Aurora Cannabis (TSX: ACB) (NYSE: ACB) this morning reiterated guidance for the first quarter of fiscal 2021 in a brief update to the market. The guidance update was attached to the news that the company has filed a final short form base shelf prospectus in connection with the previously announced US$500 preliminary base shelf prospectus.
Guidance for the first quarter, although previously released, was reiterated with net cannabis revenues expected to be at the the “high end” of the previously provided $60 to $64 million range. This figure represents slightly reduced quarter over quarter earnings, with the fourth quarter seeing $67.5 million in revenue. The company expects revenue to be almost entirely from its cannabis operations.
Gross margin estimates were also provided, with the company expecting margins to be between 46% and 50%. SG&A expenses are meanwhile expected to be near $40 million, however this figure was provided on an adjusted basis, with the caveat being that it excludes “one-time contract and employee termination costs.” This caveat was not previously provided when the company provided guidance for the quarter.
Oddly, the company also indicated that its relationship with its lending syndicate “remains strong,” with no new obligations being present to repay portions of the outstanding facility prior to the maturity date. Aurora also indicated that it remains in compliance with all covenants as of September 30, 2020.
Finally, the company reiterated guidance in terms of profitability, restating that it continues to expect to report positive adjusted EBITDA for the second quarter of fiscal 2021.
The company is set to release first quarter financial results before market open on November 9.
Aurora Cannabis last traded at $4.09 on the NYSE.
Information for this briefing was found via Sedar and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.