Liberty Health Reports FY2020 Revenues of $50.1 Million, Net Income of $22.3 Million

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.

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