Aurora Cannabis (NYSE: ACB) (TSX: ACB) this evening reported its second quarter 2021 financial results, reporting net revenue of $67.7 million, along with a net loss of $292.8 million. Notably, the firms news release headlines with total cannabis net revenue, excluding provisions, as well as an adjusted EBITDA loss that excludes numerous writedowns and impairments.
Revenue from the sale of goods on a gross basis came in at $79.0 million, while revenue from the provision of services amounted to $0.6 million. After excise taxes of $11.9 million, the result is $67.7 million in net revenues for the quarter. After a cost of sales of $50.6 million, the company posted a gross profit before fair value adjustments of $17.0 million.
And that’s about where the positive results end.
In terms of operating expenses, the company spent $64.4 million to generate those net revenues of $67.7 million. In simple terms, the company recognized $0.95 in operating expenses for every $1.00 in net revenues generated.
General and administrative expenses amounted to $27.8 million, which was down from the previous quarter’s $29.3 million, while sales and marketing amounted to $14.1 million, down from $15.0 million previously. Depreciation and amortization meanwhile came in at $14.0 million for the quarter. All told, the company posted a loss from operations of $47.0 million.
Other expenses however is where the pain was really felt this quarter, with the company posting other expenses of $242.6 million, compared to $64.2 million in the previous quarter. The largest impact here was $221.6 million lost to impairments of property plant and equipment, followed by financing costs of $18.9 million. All told, the company posted a net loss of $292.8 million for the quarter.
Notably, $220.8 million of that massive impairment is in connection with the halting of construction at Aurora Sun, where the firm has determined that it makes little sense to continue with the build out of the massive facility. Production at Aurora Sky meanwhile has dropped by 75%.
Looking to the balance sheet, Aurora Cannabis reported a cash position of $384.4 million, as compared to $133.7 million in the previous quarter, thanks largely to numerous rounds of financing during the quarter. The company also noted that as of February 10, 2021, its cash balance has further climbed to approximately $565 million.
Receivables meanwhile climbed marginally, from $74.0 million to $76.5 million, while inveotry rose from $155.7 million to $183.4 million. Prepaids also doubled, going from $12.9 million to $24.3 million. Overall, the company saw its current assets climb from $430.7 million to $742.6 million.
On the other side of the balance sheet, the company saw its accounts payable and accrued liabilities fall from $89.3 million to $69.0 million. Loans and borrowings also fell, dropping from $104.3 million to $41.8 million. All told, current liabilities fell from $229.3 million to $149.8 million.
Aurora Cannabis last traded at $18.31 on the TSX.
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.