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.
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