Sundial Growers Reports Q2 Net Revenues Of $9.2 Million, Net Loss
Sundial Growers (NASDAQ: SNDL) last night filed its second quarter financial results. The company managed to post net revenues of $9.2 million, missing consensus estimates. The company also posted a significant net loss as a result of asset impairments.
Revenues for the quarter amounted to $12.7 million on a gross basis, which netted down to $9.2 million after excise taxes are factored in. The company appears to have some major operational issues here though however, as cost of sales amounted to $9.5 million for the quarter – higher than net sales – while inventory writedowns extended the gross loss by a further $1.7 million to a total negative gross margin of $2.0 million before fair value adjustments.
The bright side here however is that the company was able to recognize $3.3 million in interest and fee revenue, $2.4 million in investment revenue, and share of profits of equity-accounted investees of $3.7 million – all of which was reported outside of the firms net revenue figures.
Despite this, the company posted a loss from operations of $71.0 million, as a result of numerous expenses. Expenses for the quarter include $10.1 million in general and administrative expenses, $4.5 million in share based compensation, $1.3 million in sales and marketing, and a massive $60.0 million impairment of the firms Olds, Alberta cannabis facility.
After a gain in the fair value of certain of its warrants that gave the company a $19.8 million boost, Sundial Growers reported a net loss of $52.3 million for the quarter. On an adjusted EBITDA basis, the company reported a loss of $0.2 million.
The company reportedly held $1.3 billion in cash, marketable securities and long term investments as of June 30. Funds were significantly boosted during the quarter via an ATM financing that raised $327.4 million for the company, although it has reportedly been inactive for 49 days now.
Lastly, the company has yet again fallen out of compliance with Nasdaq listing rules as a result of its equity being priced below $1.00 per share on the exchange. The company has until February 7, 2022 to regain compliance.
Sundial Growers last traded at $0.83 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.
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.
