Investor Presentaiton
Non-IFRS Financial Measures
This news release refers to financial performance measures, adjusted EBITDA and cost of
cultivation, that are not defined by and do not have a standardized meaning under
International Financial Reporting Standards ("IFRS") as issued by the International Accounting
Standards Board. These non-IFRS financial performance measures are defined below. Non-IFRS
financial measures are used by management to assess the financial and operational
performance of the Company. The Company believes that these non-IFRS financial measures,
in addition to conventional measures prepared in accordance with IFRS, enable investors to
evaluate the Company's operating results, underlying performance and prospects in a similar
manner to the Company's management. As there are no standardized methods of calculating
these non-IFRS measures, the Company's approaches may differ from those used by others,
and accordingly, the use of these measures may not be directly comparable. Accordingly, these
non-IFRS measures are intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS.
Adjusted EBITDA
This is a non-IFRS measure and the Company calculates adjusted EBITDA from continuing
operations as net income (earnings) before: interest expense, net of investment income;
income tax; depreciation, amortization, impairment, and gain (loss) on disposal of PP&E (per
the statement of cash flows); share-based compensation (per the statement of cash flows);
share of loss and impairment loss from investments in associates; unrealized loss (gain) on
changes in fair value of contingent consideration; expenditures incurred in connection with the
NASDAQ cross-listing; and the fair value adjustment to biological assets and inventory.
Management believes the exclusion of the fair value adjustment is an alternative
representation of performance. The fair value adjustment is a non-cash gain (loss) and is based
on the valuation of biological assets and inventory using a fair value less cost to sell model. The
most directly comparable measure to adjusted EBITDA (excluding fair value adjustment to
biological assets and inventory) calculated in accordance with IFRS is net income (loss) from
continuing operations.
(in 000s)
Adjusted EBITDA
Net income (loss) from continuing
operations
Income tax expense (recovery)
Q4-2019
Q4-2018
Fiscal 2019
Fiscal 2018
$ (22,456)
$ 18,091
$ (9,505)
$
22,123
Add:
Interest expense (investment income) from
continuing operations
616
3,861
9,007
8,639
(6,289)
5,653
3,628
5,653
Depreciation, amortization, impairment, and
gain (loss) on disposal of PP&E from
continuing operations (per statement of
cash flows)
3,955
1,556
9,648
3,567
Less/(Add): fair value adjustment to
biological assets and net realizable value
adjustment to inventory
(11,806)
30,846
10,577
46,018
Adjusted EBITDA as Previously Reported
$(12,368)
$ (1,685)
$
2,201
$ (6,036)
Add:
Share-based compensation (per statement
of cash flows)
4,036
1,977
14,894
5,033
Share of loss and impairment loss from
investments in associates
Unrealized loss on changes in fair value
of contingent consideration
1,289
2,211
(864)
Nasdaq cross-listing expenditures
Adjusted EBITDA Revised
Divided by: net revenue from continuing
operations
Adjusted EBITDA margin %
145
449
$ (7,907)
$ 292
$
19,900
$ (1,003)
16,290
3,213
80,413
12,429
n/m
9%
25%
n/m
24
ORGANIGRAMView entire presentation