Valens Company Posts $18.8 Million In Q2 Revenue, Misses Consensus Estimates
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.
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.
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.
