Last night, The Valens Company (TSX: VLNS) reported its second quarter financial results. The firm posted net revenues of $18.8 million, a decline quarter over quarter, along with a net loss of $8.7 million for the three month period.
Revenues were down 6.2% on a quarter over quarter basis, with the company posting revenues of $18.8 million for the three month period as compared to $20.0 million in revenues for the prior period. Revenues also fell short of consensus estimates.
Gross profits were also down for the quarter, with the firm reporting gross profits of just $4.1 million for the quarter, as compared to $4.8 million in the previous quarter. Operating expenses meanwhile amounted to $15.0 million, with expenses lead by wages and salaries of $4.2 million, depreciation and amortization of $2.7 million, and professional fees of $2.3 million.
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The firm posted a loss from operations of $10.8 million, leaving investors wondering what the path to profitability is at this point. Other income improved this loss slightly, driven by a foreign exchange gain of $0.4 million. After a $1.9 million provision for the recovery of income taxes, the firm posted a net loss of $8.7 million for the second quarter. In terms of adjusted EBITDA, the firm posted a loss of $5.0 million.
Looking to the balance sheet, the company saw its cash position decline significantly, with cash falling from $49.3 million to $23.9 million over the course of the quarter. Total current assets overall fell from $106.7 million to $93.0 million. Current liabilities meanwhile changed marginally, climbing from $29.0 million to $29.7 million.
The Valens Company last traded at $2.53 on the TSX.
Information for this briefing was found via Sedar and The Valens Company. 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.
