LEAMINGTON, ONTARIO--(Marketwired - Apr 24, 2015) - Aphria Inc. ("Aphria" or the "Company") (TSX VENTURE:APH) today reported its financial results for the third quarter ended February 28, 2015. Aphria's fiscal year end is May 31, 2015. Dollar amounts are expressed in Canadian currency.
Business Highlights
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Signs sponsorship agreement with Apollo Applied Research
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Renews Health Canada license
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Embarks on secondary wholesale strategy following license amendment
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Commences initial phase of capacity expansion
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Signs referral contracts with two national organizations
Q3 2015 Financial & Operational Highlights
Three-month period ended February 28, 2015
| 3 months ended | ||
| February 28, 2015 | ||
| Revenue | $ 51,540 | |
| Cost of goods sold | (26,858) | |
| Change in biological assets | 232,682 | |
| Gross margin | 257,364 | |
| Adjusted Gross Margin1 | 35,396 | |
| As a percentage of revenue | 68.7% | |
| Net loss | (3,103,111) | |
| Adjusted Net Loss1 | (617,048) | |
| Adjusted Net Loss per share1 | (0.01) | |
| Number of crop failures | nil | |
| Inventory (grams) | 222,830 | |
| 1 Non-GAAP financial measures (Adjusted Gross Margin and Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per common share) are explained in Management's Discussion & Analysis under "Non-GAAP Financial Measures". | ||
"We are off to a very strong start as a public company with the announcement of several strategic initiatives," said Vic Neufeld, President and CEO. "Patient registrations are exceeding our expectation, and continuous operational improvements during our ramp-up phase support our low cost producer advantage."
Results of Operations
Revenue
Revenue of $51,540 represents Aphria's first quarter of commercial sales of medical marijuana.
Gross Margin
Gross margin for the third quarter of 2015 was $257,364 and includes $232,682 related to the non-cash change in biological assets and $10,714 related to the fair value markup of cost of goods sold. As such, the Company's gross margin under IFRS likely differs from what would be shown if the Company was producing inventory that was not derived from a biological asset. Excluding these non-cash items relating to biological assets, Aphria's Adjusted Gross Margin2 for the third quarter ended February 28, 2015 would have been $35,396, or 68.7% as a percentage of sales.
Operating Expenses
For the third quarter of 2015, general and administrative expenses were $357,819.
Net Loss and Net Loss per Share
Net loss for the third quarter of 2015 was $3,103,111, or a loss of $0.06 per share, and included the non-cash items relating to biological assets and the fair value markup of cost of goods sold as noted above as well as $2,708,031 for listing costs related to the Company's public listing process. The listing costs are not expected to recur in the future. Excluding these non-cash and non-recurring items, the Company's Adjusted Net Loss2 would have been $617,048 or a loss of $0.01 per share on a per share basis.