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.

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