Tilray Brands, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY;
TSX: TLRY), a leading global cannabis-lifestyle and consumer
packaged goods company inspiring and empowering the worldwide
community to live their very best life, today reported financial
results for the fourth quarter and full fiscal year ended May 31,
2022. All financial information in this press release is reported
in U.S. dollars, unless otherwise indicated, and presented in
accordance with accounting principles generally accepted in the
U.S. (“GAAP”).
Irwin D. Simon, Tilray Brands’ Chairman and
Chief Executive Officer, stated, “Over the past year, we have
accelerated the optimization of our operations and sharpened
execution against our most profitable core business opportunities
in medical, adult-use, wellness, and beverage-alcohol across
Canada, Europe, and the U.S. At the same time, we accelerated our
growth potential through tactical execution and strategic
initiatives that enable accelerated revenue growth through improved
cultivation, brand building, and distribution. These actions should
also contribute to bottom-line performance improvement through
production efficiencies and cost reductions. The outcome of this
work is that we have driven top line growth across our markets,
significantly improved our operating performance, and strengthened
our balance sheet.”
He continued, “We are confident that our
proactive steps to plan for the evolution of the cannabis business
in each of our markets has positioned Tilray Brands to be at the
forefront of the industry on a global basis while delivering
profitability and driving shareholder value.”
Financial Highlights - 2022 Fiscal
Fourth Quarter1
- Net revenue grew 8% to $153.3
million during the fourth quarter from $142.2 million in the prior
year quarter. On a constant currency basis, net revenue increased
14.5%.
- Net loss of $457.8 million during
the fourth quarter compared to net income of $33.6 million in the
prior year quarter. Net loss in the fiscal 2022 fourth quarter
includes a non-cash impairment of $395.0 million primarily
impacting inventory, goodwill and other intangible assets. The
impact was related to changes in market opportunities causing a
shift in our strategic priorities, and market conditions inclusive
of higher rates of borrowing and lower foreign exchange rates.
- Adjusted EBITDA of $11.5 million,
marking the Company’s 13th consecutive quarter of positive Adjusted
EBITDA.
Financial Highlights- 2022 Fiscal
Year
- Net revenue increased 22% to $628.4
million during fiscal 2022 from $513.1 million in the prior fiscal
year. The increase was driven by 17.9% growth in cannabis net
revenue to $237.5 million, a 150.0% increase in beverage alcohol
net revenue of $71.5 million, and a 928.8% increase in wellness net
revenue to $59.6 million. On a constant currency basis, net revenue
increased by 29%.
- Net loss of $434 million in fiscal
2022 includes the non-cash impairment of $395.0 million in the
fourth quarter (discussed above).
- Adjusted EBITDA increased 17.8% to
$48.0 million in fiscal year 2022 from $40.8 million in the prior
fiscal year.
- Ended the year with a strong
balance sheet and liquidity, including cash and cash equivalents of
$415.9 million.
Cost-Saving Synergies and Strengthened
Balance Sheet
Since the closing of the Tilray-Aphria
transaction, the Company has delivered $85 million in cost
synergies, exceeding its original target of delivering $80 million
of cost savings by the end of fiscal year 2023. These synergies are
due to consolidation in key areas of cultivation and production,
cannabis and product purchasing, sales and marketing, and corporate
expenses. The Company has subsequently identified an additional $20
million of savings, and now expects to deliver a total of $100
million in cost synergies from the transaction by the end of fiscal
year 2023.
Further, with the benefit of an additional $80
million of shared cost savings, synergies and financial benefits
over the next two years associated with the HEXO transaction,
management expects that Tilray Brands will be free cash flow
positive in its business units in fiscal year 2023.
Upside Potential of HEXO
Transaction
Tilray Brands’ acquisition of HEXO Corp.’s
senior secured convertible note, on highly favorable terms, closed
on July 12, 2022, bringing immediate accretion to the Company and
facilitating collaboration and the sharing of best practices that
will help Tilray Brands to drive ongoing international expansion
and take advantage of the opportunities expected to come with
federal legalization in the U.S. In addition, due to significant
operating efficiencies, the companies expect to deliver a total of
$80 million of shared cost savings over the next two years.
Highlights of Strategic Growth Actions
in Fiscal 2022
United States:
- August ’21 - Tilray Acquires
Majority Position in Amended MedMen Convertible
Notes
- November ’21 - Tilray’s SweetWater
Brand Enters Spirits Category Through New Ready-To-Drink Cocktail
Now Available in the United States
- December ’21 - Tilray Strengthens
Strategic Position in the U.S. with Acquisition of
Breckenridge Distillery
- December ’21 - SweetWater Brewing
announced the acquisition of Alpine Beer Company and Green Flash
Brewing Company
- January ’22 – Manitoba Harvest
Launches 2022 Wellness Boost Campaign
- February ’22 - SweetWater Brewing
Company Expands Distribution Across California
- February ’22 - SweetWater Brewing
Company Continues Rapid Expansion with Distribution Rollout Across
Washington & Oregon
- April ’22 - SweetWater Brewing
Company celebrated 25th anniversary and hosted 420 music Festival
in Atlanta, Georgia with 75 thousand festival goers
- April ’22 - Manitoba Harvest Enters
Exclusive Partnership with Whole Foods Market
-
April ’22 - Breckenridge Distillery Takes Home Two Double Gold and
One Gold Medal at the 2022 San Francisco World Spirits
Competition
-
April ’22 – Breckenridge Distillery Launches New Collectors Art
Series with Denver Artist Alexandrea Pangburn
Canada:
- June ’21 - Tilray Launches New
Medical Cannabis Brand, Symbios
- June ’21 - Tilray Launches Canadian
Craft Cannabis Brand, Broken Coast, in the U.S. with Broken Coast
Lager
- August ’21 – Tilray Medical
Launches New Medical Cannabis Edibles in Canada
- October ’21 - Tilray Strengthens
Leadership Position in Canada with new addition of Blair
MacNeil, President of Canada
- October ’21 - Tilray Expands
Distribution across Canada with Great North Distributors
- December ’21 - Launch of Tilray’s
Fast-Acting Oral Strips Highlights Commitment to Medical
Cannabis Innovation and Patient Care
- March ’22 - Good Supply Brand
Expands Its Award-Winning Cannabis Portfolio with Hash Bats™; A New
‘Hard-Hitting’ Infused Pre-Roll
- March ’22 - Solei Brand Launches
New Wellness Product for Nighttime Use
- April ’22 - Solei Brand Launches
the First Cannabis Edible Available in Quebec
- April ’22 - Tilray Brands hosts
sold-out ‘Holy Smokes’ 420 Budtender event in Toronto
- May ’22 - Good Supply Brand Expands
High-Potency Cannabis Portfolio with Launch of Liquid Wax Vapes and
New Exclusive Strains
Europe and
International:
- July ’21 – Tilray’s Aphria RX GmbH
Completes First Harvest and Delivery of Medical Cannabis
Grown in Germany
- October ’21 – Tilray Launches
Medical Cannabis in Luxembourg
- November ’21 - Tilray Expands
Medical Cannabis Footprint in Malta
- January ’22 - Tilray Expands
Medical Cannabis Product Offering in Australia
- February ‘22 - Tilray Brands
Consolidates its Global Medical Offering into Tilray Medical, a
Comprehensive Portfolio of Brands and Products
- February ’22 - Tilray Launches
Medical Cannabis Products in Malta
- March ’22 - Tilray Medical Expands
Offering in Malta and Launches First Medical Cannabis Oil
Products in Market
- May ’22 - Announced the launch of
CBD lifestyle brand, POLLEN, on Amazon UK
Webcast
Tilray Brands will host a webcast to discuss
these results today at 8:30 a.m. ET. Investors may join the live
webcast available on the Investors section of the Company’s website
at www.tilray.com. The webcast will also be archived after the call
concludes.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY),
is a leading global cannabis-lifestyle and consumer packaged goods
company with operations in Canada, the United States, Europe,
Australia, and Latin America that is changing people's lives for
the better – one person at a time. Tilray Brands delivers on this
mission by inspiring and empowering the worldwide community to live
their very best life, enhanced by moments of connection and
wellbeing. Patients and consumers trust Tilray Brands to be the
most responsible, trusted and market leading cannabis consumer
products company in the world with a portfolio of innovative,
high-quality and beloved brands that address the needs of the
consumers, customers and patients we serve. A pioneer in cannabis
research, cultivation, and distribution, Tilray Brands’
unprecedented production platform supports over 20 brands in over
20 countries, including comprehensive cannabis offerings,
hemp-based foods, and craft beverages.
For more information on Tilray Brands, visit
www.Tilray.com and follow @Tilray
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this press release
constitute forward-looking information or forward-looking
statements (together, “forward-looking statements”) under Canadian
securities laws and within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, that are intended to
be subject to the “safe harbor” created by those sections and other
applicable laws. Forward-looking statements can be identified by
words such as “forecast,” “future,” “should,” “could,” “enable,”
“potential,” “contemplate,” “believe,” “anticipate,” “estimate,”
“plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and
the negative of these terms or similar expressions, although not
all forward-looking statements contain these identifying words.
Certain material factors, estimates, goals, projections or
assumptions were used in drawing the conclusions contained in the
forward-looking statements throughout this communication.
Forward-looking statements include statements
regarding our intentions, beliefs, projections, outlook, analyses
or current expectations concerning, among other things: the
Company’s ability to become the world's leading cannabis-focused
consumer branded company and achieve $4B in revenue by the end of
fiscal 2024; the Company’s ability to generate $70-$80 million of
Adjusted EBITDA and expectation to be free-cash flow positive in
its operating business units in FY 2023; the Company’s ability to
achieve operational scale, market share, distribution,
profitability and revenue growth in particular markets, including
in Canada, the U.S. and the EU; and the Company’s ability to
successfully achieve the expected production efficiencies,
synergies and cost savings relating to the HEXO transactions and
agreed commercial arrangements; and the Company’s anticipated
investments, including in organic and strategic growth, partnership
efforts, product offerings and other initiatives.
Many factors could cause actual results,
performance or achievement to be materially different from any
forward-looking statements, and other risks and uncertainties not
presently known to the Company or that the Company deems immaterial
could also cause actual results or events to differ materially from
those expressed in the forward-looking statements contained herein.
For a more detailed discussion of these risks and other factors,
see the most recently filed annual information form of the Company
and the Annual Report on Form 10-K (and other periodic reports
filed with the SEC) of the Company made with the SEC and available
on EDGAR. The forward-looking statements included in this
communication are made as of the date of this communication and the
Company does not undertake any obligation to publicly update such
forward-looking statements to reflect new information, subsequent
events or otherwise unless required by applicable securities
laws.
Use of Non-U.S. GAAP Financial
Measures
This press release and the accompanying tables
include non-GAAP financial measures, including adjusted gross
margin, Adjusted EBITDA and free cash flow. Management believes
that the non-GAAP financial measures presented provide useful
additional information to investors about current trends in the
Company's operations and are useful for period-over-period
comparisons of operations. These non-GAAP financial measures should
not be considered in isolation or as a substitute for the
comparable GAAP measures. In addition, these non-GAAP measures may
not be the same as similar measures provided by other companies due
to potential differences in methods of calculation and items being
excluded. They should be read only in connection with the Company's
Consolidated Statements of Operations and Cash Flows presented in
accordance with GAAP.
Certain forward-looking non-GAAP financial
measures included in this press release are not reconciled to the
comparable forward-looking GAAP financial measures. The Company is
not able to reconcile these forward-looking non-GAAP financial
measures to their most directly comparable forward-looking GAAP
financial measures without unreasonable efforts because the Company
is unable to predict with a reasonable degree of certainty the type
and extent of certain items that would be expected to impact GAAP
measures but would not impact the non-GAAP measures. Such items may
include litigation and related expenses, transaction costs,
impairments, foreign exchange movements and other items. The
unavailable information could have a significant impact on the
Company's GAAP financial results.
The Company believes presenting net sales at
constant currency provides useful information to investors because
it provides transparency to underlying performance in the Company's
consolidated net sales by excluding the effect that foreign
currency exchange rate fluctuations have on period-to-period
comparability given the volatility in foreign currency exchange
markets. To present this information for historical periods,
current period net sales for entities reporting in currencies other
than the U.S. dollar are translated into U.S. dollars at the
average monthly exchange rates in effect during the corresponding
period of the prior fiscal year, rather than at the actual average
monthly exchange rate in effect during the current period of the
current fiscal year. As a result, the foreign currency impact is
equal to the current year results in local currencies multiplied by
the change in average foreign currency exchange rate between the
current fiscal period and the corresponding period of the prior
fiscal year.
Adjusted EBITDA is calculated as net income
(loss) before inventory valuation adjustments; interest expenses,
net; other expenses (income), net; deferred income tax (recoveries)
expenses, current income tax expenses (benefit); foreign exchange
gain (loss), net; depreciation and amortization expenses;
stock-based compensation expenses; loss from equity method
investments; loss on disposal of property and equipment;
amortization of inventory step-up; severance costs; impairment of
assets; and change in fair value of warrant liability. A
reconciliation of Adjusted EBITDA to net loss, the most directly
comparable GAAP measure, has been provided in the financial
statement tables included below in this press release. Gross
margin, excluding inventory valuation adjustments, is calculated as
revenue less cost of sales adjusted to add back inventory valuation
adjustments and amortization of inventory step-up, divided by
revenue. A reconciliation of Gross margin, excluding inventory
valuation adjustments, to gross margin, the most directly
comparable GAAP measure, has been provided in the financial
statement tables included below in this press release. Free cash
flow is comprised of two GAAP measures deducted from each other
which are net cash flow provided by (used in) operating activities
less investments in capital and intangible assets. A reconciliation
of net cash flow provided by (used in) operating activities to free
cash flow, the most directly comparable GAAP measure, has been
provided in the financial statement tables included below in this
press release.
For further information:
Media: Berrin Noorata, news@tilray.com
Investors: Raphael Gross, +1-203-682-8253,
Raphael.Gross@icrinc.com
1 This press release includes certain non-GAAP
financial measures, which are intended to supplement, not
substitute for, comparable GAAP financial measures. Reconciliations
of non-GAAP financial measures to GAAP financial measures and other
non-GAAP financial calculations are provided herein in the
tables.
Consolidated Statements of Financial
Position
(In
thousands of United States dollars) |
|
May 31, 2022 |
|
May 31, 2021 |
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
415,909 |
|
|
$ |
488,466 |
|
|
Accounts receivable, net |
|
|
95,279 |
|
|
|
87,309 |
|
|
Inventory |
|
|
245,529 |
|
|
|
256,429 |
|
|
Prepaids and other current assets |
|
|
46,786 |
|
|
|
48,920 |
|
|
Current portion of convertible notes receivable |
|
|
— |
|
|
|
2,485 |
|
|
Total current assets |
|
|
803,503 |
|
|
|
883,609 |
|
|
Capital assets |
|
|
587,499 |
|
|
|
650,698 |
|
|
Right-of-use assets |
|
|
12,996 |
|
|
|
18,267 |
|
|
Intangible assets |
|
|
1,277,875 |
|
|
|
1,605,918 |
|
|
Goodwill |
|
|
2,641,305 |
|
|
|
2,832,794 |
|
|
Interest in equity investees |
|
|
4,952 |
|
|
|
8,106 |
|
|
Long-term investments |
|
|
10,050 |
|
|
|
17,685 |
|
|
Convertible notes receivable |
|
|
111,200 |
|
|
|
— |
|
|
Other assets |
|
|
314 |
|
|
|
8,285 |
|
|
Total assets |
|
$ |
5,449,694 |
|
|
$ |
6,025,362 |
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Bank indebtedness |
|
$ |
18,123 |
|
|
$ |
8,717 |
|
|
Accounts payable and accrued liabilities |
|
|
157,431 |
|
|
|
212,813 |
|
|
Contingent consideration |
|
|
16,007 |
|
|
|
60,657 |
|
|
Warrant liability |
|
|
14,255 |
|
|
|
78,168 |
|
|
Current portion of lease liabilities |
|
|
6,703 |
|
|
|
4,264 |
|
|
Current portion of long-term debt |
|
|
67,823 |
|
|
|
36,622 |
|
|
Total current liabilities |
|
|
280,342 |
|
|
|
401,241 |
|
|
Lease liabilities |
|
|
11,329 |
|
|
|
53,946 |
|
|
Long-term debt |
|
|
117,879 |
|
|
|
167,486 |
|
|
Convertible debentures |
|
|
401,949 |
|
|
|
667,624 |
|
|
Deferred tax liabilities, net |
|
|
196,638 |
|
|
|
265,845 |
|
|
Other liabilities |
|
|
191 |
|
|
|
3,907 |
|
|
Total liabilities |
|
|
1,008,328 |
|
|
|
1,560,049 |
|
|
Commitments and contingencies (refer to Note
17) |
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
Common stock ($0.0001 par value; 990,000,000 shares authorized;
532,674,887 and 446,440,641 shares issued and outstanding,
respectively) |
|
|
53 |
|
|
|
46 |
|
|
Additional paid-in capital |
|
|
5,382,367 |
|
|
|
4,792,406 |
|
|
Accumulated other comprehensive (deficit) income (loss) |
|
|
(20,764 |
) |
|
|
152,668 |
|
|
Accumulated deficit |
|
|
(962,851 |
) |
|
|
(486,050 |
) |
|
Total Tilray Brands, Inc. stockholders'
equity |
|
|
4,398,805 |
|
|
|
4,459,070 |
|
|
Non-controlling interests |
|
|
42,561 |
|
|
|
6,243 |
|
|
Total stockholders' equity |
|
|
4,441,366 |
|
|
|
4,465,313 |
|
|
Total liabilities and stockholders' equity |
|
$ |
5,449,694 |
|
|
$ |
6,025,362 |
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Net Income (Loss)
and Comprehensive Income (Loss)
(In thousands of United States dollars, excpet for per
share data) |
|
For the
three months ended May 31, |
For the year
ended May 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
Net revenue |
|
$ |
153,325 |
|
|
$ |
142,236 |
|
|
$ |
628,372 |
|
|
$ |
513,085 |
|
|
|
Cost of
goods sold |
|
|
160,058 |
|
|
|
119,738 |
|
|
|
511,555 |
|
|
|
389,903 |
|
|
|
Gross
profit |
|
|
(6,733 |
) |
|
|
22,498 |
|
|
|
116,817 |
|
|
|
123,182 |
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
41,400 |
|
|
|
32,839 |
|
|
|
162,801 |
|
|
|
111,575 |
|
|
|
Selling |
|
|
9,643 |
|
|
|
8,525 |
|
|
|
34,926 |
|
|
|
26,576 |
|
|
|
Amortization |
|
|
30,846 |
|
|
|
16,100 |
|
|
|
115,191 |
|
|
|
35,221 |
|
|
|
Marketing and promotion |
|
|
10,771 |
|
|
|
5,103 |
|
|
|
30,934 |
|
|
|
17,539 |
|
|
|
Research and development |
|
|
54 |
|
|
|
358 |
|
|
|
1,518 |
|
|
|
830 |
|
|
|
Change in fair value of contingent consideration |
|
|
(15,585 |
) |
|
|
— |
|
|
|
(44,650 |
) |
|
|
— |
|
|
|
Impairment |
|
|
378,241 |
|
|
|
— |
|
|
|
378,241 |
|
|
|
— |
|
|
|
Litigation costs |
|
|
4,099 |
|
|
|
2,099 |
|
|
|
16,518 |
|
|
|
3,251 |
|
|
|
Transaction costs |
|
|
1,221 |
|
|
|
31,161 |
|
|
|
31,739 |
|
|
|
60,361 |
|
|
|
Total
operating expenses |
|
|
460,690 |
|
|
|
96,185 |
|
|
|
727,218 |
|
|
|
255,353 |
|
|
|
Operating
loss |
|
|
(467,423 |
) |
|
|
(73,687 |
) |
|
|
(610,401 |
) |
|
|
(132,171 |
) |
|
|
Interest expense, net |
|
|
(5,522 |
) |
|
|
(9,466 |
) |
|
|
(27,944 |
) |
|
|
(27,977 |
) |
|
|
Non-operating income (expense), net |
|
|
11,342 |
|
|
|
121,510 |
|
|
|
197,671 |
|
|
|
(184,838 |
) |
|
|
Loss before
income taxes |
|
|
(461,603 |
) |
|
|
38,357 |
|
|
|
(440,674 |
) |
|
|
(344,986 |
) |
|
|
Income taxes (recovery) |
|
|
(3,803 |
) |
|
|
4,735 |
|
|
|
(6,542 |
) |
|
|
(8,972 |
) |
|
|
Net
loss |
|
$ |
(457,800 |
) |
|
$ |
33,622 |
|
|
$ |
(434,132 |
) |
|
$ |
(336,014 |
) |
|
|
Net loss per
share - basic and diluted |
|
$ |
(0.90 |
) |
|
$ |
0.38 |
|
|
$ |
(0.90 |
) |
|
$ |
(1.25 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue by Operating Segment
(In
thousands of United States dollars) |
|
Year Ended May 31, 2022 |
|
% of Total Revenue |
|
Year Ended May 31, 2022 |
|
% of Total Revenue |
|
Cannabis
business |
|
$ |
237,522 |
|
38 |
% |
|
$ |
201,392 |
|
39 |
% |
|
Distribution
business |
|
|
259,747 |
|
42 |
% |
|
|
277,300 |
|
54 |
% |
|
Beverage
alcohol business |
|
|
71,492 |
|
11 |
% |
|
|
28,599 |
|
6 |
% |
|
Wellness
business |
|
|
59,611 |
|
9 |
% |
|
|
5,794 |
|
1 |
% |
|
Net
revenue |
|
$ |
628,372 |
|
100 |
% |
|
$ |
513,085 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands of United States dollars) |
|
Three months ended May 31, 2022 |
|
% of Total Revenue |
|
Three months ended May 31, 2021 |
|
% of Total Revenue |
|
Cannabis
business |
|
$ |
53,253 |
|
35 |
% |
|
$ |
53,703 |
|
38 |
% |
|
Distribution
business |
|
|
61,160 |
|
39 |
% |
|
|
66,792 |
|
47 |
% |
|
Beverage
alcohol business |
|
|
22,727 |
|
15 |
% |
|
|
15,947 |
|
11 |
% |
|
Wellness
business |
|
|
16,185 |
|
11 |
% |
|
|
5,794 |
|
4 |
% |
|
Net
revenue |
|
$ |
153,325 |
|
100 |
% |
|
$ |
142,236 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Cannabis Revenue by Market Channel
(In thousands of United States dollars) |
|
For the year
ended May 31, |
|
For the year
ended May 31, |
|
|
|
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
|
Revenue from
Canadian medical cannabis products |
|
$ |
30,599 |
|
|
13 |
% |
|
$ |
25,539 |
|
|
13 |
% |
|
|
|
|
Revenue from
Canadian adult-use cannabis products |
|
|
209,501 |
|
|
88 |
% |
|
|
222,930 |
|
|
110 |
% |
|
|
|
|
Revenue from
wholesale cannabis products |
|
|
6,904 |
|
|
3 |
% |
|
|
6,615 |
|
|
3 |
% |
|
|
|
|
Revenue from
international cannabis products |
|
|
53,887 |
|
|
23 |
% |
|
|
9,250 |
|
|
5 |
% |
|
|
|
|
Less excise
taxes |
|
|
(63,369 |
) |
|
-27 |
% |
|
|
(62,942 |
) |
|
-31 |
% |
|
|
|
|
Total |
|
$ |
237,522 |
|
|
100 |
% |
|
$ |
201,392 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended May 31, |
|
For the
three months ended May 31, |
|
|
|
|
(In
thousands of United States dollars) |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
|
Revenue from
Canadian medical cannabis products |
|
$ |
7,246 |
|
|
14 |
% |
|
$ |
6,968 |
|
|
13 |
% |
|
|
|
|
Revenue from
Canadian adult-use cannabis products |
|
|
46,869 |
|
|
88 |
% |
|
|
59,710 |
|
|
111 |
% |
|
|
|
|
Revenue from
wholesale cannabis products |
|
|
141 |
|
|
0 |
% |
|
|
56 |
|
|
0 |
% |
|
|
|
|
Revenue from
international cannabis products |
|
|
14,095 |
|
|
26 |
% |
|
|
4,623 |
|
|
9 |
% |
|
|
|
|
Less excise
taxes |
|
|
(15,098 |
) |
|
-28 |
% |
|
|
(17,654 |
) |
|
-33 |
% |
|
|
|
|
Total |
|
$ |
53,253 |
|
|
100 |
% |
|
$ |
53,703 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin and Adjusted Gross Margin
(In thousands of United States
dollars) |
|
For the year ended May 31, 2022 |
|
|
|
Cannabis |
|
Beverage |
|
Distribution |
|
Wellness |
|
Total |
|
Revenue |
|
$ |
300,891 |
|
|
$ |
74,959 |
|
|
$ |
259,747 |
|
|
$ |
59,611 |
|
|
$ |
695,208 |
|
|
Excise
taxes |
|
|
(63,369 |
) |
|
|
(3,467 |
) |
|
|
— |
|
|
|
— |
|
|
|
(66,836 |
) |
|
Net
revenue |
|
|
237,522 |
|
|
|
71,492 |
|
|
|
259,747 |
|
|
|
59,611 |
|
|
|
628,372 |
|
|
Cost of
goods sold |
|
|
194,834 |
|
|
|
32,033 |
|
|
|
243,231 |
|
|
|
41,457 |
|
|
|
511,555 |
|
|
Gross
profit |
|
|
42,688 |
|
|
|
39,459 |
|
|
|
16,516 |
|
|
|
18,154 |
|
|
|
116,817 |
|
|
Gross
margin |
|
|
18.0 |
% |
|
|
55.2 |
% |
|
|
6.4 |
% |
|
|
30.5 |
% |
|
|
18.6 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Inventory valuation adjustments |
|
|
59,500 |
|
|
|
— |
|
|
|
7,500 |
|
|
|
— |
|
|
|
67,000 |
|
|
Purchase price accounting step-up |
|
|
— |
|
|
|
2,214 |
|
|
|
— |
|
|
|
— |
|
|
|
2,214 |
|
|
Adjusted
gross profit |
|
|
102,188 |
|
|
|
41,673 |
|
|
|
24,016 |
|
|
|
18,154 |
|
|
|
186,031 |
|
|
Adjusted
gross margin |
|
|
43.0 |
% |
|
|
58.3 |
% |
|
|
9.2 |
% |
|
|
30.5 |
% |
|
|
29.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of United States
dollars) |
|
For the year ended May 31, 2021 |
|
|
|
Cannabis |
|
Beverage |
|
Distribution |
|
Wellness |
|
Total |
|
Revenue |
|
$ |
264,334 |
|
|
$ |
29,661 |
|
|
$ |
277,300 |
|
|
$ |
5,794 |
|
|
$ |
577,089 |
|
|
Excise
taxes |
|
|
(62,942 |
) |
|
|
(1,062 |
) |
|
|
— |
|
|
|
— |
|
|
|
(64,004 |
) |
|
Net
revenue |
|
|
201,392 |
|
|
|
28,599 |
|
|
|
277,300 |
|
|
|
5,794 |
|
|
|
513,085 |
|
|
Cost of
goods sold |
|
|
130,511 |
|
|
|
12,687 |
|
|
|
242,472 |
|
|
|
4,233 |
|
|
|
389,903 |
|
|
Gross
profit |
|
|
70,881 |
|
|
|
15,912 |
|
|
|
34,828 |
|
|
|
1,561 |
|
|
|
123,182 |
|
|
Gross
margin |
|
|
35.2 |
% |
|
|
55.6 |
% |
|
|
12.6 |
% |
|
|
26.9 |
% |
|
|
24.0 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Inventory valuation adjustments |
|
|
19,919 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,919 |
|
|
Purchase price accounting step-up |
|
|
— |
|
|
|
835 |
|
|
|
— |
|
|
|
— |
|
|
|
835 |
|
|
Adjusted
gross profit |
|
|
90,800 |
|
|
|
16,747 |
|
|
|
34,828 |
|
|
|
1,561 |
|
|
|
143,936 |
|
|
Adjusted
gross margin |
|
|
45.1 |
% |
|
|
58.6 |
% |
|
|
12.6 |
% |
|
|
26.9 |
% |
|
|
28.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands of United States dollars) |
|
For the three months ended May 31, 2022 |
|
|
|
Cannabis |
|
Beverage |
|
Distribution |
|
Wellness |
|
Total |
|
Revenue |
|
$ |
68,351 |
|
|
$ |
23,459 |
|
|
$ |
61,160 |
|
|
$ |
16,185 |
|
|
$ |
169,155 |
|
|
Excise
taxes |
|
|
(15,098 |
) |
|
|
(732 |
) |
|
|
— |
|
|
|
— |
|
|
|
(15,830 |
) |
|
Net
revenue |
|
|
53,253 |
|
|
|
22,727 |
|
|
|
61,160 |
|
|
|
16,185 |
|
|
|
153,325 |
|
|
Cost of
goods sold |
|
|
72,342 |
|
|
|
11,359 |
|
|
|
65,138 |
|
|
|
11,219 |
|
|
|
160,058 |
|
|
Gross
profit |
|
|
(19,089 |
) |
|
|
11,368 |
|
|
|
(3,978 |
) |
|
|
4,966 |
|
|
|
(6,733 |
) |
|
Gross
margin |
|
|
-35.8 |
% |
|
|
50.0 |
% |
|
|
-6.5 |
% |
|
|
30.7 |
% |
|
|
-4.4 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Inventory valuation adjustments |
|
|
47,500 |
|
|
|
— |
|
|
|
7,500 |
|
|
|
— |
|
|
|
55,000 |
|
|
Purchase price accounting step-up |
|
|
— |
|
|
|
2,214 |
|
|
|
— |
|
|
|
— |
|
|
|
2,214 |
|
|
Adjusted
gross profit |
|
|
28,411 |
|
|
|
13,582 |
|
|
|
3,522 |
|
|
|
4,966 |
|
|
|
50,481 |
|
|
Adjusted
gross margin |
|
|
53.4 |
% |
|
|
59.8 |
% |
|
|
5.8 |
% |
|
|
30.7 |
% |
|
|
32.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of United States
dollars) |
|
For the three months ended May 31, 2021 |
|
|
|
Cannabis |
|
Beverage |
|
Distribution |
|
Wellness |
|
Total |
|
Revenue |
|
$ |
71,357 |
|
|
$ |
16,549 |
|
|
$ |
66,792 |
|
|
$ |
5,794 |
|
|
$ |
160,492 |
|
|
Excise
taxes |
|
|
(17,654 |
) |
|
|
(602 |
) |
|
|
— |
|
|
|
— |
|
|
|
(18,256 |
) |
|
Net
revenue |
|
|
53,703 |
|
|
|
15,947 |
|
|
|
66,792 |
|
|
|
5,794 |
|
|
|
142,236 |
|
|
Cost of
goods sold |
|
|
49,731 |
|
|
|
5,350 |
|
|
|
60,424 |
|
|
|
4,233 |
|
|
|
119,738 |
|
|
Gross
profit |
|
|
3,972 |
|
|
|
10,597 |
|
|
|
6,368 |
|
|
|
1,561 |
|
|
|
22,498 |
|
|
Gross
margin |
|
|
7.4 |
% |
|
|
66.5 |
% |
|
|
9.5 |
% |
|
|
26.9 |
% |
|
|
15.8 |
% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Inventory valuation adjustments |
|
|
19,919 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,919 |
|
|
Purchase price accounting step-up |
|
|
— |
|
|
|
835 |
|
|
|
— |
|
|
|
— |
|
|
|
835 |
|
|
Adjusted
gross profit |
|
|
23,891 |
|
|
|
11,432 |
|
|
|
6,368 |
|
|
|
1,561 |
|
|
|
43,252 |
|
|
Adjusted
gross margin |
|
|
44.5 |
% |
|
|
71.7 |
% |
|
|
9.5 |
% |
|
|
26.9 |
% |
|
|
30.4 |
% |
|
Adjusted Earnings before Interest, Taxes, and
Amortization
|
|
|
|
|
|
|
|
|
|
(In thousands of United States dollars) |
|
Three months ended May 31, |
|
Year ended May 31, |
|
Adjusted EBITDA reconciliation: |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Net
loss |
|
$ |
(457,800 |
) |
|
$ |
33,622 |
|
|
$ |
(434,132 |
) |
|
$ |
(336,014 |
) |
|
Income
taxes |
|
|
(3,803 |
) |
|
|
4,735 |
|
|
|
(6,542 |
) |
|
|
(8,972 |
) |
|
Interest
expense, net |
|
|
5,522 |
|
|
|
9,466 |
|
|
|
27,944 |
|
|
|
27,977 |
|
|
Non-operating expense (income), net |
|
|
(11,350 |
) |
|
|
(121,510 |
) |
|
|
(197,671 |
) |
|
|
184,838 |
|
|
Amortization |
|
|
40,768 |
|
|
|
24,540 |
|
|
|
154,592 |
|
|
|
67,832 |
|
|
Stock-based
compensation |
|
|
8,969 |
|
|
|
5,937 |
|
|
|
35,994 |
|
|
|
17,351 |
|
|
Change in
fair value of contingent consideration |
|
|
(15,577 |
) |
|
|
— |
|
|
|
(44,650 |
) |
|
|
— |
|
|
Impairment |
|
|
378,241 |
|
|
|
— |
|
|
|
378,241 |
|
|
|
— |
|
|
Inventory
valuation adjustments |
|
|
55,000 |
|
|
|
19,919 |
|
|
|
67,000 |
|
|
|
19,919 |
|
|
Purchase
price accounting step up |
|
|
2,214 |
|
|
|
835 |
|
|
|
2,214 |
|
|
|
835 |
|
|
Facility
start-up and closure costs |
|
|
3,300 |
|
|
|
2,056 |
|
|
|
13,700 |
|
|
|
2,056 |
|
|
Lease
expense |
|
|
700 |
|
|
|
335 |
|
|
|
3,100 |
|
|
|
1,337 |
|
|
Litigation
costs |
|
|
4,099 |
|
|
|
2,099 |
|
|
|
16,518 |
|
|
|
3,251 |
|
|
Transaction
costs |
|
|
1,221 |
|
|
|
31,161 |
|
|
|
31,739 |
|
|
|
60,361 |
|
|
Adjusted
EBITDA |
|
$ |
11,504 |
|
|
$ |
13,195 |
|
|
$ |
48,047 |
|
|
$ |
40,771 |
|
|
Key Operating Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended May 31, |
|
For the years ended May 31, |
(In thousands of United States dollars) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net cannabis
revenue |
|
$ |
53,253 |
|
|
$ |
53,703 |
|
|
$ |
237,522 |
|
|
$ |
201,392 |
|
Net beverage
alcohol revenue |
|
|
22,727 |
|
|
|
15,947 |
|
|
|
71,492 |
|
|
|
28,599 |
|
Distribution
revenue |
|
|
61,160 |
|
|
|
66,792 |
|
|
|
259,747 |
|
|
|
277,300 |
|
Wellness
revenue |
|
|
16,185 |
|
|
|
5,794 |
|
|
|
59,611 |
|
|
|
5,794 |
|
Cannabis
cost of sales |
|
|
72,342 |
|
|
|
49,731 |
|
|
|
194,834 |
|
|
|
130,511 |
|
Beverage
alcohol cost of sales |
|
|
11,359 |
|
|
|
5,350 |
|
|
|
32,033 |
|
|
|
12,687 |
|
Distribution
cost of sales |
|
|
65,138 |
|
|
|
60,424 |
|
|
|
243,231 |
|
|
|
242,472 |
|
Wellness
cost of sales |
|
|
11,219 |
|
|
|
4,233 |
|
|
|
41,457 |
|
|
|
4,233 |
|
Gross profit
(excluding inventory valuation adjustments and step-up) |
|
|
50,481 |
|
|
|
43,252 |
|
|
|
186,031 |
|
|
|
143,936 |
|
Cannabis
gross margin (excluding inventory valuation adjustments and
step-up) |
|
|
53.4 |
% |
|
|
44.5 |
% |
|
|
43.0 |
% |
|
|
45.1 |
% |
Beverage
gross margin (excluding inventory valuation adjustments and
step-up) |
|
|
59.8 |
% |
|
|
71.7 |
% |
|
|
58.3 |
% |
|
|
58.6 |
% |
Distribution
gross margin (excluding inventory valuation adjustments and
step-up) |
|
|
5.8 |
% |
|
|
9.5 |
% |
|
|
9.2 |
% |
|
|
12.6 |
% |
Wellness
gross margin (excluding inventory valuation adjustments and
step-up) |
|
|
30.7 |
% |
|
|
26.9 |
% |
|
|
30.5 |
% |
|
|
26.9 |
% |
Adjusted
EBITDA |
|
|
11,504 |
|
|
|
13,195 |
|
|
|
48,047 |
|
|
|
40,771 |
|
Cash and
cash equivalents |
|
|
415,909 |
|
|
|
488,466 |
|
|
|
415,909 |
|
|
|
488,466 |
|
Working
capital |
|
|
523,161 |
|
|
|
479,883 |
|
|
|
523,161 |
|
|
|
482,368 |
|
|
|
|
|
|
|
|
|
|
Tilray Brands (TSX:TLRY)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Tilray Brands (TSX:TLRY)
Historical Stock Chart
Von Apr 2023 bis Apr 2024