Registered patients increase 47% during quarter to over
24,400
SMITHS FALLS, ON, Nov. 14, 2016 /CNW/ - Canopy Growth Corporation
(TSX: CGC) ("Canopy Growth" or "the Corporation") today released
its financial results for the second quarter fiscal 2017 ended
September 30, 2016. All
financial information in this press release is reported in Canadian
dollars, unless otherwise indicated.
Consolidated financial results include the accounts of the
Company and its wholly‑owned subsidiaries Tweed Inc. ("Tweed"),
Tweed Farms Inc. ("Tweed Farms") and Bedrocan Canada Inc.
("Bedrocan Canada").
Second Quarter Fiscal 2017 Highlights
- Revenue of $8.5 million; a 22%
increase over first quarter fiscal year 2017 and 245% over the
three-month period ended September 30,
2015
- Over one metric ton sold in the quarter, specifically 1,169
kilograms and kilogram equivalents, representing an increase of 19%
over first quarter fiscal year 2017 and an increase of 267% over
the second quarter fiscal year 2016
- Harvested 1,711 kilograms during the second quarter ended
September 30, 2016
- Net income for the quarter ended September 30, 2016 was $5.4 million, including a non-cash unrealized
gain on changes in the fair value of biological assets of
$16.1 million, compared to net income
of $3.9 million in same period last
year, including a non-cash unrealized gain on the change in fair
value of biological assets totaling $12.5
million
- Expenses in the quarter included initial costs to establish
Brazil amounting to $0.3 million and related legal expenses of
$0.6 million, and $0.3 million related to uplisting to the TSX
- Over 24,400 registered patients at September 30, 2016
- Listed common shares on the Toronto Stock Exchange
- Exported Tweed-branded medical cannabis for sale to German
patients for the first time
- Starting with Lemon Skunk available for sale,
Tweed launched DNA Certified products, coming with a seal of
approval from the world's most decorated cannabis breeders
- Opened a world-class, first-of-its-kind in Canada, cannabis breeding facility
- Announced partnership with related-party Delivra Inc. to supply
Tweed and Bedrocan Canada with cannabis-infused topical product
formulations
- Closed bought deal financing that raised gross proceeds of
$34.5 million
- $45.4 million in cash and cash
equivalents at quarter end
Subsequent to Second Quarter Fiscal 2017
- Tweed launched three Leafs By Snoop strains for sale,
Sunset, Ocean View and Palm Tree CBD, in Canada
- Recent license amendments increased the Corporation's licensed
production capacity to over 13,500 kilograms of dried cannabis and
6,700 kilograms of cannabis oil, representing over 7 million ml of
finished cannabis oil.
- The Corporation announced an expansion strategy in partnership
with related‑party, The Goldman Group
- Canopy Growth acquired Quebec-based Licensed Producer Applicant, Vert
Médical Inc. (renamed Vert Cannabis Inc.), and majority ownership
of Licensed Hemp producer, Groupe Hemp
"Strong growth in registered patients drove our revenues higher
during the second quarter," said Bruce
Linton, Chairman & CEO. "We continue to believe that
variety, quality and consistency of supply are key to driving
market share in the legal cannabis market."
Added Linton, "These last months have seen Tweed introduce
stronger genetics and growing practices into its production
processes, retiring earlier strains and advancing quality to an
entire new level. The fruits of this work to expand strain variety
and inventory, as well as harvesting the entire 350,000 square foot
Tweed Farms greenhouse for the first time just after quarter's end,
will begin to appear in our store this quarter. Our recent
acquisition of Quebec-based Vert
Medical and the expansion strategy we announced with the Goldman
Group represent a continuation of our plan to rapidly expand the
largest cannabis production platform in the industry."
Second Quarter Fiscal 2017 Revenue Review
Revenue for the second quarter ended September 30, 2016 was $8.5 million compared
to revenue of $2.5 million in the
three months ended September 30, 2015 and $7.0 million for the first quarter of fiscal
year 2017. Revenue in the six months ended September 30, 2016 totaled $15.5 million as compared to $4.2 million in the same period last
year.
The Corporation had over 24,400 registered patients at
September 30, 2016 compared to over
16,600 at June 30, 2016 and over
6,200 at September 30, 2015.
Second Quarter Fiscal 2017 Product Sales
Review
The total grams sold during the quarter ended September 30, 2016 was 1,169 kilograms and
kilogram equivalents at an average price of $7.01 per gram, up from 984 kilograms and
kilogram equivalents at an average price of $7.09 per gram in the first quarter of Fiscal
2017 and up from 319 kilograms sold during the three‑month period
ended September 30, 2015 at an
average price of $7.54 per gram.
Year‑to‑date, the Company has sold 2,153 kilograms and kilogram
equivalents at an average price of $7.05 per gram compared to 535 kilograms at
an average price of $7.62 per gram in
the six months ended September 30,
2015.
Second Quarter Fiscal 2017 Cost of Sales
Review
Plants that are in pre-harvest are considered biological assets
and are capitalized on the balance sheet at fair market value less
cost to sell at their point of harvest. Costs to sell include
trimming, drying, testing, fulfillment, and shipping costs. As they
continue to grow through the pre-harvest stages, a corresponding
non-cash unrealized gain is recognized in income through cost of
sales, reflecting the changes in fair value of the biological
assets. At harvest, the biological assets are transferred to
inventory at their fair value, which becomes the deemed cost for
inventory. Inventory is later expensed to cost of sales, inclusive
of post-harvest and shipping costs, when sold and offsets against
the gain on biological assets. In addition, the cost of production
is expensed through cost of sales and represents overheads and
other production costs of growing and selling the plants. Together,
the unrealized gain from changes in the fair value of biological
assets, inventory expensed and the cost of production comprise cost
of sales. We expect cost of sales to vary from quarter to quarter
based on the number of pre-harvest plants, the strains being grown,
and where the pre-harvest plants are in the grow cycle at the end
of the period.
The recovery to cost of sales during the quarter ended
September 30, 2016 was comprised of a
non-cash unrealized gain on changes in the fair value of biological
assets of $16.1 million which was
partially offset by the inventory expensed of $8.4 million and $0.3
million for other production costs, for a net recovery to
cost of sales of $7.3 million.
The changes in the fair value of biological assets recorded during
the quarter was due in large part to the full production at the
350,000 square foot Tweed Farms greenhouse, with significantly
higher expected yields per plant. The greenhouse moved into
full production during the first quarter of fiscal
2017. The harvest of this first full production growth
cycle at Tweed Farms is expected to be completed within the current
quarter.
The recovery to cost of sales during the six-month period ended
September 30, 2016 was comprised of a
non-cash unrealized gain on changes in the fair value of biological
assets of $22.8 million, which was
partially offset by the inventory expensed of $15.1 million and other production costs of
$3.9 million for a net recovery to
cost of sales of $3.8 million.
Second Quarter Fiscal 2017 Gross Margin Review
The gross margin was $15.8
million, or 186% of revenue, for the three-month period
ended September 30, 2016. In the
comparative period ended September 30,
2015, the gross margin on the same basis was $9.4 million or 383% of revenue. In the six-month
period ended September 30, 2016,
gross margin was $19.3 million or
124% of revenue, compared to $13.5
million or 324% of revenue in same period last year. Gross
margin includes the unrealized gains on changes in fair value of
biological assets, a non-cash value which is discussed in detail in
the Second Quarter Fiscal 2017 Cost of Sales discussion
above.
Second Quarter Fiscal 2017 Adjusted Product
Contribution Review
The Company's "Adjusted Product Contribution"1 is a
Non-GAAP metric used by management which adjusts the reported gross
margin by excluding the fair value measurements as required by IFRS
and measures the cost of sales for the grams actually sold in the
period. Management believes this measure provides useful
information as it reflects the gross margin based on the Company's
weighted average cost per gram from seed to sale against the grams
sold.
The Adjusted Product Contribution in the second quarter of
fiscal 2017 was $5.3 million, or 62%
of revenue. In the comparative period last year, the Adjusted
Product Contribution was $1.5
million, or 62% of revenue. Year‑to‑date, the Adjusted
Product Contribution was $9.6
million, or 62% of revenue. In comparison, the Adjusted
Product Contribution in the six months ended September 30, 2015 was $2.6 million or 61% of revenue.
Second Quarter Fiscal 2017 Operating Expense
Review
For the three months ended September 30, 2016, sales and
marketing expenses were $2.8 million, or 33% of revenue,
compared to $0.9 million or 35%
of revenue, in the same period last year. Year-to-date, the sales
and marketing expenses were $5.1
million or 33% of revenue, compared to $1.9 million or 45% of revenue, in the same
period last year.
The increase in sales and marketing expenses in the three and
six months ended September 30, 2016 over the comparative
periods last year is due in part to a full quarter and six months
of Bedrocan operations, whereas the comparative periods included
only one month, amounting to an increase of $0.3 million during the second quarter and
$0.4 million year to date, non-cash
share-based compensation of $0.3
million during the second quarter and $0.4 million year to date related to previously
issued escrowed shares, and increased patient support of
$0.4 million in the second quarter
and $0.7 million year to date
directly attributable to patient growth. Since
September 30, 2015, the number of patients has grown from
approximately 6,200 to over 24,400 at September 30, 2016. The increase over the
comparison periods is also due to increased staffing in our
customer care centre, launching Tweed's Main Street customer
engagement locations and continued positioning of the Tweed brand
in preparation for a non-medical market.
General and Administrative ("G&A") expenses were $4.0
million, or 47% of revenue, in the three-month period ended
September 30, 2016 compared to
$2.2 million, or 91% of revenue, in
the same period last year. In the six-month period ended
September 30, 2016, G&A expenses were $6.9 million or 44% or revenue. In
comparison, G&A expenses were $3.7
million or 88% of revenue, in the six-month period ended
September 30, 2015.
The increase in G&A expenses over the comparative periods
last year is due in part to a full quarter and six months of
Bedrocan operations, whereas the comparative periods included only
one month, amounting to an increase of $0.4 million in the second quarter and
$0.7 million year to date, fees
related to the Company's graduation to the TSX in the amount of
$0.3 million over the quarter and six
month periods, initial expenses in establishing Brazil operations of $0.3 million in the quarter and year to date
period, higher audit and professional services fees of $0.2 million in the second quarter and
$0.3 million year to date, and higher
finance charges such as credit card payment processing fees of
$0.1 million in the second quarter
and $0.2 million year to date due to
increased sales activity. G&A expenses also include extensive
use of consultants and advisory services while expanding and
commercializing the Company's operations, facility costs in
Smiths Falls, Tweed Farms and
Bedrocan, compliance costs associated with meeting Health Canada
requirements, as well as public company related expenses.
Overall, the increase in G&A over the comparison periods
reflects the Company's growth and building of commercial capacity
and capability.
Second Quarter Fiscal 2017 Earnings
Review
Net income for the quarter ended September 30, 2016 was $5.4 million or $0.05 per basic and diluted share, including a
non-cash unrealized gain on changes in the fair value of biological
assets of $16.1 million. In the
comparative period last year, net income was $3.9 million or $0.06 per basic share and $0.05 per diluted share, including a non-cash
unrealized gain on changes in the fair value of biological assets
of $12.5 million.
Year-to-date, the Company recorded net income of $1.5 million or $0.01 per basic and diluted share, including a
non-cash unrealized gain on changes in the fair value of biological
assets of $22.8 million. In the
comparative period last year, the Company reported net income
$4.9 million or $0.09 per basic share and $0.07 per diluted share, including a non-cash
unrealized gain on changes in the fair value of biological assets
of $17.8 million.
Second Quarter Fiscal 2017 Balance Sheet and
Year to Date Cash Flow Review
At September 30, 2016, the
Corporation's cash, comprised of cash and cash equivalents totaled
$45.4 million, representing an
increase of $30.0 million from
March 31, 2016. The increase is
attributable to combined net proceeds from the April 2016 and August
2016 "bought deal" common share offerings in the first and
second quarters of the 2017 fiscal year and the exercise of options
and warrants together totaling $44.2
million partially offset by cash used to fund operations of
$8.9 million and investments in
facility enhancements totaling $8.7
million. Investments in facility enhancements were
primarily improvements at our Smiths
Falls facility including the conversion of growing rooms, in
the expansion of cannabis oil extract production capacity and in
information technology.
Inventory at September 30, 2016
amounted to $27.6 million
(June 30, 2016 - $24.2 million, March
31, 2016 - $22.2 million) and
biological assets amounted to $13.7 million (June
30, 2016 - $4.1 million,
March 31, 2016 - $5.3 million), together totaling $41.3 million (June 30,
2016 - $28.3 million,
March 31, 2016 - $27.5 million). The biological assets
increased from Fiscal 2016 due to higher yielding plants,
predominantly at Tweed Farms, in the later stage of their growth
cycle. Harvested plants were added to inventories during the
quarter and quantities maintained to meet the continued growth in
sales expected with strain availability, and the expected growing
demand for oils.
The Unaudited Condensed Interim Consolidated Financial
Statements and Management's Discussion and Analysis documents have
been filed with SEDAR and are available on www.sedar.com. The
basis of financial reporting in the Unaudited Condensed Interim
Consolidated Financial Statements and Management's Discussion and
Analysis documents is in thousands of Canadian dollars, unless
otherwise indicated.
Note 1: The Adjusted Product Contribution is a non-GAAP
financial measure that does not have any standardized meaning
prescribed by IFRS and may not be comparable to similar measures
presented by other companies. The Adjusted Product
Contribution is reconciled and explained in Management's Discussion
& Analysis under "Adjusted Product Contribution (Non-GAAP
Measure)", a copy of which has been filed today
on www.sedar.com.
Webcast and Conference Call Information
Canopy Growth will host a conference call and audio webcast with
Bruce Linton, CEO and Tim Saunders, CFO at 8:30
AM Eastern Time today.
Webcast Information
A live audio webcast will be available at:
http://event.on24.com/r.htm?e=1302342&s=1&k=37DEA54FAEA7DB4510A248A6A3DDF789
Calling Information
Toll Free Dial-In Number: 1-888-231-8191
International Dial-In Number (647) 427-7450
Conference ID: 10218564
Replay Information
A replay of the call will be accessible by telephone until
11:59 PM ET on
December 12, 2016.
Toll Free Dial-in Number: 1-855-859-2056
Replay Password: 10218564
About Canopy Growth Corporation
Canopy Growth is a
world-leading diversified cannabis company, offering diverse brands
and curated cannabis strain varieties in dried and oil extract
forms. Through its wholly‑owned subsidiaries, Tweed, Tweed
Farms, and Bedrocan Canada, Canopy Growth operates three
state-of-the-art production facilities with over half a million
square feet of indoor and greenhouse production capacity.
Canopy Growth has established partnerships with leading sector
names in Canada and abroad.
For more information, www.canopygrowth.com.
Notice Regarding Forward Looking Statements
This news
release contains forward-looking statements. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"estimates", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of Canopy Growth Corporation, Tweed Inc., Tweed Farms
Inc. or Bedrocan Canada Inc. to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Examples of such statements include
future operational and production capacity, the impact of enhanced
infrastructure and production capabilities, and forecasted
available product selection. The forward-looking statements
included in this news release are made as of the date of this news
release and Canopy Growth Corp. does not undertake an obligation to
publicly update such forward-looking statements to reflect new
information, subsequent events or otherwise unless required by
applicable securities legislation. Neither the TSX Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Exchange) accepts responsibility for the adequacy or
accuracy of this release.
|
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE
INCOME
|
FOR THE THREE AND
SIX MONTHS ENDED SEPTEMBER 30, 2016 AND 2015
|
|
|
Three months
ended
|
|
Six months
ended
|
UNAUDITED
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in CDN
$000's except share amounts)
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
8,498
|
|
$
|
2,466
|
|
$
|
15,482
|
|
$
|
4,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on
changes in fair value of biological assets
|
|
|
(16,076)
|
|
|
(12,480)
|
|
|
(22,760)
|
|
|
(17,755)
|
Inventory expensed to
cost of sales
|
|
|
8,414
|
|
|
2,678
|
|
|
15,068
|
|
|
4,171
|
Other production
costs
|
|
|
333
|
|
|
2,820
|
|
|
3,902
|
|
|
4,218
|
Recovery to cost of
sales, net of the unrealized gain on changes in fair value of
biological assets
|
|
|
(7,329)
|
|
|
(6,982)
|
|
|
(3,790)
|
|
|
(9,366)
|
Gross
margin
|
|
|
15,827
|
|
|
9,448
|
|
|
19,272
|
|
|
13,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
2,810
|
|
|
873
|
|
|
5,070
|
|
|
1,881
|
Research and
development
|
|
|
503
|
|
|
210
|
|
|
906
|
|
|
249
|
General and
administration
|
|
|
4,031
|
|
|
2,239
|
|
|
6,881
|
|
|
3,655
|
Acquisition
costs
|
|
|
592
|
|
|
1,139
|
|
|
592
|
|
|
1,139
|
Share of (income)
loss in equity investments
|
|
|
(170)
|
|
|
-
|
|
|
50
|
|
|
-
|
Share-based
compensation expense
|
|
|
960
|
|
|
574
|
|
|
1,848
|
|
|
945
|
Depreciation and
amortization
|
|
|
984
|
|
|
452
|
|
|
1,895
|
|
|
720
|
|
|
|
9,710
|
|
|
5,487
|
|
|
17,242
|
|
|
8,589
|
Income from
operations
|
|
|
6,117
|
|
|
3,961
|
|
|
2,030
|
|
|
4,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(42)
|
|
|
(31)
|
|
|
(89)
|
|
|
(12)
|
Increase in fair
value of acquisition consideration related
liabilities
|
|
|
(286)
|
|
|
-
|
|
|
(298)
|
|
|
-
|
|
|
|
(328)
|
|
|
(31)
|
|
|
(387)
|
|
|
(12)
|
Net income and
comprehensive income before income taxes
|
|
|
5,789
|
|
|
3,930
|
|
|
1,643
|
|
|
4,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(359)
|
|
|
-
|
|
|
(162)
|
|
|
-
|
Net income and
comprehensive income after income taxes
|
|
$
|
5,430
|
|
$
|
3,930
|
|
$
|
1,481
|
|
$
|
4,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
basic:
|
|
$
|
0.05
|
|
$
|
0.06
|
|
$
|
0.01
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of outstanding common shares, basic:
|
|
|
108,872,770
|
|
|
63,838,863
|
|
|
106,248,781
|
|
|
57,357,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
diluted:
|
|
$
|
0.05
|
|
$
|
0.05
|
|
$
|
0.01
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of outstanding common shares, diluted:
|
|
|
112,254,363
|
|
|
76,057,904
|
|
|
108,879,226
|
|
|
69,576,190
|
|
CANOPY GROWTH
CORPORATION
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
UNAUDITED
|
|
|
September
30,
|
|
|
March 31,
|
(Expressed in CDN
$000's)
|
|
|
2016
|
|
|
2016
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
45,379
|
|
$
|
15,397
|
|
Restricted short-term
investment
|
|
|
250
|
|
|
-
|
|
Accounts
receivable
|
|
|
1,625
|
|
|
1,110
|
|
HST
recoverable
|
|
|
277
|
|
|
376
|
|
Biological
assets
|
|
|
13,748
|
|
|
5,321
|
|
Inventory
|
|
|
27,579
|
|
|
22,153
|
|
Prepaid expenses and
other assets
|
|
|
1,019
|
|
|
489
|
|
|
|
|
89,877
|
|
|
44,846
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
48,492
|
|
|
44,581
|
Assets in
process
|
|
|
4,702
|
|
|
403
|
Restricted
investment
|
|
|
-
|
|
|
246
|
Goodwill
|
|
|
20,867
|
|
|
20,867
|
Intangible
assets
|
|
|
31,713
|
|
|
31,861
|
Other
assets
|
|
|
553
|
|
|
557
|
|
|
|
$
|
196,204
|
|
$
|
143,361
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
7,492
|
|
$
|
6,107
|
|
Deferred
revenue
|
|
|
296
|
|
|
533
|
|
Current portion of
long-term debt
|
|
|
1,080
|
|
|
553
|
|
|
|
|
8,868
|
|
|
7,193
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
6,362
|
|
|
3,469
|
|
Acquisition
consideration related liabilities
|
|
|
1,556
|
|
|
1,258
|
|
Deferred tax
liability
|
|
|
7,575
|
|
|
7,413
|
|
Other long-term
liabilities
|
|
|
224
|
|
|
243
|
|
|
|
|
24,585
|
|
|
19,576
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Share
capital
|
|
|
175,970
|
|
|
131,080
|
|
Share-based
reserve
|
|
|
7,943
|
|
|
5,804
|
|
Warrants
|
|
|
-
|
|
|
676
|
|
Deficit
|
|
|
(12,294)
|
|
|
(13,775)
|
|
|
|
|
171,619
|
|
|
123,785
|
|
|
|
$
|
196,204
|
|
$
|
143,361
|
|
|
|
|
|
CANOPY GROWTH
CORPORATION
|
|
|
|
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
FOR THE SIX MONTHS
ENDED SEPTEMBER 30, 2016 AND 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
|
|
September
30,
|
|
September
30,
|
(Expressed in CDN
$000's)
|
|
2016
|
|
2015
|
Net inflow (outflow)
of cash related to the following activities:
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,481
|
|
$
|
4,941
|
|
|
Items not affecting
cash:
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
|
1,747
|
|
|
715
|
|
|
|
Amortization of
intangible assets
|
|
|
148
|
|
|
5
|
|
|
|
Share of loss in
equity investments
|
|
|
50
|
|
|
-
|
|
|
|
Unrealized gain on
change in fair value of biological assets
|
|
|
(22,760)
|
|
|
(17,755)
|
|
|
|
Inventory allowance
to net realizeable value
|
|
|
(6,481)
|
|
|
859
|
|
|
|
Net changes in
inventory and biological assets
|
|
|
15,388
|
|
|
2,985
|
|
|
|
Share-based
compensation
|
|
|
2,232
|
|
|
945
|
|
|
|
Income tax
expense
|
|
|
162
|
|
|
-
|
|
|
|
Increase in fair
value of acquisition consideration related liabilities
|
|
|
298
|
|
|
-
|
|
|
Changes in non-cash
operating working capital items
|
|
|
(1,190)
|
|
|
334
|
Net cash used in
operating activities
|
|
|
(8,925)
|
|
|
(6,971)
|
|
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common shares
|
|
|
46,009
|
|
|
-
|
|
|
Proceeds from
exercise of stock options
|
|
|
1,128
|
|
|
7
|
|
|
Proceeds from
exercise of warrants
|
|
|
126
|
|
|
561
|
|
|
Payment of share
issue costs
|
|
|
(3,030)
|
|
|
(189)
|
|
|
Issuance of long-term
debt
|
|
|
3,500
|
|
|
-
|
|
|
Increase in capital
lease obligations
|
|
|
260
|
|
|
-
|
|
|
Repayment of
long-term debt
|
|
|
(339)
|
|
|
(60)
|
|
|
Increase (decrease)
in other long-term liabilities
|
|
|
(19)
|
|
|
27
|
Net cash provided
by financing activities
|
|
|
47,635
|
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
Investing
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
|
(4,728)
|
|
|
(3,148)
|
|
|
Purchases of assets
in process
|
|
|
(4,000)
|
|
|
(4,561)
|
|
|
Acquisition of
Bedrocan
|
|
|
-
|
|
|
900
|
|
|
Purchases of
restricted investment
|
|
|
-
|
|
|
(286)
|
Net cash used in
investing activities
|
|
|
(8,728)
|
|
|
(7,095)
|
|
|
|
|
|
|
|
|
|
|
Net cash inflow
(outflow)
|
|
|
29,982
|
|
|
(13,720)
|
Cash and cash
equivalents, beginning of period
|
|
|
15,397
|
|
|
21,446
|
Cash and cash
equivalents, end of period
|
|
$
|
45,379
|
|
$
|
7,726
|
Unaudited Non-GAAP
Measure
|
|
Three Months
Ended
|
|
Six Months
Ended
|
(In CDN$000's,
except gram amounts)
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Adjusted Product
Contribution1
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighed average
cost per gram
|
|
$
|
2.77
|
|
$
|
2.92
|
|
$
|
2.72
|
|
$
|
3.02
|
Grams sold in the
period
|
|
|
1,169,374
|
|
|
318,572
|
|
|
2,153,708
|
|
|
534,501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
8,498
|
|
$
|
2,466
|
|
$
|
15,482
|
|
$
|
4,176
|
|
Adjusted cost of
sales
|
|
|
(3,239)
|
|
|
(931)
|
|
|
(5,858)
|
|
|
(1,614)
|
Adjusted Product
Contribution
|
|
$
|
5,259
|
|
$
|
1,535
|
|
$
|
9,624
|
|
$
|
2,562
|
Adjusted Product
Contribution percentage of sales
|
|
|
62%
|
|
|
62%
|
|
|
62%
|
|
|
61%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As compared to the
Gross Margin per IFRS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
|
15,827
|
|
$
|
9,448
|
|
$
|
19,272
|
|
$
|
13,542
|
|
Gross margin
percentage of sales
|
|
|
186.2%
|
|
|
383.1%
|
|
|
124.5%
|
|
|
324.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
1 - The Adjusted
Product Contribution removes the fair value measurements required
under IFRS and recognizes the cost of sales based on the weighted
average cost per gram to produce and applied to the grams sold in
the period.
|
SOURCE Canopy Growth Corporation