Village Farms (TSX: VFF) (NASDAQ: VFF) this morning reported their fourth quarter and full year 2020 financial results. The company posted revenues of US$47.4 million for the quarter, along with a net income of US$7.0 million. For the full fiscal year, revenues amounted to $170.1 million, while the firm posted a net income of $11.6 million for the year.
Looking at the fourth quarter, the company managed to post sales of $47.4 million, missing consensus estimates, of which $34.6 million was attributed to produce sales, $0.1 million was attributed to hemp sales, while the remainder was attributed to cannabis sales. Cost of sales meanwhile came in at $46.3 million, resulting in gross margins of $1.0 million for the period. Sales on a quarter over quarter basis were up from $43.0 million, a 10.1% increase.
Selling, general and administrative expenses meanwhile amounted to $6.4 million during the quarter, up from $4.9 million in the prior period. Share based compensation was also up on a quarterly basis, climbing from $0.5 million to $4.9 million. The company also posted a loss on joint venture loans of $3.8 million. Expenses were largely offset by a gain on acquisition of $23.6 million, enabling the company to post a positive net income quarter of $7.0 million.
On an annual basis, the company reported total revenues of $170.1 million. Cost of sales meanwhile came in at $159.1 million for the year, resulting in gross margins of $11.0 million for the full fiscal year.
Selling, general and administrative expenses meanwhile amounted to $19.1 million for the full year, while share based compensation amounted to $6.1 million and interest expense came in at $2.1 million. The year was largely saved in terms of net income as a result of the gain on acquisition of $23.6 million reported in the fourth quarter, resulting in an annual net income of $11.6 million.
Looking to the balance sheet, the company saw its cash fall from $54.7 million to $21.6 million over the course of the quarter, while receivables grew from $10.5 million to $23.2 million. Inventories also climbed significantly, from $15.3 million to $46.6 million. Total current assets overall grew from $93.4 million to $101.8 million.
On the other side of the balance sheet, the firms line of credit declined from $3.0 million to $2.0 million, while trade payables climbed from $9.7 million to $15.1 million. Current maturities of long term debt was also up, from $2.3 million to $10.2 million, while accrued liabilities climbed from $6.7 million to $22.4 million. A note payable also entered the balance sheet, good for a current liability of $15.3 million. Overall, currently liabilities grew from $23.4 million to $72.3 million.
Village Farms last traded at $21.70 on the TSX.
Information for this briefing was found via Sedar and Village Farms International. 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.
