Medipharm Labs Reports Q4 Revenues Of $6.1 Million, Net Loss Of $30.9 Million
Medipharm Labs (TSX: LABS) this morning reported its fourth quarter financial results for 2020. Revenues for the quarter amounted to $6.1 million, a 22% increase on a quarter over quarter basis, while posting a net loss of $30.9 million. For the full fiscal year, revenues amounted to $36.0 million, with the firm posting a net loss of $72.1 million for the year.
When it comes to the financial results for the quarter, numbers seem to go from bad to worse. While the company reported a revenue increase of 22% quarter over quarter from $4.9 million to $6.1 million, revenues declined 81% year over year from Q4 2019’s revenue figure of $32.4 million – which is also nearly the entire revenues reported for 2020. Gross profits meanwhile crated to negative $24.7 million for the quarter.
Gross profits were terrible as a result of a number of “one-time” items, including $10.7 million in inventory writedowns, a $5.6 million depreciation hit on equipment, and a $1.6 million write down on non-current deposits. Before this, the quarter still saw negative gross profits of $6.8 million. Adjusted EBITDA for the quarter came in at -$8.8 million.
The full fiscal year did not fair much better at all, with revenues amounting to $36.0 million for the year, a 72.1% decline from the $129.3 million recognized in 2019. Gross profits for the year meanwhile amounted to $44.0 million, or -122% gross margins. Adjusted EBITDA meanwhile was -$23.9 million for the year, as compared to $24.7 million in 2019.
In terms of an operating loss, the fourth quarter recorded a total operating loss of $29.4 million following the negative gross profits of $24.7 million. The loss was pushed deeper in the red as a result of general and administrative expenses of $5.2 million for the quarter, as well as marketing and selling expenses of $1.3 million, which alone amount to more than the revenues generated in the quarter. The company did however see a reversal in share based compensation of $2.4 million as a result of 1.3 million stock options being cancelled. This loss then widened to a net loss of $30.9 million following finance expenses of $4.7 million, which was slightly offset by unrealized gains on derivatives of $3.1 million.
Looking to the balance sheet, the firms cash position declined from $36.5 million to $19.9 million, while trade and other receivables climbed from $25.2 million to $29.6 million. Inventories meanwhile declined from $31.7 million to $22.1 million, primarily a result of that large impairment. Total current assets overall declined from $101.0 million to $81.5 million.
Trade and other payables climbed significantly during the quarter, jumping from $6.0 million to $14.8 million, while loans and borrowings stayed relatively flat at $7.7 million. A new line item also appeared under current liabilities referred to as current employee benefit obligations, which sits at $1.5 million, as compared to nil previously. Total current liabilities overall climbed from $14.7 million to $24.2 million.
Medipharm Labs last traded at $0.455 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.
