The growth in adjusted EBITDA
is driven by an increase in gross margin of $22,649 offset by an
increase in operating expenses.
Net loss or income: For the
quarter ended December 31, 2022, net loss was $15,188 compared to
net loss of $8,301 for the same period last year. The increase in
net loss mainly resulted from the above-mentioned items and (1) an
increase in income tax recovery of $1,824 in the fourth quarter of
2022 due to the recognition of certain deferred tax assets as well
as (2) a higher net gain on the revaluation of financial assets
measured at fair value through profit or loss of $8,824 in the
fourth quarter of 2022 versus a net gain of $2,300 in the prior
year period mainly due to unrealized gains on revaluation of the
strategic fund investments resulting from positive mark-to-market
adjustments as a result of the increase in the share prices of one
of the publicly-traded equities held by one of the funds, (3)
foreign exchange loss of $1,633 versus a loss of $3,485 in the
prior year period due to appreciation of the CAD versus the US
dollar, and (4) a other expense for the quarter ended December 31,
2022 increase by $2,285 compared to the same period in prior year
mainly due to the increase in a provision related to certain import
tax claims.
For the year ended December 31, 2022, net loss
was $29,892 compared to net income of $15,675 in prior year. The
variance mainly resulted from the above-mentioned items and (1) an
income tax recovery of $17,125 in 2022 due to the recognition of
certain deferred tax assets due to timing differences related to
our financial assets, impairment of certain non-current assets and
certain intercompany transactions, compared to a prior year income
tax recovery of $8,985, (2) a lower net loss on the revaluation of
financial assets measured at fair value through profit or loss of
$20,677 in 2022 versus a net gain of $18,944 in prior year mainly
due to unrealized losses on revaluation of the strategic fund
investments as a result of the decline in the share prices of the
publicly-traded equities held by our strategic fund investments due
to general market conditions, as well as (3) foreign exchange gain
of $7,442 versus a loss of $3,737 in the prior year period due to
appreciation of the US dollar compared to CAD in 2022, and (4) gain
of $6,030 as a result of execution of settlement agreement and
general release with the former shareholders of GBT, partially
offset by expense due to the change in an accounting provision for
a potential liability.
Cash, cash equivalents and marketable
securities: As at December 31, 2022, Knight had $172,674
in cash, cash equivalents and marketable securities, including
$18,961 [USD 14,000] pledged as restricted cash collateral under
the IFC Loan. The increase of $23,172 or 15% as compared to
December 31, 2022 primarily relates to cash generated through
operating activities and funds received under the IFC Loan offset
by cash outflows from shares purchased through the NCIB, the
in-licensing of AKYNZEO® and ALOXI® from Helsinn as well as
fostamatinib from Rigel, repayments on bank loans and foreign
exchange gain on cash and cash equivalents.
Financial assets: As at
December 31, 2022, financial assets were at $176,563, a decrease of
$15,880 or 8%, as compared to the prior year, mainly due to a
negative mark-to-market adjustments of $23,325 driven mostly by the
decline in the share prices of the publicly-traded equities held by
our strategic fund investments due to general market conditions,
fund distributions of $6,478, decrease in equity investments and
derivatives of $1,918 mainly due to disposal of Medimetriks offset
by capital calls of $6,307, loans issued of $2,723 and foreign
exchange gains of $6,245.
Bank Loans: As at December 31,
2022, bank loans were at $70,072, an increase of $34,145 or 95% as
compared to the prior period, mainly due to the IFC loan offset by
loan repayments.
Product Updates
Commercial Execution
In the first quarter of 2022, Knight launched
three products in Colombia in Oncology/Hematology namely Lenvima®
for differentiated thyroid cancer and unresectable hepatocellular
carcinoma, Halaven® for metastatic breast cancer and soft tissue
sarcoma and Rembre®, a branded generic product, for chronic myeloid
leukemia.
As at March 22, 2023, the marketing
authorizations of Exelon® for Brazil, Colombia, Argentina, Mexico,
Chile, Peru, Ecuador and Canada were transferred to Knight. In
addition, Knight has assumed the commercial activities of Exelon®
in Colombia in Q2-22, Brazil, Argentina & Chile in Q3-22 and
Mexico, Peru, Ecuador & Canada in Q4-22.
On May 12, 2022, Knight entered into an
exclusive license, distribution and supply agreement with Helsinn
for AKYNZEO® oral/IV (netupitant/palonosetron /
fosnetupitant/palonosetron) in Canada, Brazil and select LATAM
countries and ALOXI® oral/IV (palonosetron) in Canada. Knight has
assumed commercial activities and re-launched AKYNZEO® in Brazil
and Argentina in July 2022 and in Canada in Q4-22.
On July 1, 2022, Knight has entered into a
transition and termination agreement with Gilead for a portfolio of
HIV and HCV products (“Gilead Amendment”). The portfolio is
currently distributed by Knight in one or more of the following
countries: Colombia, Peru, Ecuador, Bolivia and Paraguay. As part
of the Gilead Amendment, Knight distributes the products under a
mutually agreed amended commercial and financial terms, until the
earlier of April 30, 2023 and the completion of the regulatory,
logistical and commercial transition on a per country and product
basis. The Gilead Amendment does not impact any products
distributed by the Company on behalf of Gilead in Brazil.
Advancing our pipeline
portfolio
Knight submitted tafasitamab (sold as Monjuvi®
in the United States and Minjuvi® in Europe) in combination with
lenalidomide for the treatment of adult patients with relapsed or
refractory diffuse large B-cell lymphoma (DLBCL) who are not
eligible for autologous stem cell transplantation (ASCT) for
regulatory approval to ANVISA in Brazil in October 2022, INVIMA in
Colombia in December 2022 and ANMAT in Argentina in January 2023.
Knight expects to submit tafasitamab in other key LATAM countries
in the first half of 2023.
In December 2022, Knight obtained the regulatory
approval for Palbocil® (palbociclib) in Argentina. Knight launched
Palbocil® in Argentina in March 2023 and filed for regulatory
approval for Bapocil® (palbociclib) in Colombia and Chile in
Q4-2022. Palbocil® is indicated for the treatment of patients with
hormone receptor (HR)positive, human epidermal growth factor
receptor 2 (HER2)-negative locally advanced or metastatic breast
cancer in combination with an aromatase inhibitor as initial
endocrine-based therapy in post-menopausal women or fulvestrant in
patients with disease progression after prior endocrine
therapy.
In addition, during the fourth quarter of 2022,
Knight also submitted a branded generic of for regulatory approval
in Chile and Colombia. Furthermore, the Company has in-licensed
three branded generic products for our key markets in Latin
America.
NCIB
On July 12, 2022, the Company announced that the
Toronto Stock Exchange approved its notice of intention to launch a
NCIB ("2022 NCIB"). Under the terms of the 2022 NCIB, Knight may
purchase for cancellation up to 7,988,986 common shares of the
Company which represented 10% of its public float as at June 30,
2022. The 2022 NCIB commenced on July 14, 2022 and will end on the
earlier of July 13, 2023 or when the Company completes its maximum
purchases under the NCIB. Furthermore, Knight entered into an
agreement with a broker to facilitate purchases of its common
shares under the NCIB. Under Knight's automatic share purchase
plan, the broker may purchase common shares which would ordinarily
not be permitted due to regulatory restrictions or self-imposed
blackout periods.
For the year ended December 31, 2022, the
Company purchased 5,649,189 (2021: 12,321,864) common shares at an
average price of $5.34 (2021: $5.23) for aggregate cash
consideration of $30,069 (2021: $64,415). Subsequent to December
31, 2022, the Company purchased an additional 1,279,900 common
shares at an average purchase price of $5.14 for an aggregate cash
consideration of $6,577.
Financial Outlook
Knight provides guidance on revenues1 on a
non-GAAP basis. This is due to both the difficulty in predicting
Argentinian inflation rates and its IAS 29 impact.
For fiscal 2023, Knight expects to report $280
to $300 million in revenue and adjusted EBITDA, as a percentage of
revenues, between 13% to 15% of revenue. The guidance is based on a
number of assumptions, including but not limited to the
following:
- no revenues for
business development transactions not completed as of March 22,
2023
- discontinuation
of certain distribution agreements
- no interruptions
in supply whether due to global supply chain disruptions or general
manufacturing issues
- no new generic
entrants on our key pharmaceutical brands
- no unforeseen
changes to government mandated pricing regulations
- successful
commercial execution on product listing arrangements with HMOs,
insurers, key accounts, and public payers
- successful
execution and uptake of newly launched products
- no significant
restrictions or economic shut down due to the COVID-19
pandemic
- foreign currency
exchange rates remaining within forecasted ranges
Should any of the assumptions differ, the
financial outlook and the actual results may vary materially. Refer
to the risks and assumptions referred to in the Forward-Looking
Statements section of this news release for further details.
“Our team has been successfully executing on our
pan-American ex US strategy and has built a profitable business
with a unique platform and a strong foundation from where to
continue growing over the long term. We ended 2022 by
delivering record revenues and adjusted EBITDA as a result of
growing the current portfolio as well as adding new products that
leverage our existing infrastructure. Looking ahead, while we will
face headwinds with the entrance of new competitors on certain of
our banded generic products as well as incur investments related to
promoted products, Knight is expected to continue to generate
strong cash flows from operations and with over $150,000 of cash
and $175,000 of financial assets, we remain well positioned to
execute on our mission to acquire, in-license, develop and
commercialize pharmaceutical products in Latin America and Canada.”
said Jonathan Ross Goodman, Executive Chairman of Knight
Therapeutics Inc.
__________________________
1 Revenues excluding the impact of IAS 29 is a
non-GAAP measure, refer to the definitions in section “Non-Gaap
measures” for additional details
Conference Call Notice
Knight will host a conference call and audio webcast to discuss
its fourth quarter and year-end results today at 8:30 am ET. Knight
cordially invites all interested parties to participate in this
call.
Date: Thursday, March 23,
2023Time: 8:30 a.m. ETTelephone:
Toll Free: 1-888-256-1007 or International
1-647-484-0475Webcast: www.gud-knight.com or
WebcastThis is a listen-only audio webcast. Media Player is
required to listen to the broadcast.
Replay: An archived replay will be available
for 30 days at www.gud-knight.com
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in
Montreal, Canada, is a specialty pharmaceutical company focused on
acquiring or in-licensing and commercializing pharmaceutical
products for Canada and Latin America. Knight’s Latin American
subsidiaries operate under United Medical, Biotoscana Farma and
Laboratorio LKM. Knight Therapeutics Inc.'s shares trade on TSX
under the symbol GUD. For more information about Knight
Therapeutics Inc., please visit the company's web site at
www.gud-knight.com or www.sedar.com.
Forward-Looking Statement
This document contains forward-looking
statements for Knight Therapeutics Inc. and its subsidiaries. These
forward-looking statements, by their nature, necessarily involve
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the forward-looking
statements. Knight Therapeutics Inc. considers the assumptions on
which these forward-looking statements are based to be reasonable
at the time they were prepared but cautions the reader that these
assumptions regarding future events, many of which are beyond the
control of Knight Therapeutics Inc. and its subsidiaries, may
ultimately prove to be incorrect. Factors and risks, which could
cause actual results to differ materially from current expectations
are discussed in Knight Therapeutics Inc.'s Annual Report and in
Knight Therapeutics Inc.'s Annual Information Form for the year
ended December 31, 2021 as filed on www.sedar.com. Knight
Therapeutics Inc. disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information or future events, except as required by law.
CONTACT INFORMATION:
| Investor
Contact: |
|
|
| Knight Therapeutics Inc. |
|
|
| Samira Sakhia |
|
Arvind Utchanah |
| President & Chief Executive
Officer |
|
Chief Financial Officer |
| T: 514.484.4483 |
|
T. +598.2626.2344 |
| F: 514.481.4116 |
|
|
|
Email: info@knighttx.com |
|
Email: info@knighttx.com |
|
Website: www.gud-knight.com |
|
Website: www.gud-knight.com |
Financial Results
Impact of Hyperinflation
The Company applies IAS 29, Financial Reporting
in Hyperinflation Economies, as the Company’s Argentine
subsidiaries use the Argentine Peso as their functional currency.
IAS 29 requires that the financial statements of an entity whose
functional currency is the currency of a hyperinflationary economy
be adjusted based on an appropriate general price index to express
the effects of inflation. After applying for the effects of
translation, the statement of income is converted using the closing
foreign exchange rate of the month. The Company restated the
revenues and operating expenses of each of the following months in
the year ended December 31 using the following general price
indexes:
[Unaudited]
|
|
January |
February |
March |
April |
May |
June |
July |
August |
September |
October |
November |
December |
|
2022 |
1.88 |
1.79 |
1.68 |
1.58 |
1.51 |
1.43 |
1.33 |
1.25 |
1.17 |
1.10 |
1.05 |
1.00 |
|
2021 |
1.45 |
1.40 |
1.34 |
1.28 |
1.24 |
1.20 |
1.17 |
1.14 |
1.10 |
1.06 |
1.04 |
1.00 |
If the Company did not apply IAS 29, the effect on the Company’s
operating (loss) income would be as follows:
[Unaudited]
|
|
Q4-22 |
YTD-22 |
|
|
Reported under IFRS |
Excluding impact of IAS 291 |
Variance |
Reported under IFRS |
Excluding impact of IAS 291 |
Variance |
|
|
|
|
$2 |
|
%3 |
|
$2 |
%3 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
81,655 |
|
83,806 |
|
|
(2,151 |
) |
3 |
% |
293,563 |
|
291,770 |
|
|
1,793 |
|
1 |
% |
|
Cost of goods sold |
44,767 |
|
41,875 |
|
|
(2,892 |
) |
7 |
% |
155,502 |
|
141,411 |
|
|
(14,091 |
) |
10 |
% |
|
Gross margin |
36,888 |
|
41,931 |
|
|
(5,043 |
) |
12 |
% |
138,061 |
|
150,359 |
|
|
(12,298 |
) |
8 |
% |
|
Gross margin (%) |
45 |
% |
50 |
% |
|
|
47 |
% |
52 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
| Selling and marketing |
14,402 |
|
15,073 |
|
|
671 |
|
4 |
% |
48,474 |
|
48,083 |
|
|
(391 |
) |
1 |
% |
| General and administrative |
10,336 |
|
10,083 |
|
|
(253 |
) |
3 |
% |
40,150 |
|
37,451 |
|
|
(2,699 |
) |
7 |
% |
| Research and development |
4,140 |
|
4,043 |
|
|
(97 |
) |
2 |
% |
14,755 |
|
13,733 |
|
|
(1,022 |
) |
7 |
% |
| Amortization of intangible
assets |
17,156 |
|
16,724 |
|
|
(432 |
) |
3 |
% |
51,742 |
|
49,561 |
|
|
(2,181 |
) |
4 |
% |
|
Impairment of non-current assets |
21,904 |
|
250 |
|
|
(21,654 |
) |
n/a4 |
23,984 |
|
2,330 |
|
|
(21,654 |
) |
n/a4 |
|
Operating loss |
(31,050 |
) |
(4,242 |
) |
|
(26,808 |
) |
n/a4 |
(41,044 |
) |
(799 |
) |
|
(40,245 |
) |
n/a4 |
1 Financial results excluding the impact of
hyperinflation is a non-GAAP measure. Refer to section “Non-GAAP
measures” for additional details.2 A positive variance
represents a positive impact to net income due to the application
of IAS 29 and a negative variance represents a negative impact
to net income due to the application of IAS
29.3 Percentage change is presented in absolute
values.4 Percentage change not relevant.
[Unaudited]
|
|
Q4-21 |
YTD-21 |
|
|
Reported under IFRS |
Excluding impact of IAS 291 |
Variance |
Reported under IFRS |
Excluding impact of IAS 291 |
Variance |
|
|
|
$2 |
|
%3 |
|
$2 |
|
%3 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
58,273 |
|
56,358 |
|
|
1,915 |
|
3 |
% |
243,478 |
|
239,238 |
|
|
4,240 |
|
2 |
% |
|
Cost of goods sold |
30,078 |
|
27,724 |
|
|
(2,354 |
) |
8 |
% |
128,066 |
|
120,409 |
|
|
(7,657 |
) |
6 |
% |
|
Gross margin |
28,195 |
|
28,634 |
|
|
(439 |
) |
2 |
% |
115,412 |
|
118,829 |
|
|
(3,417 |
) |
3 |
% |
|
Gross margin (%) |
48 |
% |
51 |
% |
|
|
47 |
% |
50 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
| Selling and marketing |
12,291 |
|
11,911 |
|
|
(380 |
) |
4 |
% |
39,078 |
|
38,256 |
|
|
(822 |
) |
2 |
% |
| General and administrative |
10,002 |
|
9,795 |
|
|
(207 |
) |
2 |
% |
35,298 |
|
33,730 |
|
|
(1,568 |
) |
5 |
% |
| Research and development |
3,496 |
|
3,087 |
|
|
(409 |
) |
13 |
% |
12,692 |
|
12,080 |
|
|
(612 |
) |
5 |
% |
| Amortization of intangible
assets |
17,040 |
|
16,355 |
|
|
(685 |
) |
4 |
% |
41,176 |
|
38,824 |
|
|
(2,352 |
) |
6 |
% |
|
Operating loss |
(14,634 |
) |
(12,514 |
) |
|
(2,120 |
) |
17 |
% |
(12,832 |
) |
(4,061 |
) |
|
(8,771 |
) |
216 |
% |
1 Financial results excluding the impact of
hyperinflation is a non-GAAP measure. Refer to section “Non-GAAP
measures” for additional details.2 A positive variance
represents a positive impact to net income due to the application
of IAS 29 and a negative variance represents a negative impact to
net income due to the application of IAS 29.3 Percentage
change is presented in absolute values.
Impact of LATAM Foreign Exchange
volatility
The Company records its transactions and
balances in the respective functional currencies of its
subsidiaries. Generally, for the LATAM subsidiaries, the functional
currency is the local currency in the country where the entity
operates. In order to convert a foreign-denominated transaction to
the functional currency, the exchange rate prevailing at the date
of the transaction is used. Furthermore, upon consolidation, for
all subsidiaries with a functional currency other than CAD, the
respective statements of income are translated using the average
exchange rates for the period. The table below summarizes the
average foreign exchange rates used for the conversion of selected
LATAM currencies:
[Unaudited]
|
Rates |
Q4-22 |
Q3-22 |
Q2-22 |
Q1-22 |
Q4-21 |
Q3-21 |
Q2-21 |
Q1-21 |
|
BRL |
3.87 |
4.02 |
3.85 |
4.12 |
4.44 |
4.15 |
4.30 |
4.32 |
| ARS |
118.9 |
103.6 |
92.3 |
84.1 |
79.7 |
77.2 |
76.46 |
69.9 |
| COP |
3,550 |
3,363 |
3,074 |
3,093 |
3,080 |
3,058 |
3,012 |
2,812 |
|
CLP |
674 |
712 |
660 |
639 |
656 |
614 |
583 |
572 |
The below table summarizes the variances quarter
over quarter for selected LATAM currencies:
|
Variance (%)1 |
Q4-22 |
Q3-22 |
Q2-22 |
Q1-22 |
Q4-21 |
Q3-21 |
Q2-21 |
Q1-21 |
|
BRL |
4 |
% |
-4 |
% |
7 |
% |
7 |
% |
-7 |
% |
3 |
% |
0 |
% |
-4 |
% |
| ARS |
-15 |
% |
-12 |
% |
-10 |
% |
-6 |
% |
-3 |
% |
-1 |
% |
-9 |
% |
-14 |
% |
| COP |
-6 |
% |
-9 |
% |
1 |
% |
0 |
% |
-1 |
% |
-2 |
% |
-7 |
% |
0 |
% |
|
CLP |
5 |
% |
-8 |
% |
-3 |
% |
3 |
% |
-7 |
% |
-5 |
% |
-2 |
% |
2 |
% |
1 Negative percentage represents a depreciation
of the currency while a positive variance represents an
appreciation of the currency.
Impact
Exchange rate fluctuations of LATAM currencies
impact the Company’s results in two ways:
- Transactional impact: certain
product purchases and operating expenses are denominated in foreign
currencies (mainly USD, EURO and CHF); and,
- Translational impact: translation
of local LATAM functional currency operating results to reporting
currency in CAD.
Constant Currency
Financial results at constant currency1 allow
results to be viewed without the impact of fluctuations in foreign
currency exchange rates thereby facilitating the comparison of
results period over period. The presentation of financial results
at constant currency is considered to be a non-GAAP measure and
does not have any standardized meaning under GAAP. As a result, the
information presented may not be comparable to similar measures
presented by other companies.
Financial results at constant currency are
obtained by translating the prior period results from the
functional currencies to CAD using the conversion rates in effect
during the current period. Furthermore, with respect to Argentina,
the Company excludes the impact of hyperinflation and translates
the results at the average exchange rate in effect for each of the
periods.
______________________________
1 Financial results at constant currency are
non-GAAP measure, refer to section “Non-GAAP measures” for
additional details.
[Unaudited]
|
|
Q4-22 |
Q4-21 |
Variance |
YTD-22 |
YTD-21 |
Variance |
|
|
Excluding impact of IAS 291 |
|
|
Constant Currency2 |
|
$3 |
|
%4 |
|
Constant Currency2 |
|
$3 |
|
%4 |
|
Revenues |
83,806 |
|
58,370 |
|
|
25,436 |
|
44 |
% |
291,770 |
|
243,731 |
|
|
48,039 |
|
20 |
% |
|
Cost of goods sold |
41,875 |
|
28,678 |
|
|
(13,197 |
) |
46 |
% |
141,411 |
|
123,037 |
|
|
(18,374 |
) |
15 |
% |
|
Gross margin |
41,931 |
|
29,692 |
|
|
12,239 |
|
41 |
% |
150,359 |
|
120,694 |
|
|
29,665 |
|
25 |
% |
|
Gross margin (%) |
50 |
% |
51 |
% |
|
|
52 |
% |
50 |
% |
|
|
| |
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
| Selling and marketing |
15,073 |
|
12,223 |
|
|
(2,850 |
) |
23 |
% |
48,083 |
|
38,715 |
|
|
(9,368 |
) |
24 |
% |
| General and administrative |
10,083 |
|
10,289 |
|
|
206 |
|
2 |
% |
37,451 |
|
34,458 |
|
|
(2,993 |
) |
9 |
% |
| Research and development |
4,043 |
|
3,193 |
|
|
(850 |
) |
27 |
% |
13,733 |
|
12,264 |
|
|
(1,469 |
) |
12 |
% |
| Amortization of intangible
assets |
16,724 |
|
16,804 |
|
|
80 |
|
0 |
% |
49,561 |
|
39,428 |
|
|
(10,133 |
) |
26 |
% |
| Impairment of non-current
assets |
250 |
|
— |
|
|
(250 |
) |
100 |
% |
2,330 |
|
— |
|
|
(2,330 |
) |
100 |
% |
|
Operating (loss) income |
(4,242 |
) |
(12,817 |
) |
|
8,575 |
|
67 |
% |
(799 |
) |
(4,171 |
) |
|
3,372 |
|
81 |
% |
|
EBITDA5 |
13,330 |
|
4,258 |
|
|
9,072 |
|
213 |
% |
53,541 |
|
36,376 |
|
|
17,165 |
|
47 |
% |
|
Adjusted EBITDA5 |
13,821 |
|
5,884 |
|
|
7,937 |
|
135 |
% |
54,032 |
|
38,551 |
|
|
15,481 |
|
40 |
% |
1 Financial results excluding the impact of hyperinflation is a
non-GAAP measure, refer to section “Non-GAAP measures” for
additional details.2 Financial results at constant currency are
non-GAAP measure, refer to section “Non-GAAP measures” for
additional details.3 A positive variance represents a positive
impact to net income and a negative variance represents a
negative impact to net income.4 Percentage change is
presented in absolute values.5 Financial results at constant
currency, EBITDA and adjusted EBITDA are non-GAAP measures, refer
to section “Non-GAAP measures” and “Reconciliation to adjusted
EBITDA” for additional details.
The financial results under IFRS reconcile to the financial
results at constant currency as follows:
[Unaudited]
|
|
Q4-21 |
YTD-21 |
|
Reported under IFRS |
IAS 29 Adjustment |
Constant Currency Adjustment |
Constant Currency1 |
Reported under IFRS |
IAS 29 Adjustment |
Constant Currency Adjustment |
Constant Currency1 |
|
Revenues |
58,273 |
|
(1,915 |
) |
2,012 |
|
58,370 |
|
243,478 |
|
(4,240 |
) |
4,493 |
|
243,731 |
|
|
Cost of goods sold |
30,078 |
|
(2,354 |
) |
954 |
|
28,678 |
|
128,066 |
|
(7,657 |
) |
2,628 |
|
123,037 |
|
|
Gross margin |
28,195 |
|
439 |
|
1,058 |
|
29,692 |
|
115,412 |
|
3,417 |
|
1,865 |
|
120,694 |
|
| |
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
| Selling and marketing |
12,291 |
|
(380 |
) |
312 |
|
12,223 |
|
39,078 |
|
(822 |
) |
459 |
|
38,715 |
|
| General and administrative |
10,002 |
|
(207 |
) |
494 |
|
10,289 |
|
35,298 |
|
(1,568 |
) |
728 |
|
34,458 |
|
| Research and development |
3,496 |
|
(409 |
) |
106 |
|
3,193 |
|
12,692 |
|
(612 |
) |
184 |
|
12,264 |
|
| Amortization of intangible
assets |
17,040 |
|
(685 |
) |
449 |
|
16,804 |
|
41,176 |
|
(2,352 |
) |
604 |
|
39,428 |
|
|
Operating loss |
(14,634 |
) |
2,120 |
|
(303 |
) |
(12,817 |
) |
(12,832 |
) |
8,771 |
|
(110 |
) |
(4,171 |
) |
1 Financial results at constant currency are non-GAAP measure,
refer to section “Non-GAAP measures” for additional details.
Consolidated Statement of (Loss)
Income
[In thousands of Canadian dollars]
[Unaudited]
| |
|
|
Change |
|
|
Change |
|
|
Q4-22 |
Q4-21 |
|
$1 |
|
%2 |
YTD-22 |
YTD-21 |
|
$1 |
|
%2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
81,655 |
|
58,273 |
|
|
23,382 |
|
40 |
% |
293,563 |
|
243,478 |
|
|
50,085 |
|
21 |
% |
|
|
Cost of goods sold |
44,767 |
|
30,078 |
|
|
(14,689 |
) |
49 |
% |
155,502 |
|
128,066 |
|
|
(27,436 |
) |
21 |
% |
|
|
Gross margin |
36,888 |
|
28,195 |
|
|
8,693 |
|
31 |
% |
138,061 |
|
115,412 |
|
|
22,649 |
|
20 |
% |
|
|
Gross margin (%) |
45 |
% |
48 |
% |
|
|
47 |
% |
47 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
| Selling and marketing |
14,402 |
|
12,291 |
|
|
(2,111 |
) |
17 |
% |
48,474 |
|
39,078 |
|
|
(9,396 |
) |
24 |
% |
|
| General and administrative |
10,336 |
|
10,002 |
|
|
(334 |
) |
3 |
% |
40,150 |
|
35,298 |
|
|
(4,852 |
) |
14 |
% |
|
| Research and development |
4,140 |
|
3,496 |
|
|
(644 |
) |
18 |
% |
14,755 |
|
12,692 |
|
|
(2,063 |
) |
16 |
% |
|
| Amortization of intangible
assets |
17,156 |
|
17,040 |
|
|
(116 |
) |
1 |
% |
51,742 |
|
41,176 |
|
|
(10,566 |
) |
26 |
% |
|
| Impairment of non-current
assets |
21,904 |
|
— |
|
|
(21,904 |
) |
100 |
% |
23,984 |
|
— |
|
|
(23,984 |
) |
100 |
% |
|
|
Operating (loss) income |
(31,050 |
) |
(14,634 |
) |
|
(16,416 |
) |
112 |
% |
(41,044 |
) |
(12,832 |
) |
|
(28,212 |
) |
220 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
| Interest income on financial
instruments measured at amortized cost |
(1,922 |
) |
(725 |
) |
|
1,197 |
|
165 |
% |
(4,072 |
) |
(2,446 |
) |
|
1,626 |
|
66 |
% |
|
| Other interest income |
(2,341 |
) |
(1,471 |
) |
|
870 |
|
59 |
% |
(6,560 |
) |
(4,936 |
) |
|
1,624 |
|
33 |
% |
|
| Interest expense |
2,293 |
|
1,331 |
|
|
(962 |
) |
72 |
% |
6,600 |
|
3,618 |
|
|
(2,982 |
) |
82 |
% |
|
| Other (income) expense |
1,964 |
|
(321 |
) |
|
(2,285 |
) |
712 |
% |
(4,025 |
) |
(128 |
) |
|
3,897 |
|
3045 |
% |
|
| Net loss (gain) on financial
assets measured at fair value through profit or loss |
(8,824 |
) |
(2,300 |
) |
|
6,524 |
|
284 |
% |
20,677 |
|
(18,944 |
) |
|
(39,621 |
) |
209 |
% |
|
| Foreign exchange (gain) loss |
1,663 |
|
3,485 |
|
|
1,822 |
|
52 |
% |
(7,442 |
) |
3,737 |
|
|
11,179 |
|
299 |
% |
|
|
Gain on hyperinflation |
(748 |
) |
(209 |
) |
|
539 |
|
258 |
% |
(2,262 |
) |
(423 |
) |
|
1,839 |
|
435 |
% |
|
|
Income (loss) before income taxes |
(23,135 |
) |
(14,424 |
) |
|
(8,711 |
) |
60 |
% |
(43,960 |
) |
6,690 |
|
|
50,650 |
|
757 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax |
|
|
|
|
|
|
|
|
|
|
| Current |
882 |
|
(2,642 |
) |
|
(3,524 |
) |
133 |
% |
3,057 |
|
(1,349 |
) |
|
(4,406 |
) |
327 |
% |
|
|
Deferred |
(8,829 |
) |
(3,481 |
) |
|
5,348 |
|
154 |
% |
(17,125 |
) |
(7,636 |
) |
|
9,489 |
|
124 |
% |
|
|
Income tax recovery |
(7,947 |
) |
(6,123 |
) |
|
1,824 |
|
30 |
% |
(14,068 |
) |
(8,985 |
) |
|
5,083 |
|
57 |
% |
|
|
Net (loss) income for the period |
(15,188 |
) |
(8,301 |
) |
|
(6,887 |
) |
83 |
% |
(29,892 |
) |
15,675 |
|
|
(45,567 |
) |
291 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Basic and diluted net (loss)
earnings per share |
(0.13 |
) |
(0.07 |
) |
|
(0.07 |
) |
99 |
% |
(0.26 |
) |
0.13 |
|
|
(0.39 |
) |
307 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
EBITDA3 |
13,330 |
|
4,101 |
|
|
9,229 |
|
225 |
% |
53,541 |
|
35,865 |
|
|
17,676 |
|
49 |
% |
|
| Adjusted
EBITDA3 |
13,821 |
|
5,696 |
|
|
8,125 |
|
143 |
% |
54,032 |
|
38,005 |
|
|
16,027 |
|
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 A positive variance represents a positive
impact to net income (loss) and a negative variance represents a
negative impact to net income (loss).2 Percentage change is
presented in absolute values.3 EBITDA and adjusted EBITDA is a
non-GAAP measure, refer to section “Non-GAAP measures”
and “Reconciliation to adjusted EBITDA” for additional
details.
|
Revenues |
Q4-22 vs Q4-21 |
|
|
|
|
| |
|
|
|
|
|
| |
|
Q4-22 |
Q4-21 |
Q4-21 |
Change |
| |
|
Excluding impact of IAS 293 |
Excluding impact of IAS 293 |
Constant Currency4 |
Excluding impact of IAS 293 |
| |
Therapeutic Area |
$ |
$ |
$ |
|
$1 |
%2 |
|
|
Oncology/Hematology |
29,343 |
23,534 |
23,876 |
|
5,809 |
25 |
% |
| |
Infectious Diseases |
32,744 |
20,211 |
21,393 |
|
12,533 |
62 |
% |
| |
Other Specialty |
21,719 |
12,613 |
13,101 |
|
9,106 |
72 |
% |
| |
Total |
83,806 |
56,358 |
58,370 |
|
27,448 |
49 |
% |
| |
1 A positive
variance represents a positive impact to net income due to the
application of IAS 29 and a negative variance represents a
negative impact to net income due to the application of
IAS 292 Percentage change is presented in absolute
values3 Revenues excluding the impact of IAS 29 is a non-GAAP
measure, refer to section “Non-GAAP measures” for additional
details.4 Revenues at constant currency is a non-GAAP measure,
refer to section “Non-GAAP measures” for additional details |
| |
For the quarter ended
December 31, 2022, excluding the impact of hyperinflation, revenues
increased by $27,448 or 49% compared to the same period in prior
year. The increase in revenues excluding the impact of
hyperinflation is explained by the following:
-
Oncology/Hematology: The increase in revenues of
$5,809 is driven by growth in our key promoted brands, including
new launches of Lenvima® and Halaven® in Colombia in Q1-22, the
growth of key promoted products including Lenvima® and Trelstar®
and the assumption of commercial activities of Akynzeo® in Brazil
and Canada. This increase is offset by a reduction in revenues of
our branded generics products due to their lifecycle including the
market entrance of new competitors.Infectious
Diseases: The infectious disease portfolio grew by
approximately $15,900, excluding the impact of the planned
transition and termination of the Gilead Amendment. This growth is
due to an increase in patient treatments as our markets reduce
COVID-19 restrictions, growth of our key promoted products and a
one-time sales contract with the Ministry of Health in Brazil for
Ambisome® (“MOH Contract”). Knight recorded $7,500 in revenues,
which represents 40% of the expected deliveries under the MOH
contract in Q4-22 and the balance of the contract is expected to be
delivered in the first six months of 2023.Other
Specialty: The increase in revenues is mainly due to
incremental revenue of $5,092 due to the change in accounting
treatment of Exelon® from net profit transfer from Novartis to
revenues with related cost of sales upon the transition of
commercial activities to Knight as well as the timing of purchases
of products by certain customers.
All the pharmaceutical products sold by Knight are categorized as
either innovative or BGx products. The description of each
portfolio are as follows:Innovative Portfolio: The
portfolio consists of the pharmaceutical products with innovative
molecules and includes both in-licensed products such as Lenvima®,
Cresemba®, Halaven®, Trelstar®, Akynzeo®, Ambisome® as well as
products owned (or partially owned) by Knight such as Exelon® and
Impavido®. The categories of the portfolio are as follows:
- Innovation – Promoted portfolio: consists of products on which
the Company invest in commercial activities such as sales force
promotion and products that require medical activities.
- Innovative – Mature: consists of products that require lower
level of promotional activities and/or products that have reached
their peak market capture potential.
- Innovative – Discontinued: consists of products that the
company has stopped commercializing or is in the process of
discontinuing sales.
BGx Portfolio: The portfolio consists of branded
generic products which are pharmaceutically equivalent to an
innovative molecule. The branded generics are given a brand name to
differentiate the product from ordinary generics or other branded
generics. The Company’s branded generic portfolio currently
primarily consists of products manufactured at our facilities in
Argentina for commercialization in Argentina and the rest of Latin
America (excluding Brazil and Mexico). The categories of
portfolio are as follows:
- BGx New Launches: consists of branded generic pharmaceutical
products in the first three years of launch.
- BGx Mature: consists of products which have been launched for
more than three years.
- BGx – Discontinued: consists of products that the company has
stopped commercializing or is in the process of discontinuing
sales.
During the quarter ended December 31, 2022, excluding the impact of
IAS 29 the Company generated $68,404 or 82% of total revenues from
its innovative portfolio and $15,402 or 18% of total revenues from
its BGx portfolio. |
| |
|
Q4-22 |
Q4-21 |
Change |
| |
|
Excluding impact of IAS 293 |
Excluding impact of IAS 293 |
Excluding impact of IAS 293 |
| |
Product portfolio |
$ |
$ |
|
$1 |
|
%2 |
|
|
Innovative – Promoted |
54,270 |
26,127 |
|
28,143 |
|
108 |
% |
| |
Innovative – Mature |
13,399 |
9,199 |
|
4,200 |
|
46 |
% |
| |
Innovative – Discontinued |
735 |
3,547 |
|
(2,812 |
) |
79 |
% |
| |
Total Innovative |
68,404 |
38,873 |
|
29,531 |
|
76 |
% |
| |
BGx - New Launches |
2,999 |
2,730 |
|
269 |
|
10 |
% |
| |
BGx – Mature |
11,661 |
12,814 |
|
(1,153 |
) |
9 |
% |
| |
BGx – Discontinued |
742 |
1,941 |
|
(1,199 |
) |
62 |
% |
| |
Total BGx |
15,402 |
17,485 |
|
(2,083 |
) |
12 |
% |
| |
Total |
83,806 |
56,358 |
|
27,448 |
|
49 |
% |
| |
1 A
positive variance represents a positive impact to net income due to
the application of IAS 29 and a negative variance represents a
negative impact to net income due to the application of IAS
292 Percentage change is presented in absolute
values3 Revenues excluding the impact of IAS 29 is a non-GAAP
measure, refer to section “Non-GAAP measures” for additional
details.4 A positive variance represents a positive impact to
net income due to the application of IAS 29 and a negative variance
represents a negative impact to net income due to the
application of IAS 29 |
| |
|
Change |
|
| |
|
Excluding impact of IAS 293 |
|
| |
Product portfolio |
|
$1 |
|
%2 |
|
|
|
Innovative – Promoted |
|
28,143 |
|
108 |
% |
- Incremental revenues of $5,092 related to the change in
accounting treatment from net profit transfer to recognition of
revenues and cost of sales of Exelon®
- Incremental revenues of $7,500 related to the Ambisome® MOH
Contract
- Incremental revenues from launches of Lenvima® and Halaven®
Colombia in Colombia in Q1-22
- Continued growth of key promoted products including Lenvima®,
Cresemba® and Trelstar®
|
| |
Innovative - Mature |
|
4,200 |
|
46 |
% |
- Due to growth of Impavido® in certain markets and timing of
sales of certain products
|
| |
Innovative - Discontinued |
|
(2,812 |
) |
79 |
% |
- Due to planned transition and termination agreement of the
Gilead Amendment effective July 1, 2022
|
| |
Total Innovative |
|
29,531 |
|
76 |
% |
|
| |
BGx - New Launches |
|
269 |
|
10 |
% |
- Due to the launch of Rembre® in Colombia and Dolufevir® in
Argentina
|
| |
BGx - Mature |
|
(1,153 |
) |
9 |
% |
- Due to lifecycle of products including entrance of new
competition
|
| |
BGx - Discontinued |
|
(1,199 |
) |
62 |
% |
- Discontinuation of the products at the end of their
lifecycle
|
| |
Total BGx |
|
(2,083 |
) |
12 |
% |
|
| |
Total |
|
27,448 |
|
49 |
% |
|
| |
1 Percentage change is presented in absolute
values2 Revenues excluding the impact of IAS 29 is a non-GAAP
measure, refer to section “Non-GAAP measures” for additional
details. |
| |
YTD-22 vs
YTD-21 |
|
|
|
|
| |
|
YTD-22 |
YTD-21 |
YTD-21 |
Change |
| |
|
Excluding impact of IAS 293 |
Excluding impact of IAS 293 |
Constant Currency4 |
Excluding impact of IAS 293 |
| |
Therapeutic Area |
$ |
$ |
$ |
|
$1 |
%2 |
|
|
Oncology/Hematology |
105,464 |
89,079 |
89,505 |
|
16,385 |
18 |
% |
| |
Infectious Diseases |
116,530 |
101,650 |
106,640 |
|
14,880 |
15 |
% |
| |
Other Specialty |
69,776 |
48,509 |
47,586 |
|
21,267 |
44 |
% |
| |
Total |
291,770 |
239,238 |
243,731 |
|
52,532 |
22 |
% |
| |
1 A positive variance represents a positive impact to net
income due to the application of IAS 29 and a negative variance
represents a negative impact to net income due to the application
of IAS 292 Percentage change is presented in absolute
values3 Revenues excluding the impact of IAS 29 is a non-GAAP
measure, refer to section “Non-GAAP measures” for additional
details.4 Revenues at constant currency is a non-GAAP measure,
refer to section “Non-GAAP measures” for additional
details4 Revenues at constant currency is a non-GAAP measure,
refer to section “Non-GAAP measures” for additional detailsFor the
twelve-month period ended December 31, 2022, excluding the impact
of hyperinflation, revenues increased by $52,532 or 22% compared to
the same period in prior year. The growth in revenues excluding the
impact of hyperinflation is explained by the following:
- Oncology/Hematology: The increase in revenues
of $15,960 is driven by growth in our key promoted brands,
including the launches of Lenvima® and Halaven® in Colombia in
Q1-22, the continued growth of key promoted products including
Lenvima®, Halaven® and Trelstar® and the assumption of commercial
activities of Akynzeo® in Brazil and Canada. This increase is
offset by a reduction in revenues of our branded generics products
due to their lifecycle including the market entrance of new
competitors.Infectious Diseases: The infectious
disease portfolio grew by approximately $29,080 due to increase in
patient treatments as our markets reduce COVID-19 restrictions,
growth of our key promoted products and a one-time sales contract
with the Ministry of Health in Brazil for Ambisome® (“MOH
Contract”). An incremental revenue of $7,500 representing 40% of
the expected deliveries under the MOH contract was recorded in
Q4-22 and the balance of the contract is expected to be delivered
in the first six months of 2023. The growth is offset by an
estimated $14,200 due to lower demand for certain of our infectious
diseases products to treat invasive fungal infections associated
with COVID-19 as well as the planned transition and termination
agreement of the Gilead Amendment effective July 1, 2022.
- Other Specialty:
The revenues increase is mainly driven by the timing of the
acquisition of Exelon® as well as a change in the accounting
treatment of Exelon®. The full year effect of the Exelon®
transaction executed on May 26, 2021, represents an incremental
revenue of $15,282. The change in accounting treatment from net
profit transfer from Novartis to recognition of revenues with
related cost of sales upon transition of commercial activities to
Knight led to an increase of $6,427 in revenues.
|
|
|
During the
year ended December 31, 2022, excluding the impact of IAS 29, the
Company generated revenues of $228,003 or 78% of total revenues
from its innovative portfolio and $63,767 or 22% of total revenues
from its BGx portfolio. |
| |
|
YTD-22 |
YTD-21 |
Change |
| |
|
Excluding impact of IAS 293 |
Excluding impact of IAS 293 |
Excluding impact of IAS 293 |
| |
Product portfolio |
$ |
$ |
|
$1 |
|
%2 |
|
|
Innovative - Promoted |
170,391 |
120,127 |
|
50,264 |
|
42 |
% |
| |
Innovative - Mature |
49,209 |
41,998 |
|
7,211 |
|
17 |
% |
| |
Innovative - Discontinued |
8,403 |
13,389 |
|
(4,986 |
) |
37 |
% |
| |
Total Innovative |
228,003 |
175,514 |
|
52,489 |
|
30 |
% |
| |
BGx - New Launches |
12,091 |
7,115 |
|
4,976 |
|
70 |
% |
| |
BGx - Mature |
47,744 |
49,772 |
|
(2,028 |
) |
4 |
% |
| |
BGx - Discontinued |
3,932 |
6,837 |
|
(2,905 |
) |
42 |
% |
| |
Total BGx |
63,767 |
63,724 |
|
43 |
|
0 |
% |
| |
Total |
291,770 |
239,238 |
|
52,532 |
|
22 |
% |
| |
1 A
positive variance represents a positive impact to net income due to
the application of IAS 29 and a negative variance represents a
negative impact to net income due to the A positive
variance represents a positive impact to net income due to
the application of IAS 29 and a negative variance represents a
negative impact to net income due to the application of IAS
292 Percentage change is presented in absolute
values3 Revenues excluding the impact of IAS 29 is a non-GAAP
measure, refer to section “Non-GAAP measures” for additional
details. |
| |
|
Change |
|
| |
|
Excluding impact of IAS 293 |
|
|
|
Product
portfolio |
$1 |
|
%2 |
|
|
|
Innovative - Promoted |
|
50,264 |
|
42 |
% |
- Incremental revenues of $15,282 related to the full year effect
of acquisition of Exelon® and $6,427 related to the change in
accounting treatment from net profit transfer to recognition of
revenues and cost of sales
- Incremental revenues of $7,500 related to the Ambisome® MOH
Contract
- Incremental revenues from launches of Lenvima® and Halaven®
Colombia in Colombia in Q1-21
- Continued growth of key promoted products including Lenvima®,
Cresemba® and Trelstar®
|
|
|
Innovative - Mature |
|
7,211 |
|
17 |
% |
- Due to growth of Impavido® in certain markets and timing of
sales of certain products
|
|
|
Innovative - Discontinued |
|
(4,986 |
) |
37 |
% |
- Due to planned transition and termination agreement of the
Gilead Amendment effective July 1, 2022
|
|
|
Total Innovative |
|
52,489 |
|
30 |
% |
|
|
|
BGx - New Launches |
|
4,976 |
|
70 |
% |
- Due to launch of Rembre® in Colombia in Q1-22 and continued
growth of Dolufevir® in Argentina
|
|
|
BGx - Mature |
|
(2,028 |
) |
4 |
% |
- Due to lifecycle of products including entrance of new
competition
|
|
|
BGx - Discontinued |
|
(2,905 |
) |
42 |
% |
- Discontinuation of the products at the end of their
lifecycle
|
|
|
Total BGx |
|
43 |
|
0 |
% |
|
|
|
Total |
|
52,532 |
|
22 |
% |
|
|
|
1 A positive variance represents a positive impact to net income
due to the application of IAS 29 and a negative variance represents
a negative impact to net income due to the A
positive variance represents a positive impact to net income
due to the application of IAS 29 and a negative variance
represents a negative impact to net income due to the application
of IAS 292 Percentage change is presented in absolute
values3 Revenues excluding the impact of IAS 29 is a non-GAAP
measure, refer to section “Non-GAAP measures” for additional
details. |
|
|
|
|
Gross margin |
Q4-22 vs Q4-21
- Under IFRS, for the quarter ended
December 31, 2022, gross margin, as a percentage of revenues,
decreased from 48% in Q4-21 to 45% in Q4-22. The decrease in the
gross margin, as a percentage of revenues, is explained by the
impact of hyperinflation. Excluding the impact of IAS 29, gross
margin, as a percentage of revenues, was 50% in Q4-22 and 51% in
Q4-21.
YTD-22 vs YTD-21
- For the year ended December 31,
2022, there was no significant difference in gross margin, as a
percentage of revenues, compared to the same prior year period.
Excluding the impact of IAS 29, gross margin, as a percentage of
revenues, was 52% for year ended December 31, 2022 compared to 50%
in prior year. The increase in the gross margin is explained by the
change in product mix including the full year effect of the
acquisition of Exelon®.
|
|
Selling and marketing |
Q4-22 vs Q4-21
- For the quarter ended December 31,
2022, S&M increased by $2,111 or 17%. Excluding the impact of
IAS 29, the increase is $3,162 or 27% driven by an increase in
compensation expenses including severance cost of $1,116 due to
certain restructuring activities, an increase in selling and
marketing activities related to key promoted products including
spend on Exelon® and Akynzeo® as well as certain variable costs
such as logistics fees due to higher sales.
YTD-22 vs YTD-21
- For the twelve-month period ended
December 31, 2022, S&M increased by $9,396 or 24%. Excluding
the impact of IAS 29, the increase is $9,827 or 26% mainly driven
by an increase in compensation expenses including severances of
$1,146, an increase in selling and marketing activities related to
key promoted products including the spend on Exelon® and Akynzeo as
well as certain variable costs such as logistics fees due to higher
sales.
|
|
General and administrative |
Q4-22 vs Q4-21
YTD-22 vs YTD-21
- For the twelve-month period ended
December 31, 2022, G&A increased by $4,852 or 14%. Excluding
the impact of IAS 29, the increase is $3,721 or 11%, mainly driven
by an increase in compensation expense certain consulting and
professional fees offset by the lower costs related to the
long-term incentive plan.
|
|
Research and development expenses |
Q4-22 vs
Q4-21
YTD-22 vs YTD-21
- For the twelve-month period ended
December 31, 2022, R&D increased by $2,063 or 16%. Excluding
the impact of IAS 29, the increase is $1,653 or 14%, mainly driven
by an increase in compensation expenses and medical
initiatives.
|
|
Amortization of intangible assets |
YTD-22 vs
YTD-21
- For the year ended December 31,
2022, amortization of intangible assets increased by $10,566 or
26%, mainly explained by the amortization of $11,667 related to the
full year effect of the acquisition of Exelon®.
|
|
Impairment of non-current assets |
YTD-22 vs
YTD-21 and Q4-22 vs Q4-21
- Under hyperinflation accounting,
non-monetary assets including property plant and equipment,
right-of-use assets and intangible assets are adjusted by the
inflation index and converted back to CAD at the closing rate of
the reporting period. During a period where the inflation index is
higher than devaluation of the Argentine peso relative to the CAD,
the value of the non-monetary assets increases when converted to
CAD.
- During 2022, the increase in the
value of non-monetary assets in Argentina due to hyperinflation
accounting, resulted in an impairment of $21,654 (2021: Nil) of
these assets which was recorded in “Impairment of non-current
assets”. The loss represents a write-down of certain right-of-use
assets, property, plant and equipment in Argentina, and intangible
assets related to branded generics intellectual property to its
recoverable amount.
- In addition, during 2022, the
Company recorded an additional impairment loss of $2,330
representing the write-down of the upfront and certain milestones
payments made under certain product license agreements as a result
of changes in commercial expectations.
|
| |
|
|
Interest income |
YTD-22 vs
YTD-21 and Q4-22 vs Q4-21
- Includes “Interest income on financial instruments measured at
amortized cost” and “Other interest income”.
- Primarily from interest earned on loans, cash and cash
equivalents, marketable securities and accretion on loans
receivable.
- Interest income for Q4-22 was $4,263 and YTD-22 $10,632, an
increase of 94% or $2,067 and 44% or $3,250, respectively, compared
to the same period in prior year due to higher interest rates on
cash and marketable securities as well as interest earned on
loans.
|
|
Interest Expense |
Q4-22 vs
Q4-21 and YTD-22 vs YTD-21
- The interest expense for Q4-22 and
YTD-22 includes the interest expense on bank loans of $1,363 and
$5,089 and interest expense of lease liabilities and other of
$1,511 and $930 respectively.
- Interest expense on banks loans for
the Q4-22 and YTD-22 increased by $407 or 43% and by $2,364 or by
87% respectively, compared to the same periods in prior year, due
to the increase of the CDI and IBR rates throughout 2022, partially
offset by lower average loan balance due to partial repayment of
Itaú Unibanco Brasil and Bancolombia bank loans. Refer to Section
Liquidity and Capital Resources for further information on the bank
loans.
- The Company entered into a loan
with IFC for an amount of $52,416 [USD 38,500] denominated in BRL,
COP, CLP and MXN with interest rates ranging between 7.86% and
15.83% as at December 31, 2022. The interest expense on bank loans
is expected to increase in 2023 due to the IFC loan as well as any
future increases in variable interest rates.
|
|
Other income (expense) |
Q4-22 vs
Q4-21
- Other expense for the three-month
period ended December 31, 2022 increased by $2,285 or by 712%
compared to the same period in prior year mainly due to the
increase in a provision related to certain import tax claims.
YTD-22 vs YTD-21
- Other income for the year ended December 31, 2022 increased by
$3,897 or 3045%. The Company recorded a gain of $6,030 (US$4,600)
upon execution of a settlement agreement and general release with
the former shareholders of GBT. The settlement gain was partially
offset by the increase in a provision related to certain import tax
claims.
|
|
Net gain or loss on financial assets measured at fair value
through profit or loss |
Q4-22 vs Q4-21
- Net gain on financial assets
measured at fair value through profit and loss for Q4-22 was
$8,824, mainly driven by unrealized gain on revaluation of our
strategic fund investments resulting from positive mark-to-market
adjustments as a result of the increase in the share prices of one
of the publicly-traded equities held by one of the funds.
YTD-22 vs YTD-21
- Net loss on financial assets
measured at fair value through profit and loss for YTD-22 was
$20,677, mainly driven by negative mark-to-market adjustments as a
result of the decline in the share prices of the publicly-traded
equities held by our strategic fund investments due to general
market conditions.
|
|
Foreign exchange gain or loss |
Q4-22 vs Q4-21
- The foreign exchange loss in the
three months ended Q4-22 and Q4-21 is mainly driven by the
unrealized losses on revaluation of our financial assets including
our cash balances as well as unrealized loss on intercompany
balances due to the appreciation of the CAD vs. the USD.
YTD-22 vs YTD-21
- The foreign exchange gains in
YTD-22 are mainly driven by the unrealized gains on
revaluation of our financial assets including our cash balances as
well as intercompany balances due to the appreciation of the USD
and EURO vs. the CAD, partially offset by the depreciation of the
select LATAM currencies throughout the year.
- The foreign exchange loss in Q4-21
and YTD-21 is mainly driven by the unrealized losses on revaluation
of our financial assets including our cash balances due to the
appreciation of the CAD vs. the USD and EURO.
|
|
|
Gain or loss on hyperinflation |
- Relates to gain on net monetary
position (monetary assets less monetary liabilities) under
hyperinflation accounting. Refer to “Impact of Hyperinflation”
section for further details.
|
|
Income tax expense |
- The income tax recovery for Q4-22
and YTD-22 is driven by the recognition of certain deferred tax
assets due to timing differences related to our financial assets,
impairment of certain non-current assets and certain intercompany
transactions.
- The income tax recovery for Q4-21
and YTD-21 is driven by the recognition of certain deferred tax
assets due tax losses generated, timing differences related to
certain intercompany transactions, financial assets and impairment
of certain non-current assets.
|
Non-GAAP measures
The Company discloses non-GAAP measures that do
not have standardized meanings prescribed by IFRS. The Company
believes that shareholders, investment analysts and other readers
find such measures helpful in understanding the Company’s financial
performance. Non-GAAP financial measures do not have any
standardized meaning prescribed by IFRS and may not have been
calculated in the same way as similarly named financial measures
presented by other companies.
The Company uses the following non-GAAP
measures:
Revenues and Financial results excluding
the impact of hyperinflation under IAS 29: Revenues and
financial results under IFRS are adjusted to remove the impact of
hyperinflation under IAS 29. Impact of hyperinflation under IAS 29
is calculated by applying an appropriate general price index to
express the effects of inflation. After applying the effects of
translation, the statement of income is converted using the closing
foreign exchange rate of the month.
Revenues and Financial results at
constant currency: Revenues/financial results at constant
currency are obtained by translating the prior period
revenues/financial results from the functional currencies to CAD
using the conversion rates in effect during the current period.
Furthermore, with respect to Argentina, the Company excludes the
impact of hyperinflation and translates the revenues/results at the
average exchange rate in effect for each of the periods.
Revenues/financial results at constant currency
allow revenues/financial results to be viewed without the impact of
fluctuations in foreign currency exchange rates thereby
facilitating the comparison of results period over period. The
presentation of revenues/financial results under constant currency
is considered to be a non-GAAP measure and does not have any
standardized meaning under GAAP. As a result, the information
presented may not be comparable to similar measures presented by
other companies.
EBITDA: Operating income or
loss adjusted to exclude amortization and impairment of long-lived
assets, depreciation, purchase price allocation accounting
adjustments, and the impact of IAS 29 (accounting under
hyperinflation) but to include costs related to leases.
Adjusted EBITDA: EBITDA
adjusted for acquisition costs and non-recurring expenses.
Reconciliation to adjusted
EBITDA
For the three-month period and year ended
December 31, 2022, the Company calculated EBITDA and adjusted
EBITDA as follows:
| [Unaudited] |
|
|
|
Change |
|
|
|
|
Change |
|
|
Q4-22 |
|
Q4-21 |
$1 |
|
%2 |
|
YTD-22 |
|
YTD-21 |
|
$1 |
|
%2 |
|
| Operating
loss |
(31,050 |
) |
(14,634 |
(16,416 |
) |
112 |
% |
(41,044 |
) |
(12,832 |
) |
(28,212 |
) |
220 |
% |
| Adjustments to operating
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible
assets |
17,156 |
|
17,040 |
116 |
|
1 |
% |
51,742 |
|
41,176 |
|
10,566 |
|
26 |
% |
| Impairment of non-current
assets |
21,904 |
|
— |
21,904 |
|
100 |
% |
23,984 |
|
— |
|
23,984 |
|
100 |
% |
| Depreciation of property,
plant and equipment and ROU assets |
3,037 |
|
1,961 |
1,076 |
|
55 |
% |
10,879 |
|
6,739 |
|
4,140 |
|
61 |
% |
| Lease costs (IFRS 16
adjustment) |
(836 |
) |
(874 |
38 |
|
4 |
% |
(2,750 |
) |
(3,016 |
) |
266 |
|
9 |
% |
| Impact
of IAS 29 |
3,119 |
|
608 |
2,511 |
|
413 |
% |
10,730 |
|
3,798 |
|
6,932 |
|
183 |
% |
|
EBITDA 3 |
13,330 |
|
4,101 |
9,229 |
|
225 |
% |
53,541 |
|
35,865 |
|
17,676 |
|
49 |
% |
|
Acquisition and transaction costs |
— |
|
— |
— |
|
0 |
% |
— |
|
432 |
|
(432 |
) |
100 |
% |
| Other
non-recurring expenses |
491 |
|
1,595 |
(1,104 |
) |
69 |
% |
491 |
|
1,708 |
|
(1,217 |
) |
71 |
% |
|
Adjusted EBITDA 3 |
13,821 |
|
5,696 |
8,125 |
|
143 |
% |
54,032 |
|
38,005 |
|
16,027 |
|
42 |
% |
1 A positive variance represents a positive
impact to EBITDA and adjusted EBITDA and a negative variance
represents a negative impact to EBITDA and adjusted EBITDA 2
Percentage change is presented in absolute values3 EBITDA and
adjusted EBITDA are non-GAAP measures, refer to section “Non-GAAP
measures” for additional details
Explanation of adjustments
|
Acquisition costs |
Acquisition and transaction costs relate to costs incurred on
legal, consulting and advisory feesfor the acquisition of GBT and
the acquisition of products.During the year ended December 31, 2021
the Company incurred expenses of $432 relatedto acquisition of
Exelon® (Q4-21: Nil). |
|
Other non-recurring expenses |
Other non-recurring expenses relate to expenses incurred by the
Company that are not due to,and are not expected to occur in, the
ordinary course of business.For the year ended December 31, 2022,
the Company incurred non-recurring costs of $491(Q4-22: $491)
related to restructuring activities including severance to certain
employees aspart of restructuring and integration of GBT.For the
year ended December 31, 2021, the Company incurred non-recurring
costs of $1,708(Q4-21: $1,595) related to restructuring activities
including severance to certain employees aspart of restructuring
and integration of GBT. |
Adjusted EBITDA Q4-22 vs Q4-21
For the three-month period ended December 31,
2022 adjusted EBITDA increased by $8,125 or 143%. The growth in
adjusted EBITDA is driven by an increase in gross margin of $8,693
offset by an increase in operating expenses. Refer to above
explanations for further details.
Adjusted EBITDA YTD-22 vs YTD-21
For the year ended December 31, 2022 adjusted
EBITDA increased by $16,027 or 42%. The growth in adjusted EBITDA
is driven by an increase in gross margin of $22,649 offset by an
increase in operating expenses. Refer to above explanations for
further details.
Financial Condition
Impact of LATAM Foreign Exchange
volatility
The following table represents the quarter end
closing rates used by Knight to convert the assets and liabilities
on the balance sheet at the end of each reporting period.
|
Rates |
Q4-22 |
Q3-22 |
Q2-22 |
Q1-22 |
Q4-21 |
|
BRL |
3.90 |
3.94 |
4.05 |
3.80 |
4.40 |
| ARS |
130.53 |
107.12 |
97.07 |
88.72 |
80.88 |
| COP |
3,584 |
3,322 |
3,205 |
3,012 |
3,195 |
|
CLP |
629 |
703 |
718 |
631 |
671 |
The below table summarizes the variances quarter
over quarter for selected LATAM currencies:
|
Variance (%)1 |
Q4-22 |
Q3-22 |
Q2-22 |
Q1-22 |
|
BRL |
1 |
% |
3 |
% |
-7 |
% |
14 |
% |
| ARS |
-22 |
% |
-10 |
% |
-9 |
% |
-10 |
% |
| COP |
-8 |
% |
-4 |
% |
-6 |
% |
6 |
% |
|
CLP |
10 |
% |
2 |
% |
-14 |
% |
6 |
% |
1Negative percentage represents
a depreciation of the currency while a positive variance represents
an appreciation of the currency
Consolidated Balance Sheets[In
thousands of Canadian dollars]
[Unaudited]
|
|
|
|
Change |
|
12-31-22 |
12-31-21 |
$ |
%1 |
|
|
|
|
|
|
| ASSETS |
|
|
|
|
| Current |
|
|
|
|
|
Cash and cash equivalents |
71,679 |
85,963 |
(14,284 |
) |
17 |
% |
| Marketable securities |
85,826 |
63,539 |
22,287 |
|
35 |
% |
| Trade receivables |
94,890 |
55,388 |
39,502 |
|
71 |
% |
| Other receivables |
12,930 |
5,056 |
7,874 |
|
156 |
% |
| Inventories |
92,489 |
72,397 |
20,092 |
|
28 |
% |
| Prepaids and deposits |
1,704 |
2,165 |
(461 |
) |
21 |
% |
| Other current financial
assets |
33,716 |
13,491 |
20,225 |
|
150 |
% |
| Income
taxes receivable |
2,385 |
6,970 |
(4,585 |
) |
66 |
% |
|
Total current assets |
395,619 |
304,969 |
90,650 |
|
30 |
% |
|
|
|
|
|
|
| Marketable securities |
15,169 |
— |
15,169 |
|
0 |
% |
| Prepaids and deposits |
4,355 |
3,046 |
1,309 |
|
43 |
% |
| Right-of-use assets |
5,827 |
4,671 |
1,156 |
|
25 |
% |
| Property, plant and
equipment |
16,806 |
25,265 |
(8,459 |
) |
33 |
% |
| Investment properties |
— |
1,457 |
(1,457 |
) |
100 |
% |
| Intangible assets |
338,780 |
350,299 |
(11,519 |
) |
3 |
% |
| Goodwill |
82,274 |
75,403 |
6,871 |
|
9 |
% |
| Other financial assets |
142,847 |
178,952 |
(36,105 |
) |
20 |
% |
| Deferred income tax
assets |
9,310 |
2,048 |
7,262 |
|
355 |
% |
| Other
long-term receivables |
43,849 |
43,431 |
418 |
|
1 |
% |
|
|
659,217 |
684,572 |
(25,355 |
) |
4 |
% |
|
Assets held for sale |
— |
2,350 |
(2,350 |
) |
100 |
% |
|
Total assets |
1,054,836 |
991,891 |
62,945 |
|
6 |
% |
s1 Percentage change is presented in absolute values
|
|
|
|
Change |
|
12-31-22 |
12-31-21 |
$ |
%1 |
|
|
|
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
| Current |
|
|
|
|
|
Accounts payable and accrued liabilities |
106,061 |
65,309 |
|
40,752 |
|
62 |
% |
| Lease liabilities |
2,578 |
1,614 |
|
964 |
|
60 |
% |
| Other liabilities |
5,793 |
1,989 |
|
3,804 |
|
191 |
% |
| Bank loans |
17,674 |
26,662 |
|
(8,988 |
) |
34 |
% |
| Income taxes payable |
2,274 |
7,073 |
|
(4,799 |
) |
68 |
% |
| Other balances payable |
6,941 |
2,655 |
|
4,286 |
|
161 |
% |
|
Total current liabilities |
141,321 |
105,302 |
|
36,019 |
|
34 |
% |
|
|
|
|
|
|
| Accounts payable and accrued
liabilities |
2,669 |
281 |
|
2,388 |
|
850 |
% |
| Lease liabilities |
5,050 |
3,417 |
|
1,633 |
|
48 |
% |
| Bank loans |
52,398 |
9,265 |
|
43,133 |
|
466 |
% |
| Other balances payable |
23,176 |
19,235 |
|
3,941 |
|
20 |
% |
| Deferred income tax
liabilities |
4,365 |
12,373 |
|
(8,008 |
) |
65 |
% |
|
Total liabilities |
228,979 |
149,873 |
|
79,106 |
|
53 |
% |
|
|
|
|
|
|
| Shareholders’
Equity |
|
|
|
|
| Share capital |
599,055 |
628,854 |
|
(29,799 |
) |
5 |
% |
| Warrants |
117 |
117 |
|
— |
|
0 |
% |
| Contributed surplus |
23,664 |
21,776 |
|
1,888 |
|
9 |
% |
| Accumulated other
comprehensive income (loss) |
41,266 |
(376 |
) |
41,642 |
|
11075 |
% |
|
Retained earnings |
161,755 |
191,647 |
|
(29,892 |
) |
16 |
% |
|
Total shareholders’ equity |
825,857 |
842,018 |
|
(16,161 |
) |
2 |
% |
|
Total liabilities and
shareholders’ equity |
1,054,836 |
991,891 |
|
62,945 |
|
6 |
% |
[Unaudited]
1 Percentage change is presented in absolute
values
|
12-31-22 vs 12-31-21 |
|
Cash and cash equivalents |
- Cash and cash equivalents decreased
by $14,284 or 17% mainly due to cash generated through operating
activities and funds received under the IFC Loan offset by cash
outflows from shares purchased through the NCIB, the in-licensing
of AKYNZEO® and ALOXI® from Helsinn as well as fostamatinib from
Rigel, repayments on bank loans and foreign exchange gain on cash
and cash equivalents. Refer to section Liquidity and Capital
Resources for more details.
|
|
Trade receivables |
- Trade receivables increased by
$39,502 or 71%, mainly due to growth in revenues including the
assumption of commercial activities of Exelon® and Akynzeo®, sale
of Ambisome® under the MOH Contract, and the growth of our key
promoted products.
|
|
Other receivables (current) |
- Other receivables increased by
$7,874, or 156% mainly due to a receivable of $2,393 from sale of
the Medimetriks investments, an increase in interest receivable of
$2,965 and an increase in sales and other taxes receivable of
$1,592.
|
|
Inventories |
- Inventories increased by $20,092,
or 28% due to inventory purchases of $10,704 upon transfer of
commercial activities of Exelon® and Akynzeo® as well as an
increase in inventory levels across key promoted products including
Ambisome® in anticipation of the 2023 deliveries of the MOH
Contract.
|
|
Other financial assets (current and long
term) |
Other financial assets decreased by $15,880, or 85%, explained
mainly by the following:Loans and other
receivable: increase of $5,023 mainly attributable to net
loans issuedof $2,723 and foreign exchange gains of $1,734.
Equity investments and Derivatives: decrease of
$1,918 or 24% driven mainly by the disposal of Medimetriks equity
investments during the period and the revaluation of equity
investments and derivatives. Funds: decrease of
$18,985 due to negative mark-to-market adjustments of $23,325
driven mostly by the decline in the share prices of the
publicly-traded equities held by our strategic fund investments due
to general market conditions, distributions received and receivable
of $6,478, offset by capital calls of $6,307 and foreign exchange
gains of $4,511. |
|
Income tax receivable |
- Decrease is mainly due collection
of tax refunds.
|
|
Property, plant and equipment |
- Property plant and equipment
decreased by 8,459 or 33% mainly due to the impairment of certain
property, plant and equipment in Argentina related to branded
generics intellectual property.
|
|
Intangible assets |
- Intangible assets decreased by
$11,519 or 3% mainly due to amortization and impairment charge
during the period, offset by upfront payments and certain
milestones primarily related to in-licensing of AKYNZEO® and ALOXI®
from Helsinn, fostamatinib from Rigel and the appreciation of the
USD vs. the CAD.
|
|
Goodwill |
- Increase due to the appreciation of
certain LATAM currencies during the period.
|
|
Deferred income tax asset |
Increase is mainly explained by additional deferred tax assets
recognized on tax losses generated in certain jurisdictions and
certain temporary differences related to financial assets and
change in temporary differences related to intercompany
transactions. |
|
12-31-22 vs 12-31-21 |
|
Other receivables (long-term) |
|
|
Accounts payable and accrued
liabilities(current and long term) |
- Increase in accounts payable and
accrued liabilities balance by $43,140, or 64%, driven by:
- increase of $25,772 related to
purchase of Exelon® & AKYNZEO® inventory driven by the transfer
of the commercial activities to Knight and purchases of Ambisome®
in anticipation of the MOH Contract deliveries of 2023;
- higher payables due to inventory
purchases of our key promoted products and, timing of accruals,
payments to and purchases from certain suppliers.
|
|
Bank loans (current and long term) |
- Increase in bank loans by $34,145 or
95% mainly due to a five-year loan from IFC denominated in select
LATAM currencies of $51,478 and accrued interest, partially offset
by loan repayments of $17,542.
|
|
Income tax payable |
- Decrease is mainly explained by the
settlement of certain prior year income tax liabilities,
instalments and lower current tax accruals in certain
jurisdictions.
|
|
Other balances payable (current and long
term) |
- Increase in other payables by
$8,227 due to certain milestones mainly related to in-licensing of
AKYNZEO® and ALOXI® from Helsinn, fostamatinib from Rigel and
appreciation of the USD vs the CAD.
|
|
Deferred income tax liability |
- Decrease is mainly explained by the
recognition of deferred income tax recovery on amortization of
certain definite-life intangible assets acquired by the Company,
the change in temporary difference related to intercompany
transactions and certain impairment on intangible assets.
|
|
Share capital |
- Decrease due to the purchase of
Knight’s common shares though the NCIB, partially offset by share
issuance under ESPP.
|
|
Contributed surplus |
- Increase related to share-based
compensation expense.
|
Liquidity and Capital
Resources
The Company’s Investment Policy governs the
investment activities relating to cash resources. An Investment
Committee composed of representatives from management and the Board
of Directors monitors compliance with said policy. The Company
invests in strategic investments in the form of equity funds, debt
funds, equity or liquid investment securities with varying terms to
maturity, selected with regard to the expected timing of
investments and expenditures for continuing operations and
prevailing interest rates.
The Company believes that its existing cash,
cash equivalents and marketable securities as well as cash
generated from operations are sufficient to finance its current
operations, working capital requirements and future product and
corporate acquisitions. The table below sets forth a summary of
cash flow activity and should be read in conjunction with our
consolidated statements of cash flows.
[Unaudited]
|
|
|
|
|
|
Change |
YTD |
|
Change |
|
|
Q4-22 |
|
Q4-21 |
|
$ |
|
%1 |
|
2022 |
|
2021 |
|
$ |
|
%1 |
|
|
Net cash from operating activities |
4,752 |
|
4,681 |
|
71 |
|
2 |
% |
40,481 |
|
44,618 |
|
(4,137 |
) |
9 |
% |
| Net cash used in investing
activities |
(65,024 |
) |
9,469 |
|
(74,493 |
) |
787 |
% |
(63,079 |
) |
(105,279 |
) |
42,200 |
|
40 |
% |
| Net
cash from (used in) financing activities |
29,858 |
|
(22,886 |
) |
52,744 |
|
230 |
% |
1,762 |
|
(78,310 |
) |
80,072 |
|
102 |
% |
|
Increase in cash and cash equivalents during the period |
(30,414 |
) |
(8,736 |
) |
(21,678 |
) |
248 |
% |
(20,836 |
) |
(138,971 |
) |
118,135 |
|
85 |
% |
| Net foreign exchange
difference |
271 |
|
2,209 |
|
(1,938 |
) |
88 |
% |
6,552 |
|
(4,658 |
) |
11,210 |
|
241 |
% |
| Cash
and cash equivalents beginning of the period |
101,822 |
|
92,490 |
|
9,332 |
|
10 |
% |
85,963 |
|
229,592 |
|
(143,629 |
) |
63 |
% |
|
Cash and cash equivalents, end of the period |
71,679 |
|
85,963 |
|
(14,284 |
) |
17 |
% |
71,679 |
|
85,963 |
|
(14,284 |
) |
17 |
% |
|
Marketable securities2, end of the period |
100,995 |
|
63,539 |
|
37,456 |
|
59 |
% |
100,995 |
|
63,539 |
|
37,456 |
|
59 |
% |
|
Cash and cash equivalents, and marketable securities2, end of the
period |
172,674 |
|
149,502 |
|
23,172 |
|
15 |
% |
172,674 |
|
149,502 |
|
23,172 |
|
15 |
% |
|
Cash and cash equivalents, net of bank loans |
1,607 |
|
50,036 |
|
(48,429 |
) |
97 |
% |
1,607 |
|
50,036 |
|
(48,429 |
) |
97 |
% |
1 Percentage change is presented in absolute
values.2 Including marketable securities pledged as restricted cash
collateral under the IFC loan.
|
|
Q4-22 |
|
YTD-22 |
|
Net cash from operating activities |
Primarily relates to cash generated through revenues and interest
received, offset by operating expenses including salaries, research
and development expenses, advertising and promotion costs, interest
paid and other corporate expenses. Cash flows from operating
activities exclude revenues and expenses not affecting cash, such
as unrealized and realized gains or losses on financial assets,
share based compensation expense, depreciation and amortization,
unrealized foreign exchange gains or losses, hyperinflation gains,
other income, deferred other income, and net changes in non-cash
balances relating to operations. |
|
|
For the three-month period ended December 31, 2022, cash inflow
from operations was $4,752. The net loss for the quarter plus
adjustments of non-cash items such as depreciation, amortization
and impairment is $6,280 which is offset by an increase in working
capital of $1,528. The increase in the working capital is mainly
due to the transition of commercial activities to Knight related to
Exelon® and Akynzeo®. The working capital levels are expected to
normalize during the first half of 2023.Furthermore, the net cash
from operating activities included an inflow of $2,287 related to
net interest received mainly driven by the timing of maturity of
marketable securities. |
|
For the year ended December 31, 2022, cash inflow from operations
was $40,481. The net loss for the year plus adjustments of non-cash
items such as non-cash items such as depreciation, amortization and
impairment is $50,470 which is offset by an increase in working
capital of $9,989. The increase in the working capital is mainly
due to the transition of commercial activities to Knight related to
Exelon® and Akynzeo®. The working capital levels are expected to
normalize during the first half of 2023.Furthermore, the net cash
from operating activities included an inflow of $7,608 related to
net interest received mainly driven by the timing of maturity of
marketable securities as well as an inflow of $6,030 from the
settlement with former shareholders of GBT. |
|
Net cash from investing activities |
For the three-month period ended December 31, 2022, cash flows were
mainly driven by:
- net purchase of marketable securities of $57,418 driven by
higher interest rates on GICs including the requirement under IFC
loan for restricted cash collateral of 35% of loan balance
outstanding;
- distributions from life sciences funds of $577, offset by
investment in funds of $531;
- acquisition of intangibles and property and equipment of $6,653
mainly due to certain sales milestones payment;
- proceeds from disposal of investments in Medimetriks of
$1,742.
|
|
For the year ended December 31, 2022, cash flows were mainly driven
by:
- net purchase of marketable securities of $36,825 driven by
higher interest rates and requirement under IFC loan to have
restricted cash collateral of 35% of loan balance outstanding;
- acquisition of intangibles and property and equipment of
$25,816 mainly due to upfront payments and certain milestones
related to in-licensing of AKYNZEO® and ALOXI® from Helsinn as well
as fostamatinib from Rigel, and
- distributions from life sciences funds of $3,985, offset by
investment in funds of $3,831;
- issuance of additional strategic loan of $2,741 to Synergy,
and
- proceeds from disposal of investments in Medimetriks of
$1,742.
|
|
Net cash from financing activities |
Cash flows from financing activities were mainly due to the
repurchase of common shares through the NCIB, principal repayments
on bank loans, principal repayments on lease liabilities, proceeds
from bank loans and proceeds from the participation of employees
and directors in the Company’s share purchase plan. |
The Company had the following indebtedness as at the end of the
following periods:
| As at December 31,
2022 |
|
|
|
|
|
|
[Unaudited] |
|
|
|
|
|
|
|
Currency of debt |
Interest rate |
Effective interest rate |
Maturity |
Current$ |
Non-current$ |
Total$ |
|
Banks |
|
|
|
|
|
|
|
| Itaú Unibanco Brasil |
BRL |
1.65% + CDI |
13.36 |
% |
Dec 8, 2023 |
8,487 |
— |
8,487 |
| Bancolombia |
COP |
2.28% + IBR |
8.07 |
% |
Oct 12, 2026 |
2,299 |
6,194 |
8,493 |
| Banco ICBC Argentina1 |
ARS |
77%2 |
77%2 |
N/A |
344 |
— |
344 |
| Banco Itaú Argentina1 |
ARS |
76%3 |
76%3 |
N/A |
1,270 |
— |
1,270 |
| IFC |
BRL |
1.6% + CDI |
15.83 |
% |
Oct 15, 2027 |
3,121 |
23,309 |
26,430 |
|
IFC |
CLP |
7.71 |
% |
7.86 |
% |
Oct 15, 2027 |
1,202 |
9,198 |
10,400 |
| IFC |
COP |
1.6% + IBR |
13.29 |
% |
Oct 15, 2027 |
735 |
10,613 |
11,348 |
|
IFC |
MXN |
1.6% + TIIE |
13.07 |
% |
Oct 15, 2027 |
216 |
3,084 |
3,300 |
|
Total Bank Loans |
|
|
|
|
17,764 |
52,398 |
70,072 |
1 Overdraft balances2 Fixed rate renewed
monthly3 Fixed rate renewed daily
| As at December 31,
2021 |
|
|
|
|
|
|
|
Currency of debt |
Interest rate |
Effective interest rate |
Maturity |
Current$ |
Non-current$ |
Total$ |
| Banks |
|
|
|
|
|
|
|
|
Itaú Unibanco Brasil |
BRL |
1.65% + CDI |
5.97 |
% |
Dec 8, 2023 |
15,028 |
— |
15,028 |
| Itaú Unibanco Brasil |
BRL |
2.20% + CDI |
11.35 |
% |
Dec 28, 2022 |
5,601 |
— |
5,601 |
| Bancolombia |
COP |
2.28% + IBR |
4.47 |
% |
Oct 12, 2026 |
2,448 |
9,265 |
11,713 |
| Banco ICBC Argentina1 |
ARS |
42%2 |
42 |
% |
N/A |
694 |
— |
694 |
| Banco Itaú Argentina1 |
ARS |
40%3 |
40 |
% |
N/A |
2,891 |
— |
2,891 |
|
Total Bank Loans |
|
|
|
|
26,662 |
9,265 |
35,927 |
1 Overdraft balances2 Fixed rate renewed
monthly3 Fixed rate renewed daily
CONSOLIDATED STATEMENTS OF CASH
FLOWS
[In thousands of Canadian dollars]
[Unaudited]
|
|
Three months ended December 31, |
Year ended December 31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
OPERATING ACTIVITIES |
|
|
|
|
| Net (loss) income for the
period |
(15,188 |
) |
(8,301 |
) |
(29,892 |
) |
15,675 |
|
| Adjustments reconciling net
income to operating cash flows: |
|
|
|
|
|
Depreciation and amortization |
20,194 |
|
19,001 |
|
62,621 |
|
47,915 |
|
|
Net gain (loss) on financial instruments |
(8,824 |
) |
(2,300 |
) |
20,677 |
|
(18,944 |
) |
|
Unrealized foreign exchange loss (gain) |
(1,044 |
) |
3,968 |
|
(8,479 |
) |
2,881 |
|
|
Loss on disposal and impairment of non-current assets |
21,904 |
|
496 |
|
23,984 |
|
496 |
|
|
Other operating activities |
(10,762 |
) |
(2,086 |
) |
(18,441 |
) |
(4,032 |
) |
|
|
6,280 |
|
10,778 |
|
50,470 |
|
43,991 |
|
| Changes in non-cash working
capital and other items |
(1,528 |
) |
(6,097 |
) |
(9,989 |
) |
627 |
|
|
Cash inflow from operating activities |
4,752 |
|
4,681 |
|
40,481 |
|
44,618 |
|
|
|
|
|
|
|
| INVESTING
ACTIVITIES |
|
|
|
|
| Purchase of marketable
securities |
(100,995 |
) |
3 |
|
(181,642 |
) |
(47,892 |
) |
| Proceeds on maturity of
marketable securities |
43,577 |
|
90 |
|
144,817 |
|
146,986 |
|
| Investment in funds |
(531 |
) |
(5,466 |
) |
(3,831 |
) |
(16,429 |
) |
| Proceeds from distribution of
funds |
577 |
|
17,519 |
|
3,985 |
|
30,931 |
|
| Purchase of intangible
assets |
(4,407 |
) |
(153 |
) |
(22,931 |
) |
(220,351 |
) |
| Other investing activities |
(3,245 |
) |
(2,524 |
) |
(3,477 |
) |
1,476 |
|
|
Cash (outflow) inflow from investing
activities |
(65,024 |
) |
9,469 |
|
(63,079 |
) |
(105,279 |
) |
|
|
|
|
|
|
| FINANCING
ACTIVITIES |
|
|
|
|
| Repurchase of common shares
through Normal Course Issuer Bid |
(8,684 |
) |
(23,508 |
) |
(30,069 |
) |
(64,415 |
) |
| Principal repayment on bank
loans |
(12,095 |
) |
(5,688 |
) |
(17,542 |
) |
(20,599 |
) |
| Proceeds from bank loans |
51,361 |
|
7,098 |
|
51,783 |
|
9,423 |
|
| Other financing activities |
(724 |
) |
(788 |
) |
(2,410 |
) |
(2,719 |
) |
|
Cash inflow (outflow) from financing
activities |
29,858 |
|
(22,886 |
) |
1,762 |
|
(78,310 |
) |
|
|
|
|
|
|
| (Decrease) in cash and
cash equivalents during the period |
(30,414 |
) |
(8,736 |
) |
(20,836 |
) |
(138,971 |
) |
| Cash and cash equivalents,
beginning of the period |
101,822 |
|
92,490 |
|
85,963 |
|
229,592 |
|
|
Net foreign exchange difference |
271 |
|
2,209 |
|
6,552 |
|
(4,658 |
) |
|
Cash and cash equivalents, end of the period |
71,679 |
|
85,963 |
|
71,679 |
|
85,963 |
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
71,679 |
|
85,963 |
|
| Short-term marketable
securities |
|
|
85,826 |
|
63,539 |
|
|
Long-term marketable securities |
|
|
15,169 |
|
— |
|
|
Total cash, cash equivalents and marketable
securities |
|
|
172,674 |
|
149,502 |
|
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