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.
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.