/NOT FOR DISTRIBUTION TO
Achieves Record Revenue, Positive Cash Flow and Operating Profit
Second Quarter 2023 Financial Highlights:
(Unless otherwise stated, all results are in thousands of Canadian dollars)
- Profit and comprehensive profit of
$325 , an improvement of$2,024 , compared to loss and comprehensive loss of$1,699 in the same quarter of last year. - Adjusted EBITDA of
$2,370 , an improvement of$1,615 or 214%, compared with$755 for the three months endedJanuary 31, 2022 (See reconciliation of "Adjusted EBITDA (non-IFRS measure)" below). - Net revenue of
$7,819 , an increase of$1,643 or 27%, compared to$6,176 in the same period in the prior year. - Cash flow provided by operating activities in six months ending
January 31, 2023 was$765 , an improvement of$2,421 compared to$1,656 used in the operating activities during the same period prior year. - Net cash used in investing activities in six months ending
January 31, 2023 was$523 , an increase of$515 compared to$8 used in investing activities during the same period in 2022. - Net cash used in financing activities in six months ending
January 31, 2023 was$232 , compared to$1,492 provided by financing activities during the same period in 2022. - Shareholder's equity was a surplus of
$13,013 compared to an equity deficit of$3,753 as ofJuly 31, 2022 .
"I am proud to report that Canada House has delivered a quarterly net profit while achieving record revenue, positive cash flow and operating profit for a second successive quarter. Our success is largely the result of providing top-end clinical services and an industry-leading product portfolio for our valuable military veteran patient base at Abba and CHC. In addition, the Company started selling its high-quality, low-cost flower from the newly retrofitted IsoCanMed cultivation facility and continued to focus on responsible fiscal management." commented
Reconciliation of "Adjusted EBITDA (non-IFRS measure)" | |||
3 months | 3 months | ||
2023 | 2022 | ||
Net profit (loss) and comprehensive profit (loss) for the period | $ 325 | $ (1,699) | |
Finance costs | 1,419 | 1,060 | |
Share of income from investment in associates | 130 | - | |
Provision for income taxes | 24 | 30 | |
Depreciation and amortization | 479 | 223 | |
Right-of-use assets amortization | 117 | 91 | |
Inventory impairment | - | 393 | |
Loss on debt settlement and modifications | 249 | - | |
Share‑based compensation | 5 | 80 | |
Realized loss on sale of inventory | 1,070 | 582 | |
Unrealized loss on biological assets | (1,448) | (5) | |
$ 2,045 | $ 2,454 | ||
Adjusted EBITDA | $ 2,370 | $ 755 |
- The above information contains non-IFRS financial performance measures which the Company believes provide users with relevant information regarding operation performance. These measures are not recognized or defined under IFRS, and as a result, they may not be comparable to the data presented by competitors.
About
Cautionary Statement Regarding Forward-Looking Information. This press release contains forward- looking statements, including statements that relate to, among other things, the Company's clinic, production and technology businesses, its future plans, the Company's markets, objectives, goals, strategies, intentions, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "possible", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Material assumptions used to develop forward-looking information in this news release include, among other things, the closing of the transaction with Montreal Cannabis and the receipt of all necessary regulatory and shareholder approvals associated therewith, the regulations related to cannabis use under the Access to Cannabis for Medical Purposes Regulations and the act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts, passed by the Canadian Federal government, making cannabis and cannabis based edibles, vapes and oils legal for recreational use on
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
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