Yesterday, Tilray, Inc. (TSX: TLRY) (Nasdaq: TLRY) released fourth quarter financial results that included numbers from its merger with Aphria and the stock ended the day up more than 25%.
Although Tilray reported 25% higher revenue when compared to the same period last year, the numbers came in below analysts’ estimates. During the quarter, the business was negatively impacted by COVID-19 lockdowns in Ontario that started in early April (the country’s largest province by population). The province is a key market for the Canadian cannabis producer and we will monitor how lockdowns impact future quarters.
Tilray CEO Irwin Simon said the company had recognized approx. $35 million of synergies and we are favorable on how the combined company is lowering expenses. Simon said the company is on track to save $80 million over the next 16 months and we will monitor how the management team is able to execute on this.
Today, we want to highlight 7 important data points from Tilray’s fourth quarter earnings report and consider these data points to be key aspects of the story:
- Generated $142.2 million of net revenue which was lower than the average estimate of $146.2 million (according to Refinitiv IBES estimates)
- Recorded $33.6 million of net income for the quarter which included a one-time adjustment of $19.9 million from excess inventory quantities due to the Aphria merger
- Adjusted EBITDA was $12.3 million which represents a 285% increase when compared to the same period last year. The quarter was the company’s ninth consecutive quarter of positive Adjusted EBITDA
- Net cannabis revenue grew to $53.7 million, a 36% increase
- Net beverage alcohol revenue was $15.9 million which is related to the acquisition of SweetWater Brewing Company
- Net wellness revenue was $5.8 million and this amount was from Manitoba Harvest
- Ended the quarter with a strong balance sheet and reported to have $488.5 million of cash and cash equivalents
We believe that Tilray is executing on a multi-national expansion strategy and are bullish on the growth prospects that are associated with it. If you are interested in learning more about Tilray, please send an email to firstname.lastname@example.org with the subject “Tilray” to be added to our distribution list.
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