Tilray, Inc. Reports 2d Quarter 2019 Financial Outcomes – Exchange Wire
NANAIMO, British Columbia--(BUSINESS WIRE)--Tilray, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today reported financial results for the second quarter ended June 30, 2019. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated. “We are pleased with our second quarter…

NANAIMO, British Columbia–()–Tilray, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY), a global pioneer in cannabis study, cultivation, production and distribution, this day reported monetary results for the 2nd quarter ended June 30, 2019. All monetary recordsdata in this press birth is reported in U.S. dollars, except in every other case indicated.

“We are tickled with our 2nd quarter results and valid enterprise momentum,” acknowledged Brendan Kennedy, Tilray President and Chief Executive Officer. “Our group has completed against our realizing, with grownup-utilize earnings nearly about doubling in the 2nd quarter when compared to the first quarter and inferior margin increasing sequentially for the 2nd quarter in a row. As we proceed to grow, we live centered on our prolonged-time interval strategic targets and deploying capital to maximise stockholder cost.”

2d Quarter 2019 Financial Highlights

  • Revenue increased 371.1% to $forty five.9 (C$60.9) million, when compared to the 2nd quarter of closing 365 days, driven by the Manitoba Harvest acquisition, the legalization of the Canadian grownup-utilize market, and enhance in international medical markets, particularly in Europe. Except for excise tax, earnings used to be $forty two.0 (C$Fifty five.8) million.

Three months ended June 30,

 

Six months ended June 30,

2019

 

2018

 

$ Trade

 

% Trade

 

2019

 

2018

 

$ Trade

 

% Trade

Adult-utilize

$

15,041

 

$

 

$

15,041

 

N/A

 

$

22,922

 

$

 

$

22,922

 

N/A

ACMPR (direct to patient & bulk)

9,078

 

9,267

 

(189

)

 

(2

)%

 

16,841

 

16,645

 

196

 

1

%

Meals merchandise

19,935

 

 

19,935

 

N/A

 

25,517

 

 

25,517

 

N/A

Global – medical

1,850

 

477

 

1,373

 

288

 

three,662

 

907

 

2,755

 

304

Entire earnings

$

forty five,904

 

$

9,744

 

$

36,100 sixty

 

371

%

 

$

68,942

 

$

17,552

 

$

fifty one,390

 

293

%

Excise tax integrated in earnings

$

three,862

 

$

 

three,862

 

N/A

 

$

5,776

 

$

 

5,776

 

N/A

  • Entire kilogram equivalents provided bigger than tripled to 5,588 kilograms from 1,514 kilograms in the prior 365 days interval.
  • Life like gain selling rate per gram decreased to $4.sixty one (C$6.12) when compared to $6.38 (C$8.36) in the prior 365 days interval. The life like gain selling rate rather than excise taxes used to be $three.ninety two (C$5.20) per gram for the 2nd quarter of 2019. The lower used to be as a consequence of a diminished combine of increased priced extract merchandise and a better combine of grownup-utilize earnings, which are at lower costs per gram when compared to diversified channels.
  • Downhearted margin increased sequentially to 27% from 23% in the prior quarter. Downhearted margin in the 2nd quarter of 2018 used to be Forty three%. Downhearted margin continues to be impacted by increased fees incurred with the ramping up of cultivation companies and products in Canada and Portugal and purchasing 0.33 celebration offer. Meals product margins had been also impacted by a $1.4 million non-money charge connected to bewitch accounting for the beautiful cost of inventory. Except for this bewitch accounting charge, inferior margin used to be 30% for the quarter.
  • Obtain loss for the quarter used to be $35.1 million or $0.36 per share when compared to a lack of $12.8 million or $0.17 per share for the prior 365 days interval. The adjusted gain loss for the quarter used to be $31.2 million or $0.32 per share for the 2nd quarter of 2019. The changes to the gain loss are non-recurring acquisition connected fees and a non-recurring non-money charge connected to bewitch accounting for the beautiful cost of inventory. Adjusted EBITDA used to be a lack of $17.9 million when compared to a lack of $4.7 million the prior 365 days interval. The increased gain loss and Adjusted EBITDA declines had been primarily as a consequence of the extend in working costs connected to enhance initiatives, interest expense from our convertible notes, the addition of Manitoba Harvest and Natura companies, and the growth of international operations.

Exchange Highlights

  • Signed Letter of Intent (LOI) with Privateer Holdings, Inc. to expand lock-up for as much as two years and offer for neat birth of the seventy five million Tilray shares held by Privateer.
  • Essential capability growth:

    • Expanded international export capability with long-established manufacturing license and Appropriate Manufacturing Practices (GMP) certification for EU Campus that enables Tilray Portugal to manufacture and export GMP-certified dried cannabis as an brisk substance for medicinal merchandise.
    • Increased international export capability with an further 20 hectares (50 acres) of out of doorways cultivation apartment in Portugal thru a Definitive Settlement with Esporão, one of many top and most refined agricultural companies in Portugal.1 This agreement will accumulate bigger Tilray’s complete production and manufacturing footprint to some.4 million sq. toes worldwide.
    • Announced an funding of $32.6 million to expand our Canadian production and manufacturing footprint by 203,000 sq. toes across three companies and products in Nanaimo, British Columbia, Leamington, Ontario, and London, Ontario.
  • Key international market tendencies:

    • Imported GMP-certified accomplished medical cannabis oil solutions into Ireland for nationwide distribution below the Clinical Hashish Obtain entry to Programme.2
    • Manitoba Harvest launched a Huge Spectrum Hemp Extract line that’s Normally Acknowledged as Honorable (GRAS) in the United States, marking Tilray’s first entry into the U.S. CBD market below this designate.
  • Expanding our designate portfolio:

    • Obtained Smith & Sinclair, an innovative U.K.-based fully confectionary firm that will introduce CBD-infused particular person merchandise the assign regulations permit.three
  • Clinical study tendencies:

    • Announced strengthen of two original medical study: a pilot look led by Murdoch Childhood’s Be taught Institute (MCRI) in Melbourne, Australia, to evaluation the feasibility and acceptability of an even bigger randomized placebo-managed trial of cannabis extract as a build of remedy for lowering Excessive Behavioral Concerns (SBP) in pediatric patients with Intellectual Disabilities (ID); and a look with McGill University Health Centre’s Division of Infectious Ailments and Power Viral Sickness in Quebec, Canada to perceive the effectiveness of medical cannabis on immune activation in Of us Living with HIV.
    • Imported an initial shipment of medical cannabinoids into the United States, with approval from the U.S. authorities, to bolster two medical trials led by NYU School of Treatment for patients with Alcohol Employ Disorder and Put up-Tense Stress Disorder with Alcohol Employ Disorder.4
  • Expanded global senior management group:

    • Appointed Kristina Adamski as Executive Vice President of Corporate Affairs, globally overseeing communications, authorities affairs and corporate social responsibility.
    • Bolstered European management group with the appointment of Arne Wilkens as Vice President, Exchange Growth, Europe; José Tempero as Clinical Affairs Director, Europe; Maike Gerlach as Vice President, Advertising and marketing and marketing, Europe; Nadja Frenzel as Vice President, Industrial Pattern, Europe; and Natalie Bucceri as Director, Global Portfolio Growth.5

1 Announced August 7, 2019


2 Announced July eleven, 2019


three Announced July 23, 2019


4 Announced August 8, 2019


5 Announced July 5, 2019

Conference Call

The Company will host a convention name to chat about these results this day at 5:00 p.m. ET. Traders drawn to taking part in the stay name can dial 877-489-6528 from the U.S. and 629-228-0736 internationally. A telephone replay will most certainly be readily accessible roughly two hours after the decision concludes thru Tuesday, August 27, 2019, by dialing 855-859-2056 from the U.S., or 404-537-3406 from international locations, and coming into confirmation code 1489081.

There would possibly perhaps perhaps also be a simultaneous, stay webcast readily accessible on the Traders share of the Company’s online page at www.tilray.com. The webcast will most certainly be archived for 30 days.

About Tilray®

Tilray is a global pioneer in cannabis study, cultivation, production and distribution in the mean time serving tens of 1000’s of patients and patrons in thirteen countries spanning five continents.

Forward Taking a admire Statements

This press birth comprises “forward-having a admire statements”, which is also identified by ability of phrases equivalent to, “can also”, “would”, “can also”, “will”, “likely”, “rely on”, “preserve up for”, “factor in, “intend”, “realizing”, “forecast”, “carrying out”, “estimate”, “outlook” and diversified similar expressions, including statements regarding our enhance doubtless, the sustainability of enhance, seek recordsdata from for our merchandise and the medical and grownup-utilize cannabis markets, anticipated plans for strategic partnerships, and the closing of the downstream merger with Privateer. Forward-having a admire statements are now not a guarantee of future performance and are based fully upon a chain of estimates and assumptions of management in gentle of management’s expertise and perception of traits, fresh stipulations and anticipated tendencies, as successfully as diversified components that management believes to be relevant and cheap in the conditions, including assumptions in appreciate of fresh and future market stipulations. Accurate results, performance or fulfillment can also differ materially from that expressed in, or implied by, any forward-having a admire statements in this press birth, and, accordingly, you ought to still now not blueprint undue reliance on such a forward-having a admire statements they assuredly are now not ensures of future results. Forward-having a admire statements beget essential dangers, assumptions, uncertainties and diversified components that can also motive staunch future results or anticipated events to differ materially from those expressed or implied in any forward-having a admire statements. Please check out the heading “Threat Factors” in Tilray’s Quarterly File on Maintain 10-Q, which used to be filed with the Securities and Exchange Fee on August thirteen, 2019, for a discussion of the matter matter possibility components that can also motive staunch results to differ materially from the forward-having a admire recordsdata. Tilray does now not undertake to interchange any forward-having a admire statements which would possibly perhaps perhaps well be integrated herein, except in accordance with appropriate securities rules.

Employ of Non-U.S. GAAP Financial Measures

To complement its monetary statements, the Company offers traders with recordsdata connected to Adjusted EBITDA, which is now not a monetary measure calculated in accordance with most regularly accredited accounting principles in the United States (“U.S. GAAP”). Adjusted EBITDA is calculated as gain earnings (loss) earlier to interest expense, gain; diversified earnings, gain; deferred earnings tax recovery, fresh earnings tax expense; international change (build) loss, gain; depreciation and amortization expense; inventory-based fully compensation expense; and acquisition and integration costs. A reconciliation of Adjusted EBITDA to gain loss, basically the most precise now connected GAAP measure, has been provided in the monetary assertion tables integrated below in this press birth. The Company believes Adjusted EBITDA offers necessary recordsdata to management and traders regarding obvious monetary and enterprise traits touching on to the Company’s monetary situation and results of operations. Management uses Adjusted EBITDA to match the Company’s performance to that of prior durations for trend analyses and planning functions. Adjusted EBITDA is also presented to the Company’s Board of Directors.

Non-U.S. GAAP measures ought to still now not be regarded as a change for, or staunch to, monetary measures calculated in accordance with U.S. GAAP. Non-U.S. GAAP measures exclude essential costs which would possibly perhaps perhaps well be required by U.S. GAAP to be recorded in the Company’s monetary statements and are topic to inherent boundaries.

TILRAY, INC.

Condensed Consolidated Statements of Obtain Loss and Comprehensive Loss

(in 1000’s of U.S. dollars, rather than share and per share records, unaudited)

Three months ended June 30,

Six months ended June 30,

2019

2018

2019

2018

Revenue

$

forty five,904

$

9,744

$

68,942

$

17,552

Cost of sales

33,631

5,567

fifty one,284

9,479

Downhearted profit

12,273

4,177

17,658

8,073

Total and administrative costs

16,465

5,342

29,262

9,487

Gross sales and advertising costs

14,366

three,305

22,187

5,568

Depreciation and amortization expense

2,385

281

4,248

503

Inventory-based fully compensation expense

7,585

5,601

12,891

5,632

Be taught and pattern costs

1,528

639

2,576

1,614

Acquisition and integration costs

2,464

6,888

Working loss

(32,520

)

(10,991

)

(60,394

)

(14,731

)

International change (build) loss, gain

(1,611

)

1,358

(1,432

)

2,504

Pastime expense, gain

8,586

497

17,331

913

Finance earnings from ABG Revenue Participation Plot

(212

)

(347

)

Varied earnings, gain

(2,035

)

(76

)

(4,380

)

(197

)

Loss earlier to earnings taxes

(37,248

)

(12,770

)

(Seventy one,566

)

(17,951

)

Deferred earnings tax recovery

(2,642

)

(6,419

)

Most novel earnings tax expense

447

Sixty three

207

Sixty three

Obtain loss

$

(35,053

)

$

(12,833

)

$

(Sixty five,354

)

$

(18,014

)

Obtain loss per share – general and diluted

(0.36

)

(0.17

)

(0.68

)

(0.24

)

Weighted life like shares veteran in computation of gain loss

per share – general and diluted

97,231,839

seventy five,000,000

ninety six,037,142

seventy five,000,000

Obtain loss

$

(35,053

)

$

(12,833

)

$

(Sixty five,354

)

$

(18,014

)

International currencies translation build (loss)

2,924

(86

)

2,449

(87

)

Unrealized (loss) build on money equivalents and investments

(762

)

646

Varied comprehensive earnings (loss)

2,162

(86

)

three,095

(87

)

Comprehensive loss

$

(32,891

)

$

(12,919

)

$

(Sixty two,259

)

$

(18,one zero one

)

TILRAY, INC.

Condensed Consolidated Steadiness Sheets

(in 1000’s of U.S. dollars, rather than share and par cost records, unaudited)

June 30, 2019

December 31, 2018

Resources

Most novel property

Cash and money equivalents

$

184,551

$

487,255

Quick-time interval investments

36,323

30,335

Accounts receivable, gain of allowance for uncertain accounts of $1,854 and

$292, respectively

24,612

16,525

Varied receivables

1,195

969

Inventory

seventy five,317

16,211

Prepaid costs and diversified fresh property

36,633

three,007

Entire fresh property

358,631

554,302

Property and instruments, gain

147,558

80,214

Intangible property, gain

331,983

4,486

Goodwill

154,954

Investments

23,195

16,911

Deposits and diversified property

7,810

754

Entire property

$

1,024,131

$

656,667

Liabilities

Most novel liabilities

Accounts payable

$

24,368

$

10,649

Accrued costs and diversified fresh liabilities

151,288

14,818

Accrued obligations below capital lease

252

470

Entire fresh liabilities

175,908

25,937

Accrued obligations below capital lease

9,032

8,286

Deferred tax liability

fifty three,624

4,424

Convertible Notes, gain of issuance cost

425,four hundred

420,367

Entire liabilities

$

663,964

$

459,014

Stockholders’ fairness

Class 1 general inventory ($0.0001 par cost, 250,000,000 shares authorized;

16,666,667 shares issued and prominent)

2

2

Class 2 general inventory ($0.0001 par cost; 500,000,000 shares authorized;

80,690,864 and 76,504,200 shares issued and prominent, respectively)

8

8

Extra paid-in capital

526,830

302,057

Gathered diversified comprehensive earnings

6,858

three,763

Gathered deficit

(173,531

)

(108,177

)

Entire stockholders’ fairness

360,167

197,653

Entire liabilities and stockholders’ fairness

$

1,024,131

$

656,667

Three months ended June 30,

Six months ended June 30,

2019

2018

2019

2018

Adjusted EBITDA reconciliation:

Obtain loss

$

(35,053

)

$

(12,833

)

$

(Sixty five,354

)

$

(18,014

)

Depreciation and amortization expense

2,985

671

5,755

1,148

Inventory-based fully compensation expense

7,585

5,601

12,891

5,632

Acquisition and integration costs

2,464

6,888

International change (build) loss, gain

(1,611

)

1,358

(1,432

)

2,504

Pastime expense, gain

8,586

497

17,331

913

Varied earnings, gain

(2,035

)

(76

)

(4,380

)

(197

)

Amortization of inventory step-up

1,360

2,041

Deferred earnings tax recovery

(2,642

)

(6,419

)

Most novel earnings tax expense

447

Sixty three

207

Sixty three

Adjusted EBITDA

$

(17,914

)

$

(4,719

)

$

(32,472

)

$

(7,951

)

Three months ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Adjusted gain loss reconciliation:

Obtain loss

$

(35,053

)

$

(12,833

)

$

(Sixty five,354

)

$

(18,014

)

Acquisition and integration costs

2,464

6,888

Amortization of inventory step-up

1,360

1,358

2,041

Adjusted gain loss

$

(31,229

)

$

(eleven,475

)

$

(fifty six,425

)

$

(18,014

)

Adjusted gain loss per share – general and diluted

(0.32

)

(0.15

)

(0.59

)

(0.24

)

Weighted life like shares veteran in computation of adjusted

gain loss per share – general and diluted

97,231,839

seventy five,000,000

ninety six,037,142

seventy five,000,000