Q2 2019 Revenue of $31.5 Million, Adjusted EBITDA of $7.7 Million, Net Income before tax of $4.1 Million
TORONTO, Aug. 12, 2019 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ)(“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, today announced its financial results for the three and six months ended June 30, 2019, including strong growth in revenue, EBITDA, net income and earnings per share.
KEY Q2 2019 HIGHLIGHTS(2)
(1) See Non-IFRS Measures section of this news release.
(2) There is no prior-year comparable as the Company commenced production in the fourth quarter of 2018.
“MediPharm Labs made tremendous progress in the second quarter with growth in all key value drivers,” said Patrick McCutcheon, Chief Executive Officer, MediPharm Labs. “Based on the strength of our business model and the effectiveness of our corporate strategies, we’ve become the first public Canadian extraction only company to deliver bottom-line earnings and do so while investing heavily in our sophisticated extraction and production platforms ahead of benefits realized. The significant momentum we’ve gained through important new customer and procurement relationships, and the successful ramp up of our Canadian and Australian facilities will drive growth and value for the remainder of this year and well beyond.”
YEAR-TO-DATE 2019 HIGHLIGHTS
Financial Summary Highlights
June 30, 2019
March 31, 2019
December 31, 2018
|Gross margin %||36%||31%||39%|
|Net income/(loss) before tax||4,083||(325)||(3,542)|
|Adjusted EBITDA margin %||24%||20%||21%|
Adjusted EBITDA and income/(loss) from operations as reported
|June 30||March 31||December|
|Adjusted EBITDA reconciliation|
|(Loss)/income from operations – as reported||4,227||(152||)||(3,366||)|
|Share-based compensation expense||2,742||3,972||738|
|Transaction fee (excluding legal fee)||–||–||4,230|
Q2 CONFERENCE CALL AND WEBCAST
The Company will host a conference call and audio webcast on Tuesday, August 13, 2019 at 9:30 a.m. eastern time to discuss its results and outlook. Participants are asked to dial in approximately 10 minutes before the start of the call using one of the following numbers: Toll-free: 877-791-0216 International: 647-689-5661.
An audio webcast will be available in the Events section of the MediPharm Labs’ Investor Relations website https://ir.medipharmlabs.com/news-events or by visiting the following link: https://event.on24.com/wcc/r/2061708/FA5DDF7A03088FC1E7183DBBA763DEB7
For those who are unable to participate on the live conference call and webcast, a replay will be available approximately one hour after completion of the call at: Toll-free: 800-585-8367 International: 416-621-4642. Please reference Conference ID: 2783678
Adjusted EBITDA is not a recognized performance measure under IFRS, does not have a standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is included as a supplemental disclosure because Management believes that such measurement provides a better assessment of the Company’s operations on a continuing basis by eliminating certain non-cash charges and charges or gains that are nonrecurring. Adjusted EBITDA is defined as net loss excluding interest, taxes, depreciation and amortization, and share-based compensation. Adjusted EBITDA has limitations as an analytical tool as it does not include depreciation and amortization expense, interest income and expense, taxes, share-based compensation and transaction fees. Because of these limitations, Adjusted EBITDA should not be considered as the sole measure of the Company’s performance and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results as reported under IFRS. The most directly comparable measure to Adjusted EBITDA calculated in accordance with IFRS is operating income (loss). The above is a reconciliation of the Company’s operating loss to Adjusted EBITDA. See “Reconciliation of non-IFRS measures” in the Company’s Management’s Discussion and Analysis for the three and six-month periods ended June 30, 2019 for additional information.
For more information:
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, ramping up of production capacity, a growing customer base, capacity increases and timing thereof, commencing shipping to additional provincial distributors, expanded licensed space and timing thereof, new product manufacturing, expected processing and sales in Q3 2019, Soft Gel capabilities and timing thereof, the manufacturing and supply of vapourizer cartridges and timing thereof, future cannabis product innovation, growing demand for specialty concentrate based consumer end products, broadening global distribution, completion of MediPharm Labs Australia’s facility and timing thereof, and the expected processing capacity of the Australian facility. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm Labs’ filings, available on the SEDAR website at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.