Organigram Holdings (TSX: OGI) (NASDAQ: OGI) this morning reported its fourth quarter financials, with net revenues of $20.4 million and a net loss of $38.6 million for the three month period ended August 31, 2020. Results were a slight improvement from the $18.0 million in revenues recorded in the third quarter of the year. The company overall posted net revenues of $86.8 million and a loss of $136.1 million for the full fiscal year.
Despite the increase in revenues, the company still lost money on a gross basis, with a cost of sales of $29.0 million recorded for the period, resulting in a negative gross margin of $8.6 million before fair value adjustments. The negative value is partially attributable to $11.1 million in write offs and unsaleable inventory, of which $8.3 million was excess trim and concentrate. $3.5 million of the loss was also related to “unabsorbed fixed overhead.”
Operating expenses for the quarter meanwhile came in at $13.6 million. This was largely comprised of general and administrative expenses of $7.6 million, along with sales and marketing expenses of $3.2 million. The remainder consisted of share based compensation. Overall, a net loss of $38.6 million was recorded for the period, while the company posted a negative operating cash flow of $10.1 million.
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Looking to the balance sheet, the firms cash position declined from $44.6 million to $24.6 million. However, short term investments more than made up for this shortfall, climbing from effectively nil to $50.1 million. Accounts receivable also rose, from $12.9 million to $14.7 million, while inventories tumbled from $95.1 million to $66.4 million. Overall, current assets rose from $162.6 million to $170.2 million.
Current liabilities are small in comparison to this, with accounts payables falling to $17.5 million from $25.0 million, while the current portion of long term debt rose to $11.6 million from $6.6 million. Overall, total current liabilities fell marginally to $29.1 million from $31.6 million.
In terms of forward guidance, none was materially provided by the company despite a diatribe about its outlook on the industry as a whole within the accompanying news release. The company did however identify that it has agreed to repay $55 million of its outstanding $115 million term loan on December 1, 2020, with the resulting term loan to sit at $60 million following the paydown. Payments on a quarterly basis of $1.5 million are to begin on February 28, 2021 as well.
Organigram Holdings last traded at $1.33 on the Nasdaq.
Information for this briefing was found via Sedar and Organigram 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.
