- Global Cannabis Net Revenue of $60.6 Million
- Adjusted EBITDA Improved by 22% to a loss of $9.0 Million versus Q1 2022
- Company Reaffirms Goal of Adjusted EBITDA
Profitability by H1/2023
- Transformation Plan Ahead of Schedule; Company Now
Expects to Realize Upper End of $60
to $80 Million Range in Total Cost
Savings by H1/2023; ~$60 Million
Annualized Savings Implemented to Date
- Company Remains #1 Canadian LP in Global Medical
Cannabis; International Cannabis Revenue Increased 24% from Q1
2022
NASDAQ | TSX: ACB
EDMONTON, AB, Feb. 10, 2022 /PRNewswire/ - Aurora Cannabis Inc.
(the "Company" or "Aurora") (NASDAQ: ACB) (TSX:
ACB), the Canadian company defining the future of cannabinoids
worldwide, today announced its financial and operational results
for the second quarter fiscal 2022 ended December 31, 2021.
"During the second quarter, we improved our Adjusted EBITDA by
$2.5 million over Q1, moving us
closer to our profitability goal. Our focus remains on further cost
reductions, and we are pleased to announce today that we expect to
reach the high end of the $60 to
$80 million range. Our balance sheet
remains among the strongest in the industry, with approximately
$445 million in cash as of yesterday.
This gives us significant working capital to support organic growth
and positions us to pursue strategic M&A opportunities," stated
Miguel Martin, Chief Executive
Officer of Aurora.
"Q2 total cannabis net revenue held steady sequentially, driven
by our industry leading, high margin global medical cannabis
business. New international markets are rapidly opening, and with
the unique ability to navigate complex regulatory environments, we
see a significant revenue opportunity of which we are at the
forefront. While the Canadian adult-use market continues to face
challenges, we are focused on introducing a new range of products
set to launch this spring," he concluded.
Second Quarter 2022 Highlights
(Unless otherwise
stated, comparisons are made between fiscal Q2 2022, Q1 2022, and
Q2 2021 results and are in Canadian dollars)
Medical Cannabis:
- Medical cannabis net revenue1 was $45.7 million, an 18% increase from the prior
year period, delivering 76% of Aurora's Q2 2022 consolidated
revenue and 89% of adjusted gross profit.
- The increase in revenue was driven by continued growth in the
international medical business, up 24% sequentially and 67% year
over year, as the Company continued to develop new, high margin
medical markets. We do not currently expect to recognize revenue
from shipments to Israel in
Q3.
- Net revenue in Q2 2022 includes a provision recorded against
international revenue of $2.4 million
for certain current and prior period international shipments that
were either above or below target THC potency ranges. Management
does not expect this level of provision to recur. Year over year
international revenue growth, excluding the provision was 87%.
- Adjusted gross margin before fair value adjustments on medical
cannabis net revenue1 was 62% compared to 64%
sequentially and 56% in the prior year period. The year over year
improvement was a result of an increase in international sales
which yield higher margins and an overall reduction in production
costs due to the closure of non-core facilities as part of our
business transformation plan.
Consumer Cannabis:
- Consumer cannabis net revenue1 was $14.8 million compared to the prior quarter net
revenue of $19.1 million, with the
decline due mainly to industry-wide pricing pressures across our
portfolio and an 18% decrease of kilograms and equivalent sold
compared to the prior quarter. This was partially offset by a
positive 5% mix shift in the Company's brand mix from Daily Special
to San Rafael '71, as the Aurora continues to pivot towards premium
offerings.
- Adjusted gross margin before fair value adjustments on consumer
cannabis net revenue1 was 24% versus 32% sequentially
and 27% in the prior year period. The decrease of 8% from Q1 2022
was mainly related to industry-wide pricing compression, offset by
a 2% improvement from Aurora's continuing shift toward a premium
product portfolio. Additionally, the clear out of aging and low
potency consumer cannabis through bulk wholesale channels impacted
margins negatively by 4%. Excluding the discounted bulk sales,
which are not expected to recur regularly, the Company's consumer
adjusted gross margin would be 28%.
Selling, General and Administrative
("SG&A"):
- SG&A, including Research and Development ("R&D"), was
$40.9 million (excluding $2.5 million of restructuring related costs and
$1.2 million of prior period
employee-related accruals) versus $44.0
million in the prior quarter and $43.3 million in the prior year period, presented
on a comparable basis.
Consolidated:
- Q2 2022 total cannabis net revenue1 was $60.6 million, up 1% sequentially. The Q2 2022
average net selling price per gram of dried cannabis1,
excluding the effect of bulk wholesale of excess mid-potency
cannabis flower, declined 10% to $4.20 from $4.67 in
Q1 2022 reflecting continued downward pressures on pricing due to
competition.
- Adjusted gross margin before fair value adjustments on cannabis
net revenue1 was 53% in Q2 2022 versus 54% in the prior
quarter and 44% in Q2 2021. The increase in Adjusted gross margin
compared to the prior year period is due to increased sales in our
international medical markets which command significantly higher
average net selling prices and margins.
- Adjusted EBITDA1 loss improved to $9.0 million in Q2 2022 versus $11.5 million in Q1 2022 and $11.2 million in the prior year period. The
decrease in loss as compared to Q1 2022 was primarily driven by the
$3.1 million decrease in SG&A,
net of restructuring and one-time costs, while revenue and Adjusted
gross margins remained steady.
|
__________
|
|
1 These
terms are non-GAAP measures, see "Non-GAAP Measures"
below.
|
Operational Efficiency Plan, Balance Sheet Strength, &
Working Capital Improvement:
Aurora has previously
identified cash savings of $60
million to $80 million. We
have already executed approximately $60
million in annualized run-rate cost savings to date, and now
expect to reach the high end of this range by the end of H1 fiscal
2023.
Approximately 60% of the savings are expected to be removed from
our network through asset consolidation, and operational and supply
chain efficiencies. The remaining 40% of savings are intended to be
sourced through SG&A. These cash savings will be reflected in
our P&L either as they occur for SG&A savings, or as
inventory is drawn down for production-related savings.
At December 31, 2021, Aurora had
$383.8 million of cash, including
$51.3 million in restricted cash, no
secured term debt, and access to US$1.0
billion of capital under its shelf prospectus, including the
full amount of a US$300 million
at-the-market (ATM) facility. Subsequent to Q2 2022, the Company
issued 19,595,000 common shares for gross proceeds of US$89.7 million under the ATM program. As
disclosed previously, management considers the ATM to be available
for strategic purposes.
Quarterly cash flow summary:
|
($
thousands)
|
Q2
2022
|
Q1
2022
|
Q2
2021(2)
|
|
Cash, Opening
(1)
|
$424,301
|
$440,851
|
$133,678
|
|
|
|
|
|
Cash used in
operations, including working capital
|
-$20,298
|
-$17,968
|
-$67,271
|
|
Capital expenditures
and investments, net of disposals and
government grant income
|
-$11,497
|
$3,053
|
-$8,837
|
|
Debt and interest
payments
|
-$8,753
|
-$1,551
|
-$8,474
|
|
Cash use
|
-$40,548
|
-$16,466
|
-$84,582
|
|
|
|
|
|
Proceeds raised from
sale of marketable securities and
investments in associates
|
-
|
-
|
$6,135
|
|
Proceeds raised
through debt
|
-
|
-
|
-
|
|
Proceeds raised
through equity financing
|
-
|
-$84
|
$379,155
|
|
Cash
raised
|
-
|
-$84
|
$385,290
|
|
|
|
|
|
Cash, Ending
(1)
|
$383,753
|
$424,301
|
$434,386
|
|
|
|
(1)
|
Includes restricted
cash of $51.3M at Q2 2022, $51.5M at Q1 2022, and $50.0M at Q2
2021.
|
|
(2)
|
Previously reported amounts have been
retroactively recast for the biological assets and inventory
non-material prior period error. Refer to the "Significant
Accounting Policies and Judgments" section in Note 2(d) of the
Financial Statements.
|
Refer to the "Consolidated Statement of Cash Flows" in the
"Consolidated Financial Statements" for our cash flow statements
prepared in accordance with IAS 7 – Statement of Cash Flows.
|
($ thousands,
except Operational Results)
|
Q2
2022
|
Q2
2021(1)(2)
|
$
Change
|
%
Change
|
Q1
2022
|
$
Change
|
%
Change
|
|
Financial
Results
|
|
|
|
|
|
|
|
|
Total net revenue
(3)
|
$60,586
|
$67,673
|
($7,087)
|
(10)%
|
$60,108
|
$478
|
1%
|
|
Medical cannabis net
revenue (3)(4a)
|
$45,748
|
$38,856
|
$6,892
|
18%
|
$40,984
|
$4,764
|
12%
|
|
Consumer cannabis net
revenue (3)(4a)
|
$14,838
|
$28,573
|
($13,735)
|
(48)%
|
$19,124
|
($4,286)
|
(22)%
|
|
Adjusted gross margin
before FV adjustments on
cannabis net revenue (4b)
|
53%
|
44%
|
N/A
|
9%
|
54%
|
N/A
|
(1) %
|
|
Adjusted gross margin
before FV adjustments on
medical cannabis net revenue (4b)
|
62%
|
56%
|
N/A
|
6%
|
64%
|
N/A
|
(2)%
|
|
Adjusted gross margin
before FV adjustments on
consumer cannabis net revenue (4b)
|
24%
|
27%
|
N/A
|
(3)%
|
32%
|
N/A
|
(8)%
|
|
SG&A
expense
|
$42,961
|
$41,961
|
$1,000
|
2%
|
$45,760
|
($2,799)
|
(6)%
|
|
R&D
expense
|
$1,625
|
$2,432
|
($807)
|
(33)%
|
$3,671
|
($2,046)
|
(56)%
|
|
Adjusted EBITDA
(4c)
|
($9,040)
|
($11,185)
|
$2,145
|
19%
|
($11,543)
|
$2,503
|
22%
|
|
|
|
|
|
|
|
|
|
Balance
Sheet
|
|
|
|
|
|
|
|
|
Working
capital
|
$481,574
|
$592,519
|
($110,945)
|
(19)%
|
$532,612
|
($51,038)
|
(10)%
|
|
Cannabis inventory
and biological assets (5)
|
$139,625
|
$179,275
|
($39,650)
|
(22)%
|
$139,103
|
$522
|
0%
|
|
Total
assets
|
$2,485,384
|
$2,829,963
|
($344,579)
|
(12)%
|
$2,560,316
|
($74,932)
|
(3)%
|
|
|
|
|
|
|
|
|
|
Operational
Results – Cannabis
|
|
|
|
|
|
|
|
|
Average net selling
price of dried cannabis excluding bulk sales
(4)
|
$4.20
|
$4.45
|
($0.25)
|
(6)%
|
$4.67
|
($0.47)
|
(10)%
|
|
Kilograms sold
(6)
|
13,043
|
15,253
|
(2,210)
|
(14)%
|
12,484
|
559
|
4%
|
|
(1)
|
Amounts have been
retroactively recast for the biological assets and inventory
non-material prior period error. Refer to the "Change in
Accounting Policies and Estimates" section below for further
detail.
|
|
(2)
|
As a result of the
Company's dissolution and divestment of its wholly-owned
subsidiaries, Hempco and AHE, during the year ended June 30, 2021,
the operations of Hempco and AHE have been presented as
discontinued operations and the Company's operational results have
been retroactively restated, as required. Refer to Note 12(b) of
the Financial Statements and Note 12(b) of the annual audited
consolidated financial statements for the year ended June 30, 2021
for additional information.
|
|
(3)
|
Includes the impact
of actual and expected product returns and price adjustments (Q2
2022 - $1.3 million; Q1 2022 - $0.7 million; Q2 2021 - $2.7
million).
|
|
(4)
|
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" section for a reconciliation of cannabis net
revenue to the IFRS equivalent.
|
|
b. Refer to the
"Cost of Sales and Gross Margin" section for reconciliation
to the IFRS equivalent.
|
|
c. Refer to the
"Adjusted EBITDA" section for reconciliation to the IFRS
equivalent.
|
|
(5)
|
Represents total
biological assets and cannabis inventory, exclusive of merchandise,
accessories, supplies and consumables.
|
|
(6)
|
The kilograms sold is
offset by the grams returned during the period.
|
Conference Call
Aurora will host a conference call today, Thursday, February 10, 2022, to discuss these
results. Miguel Martin, Chief Executive Officer, and
Glen Ibbott, Chief Financial
Officer, will host the call starting at 5:00 p.m. Eastern time
| 3:00 p.m. Mountain Time. A question and answer session will
follow management's presentation.
Conference Call Details
|
DATE:
|
Thursday, February
10, 2022
|
|
TIME:
|
5:00 p.m. Eastern
Time | 3:00 p.m. Mountain Time
|
|
WEBCAST:
|
https://viavid.webcasts.com/starthere.jsp?ei=1524077&tp_key=b38bc0a5e1
|
Investors may submit questions in advance or during the
conference call itself through the weblink listed above. This
weblink has also been posted to the Company's "Investor Info" link
at https://investor.auroramj.com/ under "News & Events".
About Aurora
Aurora is a global leader in the cannabis industry, serving both
the medical and consumer markets. 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 Aurora Drift, San
Rafael '71, Daily Special, and Whistler, as well as CBD brands,
Reliva and KG7. Medical cannabis brands include MedReleaf,
CanniMed, Aurora and Whistler Medical Marijuana Co. 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, performance, wellness and adult
recreational markets wherever they are launched. Learn more at
www.auroramj.com and follow us on Twitter and LinkedIn.
Aurora's common shares trade on the NASDAQ and TSX under the
symbol "ACB" and is a constituent of the S&P/TSX Composite
Index.
Forward Looking Statements
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward-looking
statements are frequently characterized by words such as "plan",
"continue", "expect", "project", "intend", "believe", "anticipate",
"estimate", "may", "will", "potential", "proposed" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements made in this news
release include, but are not limited to, statements with respect
to:
- pro forma measures including revenue, cash flow, Adjusted gross
margin before fair value adjustments, and expected SG&A
run-rates;
- the Company's ability to execute on its business transformation
plan, and path and timing to achieve Adjusted EBITDA
profitability;
- anticipated cost savings and planned cost efficiencies,
including the execution of the Company's costs savings plan,
including, but not limited to, asset consolidation, operational and
supply chain efficiencies, and other reductions in SG&A
expenses;
- future growth opportunities including strategic M&A and the
expansion into additional international markets;
- the opening of new international markets and associated revenue
opportunities;
- the use of proceeds from the ATM facility; and
- the introduction of a new range of products to the market.
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 on 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 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 of 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, and the possibility for changes in laws,
rules, and regulations in the industry, epidemics, pandemics or
other public health crises, including the current 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 September 27, 2021 (the "AIF")
and filed with Canadian securities regulators available on the
Company's issuer profile on SEDAR at www.sedar.com and filed with
and available on the SEC's website at www.sec.gov. 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.
Non-GAAP Measures
This news release contains 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. For an explanation of these measures to related
comparable financial information presented in the consolidated
financial statements prepared in accordance with IFRS, refer to the
discussion below. The Company believes that these Non-GAAP Measures
are useful indicators of operating performance and are specifically
used by management to assess the financial and operational
performance of the Company. These Non-GAAP Measures include, but
are not limited, to the following:
- Cannabis net revenue represents revenue from the sale of
cannabis products, excluding excise taxes. Cannabis net revenue is
further broken down as follows:
-
- Medical cannabis net revenue represents Canadian and
international cannabis net revenue for medical cannabis sales
only.
- Consumer cannabis net revenue represents cannabis net revenue
for consumer cannabis sales only.
- Wholesale bulk cannabis net revenue represents cannabis net
revenue for wholesale bulk cannabis only.
- Ancillary net revenue represents non-cannabis net revenue for
ancillary support functions only.
- Management believes the cannabis net revenue measures provide
more specific information about the net revenue purely generated
from our core cannabis business and by market type.
- Average net selling price per gram and gram equivalent is
calculated by taking cannabis net revenue and removing the impact
of cost of sales net against revenue in agency relationships, which
is then divided by total grams and grams equivalent of cannabis
sold in the period. Average net selling price per gram and gram
equivalent is further broken down as follows:
-
- Average net selling price per gram of dried cannabis represents
the average net selling price per gram for dried cannabis sales
only, excluding wholesale bulk cannabis sold in the period.
- Average net selling price per gram of international dried
cannabis represents the average net selling price per gram for
international dried cannabis sales only, excluding wholesale bulk
cannabis sold in the period.
- Average net selling price per gram and gram equivalent of
Canadian medical cannabis represents the average net selling price
per gram and gram equivalent for dried cannabis and cannabis
derivatives sold in the Canadian medical market.
- Average net selling price per gram and gram equivalent of
medical cannabis represents the average net selling price per gram
and gram equivalent for dried cannabis and cannabis derivatives
sold in the medical market.
- Average net selling price per gram and gram equivalent of
consumer cannabis represents the average net selling price per gram
and gram equivalent for dried cannabis and cannabis derivatives
sold in the consumer market.
- Management believes the average net selling price per gram or
gram equivalent measures provide more specific information about
the pricing trends over time by product and market type. Under an
agency relationship, revenue is recognized net of cost of sales in
accordance with IFRS. Management believes the removal of agency
cost of sales in determining the average net selling price per gram
and gram equivalent is more reflective of our average net selling
price generated in the marketplace.
- Gross profit before FV adjustments on cannabis net revenue is
calculated by subtracting (i) cost of sales, before the effects of
changes in FV of biological assets and inventory, and (ii) cost of
sales from non-cannabis ancillary support functions, from total
cannabis net revenue. Gross margin before FV adjustments on
cannabis net revenue is calculated by dividing gross profit before
FV adjustments on cannabis net revenue divided by cannabis net
revenue. Management believes that these measures provide useful
information to assess the profitability of our cannabis operations
as it excludes the effects of non-cash FV adjustments on inventory
and biological assets, which are required by IFRS.
- Adjusted gross profit before FV adjustments on cannabis net
revenue represents cash gross profit and gross margin on cannabis
net revenue and is calculated by subtracting from total cannabis
net revenue (i) cost of sales, before the effects of changes in FV
of biological assets and inventory; (ii) cost of sales from
non-cannabis ancillary support functions; and removing (iii)
depreciation in cost of sales; (iv) cannabis inventory impairment;
and (v) out-of-period adjustments. Adjusted gross margin before FV
adjustments on cannabis net revenue is calculated by dividing
Adjusted gross profit before FV adjustments on cannabis net revenue
divided by cannabis net revenue. Adjusted gross profit and gross
margin before FV adjustments on cannabis net revenue is further
broken down as follows:
-
- Adjusted gross profit and gross margin before FV adjustments on
medical cannabis net revenue represents gross profit and gross
margin before FV adjustments on sales generated in the medical
market only.
- Adjusted gross profit and gross margin before FV adjustments on
consumer cannabis net revenue represents gross profit and gross
margin before FV adjustments on sales generated in the consumer
market only.
- Adjusted gross profit and gross margin before FV adjustments on
wholesale bulk cannabis net revenue represents gross profit and
gross margin before FV adjustments on sales generated from
wholesale bulk cannabis only.
- Adjusted gross profit and gross margin before FV adjustments on
ancillary net revenue represents gross profit and gross margin
before FV adjustments on sales generated from ancillary support
functions only.
- Management believes that these measures provide useful
information to assess the profitability of our cannabis operations
as it represents the cash gross profit and margin generated from
cannabis operations and excludes (i) out-of-period adjustments to
provide information that reflects current period results; and (ii)
excludes the effects of non-cash FV adjustments on inventory and
biological assets, which are required by IFRS.
- Adjusted EBITDA is calculated as net income (loss) excluding
interest income (expense), accretion, income taxes, depreciation,
amortization, changes in fair value of inventory sold, changes in
fair value of biological assets, share-based compensation,
acquisition costs, foreign exchange, share of income (losses) from
investment in associates, government grant income, fair value gains
and losses on financial instruments, gains and losses on deemed
disposal, losses on disposal of assets, restructuring charges,
onerous contract provisions, out-of-period adjustments, and
non-cash impairments of deposits, property, plant and equipment,
equity investments, intangibles, goodwill, and other assets.
Adjusted EBITDA is intended to provide a proxy for the Company's
operating cash flow and is widely used by industry analysts to
compare Aurora to its competitors, and derive expectations of
future financial performance for Aurora, and excludes out-of-period
adjustments that are not reflective of current operating results.
Adjusted EBITDA increases comparability between comparative
companies by eliminating variability resulting from differences in
capital structures, management decisions related to resource
allocation, and the impact of FV adjustments on biological assets
and inventory and financial instruments, which may be volatile and
fluctuate significantly from period to period.
Non-GAAP measures should be considered together with other data
prepared 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 should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
Adjusted EBITDA
The following is the Company's adjusted EBITDA:
|
($
thousands)
|
Three months
ended
|
Six months
ended
|
|
December 31,
2021
|
September 30,
2021
|
December 31,
2020(1)(2)
|
December 31,
2021
|
December 31,
2020(1)(2)
|
|
Net income (loss)
from continuing operations
|
(75,143)
|
(11,884)
|
(300,222)
|
(87,027)
|
(398,883)
|
|
Non-operating expense
(income) (3)
|
14,779
|
(27,185)
|
10,318
|
(12,406)
|
26,682
|
|
Income tax expense
(recovery)
|
(368)
|
(208)
|
3,167
|
(576)
|
3,778
|
|
Depreciation and
amortization
|
24,195
|
21,630
|
24,463
|
45,825
|
47,114
|
|
Inventory and
biological assets fair value adjustments
|
(16,647)
|
1,297
|
4,954
|
(15,350)
|
(7,921)
|
|
Share-based
compensation
|
3,900
|
2,847
|
5,987
|
6,747
|
12,848
|
|
Acquisition
costs
|
209
|
175
|
—
|
384
|
1,104
|
|
Restructuring related
charges (4)
|
3,023
|
1,894
|
5,645
|
4,917
|
53,236
|
|
Out-of-period
adjustments (5)
|
1,174
|
4,699
|
374
|
5,873
|
(282)
|
|
Asset
impairments
|
35,838
|
(4,808)
|
234,129
|
31,030
|
240,599
|
|
Adjusted EBITDA
(6)
|
(9,040)
|
(11,543)
|
(11,185)
|
(20,583)
|
(21,725)
|
|
|
|
(1)
|
Amounts have been
retroactively recast for the biological assets and inventory
non-material prior period error. Refer to the "Change in
Accounting Policies and Estimates" section below for further
detail.
|
|
(2)
|
As a result of the
Company's dissolution and divestment of its wholly-owned
subsidiaries Hempco and AHE during the year ended June 30, 2021,
the operations of Hempco and AHE have been presented as
discontinued operations and the Company's operational results have
been retroactively restated, as required. Refer to Note 12(b) of
the Financial Statements and Note 12(b) of the annual audited
consolidated financial statements for the year ended June 30, 2021
for more information about the divestiture. During the three months
ended December 31, 2020, Hempco and AHE incurred an EBITDA loss of
$0.5 million and $0.5 million, respectively.
|
|
(3)
|
Non-operating expense
(income) includes: interest and other income; finance and other
costs; foreign exchange gain (loss); government grant income; and
fair value changes on derivative investments, derivative
liabilities, contingent consideration, loss on extinguishment of
derivative investment, and (gain) loss on the modification of debt.
Refer to Note 19 of the Financial Statements.
|
|
(4)
|
Restructuring related
charges includes legal contract termination fees, restructuring
charges and severance associated with the business transformation
plan and revenue provisions as a result of Company initiated
product swap to replace low quality product with higher potency
product at the provinces.
|
|
(5)
|
Included in
out-of-period adjustments in Q2 2022 are $1.2 million related to
prior period payroll related expenses; Q1 2022 are $6.3 million
expenses related to the prior year employee bonuses offset by $1.6
million other gains related to prior periods.
|
|
(6)
|
Adjusted EBITDA is a
non-GAAP financial 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. In order to provide more direct comparability to industry
peers, management has captured restructuring and out of period
costs for prior periods, as well as the current period, in this
reconciliation. Previously management reported these costs
separately as a further adjustment to EBITDA.
|
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SOURCE Aurora Cannabis Inc.