Neptune Announces Fourth Quarter Results

PR Newswire - finance.yahoo.com Posted 5 years ago
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. The Corporation believes that providing this information to investors, in addition to IFRS measures, allows them to see the Corporation's results through the eyes of management, and to better understand its historical and future financial performance.

Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Corporation uses Adjusted Segment EBITDA (or non-IFRS operating segment loss when in a loss position) and Adjusted EBITDA (or non-IFRS operating loss when in a loss position) to measure its performance from one period to the next without the variation caused by certain adjustments that could potentially distort the analysis of trends in our operating performance, and because the Corporation believes it provides meaningful information on the Corporation's financial condition and operating results. Neptune's method for calculating Adjusted Segment EBITDA (or non-IFRS operating segment loss) and Adjusted EBITDA (or non-IFRS operating loss) may differ from that used by other corporations.

Neptune obtains its Adjusted Segment EBITDA (or non-IFRS operating segment loss) measurement by adding depreciation and amortization and stock-based compensation to segment income (loss) from operating activities before corporate expenses. Neptune obtains its Adjusted EBITDA (or non-IFRS operating loss) measurement by adding to net income (loss), net finance costs, depreciation and amortization, income tax expense and by subtracting income tax recovery and net finance income. Other items such as stock-based compensation, litigation provisions, impairment loss on inventories, net gain on sale of assets, gain on loss of control of subsidiary, tax credits reversal from prior years and legal fees related to royalty settlements that do not impact core operating performance of the Corporation are excluded from the calculation as they may vary significantly from one period to another. Excluding these items does not imply they are non-recurring.

Forward Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the U.S. securities laws and Canadian securities laws. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of Neptune to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "projects," "anticipates," "will," "should," or "plans" to be uncertain and forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking information in this press release includes, but is not limited to, information or statements about our ability to successfully develop, produce, supply, promote or generate any revenue from the sale of any cannabis-based products in the legal cannabis market.

The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement and the "Cautionary Note Regarding Forward-Looking Information" section contained in Neptune's latest Annual Information Form (the "AIF"), which also forms part of Neptune's latest annual report on Form 40-F, and which is available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on the Investor section of Neptune's website at www.neptunecorp.com. All forward-looking statements in this press release are made as of the date of this press release. Neptune does not undertake to update any such forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in Neptune public securities filings with the Securities and Exchange Commission and the Canadian securities commissions. Additional information about these assumptions and risks and uncertainties is contained in the AIF under "Risk Factors".

Neither NASDAQ nor the Toronto Stock Exchange accepts responsibility for the adequacy or accuracy of this release.

Conference Call Details
Neptune will be holding a conference call on June 12, 2019, at 5:00 PM (EST) to discuss its fourth quarter and fiscal year-end results ended March 31, 2019.

 

Date: 

Wednesday, June 12, 2019


Time:

5:00 PM Eastern Standard Time


Call:

1-888-231-8191 (Canada and U.S.)

1-647-427-7450 (International)


Webcast: 

A live webcast and presentation of the results can be accessed at:

https://neptunecorp.com/en/investors/events-and-presentations/

 

A replay of the call will be available for replay shortly after the call's completion, until July 12, 2019. The replay can be accessed online in the Investors section of Neptune's website under Investor Events and Presentations. It is also under this section that you will find the archive of the webcast, along with its accompanying presentation.

 

Reconciliation of Segment income (loss) from operating activities before corporate expenses to Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1 and net loss to non-IFRS operating loss1
(Expressed in thousands of dollars)








Three-month period ended March 31, 2019







Nutraceutical

Cannabis

Corporate

Total

$

$

$

$

Total revenues

5,652

12




5,664

Gross margin

1,523

12




1,535












R&D expenses, net of tax credits and grants

(172)

(1,898)




(2,070)

SG&A expenses

(1,138)

(373)




(1,511)

Segment income (loss) from operating activities before

   corporate expenses

213

(2,259)




(2,046)












Unallocated costs:










Corporate general and administrative expenses






(2,354)

(2,354)

Litigation provisions






(7,930)

(7,930)

Net finance costs






(38)

(38)

Income tax expense






(16)

(16)

Net loss









(12,384)












Adjusted Segment EBITDA1 (non-IFRS operating

   segment loss)1 reconciliation










Segment income (loss) from operating activities before

   corporate expenses

213

(2,259)





Add:










Depreciation and amortization

156

554





Stock-based compensation

123

245





Adjusted Segment EBITDA1 (non-IFRS operating

   segment loss)1

492

(1,460)

















Non-IFRS operating loss1 reconciliation










Net loss









(12,384)

Add:










Depreciation and amortization









765

Net finance costs









38

Stock-based compensation









928

Income tax expense









16

Litigation provisions









7,930

Non-IFRS operating loss1









(2,707)

 

________________________
1 See "Caution Regarding Non-IFRS Financial Measures".

 

Reconciliation of Segment loss from operating activities before corporate expenses to Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1 and net loss to non-IFRS operating loss1 
(Expressed in thousands of dollars)
























Three-month period ended March 31, 2018

Nutraceutical

Cannabis

Corporate

Total

$

$

$

$

Total revenues

7,005

–




7,005

Gross margin

1,458

–




1,458












R&D expenses, net of tax credits and grants

(1,952)

(1,528)




(3,480)

SG&A expenses

(1,255)

(308)




(1,563)

Net gain on sale of assets

(21)

–




(21)

Segment loss from operating activities before corporate expenses

(1,770)

(1,836)




(3,606)












Unallocated costs:










Corporate general and administrative expenses






(2,418)

(2,418)

Net finance costs






(408)

(408)

Income tax recovery






1,680

1,680

Net loss









(4,752)












Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1 reconciliation










Segment loss from operating activities before corporate expenses

(1,770)

(1,836)





Add:










Depreciation and amortization

186

530





Stock-based compensation

160

186





Net gain on sale of assets

21

–





Impairment loss on inventories

658

–





Tax credits reversal from prior years

1,933

–





Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1

1,188

(1,120)

















Non-IFRS operating loss1 reconciliation










Net loss









(4,752)

Add (deduct):










Depreciation and amortization









768

Net finance costs









408

Stock-based compensation









842

Net gain on sale of assets









21

Impairment loss on inventories









658

Income tax recovery









(1,680)

Tax credits reversal from prior years









1,933

Non-IFRS operating loss1









(1,802)

 

________________________
1 See "Caution Regarding Non-IFRS Financial Measures".

 

Reconciliation of Segment income (loss) from operating activities before corporate expenses to Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1 and net loss to non-IFRS operating loss1
(Expressed in thousands of dollars)
























Year ended March 31, 2019

Nutraceutical

Cannabis

Corporate

Total

$

$

$

$

Total revenues

24,430

12




24,442

Gross margin

7,602

12




7,614












R&D expenses, net of tax credits and grants

(488)

(6,723)




(7,211)

SG&A expenses

(4,525)

(1,846)




(6,371)

Segment income (loss) from operating activities before corporate expenses

2,589

(8,557)




(5,968)












Unallocated costs:










Corporate general and administrative expenses






(8,915)

(8,915)

Litigation provisions






(7,930)

(7,930)

Net finance costs






(209)

(209)

Income tax expense






(170)

(170)

Net loss









(23,192)












Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1 reconciliation










Segment income (loss) from operating activities before corporate expenses

2,589

(8,557)





Add:










Depreciation and amortization

719

2,126





Stock-based compensation

492

1,046





Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1

3,800

(5,385)

















Non-IFRS operating loss1 reconciliation










Net loss









(23,192)

Add:










Depreciation and amortization









3,056

Net finance costs









209

Stock-based compensation









3,713

Income tax expense









170

Litigation provisions









7,930

Non-IFRS operating loss1









(8,114)












Total assets3

21,007

50,981

18,232

90,220

Cash, cash equivalents and short-term investment

276

–

9,591

9,867

Working capital2

2,543

(629)

2,751

4,665

 

________________________
1 See "Caution Regarding Non-IFRS Financial Measures".

2 The working capital is presented for information purposes only and represents a measurement of the Corporation's short-term financial health mostly used in financial circles. The working capital is calculated by subtracting current liabilities from current assets. Because there is no standard method endorsed by IFRS, the results may not be comparable to similar measurements presented by other public companies.

3 The corporate reportable segment assets include the investment in Acasti.

 

Reconciliation of Segment income (loss) from operating activities before corporate expenses to Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1 and net income to non-IFRS operating loss1 
(Expressed in thousands of dollars)




































Year ended March 31, 2018












Inter-segment



Nutraceutical

 Cannabis

Cardiovascular

Corporate

eliminations

Total

$

$

$

$

$

$

Total revenues

27,646

–

–



–

27,646

Gross margin

6,324

–

–



–

6,324

















R&D expenses, net of tax credits and grants

(2,732)

(2,969)

(9,592)




1,742

(13,551)

SG&A expenses

(5,204)

(597)

(2,761)



–

(8,562)

Net gain on sale of assets

23,702

–

–



–

23,702

Segment income (loss) from operating activities before corporate expenses

22,090

(3,566)

(12,353)




1,742

7,913

















Gain on loss of control of subsidiary

–

–

–

8,784

–

8,784

















Unallocated costs:















Corporate general and administrative expenses








(6,743)




(6,743)

Net finance costs








(2,255)




(2,255)

Income tax recovery








1,640




1,640

Net income














9,339

















Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1 reconciliation















Segment income (loss) from operating activities before corporate expenses

22,090

(3,566)

(12,353)




1,742


Add (deduct):















Depreciation and amortization

1,817

1,054

2,005




(1,742)


Stock-based compensation

317

252

661



–


Net gain on sale of assets

(23,702)

–

–



–


Impairment loss on inventories

2,377

–

–



–


Tax credits reversal from prior years

1,933

–

–



–


Legal fees related to royalty settlements

90

–

–



–


Adjusted Segment EBITDA1 (non-IFRS operating segment loss)1

4,922

(2,260)

(9,687)



–



















Non-IFRS operating loss1 reconciliation















Net income














9,339

Add (deduct):















Depreciation and amortization














3,542

Net finance costs














2,255

Stock-based compensation














2,884

Net gain on sale of assets














(23,702)

Gain on loss of control of subsidiary














(8,784)

Impairment loss on inventories














2,377

Income tax recovery














(1,640)

Tax credits reversal from prior years














1,933

Legal fees related to royalty settlements














90

Non-IFRS operating loss1














(12,306)

















Total assets

24,412

42,015

6,58