Delivers Record Annual Adjusted
EBITDA1 of
$12.8 Million
NASDAQ | TSX: ACB
- Q4 Represents the
Sixth Consecutive Quarter of Positive
Adjusted EBITDA1
- Increased Total Quarterly Net Revenue 5% YoY to
$67.4 Million, Global Medical
Cannabis Net Revenue1 Grew by 20%
YoY to $45.6 Million
- Ended the Fiscal Year with a Cash Position of
~$180 Million with Cannabis Business
Debt-Free2
- Re-Affirms Target of Reaching Positive Free Cash
Flow1 by December 31,
2024
EDMONTON, AB, June 20,
2024 /PRNewswire/ - Aurora Cannabis Inc. (the
"Company" or "Aurora") (NASDAQ: ACB) (TSX: ACB), a
leading Canada-based global
medical cannabis company, today announced its financial and
operational results for the fourth quarter and fiscal year 2024. As
the fiscal year 2023 consisted of three quarters, the
year-over-year comparison quarter for Q4 2024 ending March 31, 2024 is Q3 2023 ending March 31, 2023.
"We are incredibly pleased to be reporting our strongest fiscal
year ever at Aurora. Total fiscal year 2024 net revenue increased
21% compared to the trailing four quarters, while adjusted EBITDA
was positive on an annualized basis for the first time in our
history, reaching $12.8 million. We
also strengthened our balance sheet, ending with a strong net cash
position of approximately $180
million as of March
31st, and fully repaid our convertible debt,"
said Chief Executive Officer Miguel
Martin.
"Aurora is the largest global medical cannabis company in
nationally legal markets and our leadership is best differentiated
by serving the diverse needs of patients across the world. In Q4
2024, global medical cannabis net
revenue1 increased 20% year-over-year, supported by
the recent acquisition of MedReleaf Australia, where we saw
significant growth, along with higher sales in Poland and the UK. We also achieved our
highest quarterly adjusted gross margin1 in medical
cannabis of 66%, far ahead of our targeted range of 60%. These
results are encouraging as we continue to progress towards our next
milestone of positive free cash flow by December 31st" concluded Mr.
Martin.
|
____________________________
|
|
1 This press release includes
certain non-GAAP financial measures, which are intended to
supplement, not substitute for, comparable GAAP financial measures.
See "Non-GAAP Measures" below for reconciliations of non-GAAP
financial measures to GAAP financial measures.
|
|
2
Aurora's only remaining debt is $57.3 million relating
to Bevo Farms Ltd as detailed in the FY2024 Financial
Statements.
|
Fourth Quarter 2024 Highlights
(Unless otherwise stated, comparisons are made between fiscal
Q4 2024, Q3 2024, and Q3 2023 results and are in Canadian
dollars)
Consolidated Revenue and Adjusted Gross
Profit:
Total net revenue1 was $67.4 million, as compared to $64.0 million in the prior year period. The 5%
increase from the prior period was mainly due to 20% growth in our
global medical cannabis business, partially offset by lower
quarterly revenue in our consumer cannabis business, and to a far
lesser extent, our plant propagation business.
Consolidated adjusted gross margin before fair value
adjustments1 was 49% in Q4 2024 and in the prior year quarter.
Adjusted gross profit before FV adjustments1 was $33.3 million in Q4 2024 vs $31.0 million in the prior year quarter, an
increase of 8%.
Medical Cannabis:
Medical cannabis net
revenue1 was $45.6
million, a 20% increase from the prior year quarter,
delivering 68% of Aurora's Q4 2024 consolidated net
revenue[1] and 90% of adjusted gross profit before fair value
adjustments1.
The increase in net revenue1 of $7.7
million was primarily due to higher sales to Australia and Europe in the current period following the
success of newly launched innovative cultivars in these
markets.
Adjusted gross margin before fair value adjustments1
on medical cannabis net revenue reached 66% for the three months
ended March 31, 2024, compared to 60%
in the prior year quarter and within the Company's target range of
60% and above. The adjusted gross margins before fair value
adjustments improved through sustainable cost reductions, higher
selling prices in Australia, and
improved efficiency in production operations, including sourcing
for Europe from Canada due to the closure of the Aurora Nordic
production facility.
Consumer Cannabis:
Aurora's consumer cannabis
net revenue1 was $10.2
million, compared to $14.5
million in the prior year quarter. The decrease was due to
our decision to prioritize the supply of our GMP manufactured
products to our high margin international business rather than the
consumer business, which offers lower margins.
Adjusted gross margin before fair value adjustments[1] on
consumer cannabis net revenue[1] was 16%, decreasing from 25%
compared to the prior year quarter. The decrease from the prior
year comparative quarter is largely due to product sales with lower
margins relative to the comparative prior period.
Plant Propagation:
Plant propagation net
revenue1 was wholly comprised of the Bevo business,
that contributed $10.4 million
of net revenue1 compared to $10.8 million in the prior year quarter.
Historically, approximately 65-75% of plant propagation revenue and
up to 80% of EBITDA has been earned in the first half of the
calendar year.
Adjusted gross margin before fair value adjustments1
on plant propagation revenue was 25% for Q4 2024 and 36% for the
prior year quarter. This shift was due primarily to timing of
certain revenues being moved to Q1 2025, the period ending
June 30, 2024, which can be expected
given the typical seasonality of the plant propagation
business.
Selling, General and Administrative
("SG&A"):
Adjusted SG&A1 was
$31.6 million in Q4 2024, which
excludes $8.0 million of
restructuring and non-recurring costs. Adjusted
SG&A1 was slightly above the Company's previous
target of $30 million due to the
incremental SG&A following the acquisition and continuing
integration of MedReleaf Australia.
Adjusted R&D1, was $0.7
million in Q4 2024, decreased $0.9
million compared to the prior year quarter.
Net Loss:
Net loss from continuing operations
for the three months ended March 31,
2024 was $20.8 million
compared to net loss of $76.2 million
for the prior year period. The decrease in net loss of $55.4 million compared to the comparative prior
quarter is primarily due to an increase in gross profit of
$27.3 million, a decrease in
operating expenses of $1.1 million,
and a decrease in other expenses of $29.4
million.
Adjusted EBITDA:
Adjusted EBITDA1
was $1.9 million for the three months
ended March 31, 2024 compared to
$2.0 million for the prior year
quarter.
Convertible Senior Notes Repayment
During the
three months ended March 31, 2024,
the Company repaid an aggregate of approximately $7.2 million (US$5.3
million), representing the final repayment of the principal
amount of its convertible senior notes and Aurora's cannabis
business is now debt free2.
Fiscal Q1 2025 Expectations:
- In Q1 2025, the period ending June 30,
2024, the Company expects to achieve consolidated net
revenue percentage growth in the mid to high teens from Q4 2024.
This expected increase in net revenue is driven by:
- Growth in high margin international medical cannabis revenue
from recent regulatory reforms in Germany which is expected to increase the size
of the market, combined with continued strength in key European
markets, as well as incremental revenue from MedReleaf Australia;
and
- Our plant propagation segment typically experiences a
seasonally higher quarter as it completes its peak spring floral
sales period.
- Consolidated adjusted gross margin for each individual segment
are typically similar on quarter over quarter basis, with a higher
mix contribution from plant propagation.
- Positive adjusted EBITDA should be higher compared to the
fourth quarter as a result of revenue growth combined with
comparable consolidated margins.
- Operating cash flow is expected to improve in Q1 2025 compared
to Q4 2024.
Achieving Positive Free Cashflow:
The Company
views the target of positive free cashflow by end of calendar year
2024 as being achievable because of the following:
- Positioned to deliver continued increases in global medical
cannabis, building on the growth expected in Q1 2025, driven by the
full recognition of revenue in Australia as well as further growth in key
European markets.
- Operating expenditure and gross margins are positioned to be in
line with previously stated targets leading to continued strong
positive adjusted EBITDA.
- Disciplined working capital management and maintenance capital
expenditure of approximately $2.0
million a quarter.
Key Quarterly Financial and Operating Results
|
($ thousands, except
Operational Results)
|
Three months
ended
|
|
March 31,
2024
|
March 31,
2023(6)
|
$
Change
|
%
Change
|
December 31,
2023(7)
|
$
Change
|
%
Change
|
|
Financial
Results
|
|
|
|
|
|
|
|
|
Net revenue
(1)(2a)
|
$67,411
|
$63,951
|
$3,460
|
5 %
|
$64,419
|
$2,992
|
5 %
|
|
Medical cannabis net
revenue (1)(2a)
|
$45,648
|
$37,910
|
$7,738
|
20 %
|
$45,082
|
$566
|
1 %
|
|
Consumer cannabis net
revenue (1)(2a)
|
$10,233
|
$14,491
|
($4,258)
|
(29 %)
|
$11,623
|
($1,390)
|
(12 %)
|
|
Plant propagation
revenue
|
$10,416
|
$10,755
|
($339)
|
(3 %)
|
$7,285
|
$3,131
|
43 %
|
|
Adjusted gross margin
before FV adjustments on total net revenue
(2b)
|
49 %
|
49 %
|
N/A
|
0 %
|
53 %
|
N/A
|
(4 %)
|
|
Adjusted gross margin
before FV adjustments on core cannabis net revenue
(2b)
|
56 %
|
52 %
|
N/A
|
4 %
|
56 %
|
N/A
|
0 %
|
|
Adjusted gross margin
before FV adjustments on medical cannabis net revenue
(2b)
|
66 %
|
60 %
|
N/A
|
6 %
|
62 %
|
N/A
|
4 %
|
|
Adjusted gross margin
before FV adjustments on consumer cannabis net revenue
(2b)
|
16 %
|
25 %
|
N/A
|
(9 %)
|
29 %
|
N/A
|
(13 %)
|
|
Adjusted gross margin
before FV adjustments on plant propagation net revenue
(2b)
|
25 %
|
36 %
|
N/A
|
(11 %)
|
28 %
|
N/A
|
(3 %)
|
|
Adjusted SG&A
expense(2d)(5)
|
$31,598
|
$27,470
|
$4,128
|
15 %
|
$27,759
|
$3,839
|
14 %
|
|
Adjusted EBITDA
(2c)(5)
|
$1,891
|
$1,983
|
($92)
|
(5 %)
|
$5,169
|
($3,278)
|
(63 %)
|
|
|
|
|
|
|
|
|
|
Balance
Sheet
|
|
|
|
|
|
|
|
|
Working capital
(2e)
|
$301,985
|
$242,190
|
$59,795
|
25 %
|
$308,743
|
($6,758)
|
(2) %
|
|
Cannabis inventory and
biological assets (3)
|
$148,112
|
$93,081
|
$55,031
|
59 %
|
$112,645
|
$35,467
|
31 %
|
|
Total assets
|
$838,673
|
$926,322
|
($87,649)
|
(9 %)
|
$824,272
|
$14,401
|
2 %
|
|
|
|
|
|
|
|
|
|
Operational Results
– Cannabis
|
|
|
|
|
|
|
|
|
Average net selling
price of dried cannabis excluding bulk sales
(2f)
|
$5.37
|
$4.74
|
$0.63
|
13 %
|
$4.77
|
$0.60
|
13 %
|
|
Kilograms sold
(4)
|
15,179
|
16,578
|
(1,399)
|
(8 %)
|
14,440
|
739
|
5 %
|
|
(1)
|
Includes the impact of
actual and expected product returns and price adjustments (Q4 2024
– nil; Q3 2024 – $0.1 million; Q3 2023 – $0.3
million).
|
|
(2)
|
These terms are defined
in the "Cautionary Statement Regarding Certain Non-GAAP Performance
Measures" section of this MD&A. Refer to the following sections
for reconciliation of Non-GAAP Measures to the IFRS equivalent
measure:
|
|
a)
|
Refer to the "Revenue"
and "Cost of Sales and Gross Margin" section for a reconciliation
of cannabis net revenue to the IFRS equivalent.
|
|
b)
|
Refer to the "Adjusted
Gross Margin" section for reconciliation to the IFRS
equivalent.
|
|
c)
|
Refer to the "Adjusted
EBITDA" section for reconciliation to the IFRS
equivalent.
|
|
d)
|
Refer to the "Operating
Expenses" section for reconciliation to the IFRS
equivalent.
|
|
e)
|
"Working capital" is
defined as Current Assets less Current Liabilities as reported on
the Company's Consolidated Statements of Financial
Position.
|
|
f)
|
Net selling price of
dried cannabis excluding bulk sales is comprised of revenue from
dried cannabis excluding bulk sales (Q4 2024 – $41.7
million; Q3 2024 – $42.7 million; Q3 2023 – $37.1
million) less excise taxes on dried cannabis revenue excluding bulk
sales (Q4 2024 – $4.4 million; Q3 2024 – $4.6
million; Q3 2023 –$4.5 million).
|
|
(3)
|
Represents total
biological assets and inventory, exclusive of merchandise,
accessories, supplies, consumables and plant propagation biological
assets.
|
|
(4)
|
The kilograms sold, net
of returns during the period.
|
|
(5)
|
Prior period
comparatives were adjusted to include the adjustments for markets
under development, business transformation costs, and non-recurring
charges related to non-core bulk cannabis wholesales to be
comparable to the current period presentation.
|
|
(6)
|
Certain previously
reported amounts have been adjusted to exclude the results related
to discontinued operations and adjusted for the accounts payable
and accrued liabilities non-material prior period adjustment (refer
to Note 2(i) in the consolidated financial statements).
|
|
(7)
|
During the three months
ended March 31, 2024, and subsequent to the filing of the Company's
Q3 2024 condensed consolidated interim financial statements, the
Company noted that inventory and property, plant and equipment was
understated as at December 31, 2023. Certain balances in the
condensed consolidated interim financial statements as at December
31, 2023 and in the condensed consolidated interim statement of
loss and comprehensive loss for the three and nine months ended
December 31, 2023 were adjusted as a result and the amounts shown
above reflect such adjustment. Refer to discussion under
"Historical Quarterly Results" section of this MD&A for further
detail.
|
Conference Call
Aurora will host a conference call today, Thursday, June 20, 2024, to discuss these
results. Miguel Martin, Chief Executive Officer, and
Simona King, Chief Financial
Officer, will host the call starting at 8:00 a.m. Eastern time
| 6:00 a.m. Mountain Time. A question
and answer session will follow management's presentation.
|
DATE:
|
Thursday, June 20,
2024
|
|
TIME:
|
8:00 a.m. Eastern Time
| 6:00 a.m. Mountain Time
|
|
WEBCAST:
|
Click Here
|
This weblink has also been posted to the Company's "Investor
Info" link at https://www.auroramj.com/investors/ under
"Events".
About Aurora Cannabis
Aurora is opening the world to cannabis, serving both the
medical and consumer markets across Canada, Europe, Australia and South
America. Headquartered in Edmonton, Alberta, Aurora is a pioneer in
global cannabis, dedicated to helping people improve their lives.
The Company's adult-use brand portfolio includes Drift, San Rafael
'71, Daily Special, Tasty's, Being and Greybeard. Medical cannabis
brands include MedReleaf, CanniMed, Aurora and Whistler Medical
Marijuana Co., as well as international brands, Pedanios, Bidiol,
IndiMed and CraftPlant. Aurora also has a controlling interest in
Bevo Farms Ltd., North America's
leading supplier of propagated agricultural plants. Driven by
science and innovation, and with a focus on high-quality cannabis
products, Aurora's brands continue to break through as industry
leaders in the medical, wellness and adult recreational markets
wherever they are launched. Learn more
at www.auroramj.com and follow us
on X and LinkedIn.
Aurora's common shares trade on the NASDAQ and TSX under the
symbol "ACB".
Forward Looking Statements
Forward-looking statements made in this news release include,
but are not limited to, statements regarding pro forma measures
including revenue, cash flow, Adjusted gross margin before fair
value adjustments, and expected SG&A run-rates; ongoing cost
efficiencies; the Company's path and timing to achieve positive
free cash flow; the acquisition of MedReleaf Australia and
associated benefits to the Company; the Company's leadership in the
global medical cannabis market; and statements under the heading
"Fiscal Q1 2025 Expectations", including, but not limited to, those
related to expectations for increased revenue, further growth in
international medical cannabis markets, Bevo's performance,
continued positive Adjusted EBITDA and improvements in operating
cash flow. These forward-looking statements are only predictions.
Forward looking information or statements contained in this news
release have been developed based on assumptions management
considers to be reasonable. Material factors or assumptions
involved in developing forward-looking statements include, without
limitation, publicly available information from governmental
sources as well as from market research and industry analysis and
assumptions based on data and knowledge of this industry which the
Company believes to be reasonable. Forward-looking statements are
subject to a variety of risks, uncertainties and other factors that
management believes to be relevant and reasonable in the
circumstances that could cause actual events, results, level of
activity, performance, prospects, opportunities or achievements to
differ materially from those projected in the forward-looking
statements. These risks include, but are not limited to, the
ability to retain key personnel, the ability to continue investing
in infrastructure to support growth, the ability to obtain
financing on acceptable terms, the continued quality of our
products, customer experience and retention, the development of
third party government and non-government consumer sales channels,
management's estimates of consumer demand in Canada and in jurisdictions where the Company
exports, expectations of future results and expenses, the risk of
successful integration of acquired business and operations,
management's estimation that SG&A will grow only in proportion
to revenue growth, the ability to expand and maintain distribution
capabilities, the impact of competition, the general impact of
financial market conditions, the yield from cannabis growing
operations, product demand, changes in prices of required
commodities, competition, the possibility for changes in laws,
rules, and regulations in the industry, epidemics, pandemics or
other public health crises, including the on-going outbreak of
COVID-19, and other risks, uncertainties and factors set out under
the heading "Risk Factors" in the Company's annual information form
dated June [20], 2024 (the "AIF") and filed with Canadian
securities regulators available on the Company's issuer profile on
SEDAR+ at www.sedarplus.com and filed with and available on the
U.S. Securities and Exchange Commission's ("SEC") EDGAR website at
www.sec.gov as part of the Company's annual report on Form
40-F. The Company cautions that the list of risks, uncertainties
and other factors described in the AIF is not exhaustive and other
factors could also adversely affect its results. Readers are urged
to consider the risks, uncertainties and assumptions carefully in
evaluating the forward-looking statements and are cautioned not to
place undue reliance on such information. The Company is under no
obligation, and expressly disclaims any intention or obligation, to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable securities law.
The Company's AIF[2], MD&A and annual financial statements,
which have been filed on SEDAR+ and with the SEC, are also
available on the Company's website www.auroramj.com and
shareholders may receive hard copies free of charge upon request by
contacting aurora@icrinc.com.
Non-GAAP Measures
This news release contains reference to certain financial
performance measures that are not recognized or defined under IFRS
(termed "Non-GAAP Measures"). As a result, this data may not be
comparable to data presented by other licensed producers of
cannabis and cannabis companies. Non-GAAP Measures should be
considered together with other data prepared in accordance with
IFRS to enable investors to evaluate the Company's operating
results, underlying performance and prospects in a manner similar
to Aurora's management. Accordingly, these non-GAAP Measures are
intended to provide additional information and to assist management
and investors in assessing financial performance and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The information
included under the heading "Cautionary Statement Regarding Certain
Non-GAAP Performance Measures" in the Company's management's
discussion and analysis for the year ended March 31, 2024, and nine months ended
March 31,2023 (the "MD&A") is
incorporated by reference into this news release. The MD&A is
available on the Company's issuer profiles on SEDAR+ at
www.sedarplus.com and on the SEC's EDGAR website at
www.sec.gov.
Net Revenue, Adjusted Gross Profit and Margin
Net revenue, adjusted gross profit before FV adjustments, and
adjusted gross margin before FV adjustments are Non-GAAP Measures
and can be reconciled with revenue, gross profit and gross margin,
the most directly comparable GAAP financial measures, respectively,
as follows:
|
($
thousands)
|
Medical
Cannabis
|
Consumer
Cannabis
|
Core Wholesale Bulk
Cannabis
|
Total Core
Cannabis
|
Non-Core
Wholesale
Bulk
Cannabis
|
Plant
Propagation
|
Total
|
|
Three months
ended March 31, 2024
|
|
|
|
|
|
|
|
|
Gross
revenue
|
48,466
|
15,240
|
221
|
63,927
|
893
|
10,416
|
75,236
|
|
Excise taxes
|
(2,818)
|
(5,007)
|
—
|
(7,825)
|
—
|
—
|
(7,825)
|
|
Net revenue
(1)
|
45,648
|
10,233
|
221
|
56,102
|
893
|
10,416
|
67,411
|
|
Non-recurring net
revenue adjustments (4)
|
—
|
—
|
—
|
—
|
|
(192)
|
(192)
|
|
Adjusted net
revenue
|
45,648
|
10,233
|
221
|
56,102
|
893
|
10,224
|
67,219
|
|
Cost of
sales
|
(20,976)
|
(11,682)
|
(131)
|
(32,789)
|
(2,555)
|
(8,327)
|
(43,671)
|
|
Depreciation
|
2,262
|
1,195
|
14
|
3,471
|
270
|
660
|
4,401
|
|
Inventory impairment
and non-recurring costs included in cost of sales
(2)(5)
|
2,985
|
1,842
|
22
|
4,849
|
416
|
42
|
5,307
|
|
Adjusted gross
profit (loss) before FV adjustments (1)
|
29,919
|
1,588
|
126
|
31,633
|
(976)
|
2,599
|
33,256
|
|
Adjusted gross
margin before FV adjustments (1)
|
66 %
|
16 %
|
57 %
|
56 %
|
(109 %)
|
25 %
|
49 %
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31, 2023(8)
|
|
|
|
|
|
|
|
|
Gross
revenue
|
47,942
|
16,951
|
106
|
64,999
|
323
|
7,285
|
72,607
|
|
Excise taxes
|
(2,860)
|
(5,328)
|
—
|
(8,188)
|
—
|
—
|
(8,188)
|
|
Net
revenue(1)
|
45,082
|
11,623
|
106
|
56,811
|
323
|
7,285
|
64,419
|
|
Non-recurring revenue
adjustments (4,5)
|
—
|
—
|
—
|
—
|
$
—
|
$
(872)
|
(872)
|
|
Adjusted net
revenue
|
45,082
|
11,623
|
106
|
56,811
|
323
|
6,413
|
63,547
|
|
Cost of
sales
|
(23,786)
|
(12,292)
|
(133)
|
(36,211)
|
(449)
|
(7,321)
|
(43,981)
|
|
Depreciation
|
2,665
|
1,340
|
14
|
4,019
|
48
|
1,052
|
5,119
|
|
Inventory impairment,
non-recurring, out-of-period, and market development costs included
in cost of sales (2)(3)(4)(6)
|
4,201
|
2,719
|
28
|
6,948
|
95
|
1,681
|
8,724
|
|
Adjusted gross
profit (loss) before FV adjustments (1)
|
28,162
|
3,390
|
15
|
31,567
|
17
|
1,825
|
33,409
|
|
Adjusted gross
margin before FV adjustments (1)
|
62 %
|
29 %
|
14 %
|
56 %
|
5 %
|
28 %
|
53 %
|
|
|
|
|
|
|
|
|
|
Three months
ended March 31, 2023(7)
|
|
|
|
|
|
|
|
|
Gross
revenue
|
40,592
|
18,956
|
307
|
59,855
|
488
|
10,754
|
71,097
|
|
Excise taxes
|
(2,681)
|
(4,465)
|
—
|
(7,146)
|
—
|
—
|
(7,146)
|
|
Net
revenue(1)
|
37,911
|
14,491
|
307
|
52,709
|
488
|
10,754
|
63,951
|
|
Cost of
sales
|
(19,549)
|
(14,556)
|
(173)
|
(34,278)
|
(646)
|
(8,032)
|
(42,956)
|
|
Depreciation
|
2,453
|
1,773
|
21
|
4,247
|
77
|
877
|
5,201
|
|
Inventory impairment,
out-of-period, and non-recurring adjustments included in cost of
sales (2)(4)(6)
|
2,555
|
1,912
|
25
|
4,492
|
96
|
233
|
4,821
|
|
Adjusted gross
profit (loss) before FV adjustments (1)
|
23,370
|
3,620
|
180
|
27,170
|
15
|
3,832
|
31,017
|
|
Adjusted gross
margin before FV adjustments (1)
|
60 %
|
25 %
|
59 %
|
52 %
|
3 %
|
36 %
|
49 %
|
|
1.
|
These terms are
Non-GAAP Measures and are note recognized, defined or standardized
measures under IFRS. Refer to the "Cautionary Statement
Regarding Certain Non-GAAP Performance Measures" section of
this MD&A.
|
|
2.
|
Inventory impairment
includes inventory write-downs due to lower of cost or net
realizable value adjustments, obsolescence provision adjustments,
and inventory destruction.
|
|
3.
|
Markets under
development represents the adjustment for business operations
focused on developing international markets prior to
commercialization.
|
|
4.
|
Non-recurring items
includes one-time excise tax refunds, inventory count adjustments
resulting from facility shutdowns and inter-site transfers, and
abnormal spikes to utilities costs on its plant propagation
business.
|
|
5.
|
Non-recurring items
includes business transformation costs in connection with the
re-purposing and ramp-up of the Company's Sky facility.
|
|
6.
|
Out-of-period
adjustments include adjustments to year-end bonus accruals included
in the current quarter but relating to prior quarters and
adjustments to input assumptions related to fair value of
biological assets.
|
|
7.
|
Certain previously
reported amounts have been adjusted to exclude the results related
to discontinued operations and adjusted for the accounts payable
and accrued liabilities non-material prior period adjustment (refer
to Note 2(i) in the consolidated financial statements).
|
|
8.
|
During the three months
ended March 31, 2024, and subsequent to the filing of the Company's
Q3 2024 condensed consolidated interim financial statements, the
Company noted that inventory and property, plant and equipment was
understated as at December 31, 2023. Certain balances in the
condensed consolidated interim financial statements as at December
31, 2023 and in the condensed consolidated interim statement of
loss and comprehensive loss for the three and nine months ended
December 31, 2023 were adjusted as a result and the amounts shown
above reflect such adjustment. Refer to discussion under
"Historical Quarterly Results" section of this MD&A for further
detail.
|
Adjusted EBITDA
Adjusted EBITDA is a Non-GAAP Measure and can be reconciled with
net income (loss), the most directly comparable GAAP financial
measure, as follows:
The following is the Company's adjusted EBITDA:
|
($ thousands)
|
Three months ended
|
Year ended
|
Nine months ended
|
|
March 31, 2024
|
December 31,
2023(7)
|
March 31, 2023(6)
|
March 31, 2024
|
March 31, 2023(6)
|
|
Net income (loss) from
continuing operations
|
(20,793)
|
(17,755)
|
(76,150)
|
(59,045)
|
(183,228)
|
|
Income tax expense
(recovery)
|
(711)
|
(67)
|
(3,109)
|
(554)
|
(15,184)
|
|
Other income
(expense)
|
18,785
|
(199)
|
48,149
|
13,146
|
51,303
|
|
Share-based
compensation
|
3,029
|
2,839
|
3,620
|
12,717
|
10,764
|
|
Depreciation and
amortization
|
6,328
|
8,411
|
9,875
|
32,225
|
28,995
|
|
Acquisition
costs
|
2,970
|
1,567
|
696
|
5,326
|
5,608
|
|
Inventory and
biological assets fair value and impairment adjustments
|
(16,940)
|
(479)
|
6,719
|
(25,345)
|
64,862
|
|
Business transformation
related charges (1)
|
7,539
|
5,132
|
7,253
|
25,189
|
28,202
|
|
Out-of-period
adjustments (2)
|
(185)
|
613
|
1,333
|
1,236
|
2,316
|
|
Non-recurring items
(3)
|
1,869
|
5,107
|
2,425
|
7,859
|
2,608
|
|
Markets under
development (4)
|
—
|
—
|
1,172
|
—
|
3,308
|
|
Adjusted EBITDA (5)
|
1,891
|
5,169
|
1,983
|
12,754
|
(446)
|
|
(1)
|
Business transformation
related charges includes costs related to closed facilities,
certain IT project costs, costs associated with the repurposing of
Sky, severance and retention costs in connection with the business
transformation plan, costs associated with the retention of certain
medical aggregators. Some prior period amounts have been adjusted
for changes in presentation.
|
|
(2)
|
Out-of-period
adjustments reflect adjustments to net loss for the financial
impact of transactions recorded in the current period that relate
to prior periods. Some prior period amounts have been adjusted for
changes in presentation.
|
|
(3)
|
Non-recurring items
includes one-time excise tax refunds, non-core adjusted wholesale
bulk margins, inventory count adjustments resulting from facility
shutdowns and inter-site transfers, litigation and non-recurring
project costs.
|
|
(4)
|
Markets under
development represents the adjustment for business operations
focused on developing international markets prior to
commercialization.
|
|
(5)
|
Adjusted EBITDA is a
Non-GAAP Measure and is not a recognized, defined, or standardized
measure under IFRS. Refer to "Cautionary Statement Regarding
Certain Non-GAAP Performance Measures" section of the MD&A.
Prior period comparatives were adjusted to include the adjustments
for markets under development, business transformation costs, and
non-recurring charges related to non-core bulk cannabis wholesales
to be comparable to the current period presentation.
|
|
(6)
|
Certain previously
reported amounts have been adjusted to exclude the results related
to discontinued operations and adjusted for the accounts payable
and accrued liabilities non-material prior period adjustment (refer
to Note 2(i) in the consolidated financial statements).
|
|
(7)
|
During the three months
ended March 31, 2024, and subsequent to the filing of the Company's
Q3 2024 condensed consolidated interim financial statements, the
Company noted that inventory and property, plant and equipment was
understated as at December 31, 2023. Certain balances in the
condensed consolidated interim financial statements as at December
31, 2023 and in the condensed consolidated interim statement of
loss and comprehensive loss for the three and nine months ended
December 31, 2023 were adjusted as a result and the amounts shown
above reflect such adjustment. Refer to discussion under
"Historical Quarterly Results" section of this MD&A for further
detail.
|
Adjusted SG&A
Adjusted SG&A is a Non-GAAP Measure and can be reconciled
with sales and marketing and general and administrative expenses,
the most directly comparable GAAP financial measure, as
follows:
The table below outlines Adjusted SG&A for the periods
ended:
|
Three months ended
|
Year ended
|
Nine months ended
|
|
($ thousands)
|
March 31, 2024
|
December 31,
2023(2)
|
March 31, 2023
|
March 31, 2024
|
March 31, 2023
|
|
Sales and
marketing
|
14,537
|
12,106
|
13,246
|
51,937
|
38,684
|
|
General and
administration
|
25,658
|
22,259
|
26,046
|
92,222
|
81,416
|
|
Business transformation
costs(3)
|
(6,862)
|
(5,150)
|
(7,209)
|
(22,590)
|
(27,239)
|
|
Out-of-period
adjustments(3)
|
(642)
|
214
|
(818)
|
(1,236)
|
(1,801)
|
|
Non-recurring
costs
|
(1,093)
|
(1,670)
|
(2,837)
|
(3,768)
|
(6,243)
|
|
Market development
costs
|
—
|
—
|
(958)
|
—
|
(2,935)
|
|
Adjusted SG&A
(1)
|
31,598
|
27,759
|
27,470
|
116,565
|
81,882
|
|
(1)
|
Adjusted SG&A is a
Non-GAAP Measure and is not a recognized, defined, or standardized
measure under IFRS. Refer to the "Cautionary Statement Regarding
Certain Non-GAAP Performance Measures" section of this
MD&A.
|
|
(2)
|
During the three months
ended March 31, 2024, and subsequent to the filing of the Company's
Q3 2024 condensed consolidated interim financial statements, the
Company noted that inventory and property, plant and equipment was
understated as at December 31, 2023. Certain balances in the
condensed consolidated interim financial statements as at December
31, 2023 and in the condensed consolidated interim statement of
loss and comprehensive loss for the three and nine months ended
December 31, 2023 were adjusted as a result and the amounts shown
above reflect such adjustment. Refer to discussion under
"Historical Quarterly Results" section of this MD&A for further
detail.
|
|
(3)
|
Comparative periods
have been adjusted for changes in presentation.
|
Working Capital
Working capital is a Non-GAAP Measure and can be reconciled with
total current assets and total current liabilities, the most
directly comparable GAAP financial measure, as follows:
|
($ thousands)
|
March 31,
2024
|
Three months ended
December 31,
2023
|
March 31,
2023
|
|
Total current
assets
|
426,605
|
411,194
|
479,927
|
|
Total current
liabilities
|
(124,620)
|
(102,451)
|
(237,737)
|
|
Working
capital(1)
|
301,985
|
308,743
|
242,190
|
|
|
|
|
|
|
(1)
|
Working capital for the
three months ended December 31, 2023, and March 31,2023 has been
adjusted. Refer to discussion under "Liquidity and Capital
Resources" section of the MD&A.
|
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SOURCE Aurora Cannabis Inc.