TPCO Holdings (NEO: GRAM), whom is operating as The Parent Company, last night announced its second quarter financial results. The company posted total revenues of $54.2 million for the quarter, a notable quarter over quarter gain.
Revenues were up 35.8% on a sequential basis, climbing from $39.9 million in the prior quarter. Cost of sales meanwhile amounted to $47.0 million, resulting in a gross profit before fair value adjustments of $7.2 million, a 54.6% quarter over quarter improvement.
Operating expenses however for the quarter still came in high relative to topline figures, with the company reporting operating expenses of $60.7 million for the three month period. This is however an improvement from the $61.9 million posted in the prior quarter. Operationally, the company posted a loss of $52.6 million.
Other income gave the firm a massive boost during the quarter, with interest expenses of $1.9 million and a loss of disposal on assets of $3.5 million being offset by a gain on debt forgiveness of $3.4 million and other income of $2.7 million. The boost here came from a $51.7 million change in fair value of contingent consideration. Combined with an income tax benefit during the quarter of $6.7 million, the company managed to post a net income of $6.9 million for the three month period.
On an adjusted EBITDA basis however, the company posted a loss of $10.4 million.
The company last night also announced that despite being in the growth phase of operations, it would be undertaking a share buyback program capped at $25.0 million. The program is to take place over the course of the next year, and is to be funded by the firms $257.5 million in cash on hand.
The Parent Company last traded at $3.91 on the Neo.
FULL DISCLOSURE: TPCO Holdings is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover TPCO Holdings on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
