Liberty Health Sees Revenues Remain Flat In Second Quarter, Posts Net Income Of $7.0 Million
Liberty Health Sciences (CSE: LHS) reported their second quarter financial results this morning for the period ended August 31, 2020. The company posted a slight decline in revenues of 1.5% on a quarter over quarter basis, with revenues of $18.2 million. The company however managed to post a net income of $7.0 million, as compared to $4.2 million in the prior period.
With revenues marginally down this quarter, this company actually managed to post a slightly higher gross profit of $11.0 million before fair value adjustments, as compared to $10.7 million in the prior quarter. Operating expenses also improved, coming in at $7.6 million compared to $7.8 million in the first quarter.
Operating expense were largely comprised of selling costs of $2.4 million, along with depreciation of $1.0 million and office and general expenses of $0.9 million.
Non operating income amounted to an expense of $0.4 million, compared to an expense of $2.0 million in the first quarter. An interest expense during the quarter of $1.1 million and interest accretion of $0.8 million was largely offset by a $1.6 million gain in foreign currency translation.
Looking at the balance sheet, the company posted a cash position of $17.1 million, as compared to $31.0 million in the first quarter, the result of the company paying down a significant portion of taxes owed. Inventory meanwhile climbed to $49.0 million from $40.2 million, while biological assets fell to $6.5 million from $10.7 million. Overall, current assets declined to $73.7 million, down from $83.2 million in the prior period.
Accounts payable meanwhile ell to $8.8 million from that of $10.0 million, while the current tax liability dropped to $4.8 million from $12.1 million. Convertible notes payable climbed marginally to $7.1 million from $6.7 million as well. Overall, current liabilities fell to $25.1 million from $33.1 million in the first quarter.
Liberty Health Sciences last traded at $0.46 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.
