Medipharm Labs (TSX: LABS) reported further disappointing quarterly results this morning, with revenues of $13.9 million being recorded for the three month period ended June 30, 2020, along with a net loss of $3.5 million. On a year over year basis the company appears to be losing ground in terms of profitability, with the same period last year seeing revenues of $31.5 million and a net income of $2.0 million.
Gross profits of $2.2 million were nowhere near enough to cover operating expenses, which totaled out at $6.7 million, which was partially offset by other operating income of $2.9 million. General and administrative expenses came in at $6.8 million, while share based comp amounted to $1.5 million. Boosted by an unrealized gain in revaluation of derivative liabilities of $1.3 million, the company managed to lose $3.5 million after taxes during the three month period.
Looking to the balance sheet, Medipharm managed to boost its cash position to $27.9 million from $21.4 million over the course of the quarter, largely thanks to receiving the first half of a $37.8 million financing during the quarter. Trade and other receivables grew significantly, from $24.8 million to $32.9 million. Further, it appears the company is struggling to collect on bills, given that current receivables amount to only $13.9 million, or roughly all revenues generated during the quarter. A total of $7.7 million is over 180 days past due, suggesting the company is unlikely to collect.
Inventories shrunk during the quarter, from $45.1 million to $40.3 million, while the company was able to record restricted cash of $18.9 million, a function of needing shareholder approval to collect on the second half of the $37.8 million financing conducted. Total current assets during the course of the quarter grew to $127.7 million, up from $93.4 million.
The liabilities side of the balance sheet also grew over the course of the quarter however, with other current liabilities leading the way at $18.9 million, an offset to the restricted cash recorded above. Trade and other payables decreased marginally from $14.0 million to $13.1 million, while loans and borrowings fell from $9.7 million to $1.6 million. Total current liabilities grew to $39.9 million from $25.7 million in the previous quarter.
Medipharm Labs last traded at $1.02 on the TSX.
.Information for this briefing was found via Sedar and Medipharm Labs. 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.
