Tilray Brands Reports Q1 2025 Financial Results
TLRY 10.10.2024
Date of Upcoming Event:2024-10-10
Name of Upcoming Event:Tilray Brands Conference Call
Tilray Achieves 13% Year-Over-Year Growth, Generating Record Q1 Net Revenue of
Q1 Gross Margin Increases Over
Tilray Beverages Achieves 132% Net Revenue Growth, Tilray Alternative Beverages Launched in October to Fuel Key
German Medical Cannabis Flower Revenue Increases by 50% Following Legalization
Conference Call to be Held at
Financial Highlights – First Quarter Fiscal Year 2025
- Net revenue increased 13% to
$200 million in the first quarter compared to$177 million in the prior year quarter. - Gross profit increased by 35% to
$59.7 million in the first quarter compared to$44.2 million in the prior year quarter. Gross margin increased to 30% in the first quarter compared to 25% in the prior year quarter. - Net loss improved by 38% to
$(34.7) million in the first quarter compared to$(55.9) million in the prior year quarter. - Net loss per share improved to
$(0.04) in the first quarter compared to$(0.10) in the prior year quarter. - Adjusted net loss per share improved to
$(0.01) in the first quarter compared to$(0.04) in the prior year quarter. - Adjusted EBITDA in the first quarter was
$9.3 million compared to$10.7 million in the prior year quarter. - Beverage alcohol net revenue including acquisitions increased 132% to
$56.0 million in the first quarter.- Beverage alcohol gross margin was 41% in the first quarter.
- Cannabis net revenue was
$61.2 million in the first quarter.- Cannabis gross margin was 40% in the first quarter.
- Distribution net revenue was
$68.1 million in the first quarter.- Distribution gross margin was 12% in the first quarter.
- Wellness net revenue increased 11% to
$14.8 million in first the quarter.- Wellness gross margin was 32% in the first quarter.
Live Conference Call and Audio Webcast
About
For more information on how we are elevating lives through moments of connection, visitTilray.comand follow @Tilray on all social platforms.
For more information on
CautionaryStatementConcerningForward-LookingStatements
Certain statements in this press release constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication.
Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the Company’s ability to disrupt the CPG industry for cannabis, hemp, and beverage consumption; the Company’s ability to become a leading beverage alcohol Company; the Company’s ability to achieve long term profitability; the Company’s ability to achieve operational scale, market share, distribution, profitability and revenue growth in particular business lines and markets; the Company’s ability to successfully achieve revenue growth, margin and profitability improvements, production and supply chain efficiencies, synergies and cost savings; the Company’s expected revenue growth, sales volume, profitability, synergies and accretion related to any of its acquisitions; expected commercial opportunities and regulatory developments in the
Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of the Company and the Annual Report on Form 10-K (and other periodic reports filed with the
UseofNon-
This press release and the accompanying tables include non-GAAP financial measures, including Adjusted gross margin (consolidated and for each of our reporting segments), Adjusted gross profit (consolidated and for each of our reporting segments), Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, adjusted free cash flow, constant currency presentations of revenue and cash and marketable securities. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company's Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.
Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, transaction costs, impairments, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.
The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company's consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for entities reporting in currencies other than the
Adjusted EBITDA is calculated as net income (loss) before income tax benefits, net; interest expense, net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; purchase price accounting step-up; facility start-up and closure costs; litigation costs; restructuring costs, and transaction (income) costs, net. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Historically, we have included lease expenses for leases that were treated differently under IFRS 16 and ASC 842 in the calculation of adjusted EBITDA, aiming to align our definition with industry peers reporting under IFRS. The decision to include these lease expenses in the Company's definition of adjusted EBITDA was based on our efforts to maintain comparability with peers. However, as the Company has continued to diversify, particularly with strategic acquisitions such as the newly acquired beverage alcohol business portfolio, this comparison is no longer relevant, accordingly, we are no longer including this adjustment. Had the Company continued to include lease expenses that were treated differently under IFRS 16 and ASC 842, the impact to adjusted EBITDA would have been
Adjusted net income (loss) is calculated as net loss attributable to stockholders of
Adjusted net income (loss) per share is calculated as net loss attributable to stockholders of
Adjusted gross profit (consolidated and for each of our reporting segments), is calculated as gross profit adjusted to exclude the impact of purchase price accounting valuation step-up. A reconciliation of Adjusted gross profit, excluding purchase price accounting valuation step-up, to gross profit, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release. Adjusted gross margin (consolidated and for each of our reporting segments), excluding purchase price accounting valuation step-up, is calculated as revenue less cost of sales adjusted to add back amortization of inventory step-up, divided by revenue. A reconciliation of Adjusted gross margin, excluding purchase price accounting valuation step-up, to gross margin, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.
Free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release. Adjusted free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net, and the exclusion of growth CAPEX from investments in capital and intangible assets, net, which excludes the amount of capital expenditures that are considered to be associated with growth of future operations rather than to maintain the existing operations of the Company, and excludes our integration costs related to HEXO and the cash income taxes related to Aphria Diamond to align with management’s prescribed guidance. A reconciliation of net cash flow provided by (used in) operating activities to adjusted free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included above in this press release.
Cash and marketable securities are comprised of two GAAP measures, cash and cash equivalents added to marketable securities. The Company’s management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its short-term liquidity position by combing these two GAAP metrics.
For further information:Media Contact:news@tilray.comInvestor Contact:investors@tilray.com
| Consolidated Statements of Financial Position | |||||||
| (in thousands of US dollars) | 2024 | 2024 | |||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 205,186 | $ | 228,340 | |||
| Marketable securities | 74,869 | 32,182 | |||||
| Accounts receivable, net | 104,037 | 101,695 | |||||
| Inventory | 264,295 | 252,087 | |||||
| Prepaids and other current assets | 44,960 | 31,332 | |||||
| Assets held for sale | 32,536 | 32,074 | |||||
| Total current assets | 725,883 | 677,710 | |||||
| Capital assets | 555,136 | 558,247 | |||||
| Operating lease, right-of-use assets | 17,176 | 16,101 | |||||
| Intangible assets | 908,768 | 915,469 | |||||
| 2,009,714 | 2,008,884 | ||||||
| Long-term investments | 7,853 | 7,859 | |||||
| Convertible notes receivable | 32,000 | 32,000 | |||||
| Other assets | 5,337 | 5,395 | |||||
| Total assets | $ | 4,261,867 | $ | 4,221,665 | |||
| Liabilities | |||||||
| Current liabilities | |||||||
| Bank indebtedness | $ | 18,134 | $ | 18,033 | |||
| Accounts payable and accrued liabilities | 236,146 | 241,957 | |||||
| Contingent consideration | 15,000 | 15,000 | |||||
| Warrant liability | 2,557 | 3,253 | |||||
| Current portion of lease liabilities | 5,640 | 5,091 | |||||
| Current portion of long-term debt | 16,072 | 15,506 | |||||
| Current portion of convertible debentures payable | — | 330 | |||||
| Total current liabilities | 293,549 | 299,170 | |||||
| Long - term liabilities | |||||||
| Lease liabilities | 60,657 | 60,422 | |||||
| Long-term debt | 155,268 | 158,352 | |||||
| Convertible debentures payable | 132,650 | 129,583 | |||||
| Deferred tax liabilities, net | 136,230 | 130,870 | |||||
| Other liabilities | 99 | 90 | |||||
| Total liabilities | 778,453 | 778,487 | |||||
| Stockholders' equity | |||||||
| Common stock ( | 88 | 83 | |||||
| Preferred shares ( | — | — | |||||
| Additional paid-in capital | 6,217,533 | 6,146,810 | |||||
| Accumulated other comprehensive loss | (39,877 | ) | (43,499 | ) | |||
| Accumulated deficit | (2,699,653 | ) | (2,660,488 | ) | |||
| 3,478,091 | 3,442,906 | ||||||
| Non-controlling interests | 5,323 | 272 | |||||
| Total stockholders' equity | 3,483,414 | 3,443,178 | |||||
| Total liabilities and stockholders' equity | $ | 4,261,867 | $ | 4,221,665 | |||
| Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) | ||||||||||||||
| For the three months ended | ||||||||||||||
| Change | % Change | |||||||||||||
| (in thousands of | 2024 | 2023 | 2024 vs. 2023 | |||||||||||
| Net revenue | $ | 200,044 | $ | 176,949 | $ | 23,095 | 13 | % | ||||||
| Cost of goods sold | 140,338 | 132,753 | 7,585 | 6 | % | |||||||||
| Gross profit | 59,706 | 44,196 | 15,510 | 35 | % | |||||||||
| Operating expenses: | ||||||||||||||
| General and administrative | 44,113 | 40,516 | 3,597 | 9 | % | |||||||||
| Selling | 11,690 | 6,859 | 4,831 | 70 | % | |||||||||
| Amortization | 21,804 | 22,225 | (421 | ) | (2 | )% | ||||||||
| Marketing and promotion | 11,566 | 8,535 | 3,031 | 36 | % | |||||||||
| Research and development | 105 | 79 | 26 | 33 | % | |||||||||
| Change in fair value of contingent consideration | — | (11,107 | ) | 11,107 | (100 | )% | ||||||||
| Litigation costs, net of recoveries | 1,595 | 2,034 | (439 | ) | (22 | )% | ||||||||
| Restructuring costs | 4,247 | 915 | 3,332 | 364 | % | |||||||||
| Transaction costs (income), net | 1,156 | 8,502 | (7,346 | ) | (86 | )% | ||||||||
| Total operating expenses | 96,276 | 78,558 | 17,718 | 23 | % | |||||||||
| Operating loss | (36,570 | ) | (34,362 | ) | (2,208 | ) | 6 | % | ||||||
| Interest expense, net | (9,842 | ) | (9,835 | ) | (7 | ) | 0 | % | ||||||
| Non-operating income (expense), net | 12,646 | (4,402 | ) | 17,048 | (387 | )% | ||||||||
| Loss before income taxes | (33,766 | ) | (48,599 | ) | 14,833 | (31 | )% | |||||||
| Income tax expense, net | 886 | 7,264 | (6,378 | ) | (88 | )% | ||||||||
| Net loss | $ | (34,652 | ) | $ | (55,863 | ) | $ | 21,211 | (38 | )% | ||||
| Net loss per share - basic and diluted | (0.04 | ) | (0.10 | ) | 0.06 | (60 | )% | |||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||
| For the three months ended | ||||||||||||||
| Change | % Change | |||||||||||||
| (in thousands of US dollars) | 2024 | 2023 | 2024 vs. 2023 | |||||||||||
| Cash provided by (used in) operating activities: | ||||||||||||||
| Net loss | $ | (34,652 | ) | $ | (55,863 | ) | $ | 21,211 | (38 | )% | ||||
| Adjustments for: | ||||||||||||||
| Deferred income tax expense, net | 382 | 59 | 323 | 547 | % | |||||||||
| Unrealized foreign exchange (gain) loss | (5,602 | ) | (3,127 | ) | (2,475 | ) | 79 | % | ||||||
| Amortization | 31,814 | 30,789 | 1,025 | 3 | % | |||||||||
| Accretion of convertible debt discount | 3,067 | 5,544 | (2,477 | ) | (45 | )% | ||||||||
| Other non-cash items | 729 | (6,357 | ) | 7,086 | (111 | )% | ||||||||
| Stock-based compensation | 6,917 | 8,257 | (1,340 | ) | (16 | )% | ||||||||
| (Gain) loss on long-term investments & equity investments | (499 | ) | 47 | (546 | ) | (1162 | )% | |||||||
| Loss on derivative instruments | (696 | ) | 10,345 | (11,041 | ) | (107 | )% | |||||||
| Change in fair value of contingent consideration | — | (11,107 | ) | 11,107 | (100 | )% | ||||||||
| Change in non-cash working capital: | ||||||||||||||
| Accounts receivable | (2,342 | ) | 13,044 | (15,386 | ) | (118 | )% | |||||||
| Prepaids and other current assets | (13,570 | ) | (4,654 | ) | (8,916 | ) | 192 | % | ||||||
| Inventory | (12,383 | ) | 3,650 | (16,033 | ) | (439 | )% | |||||||
| Accounts payable and accrued liabilities | (8,472 | ) | (6,469 | ) | (2,003 | ) | 31 | % | ||||||
| Net cash used in operating activities | (35,307 | ) | (15,842 | ) | (19,465 | ) | 123 | % | ||||||
| Cash provided by (used in) investing activities: | ||||||||||||||
| Investment in capital and intangible assets | (6,736 | ) | (4,152 | ) | (2,584 | ) | 62 | % | ||||||
| Proceeds from disposal of capital and intangible assets | 28 | 342 | (314 | ) | (92 | )% | ||||||||
| Disposal (purchase) of marketable securities, net | (42,687 | ) | (45,436 | ) | 2,749 | (6 | )% | |||||||
| Business acquisitions, net of cash acquired | — | 22,956 | (22,956 | ) | (100 | )% | ||||||||
| Net cash provided by (used in) investing activities | (49,395 | ) | (26,290 | ) | (23,105 | ) | 88 | % | ||||||
| Cash provided by (used in) financing activities: | ||||||||||||||
| Share capital issued, net of cash issuance costs | 66,472 | — | 66,472 | NM | ||||||||||
| Proceeds from long-term debt | — | 7,621 | (7,621 | ) | (100 | )% | ||||||||
| Repayment of long-term debt | (4,791 | ) | (6,369 | ) | 1,578 | (25 | )% | |||||||
| Proceeds from convertible debt | — | 21,553 | (21,553 | ) | (100 | )% | ||||||||
| Repayment of convertible debt | (330 | ) | — | (330 | ) | NM | ||||||||
| Repayment of lease liabilities | (862 | ) | — | (862 | ) | NM | ||||||||
| Net increase (decrease) in bank indebtedness | 101 | (8,787 | ) | 8,888 | (101 | )% | ||||||||
| Net cash provided by (used in) financing activities | 60,590 | 14,018 | 46,572 | 332 | % | |||||||||
| Effect of foreign exchange on cash and cash equivalents | 958 | 614 | 344 | 56 | % | |||||||||
| Net decrease in cash and cash equivalents | (23,154 | ) | (27,500 | ) | 4,346 | (16 | )% | |||||||
| Cash and cash equivalents, beginning of period | 228,340 | 206,632 | 21,708 | 11 | % | |||||||||
| Cash and cash equivalents, end of period | $ | 205,186 | $ | 179,132 | $ | 26,054 | 15 | % | ||||||
| Net Revenue by Operating Segment | |||||||||||||
| For the three months ended | % of Total | For the three months ended | % of Total | ||||||||||
| (In thousands of | Revenue | Revenue | |||||||||||
| Beverage alcohol business | $ | 55,972 | 28 | % | $ | 24,162 | 13 | % | |||||
| Cannabis business | 61,249 | 31 | % | 70,333 | 40 | % | |||||||
| Distribution business | 68,071 | 34 | % | 69,157 | 39 | % | |||||||
| Wellness business | 14,752 | 7 | % | 13,297 | 8 | % | |||||||
| Total net revenue | $ | 200,044 | 100 | % | $ | 176,949 | 100 | % | |||||
| Net Revenue by Operating Segment in Constant Currency | |||||||||||||
| For the three months ended | For the three months ended | ||||||||||||
| (In thousands of | as reported in constantcurrency | % of TotalRevenue | as reported in constantcurrency | % of TotalRevenue | |||||||||
| Beverage alcohol business | $ | 55,972 | 27 | % | $ | 24,162 | 13 | % | |||||
| Cannabis business | 62,792 | 31 | % | 70,333 | 40 | % | |||||||
| Distribution business | 70,396 | 35 | % | 69,157 | 39 | % | |||||||
| Wellness business | 14,940 | 7 | % | 13,297 | 8 | % | |||||||
| Total net revenue | $ | 204,100 | 100 | % | $ | 176,949 | 100 | % | |||||
| Net Cannabis Revenue by Market Channel | |||||||||||||
| For the three months ended | % of Total | For the three months ended | % of Total | ||||||||||
| (In thousands of | Revenue | Revenue | |||||||||||
| Revenue from Canadian medical cannabis | $ | 6,261 | 10 | % | $ | 6,142 | 9 | % | |||||
| Revenue from Canadian adult-use cannabis | 57,235 | 94 | % | 71,195 | 102 | % | |||||||
| Revenue from wholesale cannabis | 5,507 | 9 | % | 5,295 | 7 | % | |||||||
| Revenue from international cannabis | 12,191 | 20 | % | 14,252 | 20 | % | |||||||
| Less excise taxes | (19,945 | ) | (33 | )% | (26,551 | ) | (38 | )% | |||||
| Total | $ | 61,249 | 100 | % | $ | 70,333 | 100 | % | |||||
| Net Cannabis Revenue by Market Channel in Constant Currency | |||||||||||||
| For the three months ended | For the three months ended | ||||||||||||
| (In thousands of | as reported in constantcurrency | % of TotalRevenue | as reported in constantcurrency | % of TotalRevenue | |||||||||
| Revenue from Canadian medical cannabis | $ | 6,432 | 10 | % | $ | 6,142 | 9 | % | |||||
| Revenue from Canadian adult-use cannabis | 58,806 | 94 | % | 71,195 | 102 | % | |||||||
| Revenue from wholesale cannabis | 5,658 | 9 | % | 5,295 | 7 | % | |||||||
| Revenue from international cannabis | 12,388 | 20 | % | 14,252 | 20 | % | |||||||
| Less excise taxes | (20,492 | ) | (33 | )% | (26,551 | ) | (38 | )% | |||||
| Total | $ | 62,792 | 100 | % | $ | 70,333 | 100 | % | |||||
| Other Financial Information: Key Operating Metrics | |||||||
| For the three months ended | |||||||
| (in thousands of | 2024 | 2023 | |||||
| Net beverage alcohol revenue | $ | 55,972 | $ | 24,162 | |||
| Net cannabis revenue | 61,249 | 70,333 | |||||
| Distribution revenue | 68,071 | 69,157 | |||||
| Wellness revenue | 14,752 | 13,297 | |||||
| Beverage alcohol costs | 33,050 | 11,266 | |||||
| Cannabis costs | 37,054 | 50,517 | |||||
| Distribution costs | 60,138 | 61,468 | |||||
| Wellness costs | 10,096 | 9,502 | |||||
| Adjusted gross profit (excluding PPA step-up) | 59,881 | 49,302 | |||||
| Beverage alcohol adjusted gross margin (excluding PPA step-up) | 41 | % | 56 | % | |||
| Cannabis adjusted gross margin (excluding PPA step-up) | 40 | % | 35 | % | |||
| Distribution gross margin | 12 | % | 11 | % | |||
| Wellness gross margin | 32 | % | 29 | % | |||
| Adjusted EBITDA | $ | 9,334 | $ | 10,734 | |||
| Cash and marketable securities as at the period ended: | 280,055 | 466,465 | |||||
| Working capital as at the period ended: | $ | 432,334 | $ | 291,981 | |||
| Other Financial Information: Gross Margin and Adjusted Gross Margin | |||||||||||||||||||
| For the three months ended August 31, 2024 | |||||||||||||||||||
| (In thousands of | Beverage | Cannabis | Distribution | Wellness | Total | ||||||||||||||
| Net revenue | $ | 55,972 | $ | 61,249 | $ | 68,071 | $ | 14,752 | $ | 200,044 | |||||||||
| Cost of goods sold | 33,050 | 37,054 | 60,138 | 10,096 | 140,338 | ||||||||||||||
| Gross profit | 22,922 | 24,195 | 7,933 | 4,656 | 59,706 | ||||||||||||||
| Gross margin | 41 | % | 40 | % | 12 | % | 32 | % | 30 | % | |||||||||
| Adjustments: | |||||||||||||||||||
| Purchase price accounting step-up | 175 | — | — | — | 175 | ||||||||||||||
| Adjusted gross profit | 23,097 | 24,195 | 7,933 | 4,656 | 59,881 | ||||||||||||||
| Adjusted gross margin | 41 | % | 40 | % | 12 | % | 32 | % | 30 | % | |||||||||
| For the three months ended August 31, 2023 | |||||||||||||||||||
| (In thousands of | Beverage | Cannabis | Distribution | Wellness | Total | ||||||||||||||
| Net revenue | $ | 24,162 | $ | 70,333 | $ | 69,157 | $ | 13,297 | $ | 176,949 | |||||||||
| Cost of goods sold | 11,266 | 50,517 | 61,468 | 9,502 | 132,753 | ||||||||||||||
| Gross profit | 12,896 | 19,816 | 7,689 | 3,795 | 44,196 | ||||||||||||||
| Gross margin | 53 | % | 28 | % | 11 | % | 29 | % | 25 | % | |||||||||
| Adjustments: | |||||||||||||||||||
| Purchase price accounting step-up | 590 | 4,516 | — | — | 5,106 | ||||||||||||||
| Adjusted gross profit | 13,486 | 24,332 | 7,689 | 3,795 | 49,302 | ||||||||||||||
| Adjusted gross margin | 56 | % | 35 | % | 11 | % | 29 | % | 28 | % | |||||||||
| Other Financial Information: Adjusted Earnings Before Interest, Taxes and Amortization | ||||||||||||||
| For the three months ended | ||||||||||||||
| Change | % Change | |||||||||||||
| (In thousands of | 2024 | 2023 | 2024 vs. 2023 | |||||||||||
| Net loss | $ | (34,652 | ) | $ | (55,863 | ) | $ | 21,211 | (38 | )% | ||||
| Income tax expense, net | 886 | 7,264 | (6,378 | ) | (88 | )% | ||||||||
| Interest expense, net | 9,842 | 9,835 | 7 | 0 | % | |||||||||
| Non-operating income (expense), net | (12,646 | ) | 4,402 | (17,048 | ) | (387 | )% | |||||||
| Amortization | 31,814 | 30,789 | 1,025 | 3 | % | |||||||||
| Stock-based compensation | 6,917 | 8,257 | (1,340 | ) | (16 | )% | ||||||||
| Change in fair value of contingent consideration | — | (11,107 | ) | 11,107 | (100 | )% | ||||||||
| Purchase price accounting step-up | 175 | 5,106 | (4,931 | ) | (97 | )% | ||||||||
| Facility start-up and closure costs | — | 600 | (600 | ) | (100 | )% | ||||||||
| Litigation costs, net of recoveries | 1,595 | 2,034 | (439 | ) | (22 | )% | ||||||||
| Restructuring costs | 4,247 | 915 | 3,332 | 364 | % | |||||||||
| Transaction costs (income) | 1,156 | 8,502 | (7,346 | ) | (86 | )% | ||||||||
| Adjusted EBITDA | $ | 9,334 | $ | 10,734 | $ | (1,400 | ) | (13 | )% | |||||
| Other Financial Information: Adjusted Net Loss and Adjusted Net Loss Per Share | For the three months ended | |||||||||||||
| Change | % Change | |||||||||||||
| 2024 | 2023 | Change | ||||||||||||
| Net loss attributable to stockholders of | $ | (39,165 | ) | $ | (71,525 | ) | $ | 32,360 | (45 | )% | ||||
| Non-operating income (expense), net | (12,646 | ) | 4,402 | (17,048 | ) | (387 | )% | |||||||
| Amortization | 31,814 | 30,789 | 1,025 | 3 | % | |||||||||
| Stock-based compensation | 6,917 | 8,257 | (1,340 | ) | (16 | )% | ||||||||
| Change in fair value of contingent consideration | — | (11,107 | ) | 11,107 | (100 | )% | ||||||||
| Facility start-up and closure costs | — | 600 | (600 | ) | (100 | )% | ||||||||
| Litigation costs, net of recoveries | 1,595 | 2,034 | (439 | ) | (22 | )% | ||||||||
| Restructuring costs | 4,247 | 915 | 3,332 | 364 | % | |||||||||
| Transaction costs (income) | 1,156 | 8,502 | (7,346 | ) | (86 | )% | ||||||||
| Adjusted net loss | $ | (6,082 | ) | $ | (27,133 | ) | $ | 21,051 | (78 | )% | ||||
| Adjusted net loss per share - basic and diluted | $ | (0.01 | ) | $ | (0.04 | ) | $ | 0.03 | (75 | )% | ||||
| Other Financial Information: Free Cash Flow | ||||||||||||||
| For the three months ended | ||||||||||||||
| Change | % Change | |||||||||||||
| (In thousands of | 2024 | 2023 | 2024 vs. 2023 | |||||||||||
| Net cash used in operating activities | $ | (35,307 | ) | $ | (15,842 | ) | $ | (19,465 | ) | 123 | % | |||
| Less: investments in capital and intangible assets, net | (6,708 | ) | (3,810 | ) | (2,898 | ) | 76 | % | ||||||
| Free cash flow | $ | (42,015 | ) | $ | (19,652 | ) | $ | (22,363 | ) | 114 | % | |||
| Add: growth CAPEX | 2,540 | 1,687 | 853 | 51 | % | |||||||||
| Add: cash income taxes related to Aphria Diamond | — | 5,714 | (5,714 | ) | (100 | )% | ||||||||
| Add: integration costs related to HEXO | — | 5,915 | (5,915 | ) | (100 | )% | ||||||||
| Adjusted free cash flow | $ | (39,475 | ) | $ | (6,336 | ) | $ | (33,139 | ) | 523 | % | |||
Source: Tilray Brands, Inc.