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.
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.