Receives processing license for the commercial production and sale of cannabinoids using biosynthesis
Announces plans to launch Spinach™ branded edibles to the Canadian adult-use market
Launches transformative Lord Jones™ brand campaign entitled, "A Higher Order"
Cronos Israel expands PEACE NATURALS™ brand into the pre-roll category in the Israeli medical market
“This quarter for
“In March, we were recognized as one of Fast Company’s Most Innovative Companies for our joint venture with
Financial Results
(in thousands of |
Three months ended |
Change | |||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||
Net revenue | |||||||||||||||||||
$ | 2,441 | $ | 2,176 | $ | 265 | 12 | % | ||||||||||||
Rest of World | 10,170 | 6,256 | 3,914 | 63 | % | ||||||||||||||
Consolidated net revenue | 12,611 | 8,432 | 4,179 | 50 | % | ||||||||||||||
Gross profit (loss) | $ | (2,963 | ) | $ | (6,476 | ) | $ | 3,513 | (54 | ) | % | ||||||||
Gross margin | (23 | ) | % | (77 | ) | % | N/A | 54 | pp | ||||||||||
Adjusted EBITDA (i) | $ | (37,075 | ) | $ | (37,055 | ) | $ | (20 | ) | — | % | ||||||||
Other Data | |||||||||||||||||||
Cash and cash equivalents (ii) | $ | 1,024,450 | $ | 1,128,396 | $ | (103,946 | ) | (9 | ) | % | |||||||||
Short-term investments (ii) | 214,925 | 206,230 | 8,695 | 4 | % | ||||||||||||||
Capital expenditures | 7,072 | 7,516 | (444 | ) | (6 | ) | % |
(i) See “Non-GAAP Measures” for more information, including a reconciliation of adjusted earnings (loss) before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)
(ii) Dollar amounts are as of the last day of the period indicated
First Quarter 2021
- Net revenue of
$12.6 million in Q1 2021 increased by$4.2 million from Q1 2020. The increase year-over-year was primarily driven by continued growth in the adult-use Canadian cannabis market, sales in the Israeli medical cannabis market, and an increase in sales in theU.S. segment driven by newU.S. hemp-derived CBD products introductions, partially offset by strategic price reductions on various adult-use cannabis products inCanada in the second half of 2020. - Gross loss of
$3.0 million in Q1 2021 decreased by$3.5 million from Q1 2020. The decrease in losses year-over-year was primarily driven by an increase in net revenue and a decrease in inventory write-downs in the Rest of World ("ROW") segment. - Adjusted EBITDA loss of
$37.1 million in Q1 2021 increased marginally from Q1 2020. The marginal increase in losses year-over-year was primarily driven by an increase in sales and marketing costs due to brand development in theU.S. segment, and an increase in research and development ("R&D") costs driven by increased spending on product development and developing cannabinoid intellectual property. Partially offset by decreases in sales and marketing spend in the ROW segment, gross loss and general and administrative expenses.
Business Updates
Brand and Product Portfolio
In
In the coming weeks, Cronos Group’s mainstream adult-use brand, Spinach™, intends to launch edibles, a new product category for
In
In the first quarter of 2021, Cronos Israel successfully launched PEACE NATURALS™ branded pre-rolls into the Israeli medical cannabis market. This launch follows the successful launch of dried flower and oils to the Israeli medical cannabis market in 2020. Cronos Israel continues to execute in
Global Supply Chain
In the first quarter of 2021, Natuera, the Company’s joint venture in
In the first quarter of 2021, Cronos GrowCo, the Company’s joint venture in
Intellectual Property Initiatives
In
Enterprise Initiatives
In
In
Rest of World Results
Cronos Group’s Rest of World reporting segment includes results of the Company’s operations for all markets outside of the
(in thousands of USD) | Three months ended |
Change | |||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||
Cannabis flower | $ | 9,434 | $ | 2,741 | $ | 6,693 | 244 | % | |||||||||||
Cannabis extracts | 703 | 3,400 | (2,697 | ) | (79 | ) | % | ||||||||||||
Other | 33 | 115 | (82 | ) | (71 | ) | % | ||||||||||||
Net revenue | 10,170 | 6,256 | 3,914 | 63 | % | ||||||||||||||
Gross profit (loss) | $ | (4,139 | ) | $ | (7,558 | ) | $ | 3,419 | (45 | ) | % | ||||||||
Gross margin | (41 | ) | % | (121 | ) | % | N/A | 80 | pp | ||||||||||
Adjusted EBITDA (i) | $ | (22,184 | ) | $ | (29,010 | ) | $ | 6,826 | (24 | ) | % |
(i) See “Non-GAAP Measures” for more information, including a reconciliation of Adjusted EBITDA
First Quarter 2021
- Net revenue of
$10.2 million in Q1 2021 increased by$3.9 million from Q1 2020. The increase year-over-year was primarily driven by continued growth in the adult-use cannabis flower market inCanada and sales in the Israeli medical cannabis market. Partially offset by strategic price reductions on various adult-use cannabis products inCanada in the second half of 2020 and a decrease in cannabis extract sales inCanada primarily due to fluctuating provincial demand. - Gross loss of
$4.1 million in Q1 2021 decreased by$3.4 million from Q1 2020. The decrease in losses year-over-year was primarily driven by an increase in net revenue and a decrease in inventory write-downs. - Adjusted EBITDA loss of
$22.2 million in Q1 2021 decreased by$6.8 million from Q1 2020. The improvement year-over-year was primarily driven by a decrease in gross loss and a decline in general and administrative expenses. Partially offset by increased R&D costs.
United States Results
Cronos Group’s
(in thousands of USD) | Three months ended |
Change | |||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||
Net revenue | $ | 2,441 | $ | 2,176 | $ | 265 | 12 | % | |||||||||||
Gross profit (loss) | $ | 1,176 | $ | 1,082 | $ | 94 | 9 | % | |||||||||||
Gross margin | 48 | % | 50 | % | N/A | (2 | ) | pp | |||||||||||
Adjusted EBITDA (i) | $ | (9,510 | ) | $ | (5,782 | ) | $ | (3,728 | ) | 64 | % |
(i) See “Non-GAAP Measures” for more information, including a reconciliation of Adjusted EBITDA.
First Quarter 2021
- Net revenue of
$2.4 million in Q1 2021 increased by$0.3 million from Q1 2020. The increase year-over-year was primarily driven by the introduction of newU.S. hemp-derived CBD products. - Gross profit of
$1.2 million in Q1 2021 increased by$0.1 million from Q1 2020. - Adjusted EBITDA loss of
$9.5 million in Q1 2021 increased by$3.7 million from Q1 2020. The increase in losses year-over-year was primarily driven by an increase in sales and marketing costs related to brand development.
Conference Call
The Company will host a conference call and live audio webcast on
- Live audio webcast: https://ir.thecronosgroup.com/events-presentations
- Toll-Free from the
U.S. andCanada dial-in: (866) 795-2258 - International dial-in: (409) 937-8902
- Conference ID: 3586688
About
Forward-looking Statements
This press release may contain information that may constitute forward-looking information and forward-looking statements within the meaning of applicable securities laws (collectively, “Forward-Looking Statements”), which are based upon our current internal expectations, estimates, projections, assumptions and beliefs. All information 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 “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, expressions and phrases, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussion 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 include, but are not limited to, statements with respect to:
- the uncertainties associated with the COVID-19 pandemic, including our ability, and the abilities of our joint ventures and our suppliers and distributors, to effectively deal with the restrictions, limitations and health issues presented by the COVID-19 pandemic, the ability to continue our production, distribution and sale of our products, and demand for and the use of our products by consumers;
- laws and regulations and any amendments thereto applicable to our business and the impact thereof, including uncertainty regarding the application of
United States ("U.S.") state and federal law toU.S. hemp (including CBD) products and the scope of any regulations by theU.S. Food and Drug Administration , the DEA, theU.S. Federal Trade Commission , theU.S. Patent and Trademark Office (the "PTO") and any state equivalent regulatory agencies overU.S. hemp (including CBD) products; - the laws and regulations and any amendments thereto relating to the
U.S. hemp industry in theU.S. , including the promulgation of regulations for theU.S. hemp industry by theU.S. Department of Agriculture and relevant state regulatory authorities; - the grant, renewal and impact of any license or supplemental license to conduct activities with cannabis or any amendments thereof;
- our international activities and joint venture interests, including required regulatory approvals and licensing, anticipated costs and timing, and expected impact;
- our ability to successfully create and launch brands and further create, launch and scale
U.S. hemp-derived consumer products, and cannabis products; - the benefits, viability, safety, efficacy, dosing and social acceptance of cannabis including CBD and other cannabinoids;
- expectations regarding the implementation and effectiveness of key personnel changes;
- the anticipated benefits and impact of the Altria's
C$2.4 billion (approximately$1.8 billion ) investment in us (the “Altria Investment”); - the potential exercise of the warrant held by Altria, pre-emptive rights and/or top-up rights in connection with the
Altria Investment , including proceeds to us that may result therefrom; - expectations regarding the use of proceeds of equity financings, including the proceeds from the
Altria Investment ; - the legalization of the use of cannabis for medical or adult-use in jurisdictions outside of
Canada , the related timing and impact thereof and our intentions to participate in such markets, if and when such use is legalized; - expectations regarding the potential success of, and the costs and benefits associated with, our joint ventures, strategic alliances and equity investments, including the strategic partnership (the "
Ginkgo Strategic Partnership ") withGinkgo Bioworks, Inc. ; - our ability to execute on our strategy and the anticipated benefits of such strategy;
- expectations of the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill;
- the ongoing impact of the legalization of additional cannabis product types and forms for adult-use in
Canada , including federal, provincial, territorial and municipal regulations pertaining thereto, the related timing and impact thereof and our intentions to participate in such markets; - the future performance of our business and operations;
- our competitive advantages and business strategies;
- the competitive conditions of the industry;
- the expected growth in the number of customers using our products;
- our ability or plans to identify, develop, commercialize or expand our technology and R&D initiatives in cannabinoids, or the success thereof;
- expectations regarding acquisitions and dispositions and the anticipated benefits therefrom, including the proposed sale of our
Original B.C. Ltd. (“OGBC”) production facility; - expectations regarding revenues, expenses and anticipated cash needs;
- expectations regarding cash flow, liquidity and sources of funding;
- expectations regarding capital expenditures;
- the expansion of our production and manufacturing, the costs and timing associated therewith and the receipt of applicable production and sale licenses;
- the expected growth in our growing, production and supply chain capacities;
- expectations regarding the resolution of litigation and other legal and regulatory proceedings, reviews and investigations;
- expectations with respect to future production costs;
- expectations with respect to future sales and distribution channels and networks;
- the expected methods to be used to distribute and sell our products;
- the anticipated future gross margins of our operations;
- accounting standards and estimates;
- our ability to timely and effectively remediate any material weaknesses in our internal control over financial reporting; and
- expectations regarding the costs and benefits associated with our contracts and agreements with third parties, including under our third-party supply and manufacturing agreements.
Certain of the Forward-Looking Statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below.
The Forward-Looking Statements contained herein are based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including: (i) our ability, and the abilities of our joint ventures and our suppliers and distributors, to effectively deal with the restrictions, limitations and health issues presented by the COVID-19 pandemic and the ability to continue our production, distribution and sale of our products and customer demand for and use of our products; (ii) management’s perceptions of historical trends, current conditions and expected future developments; (iii) our ability to generate cash flow from operations; (iv) general economic, financial market, regulatory and political conditions in which we operate; (v) the production and manufacturing capabilities and output from our facilities and our joint ventures, strategic alliances and equity investments; (vi) consumer interest in our products; (vii) competition; (viii) anticipated and unanticipated costs; (ix) government regulation of our activities and products including but not limited to the areas of taxation and environmental protection; (x) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; (xi) our ability to obtain qualified staff, equipment and services in a timely and cost-efficient manner; (xii) our ability to conduct operations in a safe, efficient and effective manner; (xiii) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our recent acquisitions into our existing operations; (xiv) our ability to complete planned dispositions, including the sale of OGBC, and, if completed, obtain our anticipated sales price; and (xv) other considerations that management believes to be appropriate in the circumstances. While our management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct.
By their nature, Forward-Looking Statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the Forward-Looking Statements in this press release and other reports we file with, or furnish to, the
Forward-Looking Statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of 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 the Forward-Looking Statements may not be appropriate for any other purpose. While we believe that the assumptions and expectations reflected in the Forward-Looking Statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-Looking Statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any Forward-Looking Statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such Forward-Looking Statements. The Forward-Looking Statements contained in this press release and other reports we file with, or furnish to, the
As used in this press release, “CBD” means cannabidiol and “U.S. hemp” has the meaning given to the term “hemp” in the
Condensed Consolidated Balance Sheets
As of
(In thousands of
As of |
As of |
||||||||
Assets | (Unaudited) | (Audited) | |||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 1,024,450 | $ | 1,078,023 | |||||
Short-term investments | 214,925 | 211,766 | |||||||
Accounts receivable, net | 6,997 | 8,928 | |||||||
Other receivables | 3,796 | 10,033 | |||||||
Current portion of loans receivable, net | 6,717 | 7,083 | |||||||
Prepaids and other current assets | 15,053 | 11,161 | |||||||
Inventory, net | 46,437 | 44,002 | |||||||
Held-for-sale assets | 1,969 | 1,176 | |||||||
Total current assets | 1,320,344 | 1,372,172 | |||||||
Advances to joint ventures | 487 | 467 | |||||||
Investments in equity accounted investees, net | 19,221 | 19,235 | |||||||
Loan receivable, net | 90,953 | 87,191 | |||||||
Property, plant and equipment, net | 192,123 | 187,599 | |||||||
Right-of-use assets | 8,538 | 9,776 | |||||||
Intangible assets, net | 70,085 | 69,720 | |||||||
179,531 | 179,522 | ||||||||
Total assets | $ | 1,881,282 | $ | 1,925,682 | |||||
Liabilities | |||||||||
Current liabilities | |||||||||
Accounts payable and other liabilities | $ | 29,213 | $ | 42,102 | |||||
Current portion of lease obligation | 1,130 | 1,322 | |||||||
Derivative liabilities | 272,300 | 163,410 | |||||||
Total current liabilities | 302,643 | 206,834 | |||||||
Due to non-controlling interests | 2,129 | 2,188 | |||||||
Lease obligation | 8,231 | 8,492 | |||||||
Total liabilities | 313,003 | 217,514 | |||||||
Commitments and contingencies | |||||||||
Shareholders’ equity | |||||||||
Share capital | 584,912 | 569,260 | |||||||
Additional paid-in capital | 32,090 | 34,596 | |||||||
Retained earnings | 895,503 | 1,064,509 | |||||||
Accumulated other comprehensive income | 58,144 | 42,999 | |||||||
Total equity attributable to shareholders of |
1,570,649 | 1,711,364 | |||||||
Non-controlling interests | (2,370 | ) | (3,196 | ) | |||||
Total shareholders’ equity | 1,568,279 | 1,708,168 | |||||||
Total liabilities and shareholders’ equity | $ | 1,881,282 | $ | 1,925,682 |
See notes to consolidated financial statements.
Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)
For the three months ended
(In thousands of
Three months ended |
||||||||||
2021 | 2020 | |||||||||
Net revenue, before excise taxes | $ | 14,654 | $ | 9,344 | ||||||
Excise taxes | (2,043 | ) | (912 | ) | ||||||
Net revenue | 12,611 | 8,432 | ||||||||
Cost of sales | 15,574 | 6,946 | ||||||||
Inventory write-down | — | 7,962 | ||||||||
Gross profit (loss) | (2,963 | ) | (6,476 | ) | ||||||
Operating expenses | ||||||||||
Sales and marketing | 10,254 | 7,112 | ||||||||
Research and development (“R&D”) | 5,102 | 4,590 | ||||||||
General and administrative | 21,906 | 23,759 | ||||||||
Share-based payments | 2,499 | 2,436 | ||||||||
Depreciation and amortization | 735 | 687 | ||||||||
Total operating expenses | 40,496 | 38,584 | ||||||||
Operating loss | (43,459 | ) | (45,060 | ) | ||||||
Other income (loss) | ||||||||||
Interest income, net | 2,329 | 7,751 | ||||||||
Gain (loss) on revaluation of derivative liabilities | (116,874 | ) | 113,368 | |||||||
Impairment loss on property, plant and equipment and right-of-use assets | (1,741 | ) | — | |||||||
Other loss | (1,859 | ) | (378 | ) | ||||||
Total other income (loss) | (118,145 | ) | 120,741 | |||||||
Income (loss) from continuing operations | (161,604 | ) | 75,681 | |||||||
Loss from discontinued operations | (21 | ) | — | |||||||
Net income (loss) | $ | (161,625 | ) | $ | 75,681 | |||||
Net income (loss) attributable to: | ||||||||||
$ | (161,312 | ) | $ | 76,040 | ||||||
Non-controlling interests | (313 | ) | (359 | ) | ||||||
$ | (161,625 | ) | $ | 75,681 | ||||||
Other comprehensive income (loss) | ||||||||||
Foreign exchange gain (loss) on translation | $ | 16,284 | $ | (113,692 | ) | |||||
Total other comprehensive income (loss) | 16,284 | (113,692 | ) | |||||||
Comprehensive loss | $ | (145,341 | ) | $ | (38,011 | ) | ||||
Comprehensive income (loss) attributable to: | ||||||||||
$ | (146,167 | ) | $ | (37,675 | ) | |||||
Non-controlling interests | 826 | (336 | ) | |||||||
$ | (145,341 | ) | $ | (38,011 | ) | |||||
Net income (loss) per share | ||||||||||
Basic - continuing operations | $ | (0.44 | ) | $ | 0.22 | |||||
Diluted - continuing operations | (0.44 | ) | 0.20 | |||||||
Weighted average number of outstanding shares | ||||||||||
Basic | 363,012,740 | 348,817,472 | ||||||||
Diluted | 363,012,740 | 374,330,168 |
See notes to consolidated financial statements.
Condensed Consolidated Statements of Cash Flows
For the three months ended
(In thousands of
Three months ended |
|||||||||
2021 | 2020 | ||||||||
Operating activities | |||||||||
Net income (loss) | $ | (161,625 | ) | $ | 75,681 | ||||
Items not affecting cash: | |||||||||
Inventory write-down | — | 7,962 | |||||||
Share-based payments | 2,499 | 2,436 | |||||||
Depreciation and amortization | 1,880 | 1,162 | |||||||
Gain (loss) on revaluation of derivative liabilities | 116,874 | (113,368 | ) | ||||||
Impairment loss on property, plant and equipment and right-of-use assets | 1,741 | — | |||||||
Expected credit losses on financial assets and non-cash charges to inventory | 681 | 2,068 | |||||||
Other non-cash operating activities, net | 1,749 | 643 | |||||||
Changes in non-cash working capital: | |||||||||
Accounts receivable, net | 1,931 | 472 | |||||||
Other receivables | 5,687 | (1,235 | ) | ||||||
Prepaids and other current assets | (3,737 | ) | (2,439 | ) | |||||
Inventory, net | (1,007 | ) | (14,319 | ) | |||||
Accounts payable and other liabilities | (12,675 | ) | 2,039 | ||||||
Cash flows used in operating activities | (46,002 | ) | (38,898 | ) | |||||
Investing activities | |||||||||
Proceeds from (purchase of) short-term investments, net | — | 80,333 | |||||||
Purchase of property, plant and equipment | (6,680 | ) | (6,411 | ) | |||||
Purchase of intangible assets | (392 | ) | (1,105 | ) | |||||
Advances on loans receivable | (2,645 | ) | (14,512 | ) | |||||
Other non-cash investing activities, net | — | 781 | |||||||
Cash flows provided by (used in) investing activities | (9,717 | ) | 59,086 | ||||||
Financing activities | |||||||||
Repayment of lease obligations | (613 | ) | (448 | ) | |||||
Withholding taxes paid on share-based awards | (8,673 | ) | — | ||||||
Other non-cash investing activities, net | 10 | — | |||||||
Cash flows provided by (used in) financing activities | (9,276 | ) | (448 | ) | |||||
Effect of foreign currency translation on cash and cash equivalents | 11,422 | (91,037 | ) | ||||||
Net change in cash and cash equivalents | (53,573 | ) | (71,297 | ) | |||||
Cash and cash equivalents, beginning of period | 1,078,023 | 1,199,693 | |||||||
Cash and cash equivalents, end of period | $ | 1,024,450 | $ | 1,128,396 | |||||
Supplemental cash flow information | |||||||||
Interest paid | $ | — | $ | 7 | |||||
Interest received | 1,157 | 7,758 | |||||||
Income taxes paid | 624 | — |
See notes to consolidated financial statements.
Non-GAAP Measures
Adjusted EBITDA
Management reviews Adjusted EBITDA, a non-GAAP measure which excludes non-cash items or items that do not reflect management’s assessment of on-going business performance. Management defines Adjusted EBITDA as net income (loss) before interest, tax expense, depreciation and amortization adjusted for: impairment loss on property, plant and equipment and right-of-use assets, loss (gain) on revaluation of derivative liabilities, other loss (income), loss from discontinued operations, share-based payments and review costs related to the restatement of the Company’s 2019 interim financial statements, the Company’s responses to the reviews of such interim financial statements by various regulatory authorities and legal costs defending shareholder class action complaints brought against the Company as a result of the restatement (see Part II, Item 1 “Legal Proceedings” of our Quarterly Report on Form 10-Q for the quarterly period ended
Management believes that Adjusted EBITDA provides useful insight into underlying business trends and results and provides a more meaningful comparison of period-over-period results. Management uses Adjusted EBITDA for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets.
Adjusted EBITDA by segment
Management also reviews adjusted earnings (loss) before interest, tax, depreciation and amortization by segment (“Adjusted EBITDA by segment”), a non-GAAP measure which excludes non-cash items or items that do not reflect management’s assessment of on-going business performance. Corporate expenses are removed from Adjusted EBITDA by segment. Corporate expenses are expenses that relate to the consolidated business. The Company’s method of allocating corporate expenses is refined periodically. Management defines Adjusted EBITDA by segment as net income (loss) by segment before interest, tax expense, depreciation and amortization adjusted for the same items that are adjusted in consolidated Adjusted EBITDA.
Management believes that Adjusted EBITDA by segment provides useful insight into underlying segment trends and results and provides a more meaningful comparison of period-over-period segment results. Management uses Adjusted EBITDA by segment for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets.
Adjusted EBITDA and Adjusted EBITDA by segment is reconciled to net income (loss) as follows for the three months ended
(In thousands of |
Three months ended |
|||||||||||||||||
US | ROW | Corporate Expenses |
Total | |||||||||||||||
Net income (loss) | $ | (12,092 | ) | $ | (142,147 | ) | $ | (7,386 | ) | $ | (161,625 | ) | ||||||
Adjustments | ||||||||||||||||||
Interest income, net | (3 | ) | (2,326 | ) | — | (2,329 | ) | |||||||||||
Impairment loss on property, plant and equipment and right-of-use assets | 1,741 | — | — | 1,741 | ||||||||||||||
Loss on revaluation of derivative liabilities | — | 116,874 | — | 116,874 | ||||||||||||||
Other loss | — | 1,859 | — | 1,859 | ||||||||||||||
Loss from discontinued operations | — | 21 | — | 21 | ||||||||||||||
Share-based payments | 745 | 1,754 | — | 2,499 | ||||||||||||||
Review costs related to restatement of 2019 interim financial statements | — | — | 2,005 | 2,005 | ||||||||||||||
Adjusted EBIT | (9,609 | ) | (23,965 | ) | (5,381 | ) | (38,955 | ) | ||||||||||
Adjustments | ||||||||||||||||||
Depreciation and amortization | 99 | 1,781 | — | 1,880 | ||||||||||||||
Adjusted EBITDA | $ | (9,510 | ) | $ | (22,184 | ) | $ | (5,381 | ) | $ | (37,075 | ) |
(In thousands of |
Three months ended |
|||||||||||||||||
US | ROW | Corporate Expenses |
Total | |||||||||||||||
Net income (loss) | $ | (6,516 | ) | $ | 88,867 | $ | (6,670 | ) | $ | 75,681 | ||||||||
Adjustments | ||||||||||||||||||
Interest income, net | (7 | ) | (7,744 | ) | — | (7,751 | ) | |||||||||||
Gain on revaluation of derivative liabilities | — | (113,368 | ) | — | (113,368 | ) | ||||||||||||
Other loss | — | 378 | — | 378 | ||||||||||||||
Share-based payments | 706 | 1,730 | — | 2,436 | ||||||||||||||
Review costs related to restatement of 2019 interim financial statements | — | — | 4,407 | 4,407 | ||||||||||||||
Adjusted EBIT | (5,817 | ) | (30,137 | ) | (2,263 | ) | (38,217 | ) | ||||||||||
Adjustments | ||||||||||||||||||
Depreciation and amortization | 35 | 1,127 | — | 1,162 | ||||||||||||||
Adjusted EBITDA | $ | (5,782 | ) | $ | (29,010 | ) | $ | (2,263 | ) | $ | (37,055 | ) |
Other items affecting the comparability of net income (loss) during Q1 2021 and Q1 2020
Interest income, net
For Q1 2021, we reported interest income, net of
Gain/loss on revaluation of derivative liabilities
For Q1 2021, we reported a loss on revaluation of derivative liabilities of
Review costs related to restatement of 2019 interim financial statements
For Q1 2021, we reported review costs related to the restatement of 2019 interim financial statements of
Impairment loss on property, plant and equipment and right-of-use assets
For Q1 2021, we reported an impairment loss on property, plant and equipment of
Foreign currency exchange rates
All currency amounts in this Press Release are stated in
The exchange rates used to translate from USD to Canadian dollars (“C$”) is shown below:
(Exchange rates are shown as C$ per $) | As of | |||||||
Average rate | 1.2665 | 1.3437 | 1.3036 | |||||
Spot rate | 1.2563 | 1.4062 | 1.2751 |
For further information, please contact:
Investor Relations
Tel: (416) 504-0004
investor.relations@thecronosgroup.com
Source: Cronos Group Inc.