Aphria Reports Quarterly EBITDA of $1 Million

- October 7th, 2016

Aphria (TSXV:APH,OTCQB:APHQF) today reported its first quarter results, for the three months ended August 31, 2016.

Aphria (TSXV:APH,OTCQB:APHQF) today reported its first quarter results, for the three months ended August 31, 2016.
As quoted in the press release:

Q1-2017 Q1-2016
$ 4,375,512 Revenue $ 950,740
$ 3,782,145 Gross profit $ 678,555
$ 3,321,596 Adjusted gross profit $ 553,515
75.9 % Adjusted gross margin 58.2 %
$ 895,269 Earnings (loss) before tax $ (476,825 )
$ 1,054,269 EBITDA $ (369,169 )
Q1-2017 Q4-2016
585.2 Kilograms (or kilogram equivalents) sold 340.4
$ 1.23 Cash cost to produce / gram $ 1.15
$ 1.80 “All-in” cost of goods sold / gram $ 2.08
$ 53,452,414 Cash and cash equivalents on hand $ 16,472,664
$ 56,513,651 Working capital $ 20,626,394
$ 7,529,688 Investment in capital and tangible assets $ 434,602

Business highlights

  • Closed land and greenhouse acquisition with Cacciavillani and F.M. Farms Ltd. o/a CF Greenhouses
  • Closed bought deal financing generating approximately $32,000,000 net
  • Received approval for sale of cannabis oil
  • Commencement of Part II expansion (57,000 additional square feet of flowering space)
  • Announcement of Supply Agreement with Medlab Clinical Limited (Australia)
  • Acquisition of neighbouring 11 acres of land and greenhouses from DiNiro Farms Inc.
  • Continued profitability and substantial EBITDA growth in quarter

Financial highlights
For the third consecutive quarter, the Company reported profitability. In the last three quarters, the Company reported income before tax of $3,720, $102,164 and $895,269, respectively. The increased pre-tax profitability relates to strong sales growth in kilograms (or kilogram equivalents) in the quarter, which grew 72% over the prior quarter.
The Company continued to report strong EBITDA levels, growing EBITDA 102% in the quarter to $1,054,269, the first time a public Licenced Producer (“LP”) has reported more than $1 million in EBITDA, without including the fair value increase in biological assets. The EBITDA growth reflects the strong growth in kilograms (or kilogram equivalents) in the quarter.
Revenue for the three months ended August 31, 2016 was $4,375,512, representing a 58% improvement over the prior quarter’s revenue of $2,776,316. The increase in revenue for the quarter was primarily a result of increased demand as measured by kilogram (or kilogram equivalents) sold.
Adjusted gross profit for the first quarter was $3,321,596 with an adjusted gross margin of 75.9%, generated from both retail and wholesale shipments of medical cannabis. The increase in the adjusted gross margin from the prior quarter is consistent with sales growth and the cost efficiencies generated by our Part I expansion.
Income before tax for the three months ended August 31, 2016 was $895,269 or $0.01 per share as opposed to a net loss before tax of $476,825 or $0.01 per share in the same quarter in the previous year and an income before tax of $102,164 or $0.00 per share in the previous quarter. Net income for the three months ended August 31, 2016 was identical to income before tax.
EBITDA for the first quarter was $1,054,269, compared to an EBITDA loss of $369,169 in the same period of the prior year and EBITDA of $520,685 in the previous quarter.
“Aphria continues to deliver on all operating metrics,” said Vic Neufeld, Chief Executive Officer. “Patient onboarding, harvest yields, delivering in-demand strains, kilograms sold and low production costs have again generated stellar top line and bottom line results. Completion of the Part II expansion remains on schedule. Part III expansion just kicked off in the last two weeks. With expected annualized yields increasing to 18,000 kgs upon completion of the expansions, Aphria is strategically positioned for continued sustainable growth.”

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