Sundial Growers Reports Net Revenues Of $9.9 Million, Net Loss Of $134.4 Million

Sundial Growers (NASDAQ: SNDL) reported its first quarter financial results yesterday evening, reporting net revenues of $9.9 million for the quarter, a decline of 28.6% from the prior quarter. The company also reported a net loss of $134.4 million.

Financial results were a miss in terms of revenues, with analysts expecting gross revenues of $13.88 million for the three month period, while the company reported just $11.7 million. The quarter however was a beat from an adjusted EBITDA standpoint, with consensus pointing to a loss of $5.23 million, while the company actually posted positive adjusted EBITDA of $3.3 million.

Curiously, the company posted positive adjusted EBITDA numbers despite posting negative gross margins of $3.3 million before fair value adjustments. This positive EBITDA figure is a result of the company recording additional revenue to the tune of $2.8 million in the form of interest and fees, as well as $12.9 million from investment revenue, the latter of which consists of realized and unrealized gains.

This additional revenue lead to the company seeing an income from operations of $1.7 million. Operating expenses during the quarter include $7.1 million in general and administrative expenses, $3.5 million in share based compensation, and $1.1 million in depreciation and amortization. Expenses were partially offset by government subsidies of $2.2 million.

The company however posted a notable net loss of $134.4 million, much of which is attributable to a $129.4 million charge from the change in estimate of fair value of derivative warrants, as well as transaction costs of $5.6 million and other expenses of $1.9 million.

Perhaps the bigger story for Sundial is its cash position, which grew from $60.4 million to $873.4 million over the course of the quarter, while marketable securities grew from nil to $33.6 million.

Subsequent to quarter end, the company added an additional $97.7 million to the books as well through their ongoing ATM program. As of yesterday, the company has issued 942 million new shares through the various financings conducted this year, with its cash balance sitting at $752.7 million following several investments.

Sundial Growers last traded at $0.74 on the Nasdaq.


Information for this briefing was found via Sedar and the companies mentioned. 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.

Video Articles

Why $50 Silver, $4000 Gold Might Be Closer Than Anyone Thinks | Bradley Langille – GoGold Resources

Why Silver’s True Price Could Be Much Higher | Joaquín Marias – Argenta Silver

Gold Enters A ‘Stronger For Longer’ Phase | Richard Young – i-80 Gold

Recommended

Emerita Resources Intersects Further Mineralization At El Cura, Expanding Deposit

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

Related News

Series of Cannabis Producers Announce New Brand Offerings for Canadian and US Markets

This morning, a number of cannabis issuers announced developments on the branding front. With second...

Thursday, December 12, 2019, 09:53:43 AM

Sundial Growers Enters Agreement To Manufacture Licensed Concentrates, Sell Rocky View Facility

Sundial Growers (NASDAQ: SNDL) this morning announced that it has entered into a non-binding agreement...

Monday, December 28, 2020, 09:19:29 AM

Sundial Growers Manages To Pay Down $50 Million In Debt

Sundial Growers (NASDAQ: SNDL) has managed to settle $50 million of outstanding debt ahead of...

Tuesday, December 15, 2020, 07:38:13 AM

Sundial Postpones Filing Of Q4 Results Due To SOX Compliance

After pre-scheduling the release date for its fourth quarter financial results, Sundial Growers (NASDAQ: SNDL)...

Tuesday, March 29, 2022, 07:38:22 AM

Public Cannabis Companies Have Already Received More Than $25 Million in Federal Wage Subsidies

In response to the spread of COVID-19, the Canadian Federal Government introduced several programs to...

Saturday, November 14, 2020, 10:00:00 AM