Organigram Posts Q4 Revenues of $20.4 Million, Loss Of $38.6 Million
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.
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.
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.
