Liberty Health Sciences (CSE: LHS) reported its fourth quarter earnings this morning, reporting revenues of $17.8 million for the quarter ended February 29, 2020. Full fiscal year revenues came in at $50.1 million, a significant increase from FY19’s figure of $10.0 million.
Costs of goods sold for the full fiscal year came in at $19.9 million, providing the company with a gross profit of $30.2 million before fair value adjustments. Those adjustments further pushed the firms gross profit to $57.6 million, thanks in part to a large gain of $27.8 million.
Operating expenses for the year totaled out at $25.2 million, with the largest expense being selling costs at $6.7 million, followed by professional fees at $5.0 million and employee and staff costs at $3.2 million. Non-operating income worked to counteract these expenses, with a total gain of $7.5 million, thanks largely to a gain on the sale of the Chestnut Hill Tree Farm asset of $14.3 million.
Liberty Health posted a net income of $22.3 million for the full fiscal year.
Looking to the balance sheet, Liberty Health’s cash position decreased slightly on a quarter over quarter basis from $28.5 million to $25.0 million. Inventories were also down slightly, from $38.1 million to $37.5 million, while biological assets fell to $6.1 million from $7.5 million. Total current assets overall fell on a quarter over quarter basis from $75.8 million to $70.0 million.
Comparatively, current liabilities rose on a quarterly basis, despite payables decreasing to $6.6 million from $7.4 million. Much of the increase was related to a new income tax payable liability of $9.3 million which wasn’t present last quarter. Convertible notes payable meaning decreased significantly, from $13.1 million to $5.8 million, while the current portion of lease liability rose from $0.7 million to $3.7 million. Total current liabilities rose to $25.5 million over the quarter, from that of $21.7 million.
Notable items filed within the annual financial statements include a loss of $166,916 on an Ohio joint venture with Schottenstein Aphria, as well as a provision of $176,000 made in connection with a class action lawsuit against the company in relation to alleged violations of federal securities regulations.
Liberty Health Sciences last traded at $0.54 on the CSE.
Information for this briefing was found via Sedar and Liberty Health Sciences. 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.