Closed Redwood
Announced the launch PEACE+™, A New Hemp-Derived
Advanced Operational Readiness of Cronos Israel with Completed Construction of Manufacturing Facility
“As demonstrated by our progress in the third quarter, we are making great strides to advance the development and diversity of our portfolio and to expand our manufacturing capabilities,” said
Financial Results Third Quarter 2019
| ($ in 000s, except where noted otherwise) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| Change | Change | ||||||||||||||||||||||
| 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||
| Financial Results | |||||||||||||||||||||||
| Net Revenue | $ | 12,700 | $ | 3,760 | $ | 8,940 | 238 | % | $ | 29,407 | $ | 10,099 | $ | 19,308 | 191 | % | |||||||
| Gross Margin before Fair Value Adjustments | 41 | % | 55 | % | -- | -- | 48 | % | 55 | % | -- | -- | |||||||||||
| Adjusted EBITDA(1) | $ | (23,932 | ) | $ | (3,201 | ) | $ | (20,731 | ) | 648 | % | $ | (50,651 | ) | $ | (7,097 | ) | $ | (43,554 | ) | 614 | % | |
| Canadian Extract Sales (% of Net Product Revenue) | 9 | % | 29 | % | -- | -- | 16 | % | 19 | % | -- | -- | |||||||||||
| Operating Results for Non- |
|||||||||||||||||||||||
| Kilograms Sold | 3,142 | 514 | 2,628 | 511 | % | 5,837 | 1,472 | 4,365 | 297 | % | |||||||||||||
| Net Product Revenue / Gram Sold | $ | 3.75 | $ | 7.18 | $ | (3.43 | ) | (48 | %) | $ | 4.86 | $ | 6.74 | $ | (1.88 | ) | (28 | %) | |||||
| Cost of Sales before Fair Value Adj. / Gram Sold | 2.27 | 3.28 | (1.01 | ) | (31 | %) | 2.55 | 3.06 | (0.51 | ) | (17 | %) | |||||||||||
| Balance Sheet(2) | |||||||||||||||||||||||
| Cash and Cash Equivalents | $ | 1,475,459 | $ | 41,482 | $ | 1,433,977 | 3,457 | % | |||||||||||||||
| Short-Term Investments | 517,064 | — | 517,064 | NA | |||||||||||||||||||
| Derivative Liabilities | 545,514 | — | 545,514 | NA | |||||||||||||||||||
| (1) See “Non-IFRS Measures” for information related to Adjusted EBITDA. | |||||||||||||||||||||||
| (2) Dollar amounts are as of the last day of the period indicated. | |||||||||||||||||||||||
- Net revenue was
$12.7 million in Q3 2019, representing a 238% increase from$3.8 million in Q3 2018, primarily driven by the launch of the adult-use market inCanada and the inclusion of Redwood from the date of closing onSeptember 5, 2019 to the end of the quarter. Net revenue increased 24% quarter-over-quarter from$10.2 million in Q2 2019, primarily driven by increased sales in domestic dried cannabis and the inclusion of Redwood. - 3,142 kilograms were sold in
Canada in Q3 2019, representing a 511% increase from 514 kilograms sold in Q3 2018, primarily driven by increased cannabis production and the launch of the adult-use market inCanada . Kilograms sold increased 98% quarter-over-quarter from 1,584 kilograms sold in Q2 2019, primarily driven by increased domestic wholesale sales. - Cost of sales before fair value adjustments per gram sold for the non-U.S. market was
$2.27 in Q3 2019, representing a 31% decrease from$3.28 in Q3 2018 and a 25% decrease from$3.01 in Q2 2019. The decrease quarter-over-quarter was driven by lower production cost on a per gram basis.
| ($ in 000s, except where noted otherwise) | Third | Second | |||||||||
| Quarter | Quarter | Change | |||||||||
| 2019 | 2019 | $ | % | ||||||||
| Financial Results | |||||||||||
| Net Revenue | $ | 12,700 | $ | 10,237 | $ | 2,463 | 24 | % | |||
| Gross Margin before Fair Value Adjustments | 41 | % | 53 | % | -- | -- | |||||
| Adjusted EBITDA(1) | $ | (23,932 | ) | $ | (17,772 | ) | $ | (6,160 | ) | 35 | % |
| Canadian Extract Sales (% of Net Product Revenue) | 9 | % | 20 | % | -- | -- | |||||
| Operating Results for Non- |
|||||||||||
| Kilograms Sold | 3,142 | 1,584 | 1,558 | 98 | % | ||||||
| Net Product Revenue / Gram Sold | $ | 3.75 | $ | 6.44 | $ | (2.69 | ) | (42 | %) | ||
| Cost of Sales before Fair Value Adj. / Gram Sold | 2.27 | 3.01 | (0.74 | ) | (25 | %) | |||||
| Balance Sheet(2) | |||||||||||
| Cash and Cash Equivalents | $ | 1,475,459 | $ | 1,579,231 | $ | (103,772 | ) | (7 | %) | ||
| Short-Term Investments | 517,064 | 744,936 | (227,872 | ) | (31 | %) | |||||
| Derivative Liabilities | 545,514 | 1,399,594 | (854,080 | ) | (61 | %) | |||||
| (1) See “Non-IFRS Measures” for information related to Adjusted EBITDA. | |||||||||||
| (2) Dollar amounts are as of the last day of the period indicated. | |||||||||||
Business Highlights
Brand Portfolio
In
Throughout the third quarter, Lord Jones™ launched several new products within the cosmetics and personal care category. These new launches include: Lord Jones CBD Formula Heavy Duty Chill Balm, a nourishing balm that melts on contact leaving skin with a velveteen finish, Lord Jones CBD Formula Bath Salts, small-batch bath salts made from pink Himalayan salt, arnica, magnesium-rich
Today,
Global Sales and Distribution
On
Established in
Global Supply Chain
The Cronos Israel facility continues to move closer to operational readiness. Construction of Cronos Israel’s greenhouse was completed in the first half of 2019 and its manufacturing facility was completed in the third quarter of 2019. Cronos Israel is now beginning the GMP certification process for the facility, which is expected to occur in phases throughout 2020 in relation to the manufacturing processes for bottled flower, pre-rolls, and oil.
In
Construction of the Facility has commenced.
Subsequent to the third quarter of 2019,
Intellectual Property Initiatives
This quarter
Commercial production at the facility is subject to completion of the equipment alignment for cannabinoid-based production, the receipt of the appropriate licenses from
Appointments
With the completion of the Redwood acquisition,
On
Conference Call
The Company will host a conference call and live audio webcast on
- Live audio webcast: https://ir.thecronosgroup.com/events/event-details/cronos-group-third-quarter-2019-earnings-conference-call
- Toll Free from the
U.S. andCanada dial-in: (866) 795-2258 - International dial-in: (409) 937-8902
- Conference ID: 1678761
An audio replay of the call will be archived on the Company’s website for replay.
About
Forward-looking statements
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking statements"), which are based on the Company’s current internal expectations, estimates, projections, assumptions and beliefs. All information contained herein that is not clearly historical in nature may constitute forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe”, or other similar words, expressions, phrases, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of historical fact. Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as at and for periods ended on certain dates and to present information about management's current expectations and plans relating to the future and the reader is cautioned that such information may not be appropriate for any other purpose. Some of the forward-looking statements contained in this press release, include, but are not limited to, statements with respect to: the anticipated benefits of our joint ventures, strategic alliances, investees, research and development initiatives, acquisitions and other commercial arrangements, including the ability to produce and distribute the target cannabinoids under our strategic partnership with
All references in this press release to “dollars”, “C$” or “$” are to Canadian dollars and all references to “US$” are to
| Unaudited Condensed Interim Consolidated Statements of Financial Position |
| As at September 30, 2019 and December 31, 2018 |
| (in thousands of CDN $) |
| Notes | As at September 30, 2019 |
As at December 31, 2018 |
||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | 23(a) | $ | 1,475,459 | $ | 32,634 | |||
| Short-term investments | 23(a) | 517,064 | - | |||||
| Interest receivable | 23(a) | 3,829 | - | |||||
| Accounts receivable | 23(a) | 12,655 | 4,163 | |||||
| Sales taxes receivable | 4,624 | 3,419 | ||||||
| Current portion of loans receivable | 7,23(a) | 6,083 | 314 | |||||
| Prepaid expenses and other assets | 11,742 | 3,876 | ||||||
| Biological assets | 4 | 2,101 | 9,074 | |||||
| Inventory | 4 | 52,865 | 11,584 | |||||
| Total current assets | 2,086,422 | 65,064 | ||||||
| Advances to joint ventures | 5,23(a) | 26,367 | 6,395 | |||||
| Net investments in equity accounted investees | 5 | 1,389 | 4,038 | |||||
| Other investments | 6 | - | 705 | |||||
| Loans receivable | 7,23(a) | 44,082 | - | |||||
| Property, plant and equipment | 9 | 216,277 | 171,720 | |||||
| Right-of-use assets | 3,12 | 7,957 | 171 | |||||
| Intangible assets | 10 | 96,047 | 11,234 | |||||
| 8,10 | 284,227 | 1,792 | ||||||
| Total assets | $ | 2,762,768 | $ | 261,119 | ||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable and other liabilities | 23(b) | 57,722 | 15,372 | |||||
| Holdbacks payable | 23(b) | - | 7,887 | |||||
| Government remittances payable | 23(b) | 738 | 1,123 | |||||
| Current portion of lease obligations | 3,12,23(b) | 420 | 41 | |||||
| Construction loan payable | 13,23(b) | - | 20,951 | |||||
| Derivative liabilities | 14,23(b) | 545,514 | - | |||||
| Total current liabilities | 604,394 | 45,374 | ||||||
| Lease obligations | 3,12,23(b) | 7,744 | 119 | |||||
| Due to non-controlling interests | 11,23(b) | 2,378 | 2,136 | |||||
| Deferred income tax liability | 21 | 77 | 1,850 | |||||
| Total liabilities | $ | 614,593 | $ | 49,479 | ||||
| Shareholders' equity | ||||||||
| Share capital | 15(a) | 693,620 | 225,500 | |||||
| Share-based reserve | 16 | 11,808 | 7,789 | |||||
| Retained earnings (accumulated deficit) | 1,443,382 | (22,715 | ) | |||||
| Accumulated other comprehensive (loss) income | (98 | ) | 930 | |||||
| Total equity attributable to shareholders of |
2,148,712 | 211,504 | ||||||
| Non-controlling interests | 3,11 | (537 | ) | 136 | ||||
| Total shareholders' equity | 2,148,175 | 211,640 | ||||||
| Total liabilities and shareholders' equity | $ | 2,762,768 | $ | 261,119 | ||||
| Commitments and contingencies | 20 | |||||||
| Subsequent events | 27 | |||||||
| The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements | ||||||||
| Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Income (Loss) |
| For the three and nine months ended September 30, 2019 and September 30, 2018 |
| (in thousands of CDN $, except share and per share amounts) |
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||
| Notes | 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Gross revenue | 17 | $ | 13,339 | $ | 3,760 | $ | 31,111 | $ | 10,099 | ||||||||
| Excise taxes | (639 | ) | - | (1,704 | ) | - | |||||||||||
| Net revenue | 12,700 | 3,760 | 29,407 | 10,099 | |||||||||||||
| Cost of sales | |||||||||||||||||
| Cost of sales before fair value adjustments | 7,432 | 1,688 | 15,178 | 4,509 | |||||||||||||
| Gross profit before fair value adjustments | 5,268 | 2,072 | 14,229 | 5,590 | |||||||||||||
| Fair value adjustments | |||||||||||||||||
| Unrealized change in fair value of biological assets | 4 | 10,015 | (1,533 | ) | (7,562 | ) | (11,108 | ) | |||||||||
| Realized fair value adjustments on inventory sold in the period | 14,617 | 1,511 | 21,896 | 6,330 | |||||||||||||
| Total fair value adjustments | 24,632 | (22 | ) | 14,334 | (4,778 | ) | |||||||||||
| Gross profit (loss) | (19,364 | ) | 2,094 | (105 | ) | 10,368 | |||||||||||
| Operating expenses | |||||||||||||||||
| Sales and marketing | 6,057 | 598 | 12,915 | 1,548 | |||||||||||||
| Research and development | 3,439 | - | 8,072 | - | |||||||||||||
| General and administrative | 21,270 | 4,820 | 46,057 | 11,500 | |||||||||||||
| Share-based payments | 16 | 3,125 | 1,223 | 5,864 | 2,947 | ||||||||||||
| Depreciation and amortization | 9,10,12 | 907 | 330 | 2,052 | 938 | ||||||||||||
| Total operating expenses | 34,798 | 6,971 | 74,960 | 16,933 | |||||||||||||
| Operating loss | (54,162 | ) | (4,877 | ) | (75,065 | ) | (6,565 | ) | |||||||||
| Other income (expense) | |||||||||||||||||
| Interest income (expense) | 11,703 | (62 | ) | 26,954 | (121 | ) | |||||||||||
| Financing and transaction costs | (8,031 | ) | - | (42,097 | ) | - | |||||||||||
| Gain on revaluation of derivative liabilities | 14 | 835,079 | - | 1,535,405 | - | ||||||||||||
| Gain on revaluation of financial liabilities | 16(d) | 194 | - | 194 | - | ||||||||||||
| Share of (loss) income from equity accounted investees | 5 | (746 | ) | 20 | (2,001 | ) | 64 | ||||||||||
| Gain on disposal of Whistler | 5 | - | - | 20,606 | - | ||||||||||||
| Gain on other investments | 6 | - | - | 924 | 221 | ||||||||||||
| Total other income (expenses) | 838,199 | (42 | ) | 1,539,985 | 164 | ||||||||||||
| Income (loss) before income taxes | 784,037 | (4,919 | ) | 1,464,920 | (6,401 | ) | |||||||||||
| Deferred income tax (recovery) expense | 21 | (3,959 | ) | 2,352 | (1,737 | ) | 1,197 | ||||||||||
| Net income (loss) | $ | 787,996 | $ | (7,271 | ) | $ | 1,466,657 | $ | (7,598 | ) | |||||||
| Net income (loss) attributable to: | |||||||||||||||||
| $ | 788,368 | $ | (7,210 | ) | $ | 1,467,314 | $ | (7,537 | ) | ||||||||
| Non-controlling interests | 11 | (372 | ) | (61 | ) | (657 | ) | (61 | ) | ||||||||
| $ | 787,996 | $ | (7,271 | ) | $ | 1,466,657 | $ | (7,598 | ) | ||||||||
| Other comprehensive income (loss) | |||||||||||||||||
| Gain (loss) on revaluation or disposal of other investments | 6,21 | $ | (300 | ) | $ | 233 | $ | (197 | ) | $ | 237 | ||||||
| Foreign exchange gain (loss) on translation of subsidiaries | 2(a),11 | (755 | ) | 3 | (843 | ) | 3 | ||||||||||
| Total other comprehensive income (loss) | (1,055 | ) | 236 | (1,040 | ) | 240 | |||||||||||
| Comprehensive income (loss) | $ | 786,941 | $ | (7,035 | ) | $ | 1,465,617 | $ | (7,358 | ) | |||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||
| $ | 786,327 | $ | (6,975 | ) | $ | 1,466,286 | $ | (7,298 | ) | ||||||||
| Non-controlling interests | 11 | (386 | ) | (60 | ) | (669 | ) | (60 | ) | ||||||||
| $ | 786,941 | $ | (7,035 | ) | $ | 1,465,617 | $ | (7,358 | ) | ||||||||
| Earnings (loss) per share | |||||||||||||||||
| Basic | 18 | $ | 2.33 | $ | (0.04 | ) | $ | 4.92 | $ | (0.04 | ) | ||||||
| Diluted | 18 | $ | 0.53 | $ | (0.04 | ) | $ | 1.22 | $ | (0.04 | ) | ||||||
| Weighted average number of outstanding shares | |||||||||||||||||
| Basic | 18 | 338,957,949 | 177,483,122 | 297,964,058 | 170,097,232 | ||||||||||||
| Diluted | 18 | 369,268,672 | 177,483,122 | 333,618,691 | 170,097,232 | ||||||||||||
| The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements | |||||||||||||||||
| Unaudited Condensed Interim Consolidated Statements of Cash Flows |
| For the three and nine months ended September 30, 2019 and September 30, 2018 |
| (in thousands of CDN $) |
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||
| Notes | 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Operating activities | |||||||||||||||||
| Net income (loss) | $ | 787,996 | $ | (7,271 | ) | $ | 1,466,657 | (7,598 | ) | ||||||||
| Items not affecting cash and cash equivalents: | |||||||||||||||||
| Unrealized change in fair value of biological assets | 4 | 10,015 | (1,533 | ) | (7,562 | ) | (11,108 | ) | |||||||||
| Realized fair value adjustments on inventory sold in the period | 14,617 | 1,511 | 21,896 | 6,330 | |||||||||||||
| Share-based payments | 16 | 3,125 | 1,223 | 5,864 | 2,947 | ||||||||||||
| Depreciation and amortization | 9,10,12 | 907 | 330 | 2,052 | 938 | ||||||||||||
| Depreciation relieved on inventory sold | 22 | 1,566 | 145 | 2,164 | 361 | ||||||||||||
| Gain on revaluation of derivative liabilities | 14 | (835,079 | ) | - | (1,535,405 | ) | - | ||||||||||
| Gain on revaluation of financial liabilities | 16(d) | (194 | ) | - | (194 | ) | - | ||||||||||
| Share of loss (income) from equity accounted investees | 5 | 746 | (20 | ) | 2,001 | (64 | ) | ||||||||||
| Gain on disposal of Whistler | 5 | - | - | (20,606 | ) | - | |||||||||||
| Gain on other investments | 6 | - | - | (924 | ) | (221 | ) | ||||||||||
| Deferred income tax (recovery) expense | 21 | (3,959 | ) | 2,352 | (1,737 | ) | 1,197 | ||||||||||
| Foreign exchange loss (gain) | 822 | 2 | 914 | (10 | ) | ||||||||||||
| Net changes in non-cash working capital | 22 | (6,996 | ) | (9,377 | ) | (37,537 | ) | (26,039 | ) | ||||||||
| Cash and cash equivalents used in operating activities | (26,434 | ) | (12,638 | ) | (102,417 | ) | (33,267 | ) | |||||||||
| Investing activities | |||||||||||||||||
| Maturity (purchase) of short-term investments, net | 227,872 | - | (517,064 | ) | - | ||||||||||||
| Advances to joint ventures | 5 | 93 | (2,674 | ) | (21,200 | ) | (2,674 | ) | |||||||||
| Investments in equity accounted investees | 5 | - | (201 | ) | (2,200 | ) | (201 | ) | |||||||||
| Proceeds from sale of other investments | 6 | - | - | 26,078 | 967 | ||||||||||||
| Payment to exercise ABcann warrants | 6 | - | - | - | (113 | ) | |||||||||||
| Advances on loans receivable | 7 | (27,450 | ) | - | (43,800 | ) | - | ||||||||||
| Proceeds from repayment of loans receivable | 7 | 314 | - | 314 | - | ||||||||||||
| Purchase of property, plant and equipment | 8 | (22,055 | ) | (34,229 | ) | (49,954 | ) | (71,896 | ) | ||||||||
| Purchase of intangible assets | 9 | (137 | ) | (125 | ) | (765 | ) | (294 | ) | ||||||||
| Acquisition of Redwood | 8 | (301,368 | ) | - | (301,368 | ) | - | ||||||||||
| Cash assumed on acquisition | 8,11 | 3,922 | 1,304 | 3,922 | - | ||||||||||||
| Cash and cash equivalents used in investing activities | (118,809 | ) | (35,925 | ) | (906,037 | ) | (74,211 | ) | |||||||||
| Financing activities | |||||||||||||||||
| Advance from non-controlling interests | 11 | 129 | - | 242 | - | ||||||||||||
| Repayment of lease obligations | 12 | (336 | ) | - | (552 | ) | - | ||||||||||
| Repayment of construction loan payable | 13 | - | - | (21,311 | ) | - | |||||||||||
| Payment of accrued interest on construction loan payable | 13 | - | - | (121 | ) | (185 | ) | ||||||||||
| Proceeds from |
14,15(a) | - | - | 2,434,757 | - | ||||||||||||
| Proceeds from share issuance | 15(a) | - | - | - | 146,993 | ||||||||||||
| Share issuance costs | 15(a) | (5 | ) | (35 | ) | (5,007 | ) | (9,479 | ) | ||||||||
| Proceeds from exercise of warrants and options | 16(a),16(b) | 7 | 471 | 1,939 | 2,423 | ||||||||||||
| Withholding taxes paid on share appreciation rights | 16(b) | (33 | ) | - | (1,149 | ) | - | ||||||||||
| Proceeds from exercise of Top-up Rights | 14(c),15(a) | 40,860 | - | 41,688 | - | ||||||||||||
| Cash and cash equivalents provided by financing activities | 40,622 | 436 | 2,450,486 | 139,752 | |||||||||||||
| Net change in cash and cash equivalents | (104,621 | ) | (48,127 | ) | 1,442,032 | 32,274 | |||||||||||
| Cash and cash equivalents - beginning of period | 1,579,231 | 89,609 | 32,634 | 9,208 | |||||||||||||
| Effects of foreign exchange on cash and cash equivalents | 849 | - | 793 | - | |||||||||||||
| Cash and cash equivalents - end of period | $ | 1,475,459 | $ | 41,482 | $ | 1,475,459 | $ | 41,482 | |||||||||
| Supplemental cash flow information | |||||||||||||||||
| Interest paid | $ | 77 | 189 | $ | 829 | 684 | |||||||||||
| Interest received | 2,402 | - | 12,456 | - | |||||||||||||
| The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements | |||||||||||||||||
Non-IFRS Measures
The Company uses certain measures that are not recognized under International Financial Reporting Standards (“IFRS”), do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as a supplement to those IFRS measures to provide additional information regarding the Company’s results of operations from management’s perspective. Accordingly, non-IFRS measures should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS. Each non-IFRS measure is reconciled to its most directly comparable IFRS measure.
Adjusted EBIT
Adjusted earnings before interest and tax (“Adjusted EBIT”) is used by management as a supplemental measure to review and assess operating performance and trends on a comparable basis. Adjusted EBIT is defined as net income or loss, excluding interest expense, interest income, deferred income tax expense or recovery, share-based payments, unrealized change in the fair value of biological assets, realized fair value adjustments on inventory sold, financing and transaction costs, gain on revaluation of derivative liabilities, gain on revaluation of financial liability, share of income or loss from investments in equity accounted investees and gain or loss on investments. The Company believes that Adjusted EBIT is useful to compare its operating profitability across periods.
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”) is used by management as a supplemental measure to review and assess operating performance and trends on a comparable basis. Adjusted EBITDA is defined as Adjusted EBIT excluding depreciation and amortization. The Company believes that Adjusted EBITDA is useful to compare its ability to generate cash from operations across periods.
Reconciliation of non-IFRS measures
A reconciliation of Adjusted EBIT and Adjusted EBITDA to net income, the most directly comparable IFRS measure, is presented in the following table.
| ($ in 000s) | Third | Second | Third | ||||||||
| Quarter | Quarter | Quarter | |||||||||
| 2019 | 2019 | 2018 | |||||||||
| Net Income (Loss) | $ | 787,996 | $ | 250,968 | $ | (7,271 | ) | ||||
| Adjustments | |||||||||||
| Interest (Income) Expense | (11,703 | ) | (12,531 | ) | 62 | ||||||
| Deferred Income Tax Expense (Recovery) | (3,959 | ) | (335 | ) | 2,352 | ||||||
| Share-Based Payments | 3,125 | 2,002 | 1,223 | ||||||||
| Unrealized Change in Fair Value of Biological Assets | 10,015 | (4,024 | ) | (1,533 | ) | ||||||
| Realized Fair Value Adjustments on Inventory Sold | 14,617 | 3,557 | 1,511 | ||||||||
| Financing and Transaction Costs | 8,031 | 4,505 | — | ||||||||
| Gain on Revaluation of Derivative Liabilities | (835,079 | ) | (263,943 | ) | — | ||||||
| Gain on Revaluation of Financial Liabilities | (194 | ) | — | — | |||||||
| Share of Loss (Income) from Investments in Equity Accounted Investees | 746 | 991 | (20 | ) | |||||||
| Gain on Disposal of Whistler | — | — | — | ||||||||
| Gain on Other Investments | — | — | — | ||||||||
| Adjusted EBIT | (26,405 | ) | (18,810 | ) | (3,676 | ) | |||||
| Depreciation and Amortization | 2,473 | 1,038 | 475 | ||||||||
| Adjusted EBITDA | (23,932 | ) | (17,772 | ) | (3,201 | ) | |||||
For further information, please contact:
Investor Relations
Tel: (416) 504-0004
investor.relations@thecronosgroup.com
Source: Cronos Group Inc.