Fire & Flower Q2 Revenues Climb To $28.6 Million, Net Loss To $29.1 Million

Fire and Flower Holdings (TSX: FAF) this morning released its second quarter financial statements, reporting revenues of $28.6 million for the thirteen week period ended August 1, 2020, an improvement from the $23.1 million in revenues reported in the prior quarter. The company reported a net loss of $29.1 million, as compared to a net loss of $12.7 million in the first quarter of 2020.

Retail revenues remained the largest segment for the firm, at $23.4 million, followed by wholesale revenues of $4.3 million and digital development of $0.9 million. Cost of goods sold meanwhile amounted to $18.6 million, resulting in a gross profit of $10.0 million.

This profit however was not enough to offset the $12.5 million in expenses the company recorded during the quarter, lead by genera and administrative expenses of $8.6 million. Depreciation and amortization was the second largest expense for the firm, at $3.0 million. Notably, expenses declined from $17.2 million in the previous quarter due to the firm not taking an impairment in the current period.

Despite revenues being up and expenses being down on a quarter over quarter basis, the expanded net loss was the result of a $18.3 loss taken on the revaluation of a derivative liability, as well as financing costs of $8.2 million. These financing costs are notable, as the debt currently held by the company has resulted in interest expenses that are nearly equal to that of its general and administrative expenses, hampering the potential for profitability for Fire and Flower.

Looking to the balance sheet, the firms cash position fell from $48.6 million to $20.0 million over the course of the quarter, a result of being required to repay $27.2 million in principal debentures that were due in June. Trade and other receivables meanwhile climbed from $3.2 million to $4.4 million, while inventories climbed to $8.2 million from $7.1 million. Total current assets fell from $62.2 million to $39.1 million over the course of the quarter.

Total current liabilities meanwhile moved drastically in the opposite direction. While accounts payable fell from $21.6 million to $17.0 million, debentures and loans climbed from $27.7 to $33.0 million. A new derivative liability also moved to current liabilities, to the tune of $31.1 million, while lease liabilities remained unchanged at $2.9 million. Total current liabilities climbed from $52.6 million to $84.5 million during the quarter.

Fire and Flower Holdings last traded at $0.91 on the TSX


Information for this briefing was found via Sedar and Fire and Flower Holdings. 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.

Video Articles

Premier American Uranium: The Roll Up Strategy Targets Nuclear Fuels

Santacruz Silver Q1 Earnings: Steady As She Goes

Silver Set to Hit 70:1 Against Gold This Year? | David Morgan

Recommended

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Emerita Resources Formally Appeals Administrative Ruling On Aznalcóllar Related To 2017 Complaint 

Related News

Fire and Flower to Uplist to TSX August 7, 2019

Fire and Flower Holdings (TSXV: FAF) announced this morning that it will be up listing...

Monday, July 29, 2019, 08:56:39 AM

WeedMD Signs White Label Extraction Agreement With Fire & Flower

It appears that the niche market of extractors within the cannabis sector has seen an...

Tuesday, August 11, 2020, 09:24:22 AM

Fire & Flower Files For Creditor Protection Following Strategic Review

A little over a week after it announced it was reviewing strategic options, Fire &...

Tuesday, June 6, 2023, 08:08:10 AM

Fire & Flower Enters White Label Arrangement With Decibel Cannabis

Fire and Flower Holdings (TSX: FAF) this morning announced that it has entered into a...

Wednesday, October 14, 2020, 08:13:24 AM

Fire & Flower To Be Removed From The TSX

Fire & Flower Holdings (TSX: FAF) has confirmed that the Toronto Stock Exchange will be...

Friday, June 16, 2023, 08:50:47 AM