Canopy Growth Corporation reports fourth quarter and fiscal 2019 results with annual sales of $226.3M

CANOPY GROWTH CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE AND TWELVE MONTHS ENDED MARCH 31, 2019 AND 2018

Three months ended

Twelve months ended

(Expressed in CDN $000's)

March 31,

2019

March 31,

2018

March 31,

2019

March 31,

2018

Net inflow (outflow) of cash related to the following activities:

Operating

Net income (loss)

$

(323,362)

$

(54,361)

$

(670,094)

$

(54,134)

Adjustments for:

Depreciation of property, plant and equipment

14,359

2,365

30,062

8,725

Amortization of intangible assets

8,987

2,586

16,856

11,761

Share of loss on equity investments

1,731

1,303

10,752

1,473

Fair value changes in biological assets included in inventory sold and other charges

23,547

20,025

129,536

67,861

Unrealized gain on changes in fair value of biological assets

(77,050)

(17,500)

(167,550)

(96,721)

Share-based compensation

93,096

20,928

287,782

51,177

Other assets

(2,451)

79

(19,359)

(1,853)

Other liabilities

54,345

-

54,345

-

Other income and expense

120,262

2,925

75,786

(37,494)

Income tax (recovery) expense

13,716

(8,042)

12,318

1,593

Non-cash foreign currency

(20,170)

(201)

(18,776)

(201)

Changes in non-cash operating working capital items

(132,621)

(7,018)

(262,168)

(33,693)

Net cash used in operating activities

(225,611)

(36,911)

(520,510)

(81,506)

Investing

Purchases and deposits of property, plant and equipment

(149,220)

(89,930)

(644,456)

(176,037)

Purchases of intangible assets

1,850

(1,099)

(38,290)

(2,132)

Proceeds on disposals of property and equipment

-

-

-

75

Purchases of marketable securities

(1,227,565)

-

(2,029,812)

(118)

Proceeds on assets classified as held for sale

-

-

-

7,000

Investments in equity method investees

(9,695)

-

(36,896)

(26,179)

Investments in other financial assets

(17,266)

(2,062)

(91,337)

(22,439)

Net cash outflow on acquisition of NCI

(4,716)

-

(6,712)

-

Net cash outflow on acquisition of subsidiaries

(36,010)

(153)

(380,482)

(3,753)

Net cash used in investing activities

(1,442,622)

(93,244)

(3,227,985)

(223,583)

Financing

Payment of share issue costs

(3,029)

(8,663)

(21,646)

(10,008)

Proceeds from issuance of common shares and warrants

-

200,680

5,072,500

470,670

Proceeds from issuance of shares by Canopy Rivers

63,758

19,763

154,976

54,876

Proceeds from exercise of stock options

19,429

3,509

48,159

11,053

Proceeds from exercise of warrants

106

89

18,790

770

Issuance of long-term debt

-

-

600,000

-

Payment of long-term debt issue costs

-

-

(16,380)

-

Payment of interest on long-term debt

(11,793)

-

(14,521)

-

Repayment of long-term debt

(1,181)

(371)

(4,680)

(1,512)

Net cash provided by financing activities

67,290

215,007

5,837,198

525,849

Effect of exchange rate changes on cash and cash equivalents

(34,097)

-

69,567

-

Net cash inflow

(1,635,040)

84,852

2,158,270

220,760

Cash and cash equivalents, beginning of period

4,115,870

237,708

322,560

101,800

Cash and cash equivalents, end of period

$

2,480,830

$

322,560

$

2,480,830

$

322,560

Adjusted EBITDA¹ Non-IFRS Measure

Three months ended

Year ended

(In CDN$000's)

March 31,
2019

March 31,
2018

March 31,
2019

March 31,
2018

(Restated)

(Restated)

Adjusted EBITDA¹ Reconciliation

Loss from operations - as reported

$

(174,464)

$

(51,032)

$

(577,039)

$

(82,281)

IFRS fair value accounting related to biological assets and inventory

Fair value changes in biological assets included in inventory sold and other charges

23,547

20,025

129,536

67,861

Unrealized gain on changes in fair value of biological assets

(77,050)

(17,500)

(167,550)

(96,721)

(53,503)

2,525

(38,014)

(28,860)

Share-based compensation expense (per statement of cash flows)

93,096

20,928

287,782

51,177

Acquisition-related costs

13,788

915

23,394

3,406

Depreciation and amortization (per statement of cash flows)

23,346

4,951

46,918

20,486

130,230

26,794

358,094

75,069

Adjusted EBITDA

$

(97,737)

$

(21,713)

$

(256,959)

$

(36,072)

¹Adjusted EBITDA is earnings before interest, tax, depreciation and amortization, share-based compensation expense, fair value changes and other non-cash items, and further adjusted to remove acquisition-related costs.