Neptune Announces Fourth Quarter Results

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

6,586

25,584

–

98,597

Cash, cash equivalents and short-term investments

2,525

–

–

24,172

–

26,697

Working capital²

4,014

2

–

22,456

–

26,472

________________________
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.