Nabis Holdings Revenues Fall 95.6% Short of Pro Forma Estimates
Nabis Holdings (CSE: NAB) released its fourth quarter financial results last night after the bell, posting bewildering numbers compared to prior guidance provided by the firm. Fiscal 2019 saw Nabis record a total of $644,164 in revenues for the twelve month period, which was all generated in the fourth fiscal quarter of the year.
Net loss for the period came in at $4.2 million for the quarter, while the full fiscal year saw a net loss of $17.3 million. Operating expenses during the quarter came in at $2.3 million, with selling general and administrative expenses coming in at $2.1 million.
Looking at the balance sheet, the big story is that the firm managed to reduce its cash position from that of $20.2 million to $4.7 million, however its unclear where the funds actually went off to. Net cash flows used during the quarter for operating activities amounted to $293,115. Meanwhile, investing activities accounted for $27.8 million, of which $19.4 million was attributed to intangible assets, and the vast remainder was attributed to property, plant, and equipment. Cash outflows were partially stemmed by inflows of $12.6 million via financing activities over the quarter, largely thanks to a note payable.
Outside of cash, prepaid expenses was the biggest change in terms of current assets, decreasing from $3.2 million to $0.7 million. Total current assets decreased from $23.6 million to $6.5 million over the three month period.
Liabilities increased significantly over the quarter, with trade payables increasing to $1.3 million from $0.5 million, and the addition of a note payable of $10.5 million related to an acquisition. Current liabilities ballooned from $4.1 million to $15.6 million during the quarter.
Lets address the elephant in the room here however. Nabis managed to recognize revenue of $0.6 million during fiscal 2019. This is a decrease of approximately 95.64% from estimates provided in the firms June 2019 presentation deck, wherein they estimated 2019 would see revenues of approximately C$14.8 million. The firm also predicted EBITDA of $4.1 million for the year – which simply is out of the question.
These estimates were based on the company acquiring assets in Washington, Arizona, and Michigan – which it appears it has. Further, the revenue generated in FY19 came only from the Arizona assets, which was for a period of 21 days. Arizona wasn’t intended to be the darling of the company – Michigan was. Given that the pro forma was provided just six months ago, how could these figures be so far off?
Nabis Holdings last traded at $0.065 on the CSE.
Information for this briefing was found via Sedar and Nabis Holdings. 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.
