Revenue of
Gross profit income of
Net income was
Adjusted EBITDA was $1.2 million, versus a loss of
Maintained a strong liquidity position, including a cash & cash equivalents balance of
"We delivered another solid quarter, continuing to drive year-over-year growth. Our performance in this quarter was driven by organic growth of our core business, Venom Extracts. As we approach the end of our final quarter and the beginning of a period of transformation, our strengthened and experienced leadership team is laser focused on creating shareholder value, delivering sustainable profitable growth, keeping operating costs low, and scaling the Company for optimal global success."
-
"
-
Third Quarter 2021 Financial Results
- Total revenue was
$14.5 million , an increase of$5 million or 53% compared to the prior year period. - Gross profit was
$3.5 million compared to$1.4 million for the prior year period. - Net income was
$0.4 million versus a loss of$0.6 million in the prior year period. - Adjusted EBITDA was
$1.2 million compared to a loss of$0.6 million in the prior year period. - Cash and cash equivalents was
$7.6 million , a 300% increase as compared to$1.9 million atJune 30, 2020 .
Third Quarter 2021 Business Highlights
- On
July 13 th, 2021, the Company announced it was added as an index constituent in the Solactive US Marijuana Companies Index (the "Index") as part of the Index'sJune 2021 quarterly rebalancing and as a result is now a holding in the Horizons US Marijuana Index ETF (NEO: HMUS). - On
August 25 th, 2021, the Company announced 'Hollister Brand Campus' (the "Campus") a 30-Acre Arizona Brand Campus with planned 700,000 square feet of cultivation area and an existing 28,500-square-foot processing and manufacturing facility. - On
August 31 st, 2021, the Company announced two new board members, Mr.Kevin Harrington , an original "Shark" from theNBC hit TV series "Shark Tank" and Mr. Jakob Ripshtein, the former CFO ofDiageo North America and President of Aphria Inc.
Recent Events
- On
October 18 th, 2021, the Company announced a series of operational and strategic updates to create shareholder value, enhance governance, operations and market positioning while preparing the Company for the next phase of its growth, including: - Appointment of:
Jacob Cohen as Chief Executive OfficerEula Adams as Chief Financial OfficerChris Lund as Chief Commercial OfficerJill Karpe as Senior Vice President of Admin and Finance;- Refocused business strategy to develop a "house of brands" focused on cannabis consumer packaged goods;
- Initiated rebranding corporate identity and name of the company; and
- Reduction of expenses and resource allocation on non-core business activities.
- On
November 2 nd, 2021, the Company announced it received an order from theOntario Securities Commission grantingHollister an exemption from certain provisions governing disclosure and other matters applicable to issuers with outstanding "restricted securities". - On
November 23 rd, 2021, all matters put forward before the Company's shareholders for consideration and approval, as listed in the management information circular of the Company datedOctober 18, 2021 (the "Circular"), were approved by the requisite majority of votes cast at the Company's Annual General and Special Shareholder Meeting. This includes the election of all six (6)Board of Director nominees listed in the Circular: Jakob Ripshtein,Jacob Cohen ,Eula Adams ,Lily Dash ,Kevin Harrington , andBrett Mecum .
Outlook
The Company believes the outlook is strong and has developed a solid strategy supported by strong operational, financial and leadership capabilities. In
Sales through the end of November are preliminary and are unaudited and subject to change and adjustment when the Company prepares its audited consolidated financial statements for the year ended
The Company will continue optimizing its platform in
As previously announced, the Company is moving forward, implementing its "house of brands" cannabis consumer packaged goods strategy which includes manufacturing and distribution of owned and partner branded cannabis products in chosen markets. Additionally, the Company is planning to rationalize its existing brand and product portfolio, dedicating efforts towards new, highly targeted brand partnerships and the acquisition or development of owned brands.
On the corporate development front, the process to rebrand the Company and to align it with its refined strategy has commenced. Campaigns to improve awareness and broaden the shareholder base are being developed.
The Company has placed certain non-core assets including its
In addition to operational, financial, governance and strategy improvements, the Company has also been dedicating efforts to enter new markets with its existing brands.
USE OF NON-IFRS FINANCIAL MEASURES
This press release includes certain non-IFRS financial measures. Reconciliations of these non-IFRS financial measures to the most directly comparable financial measure calculated and presented in accordance with IFRS are included below. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with IFRS. The Company's management team uses adjusted EBITDA to evaluate operating performance and trends and to make planning decisions. The Company's management team believes adjusted EBITDA helps identify underlying trends in the business that could otherwise be masked by the effect of the items that are excluded. Accordingly, the Company believes that adjusted EBITDA provides useful information to investors and others in understanding and evaluating the operating results, enhancing the overall understanding of past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by management in its financial and operational decision-making.
The table below reconciles net income (loss) and comprehensive income (loss) to Adjusted EBITDA (Loss for the three and nine months ended
Three months ended | Nine months ended | |||
2021 | 2020 | 2021 | 2020 | |
$ | $ | $ | $ | |
Net income (loss) and comprehensive income (loss) | 457,148 | (649,095) | 4,040,649 | (2,584,259) |
Add (deduct) impact of: | ||||
Accretion | - | 3,150 | - | 9,451 |
Depreciation | 333,739 | 445,045 | 964,861 | 574,098 |
Finance costs | 123,300 | 107,274 | 332,905 | 327,135 |
Foreign exchange gain | (29,665) | - | (57,961) | - |
Interest expense | 342 | 37,750 | 20,356 | 87,750 |
Transaction costs | - | - | - | 379,684 |
Acquisition expense | - | - | - | 535,478 |
Interest income | (46,802) | - | (112,890) | - |
Gain on sublease | - | - | 262,015 | - |
Gain on lease extinguishment | 19,951 | - | 19,951 | - |
Lease renegotiation costs | (252,036) | - | (252,036) | - |
Income tax expense | 617,000 | (8,400) | 2,438,000 | (8,400) |
Deferred income tax recovery | (3,000) | - | (131,000) | - |
Foreign currency translation adjustment | 22,866 | 3,902 | 7,055 | 81,642 |
Adjusted EBITDA (Loss) | 1,242,843 | (60,374) | 7,531,905 | (597,421) |
The live audio earnings conference call may be accessed online and by phone using the link: https://www.renmarkfinancial.com/events/third-quarter-2021-results-cse-holl-2021-11-30-160000. Investors may pre-register for the call by navigating to the same link provided. The conference call will be archived for replay and accessible at https://hollisterbiosciences.co/investors/.
About
Products from
Website: www.hollisterbiosciences.co
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain "forward-looking information" as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. To the extent any forward-looking information in this news release constitutes "financial outlooks" within the meaning of applicable Canadian securities laws, such information is being provided as preliminary financial and operational results and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: the impacts of the Campus; the implementation of the Company's "house of brands" cannabis consumer packaged goods strategy; the Company's rebranding; and expectations for other economic, business, and/or competitive factors. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. The Company's actual financial position and results of operations may differ materially from management's current expectations and, as a result, the Company's revenue may differ materially from the estimated revenue provided in this news release.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the Company's financial results, including the Company's revenue for the year to date will be as projected; regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; the impact of COVID-19; and the risk factors set out in the Company's annual information form dated
The Company, through several of its subsidiaries, is indirectly involved in the manufacture, possession, use, sale, and distribution of cannabis in the recreational and medicinal cannabis marketplace in
While the approach to enforcement of such laws by the federal government in
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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