CALGARY,
AB, Nov. 14, 2022 /PRNewswire/
- SNDL Inc. (NASDAQ: SNDL) ("SNDL" or the "Company")
reported its financial and operational results for the third
quarter ended September 30, 2022. All
financial information in this press release is reported in millions
of Canadian dollars unless otherwise indicated. The results for the
third quarter of 2021 do not include the subsequent acquisition of
Alcanna Inc. ("Alcanna"), which closed on March 31, 2022.
SNDL has also posted a supplemental investor presentation on its
website, which can be found at https://sndl.com/investors.
THIRD QUARTER 2022 FINANCIAL AND
OPERATIONAL HIGHLIGHTS
- Record net revenue for the third quarter of 2022 of
$230.5 million, compared to
$223.7 million in the second quarter
of 2022 and $14.4 million in the
third quarter of 2021, representing a 3% increase sequentially and
1,501% increase year-over-year.
-
- Liquor Retail: Net revenue of $152.5 million for the third quarter of
2022.
- Cannabis Retail: Net revenue of $66.2 million for the third quarter of 2022.
- Cannabis Operations: Net revenue of $11.8 million for the third quarter of 2022.
- Net loss of $98.8 million for the
third quarter of 2022, substantially due to non-cash charges for
impairments of $86.5 million and
changes in estimate of fair value of derivative warrants of
$8.5 million, compared to a
$73.3 million net loss in the second
quarter of 2022 and net income of $16.7
million in the third quarter of 2021.
- Adjusted EBITDA of $18.3 million
for the third quarter of 2022, up 169% from the second quarter of
2022 and up 74% from the third quarter of 2021.
- Record net cash provided by operating activities of
$8.6 million in the third quarter of
2022, compared to a loss of $17.9
million in the second quarter of 2022 and a loss of
$56.2 million in the third quarter of
2021.
- Gross margin grew to $50.3
million in the third quarter of 2022, a record since SNDL's
inception, up 17% from the second quarter of 2022 and up 2,723%
from the third quarter of 2021.
- $988 million of cash,
marketable securities, and long-term investments and no outstanding
debt at September 30, 2022; and
$278 million of unrestricted cash at
November 11, 2022. SNDL has not
raised cash through share offerings since June 2021.
- Entered into an arrangement agreement to acquire The Valens
Company Inc. ("Valens"), creating a leading vertically integrated
entity with pro forma revenue among the highest of all Canadian
Licensed Producers, with the acquisition expected to close in the
first quarter of 2023, subject to shareholder approval and
customary closing conditions.
- Entered into a purchase agreement to acquire substantially all
of the business of Superette Inc. ("Superette"), a cannabis retail
operator with six locations in Ontario that can further leverage SNDL's
position as a multi-banner cannabis retail operator by enhancing
the Company's market share and its exposure to a broader consumer
base, subject to regulatory approval.
- Subsequent to the quarter end, acquired all of the core Zenabis
assets adding low-cost indoor cultivation with international export
capabilities.
"As a result of our team's focus on operational execution and
sustainable profitability, we delivered record revenue and cash
flow from operations in the third quarter," said Zach George, Chief Executive Officer of
SNDL. "Our regulated products platform has shown resiliency in
the face of stiff industry and macroeconomic headwinds, and our
vertically integrated cannabis business is in the early stages of
providing the scale and results that we believe are required for
SNDL to be a strong member of a future oligopoly in Canada. Our integration work and cost control
initiatives will continue into 2023 as we remain focused on
opportunities related to the Alcanna assets and look to close the
proposed acquisition of Valens in the first quarter of 2023. With
Valens, SNDL aims to be a leader in Canadian cannabis manufacturing
with broad cannabis product capabilities, strong optionality
related to low-cost procurement, and best-in-class innovation
potential. I am privileged to serve passionate professionals,
including more than 2,500 employees that have tirelessly worked to
transform our business and delight consumers on a daily basis. Our
transformation is far from complete, but with an improving
portfolio, cost discipline and continued organic and acquisitive
growth, we believe that we are well-positioned to reach our
objectives, including the generation of sustainable free cash flow
and long-term shareholder value."
THIRD QUARTER 2022 KEY FINANCIAL METRICS
OPERATING
SEGMENTS
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s($000s)
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Liquor
Retail
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Cannabis
Retail
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Cannabis
Operations
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Investment
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Corporate
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Total
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As at
September 30, 2022
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Total assets
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577,198
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173,418
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147,385
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900,091
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19,336
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1,817,428
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Three months ended
September 30, 2022
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Net revenue
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152,488
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66,202
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11,810
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—
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—
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230,500
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Gross margin
|
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35,568
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14,494
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|
247
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—
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—
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50,309
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Interest and fee
revenue
|
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|
—
|
|
|
|
—
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—
|
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|
|
4,312
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—
|
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|
|
4,312
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Investment (loss)
income
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—
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|
|
—
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—
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(5,513)
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—
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(5,513)
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Share of loss of
equity-accounted investees
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—
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—
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—
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|
9,176
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—
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|
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9,176
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Depreciation and
amortization
|
|
|
2,923
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|
|
|
3,199
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|
|
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—
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|
|
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—
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|
|
3,661
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|
|
|
9,783
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Income (loss) before
income tax
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|
|
10,736
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(84,848)
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(5,686)
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3,252
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(29,225)
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(105,771)
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As at December 31,
2021
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Total assets
(1)
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—
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157,022
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147,887
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1,093,596
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29,155
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1,427,660
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Three months ended
September 30, 2021
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|
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|
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Net revenue
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—
|
|
|
|
6,140
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|
|
8,227
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|
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—
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—
|
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|
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14,367
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Gross margin
|
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—
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|
|
|
3,658
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|
(1,876)
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—
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—
|
|
|
|
1,782
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Interest and fee
revenue
|
|
|
—
|
|
|
|
—
|
|
|
|
—
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|
|
|
3,309
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|
|
|
—
|
|
|
|
3,309
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|
Investment
loss
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—
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—
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—
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(18,008)
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—
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(18,008)
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Share of profit of
equity-accounted investees
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|
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—
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|
|
|
—
|
|
|
|
—
|
|
|
|
9,918
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|
|
|
—
|
|
|
|
9,918
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|
Depreciation and
amortization (1)
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|
|
—
|
|
|
|
1,709
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|
|
|
660
|
|
|
|
—
|
|
|
|
262
|
|
|
|
2,631
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|
Income (loss) before
income tax (1)
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|
|
—
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|
|
|
(722)
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|
|
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(10,177)
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|
|
(6,012)
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|
|
|
17,918
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|
|
|
1,007
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|
(1)
Adjustments to provisional amounts have been made in the
comparative period due to the finalization of business combination
accounting for the Inner Spirit acquisition. Refer to note 3(b) in
the Company's condensed consolidated interim financial statements
and the notes thereto for the three and nine months ended September
30, 2022.
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THIRD QUARTER 2022
RESULTS
SNDL's business is operated and reported in four segments:
Liquor Retail, Cannabis Retail, Cannabis Operations and
Investments.
Liquor Retail
SNDL is Canada's largest
private sector liquor retailer, operating 169 locations,
predominantly in Alberta, under its three retail banners:
"Wine and Beyond", "Liquor Depot" and "Ace Liquor".
- Gross revenue for Liquor Retail sales for the three banners
combined was $152.5 million for the
third quarter of 2022, an increase of 1% compared to the third
quarter of 2021 despite Alberta's
off-premise liquor retail volume being down this past quarter
compared to same period last year.
- Gross margin in the Liquor Retail segment was $35.6 million, or 23% of sales in the third
quarter of 2022 compared to $33.6
million, or 23% of sales, in the third quarter of 2021. The
Liquor Retail business maintained its margin year over year through
an effective pricing and product mix strategy.
- Private label sales were $10.7
million, an increase of approximately $1.0 million compared to the third quarter of
2021.
- Customer count is up by 1% and the average basket size is up 3%
year-to-date. The Company sees larger basket sizes at Wine and
Beyond locations, where consumers come for an experiential,
destination shopping approach to liquor retail.
- SNDL's liquor banners' market share in Alberta was approximately 17% in the third
quarter of 2022, with Wine & Beyond representing approximately
3% with only 11 stores in the province, showcasing the continued
and increasing popularity of the banner.
- As of November 11, 2022, the Ace
Liquor store count is 137, the Liquor Depot store count is 20 and
the Wine and Beyond store count is 12.
Cannabis Retail
SNDL is Canada's largest
private sector cannabis retailer, operating 183 locations under its
two retail banners: "Spiritleaf" and "Value Buds". Through the
scale of data and insights generated by a large volume of monthly
transactions, SNDL's Cannabis Retail strategy is predicated on its
quality store locations, wide range of products, and differentiated
retail experiences.
- Gross revenue from the Cannabis Retail segment for the third
quarter of 2022 was $66.2 million,
compared to $6.1 million in the third
quarter of 2021, a 985% increase. The Nova Cannabis Inc. ("Nova")
acquisition and Value Buds sales were the material driver of the
increase with $58.9 million of
revenue during the third quarter of 2022.
- Gross margin of $14.5 million, or
22% of sales, compared to $3.7
million in the third quarter of 2021, is primarily due to
Value Buds' new locations and aggressive pricing strategy.
- In the third quarter of 2022, Value Buds and Spiritleaf's
combined market share represents 9.9% in the privatized provincial
markets, solidifying SNDL's position as a leading national
multi-banner cannabis retail operator in an increasingly
competitive market.
- The Company partnered with Nova for Value Buds' private label
products, expected to launch in November
2022. The private label strategy focuses on keystone
segments, specifically large format, uniquely curated for the Value
Buds consumer, and drives meaningful differentiation through the
retail network.
- SNDL's CCAA stalking-horse bid for Superette stores was
approved by an initial Court order, and the Company expects the
transaction to close before the end of the year, subject to a final
Court order.
- As of November 11, 2022, the
Spiritleaf store count is 98 (23 corporate stores and 75 franchise
stores), and the Value Buds store count is 85 corporate
stores.
Cannabis Operations
SNDL is Canada's largest indoor
purpose-built cannabis cultivation and processing facility with a
diverse brand portfolio from value to premium, with an emphasis on
premium inhalable formats. The Cannabis Operations segment is a key
enabler of SNDL's vertical integration strategy.
- Gross revenue from the Cannabis Operations segment for the
third quarter of 2022 was $16.5
million, compared to $15.4
million, a 7% increase, in the second quarter of 2022 and
compared to $11.0 million in the
third quarter of 2021, a 49% year-over-year increase.
- Net loss for the segment during the third quarter of 2022 was a
loss of $5.7 million, which included
an asset impairment of $2.1 million,
compared to a loss of $7.6 million in
the second quarter of 2022 and a loss of $10.2 million in third quarter last year.
- Adjusted EBITDA for the Cannabis Operations segment was a loss
of $0.6 million compared to a loss of
$3.4 million in the same period of
2021. The significant improvement in Adjusted EBITDA can be
attributed to higher sales volumes, improved margin on an adjusted
basis, reductions to sales, marketing, general and administrative
and greater discipline over inventory management driving a
reduction in price discounts for provincial board sales
- SNDL achieved a record gross margin before changes in fair
value of biological assets and changes in fair value realized
through inventory for the Cannabis Operations segment of
$3.6 million, or 31% of segment gross
revenues in the third quarter of 2022 compared to negative
$4.9 million in the third quarter of
2021. The Company also achieved a record gross margin for Cannabis
Operations in the third quarter of 2022 of $0.2 million compared to negative $1.9 million for the three months ended
September 30, 2021, and negative
$4.3 million for the prior quarter.
The increase was driven by pricing, cost and product mix
improvements along with an inventory impairment recovery, which
demonstrates SNDL's progress in implementing supply chain
excellence to drive discipline around cost optimization, despite
intense price compression, higher power costs, and overall cost
inflation.
- The average net selling price to provincial boards for the
third quarter of 2022 was $3.92 per
gram equivalent compared to $3.31 per
gram equivalent for the third quarter of 2021. The price increase
reflects an enhanced product mix strategy and higher-quality
SKUs.
- SNDL exported its first shipment to Israel, expanding its international export
business and closed the transaction to acquire the Zenabis assets
subsequent to the third quarter of 2022
Investments
- As of the end of the third quarter of 2022, the Company had
deployed capital on several cannabis-related investments with a
carrying value of $677.5 million,
including 536.7 million for the SunStream Bancorp Inc. joint
venture ("SunStream").
- For the third quarter of 2022, the investment portfolio
generated interest and fee revenue of $4.3
million, compared to $3.3
million in the third quarter of 2021, share of profit of
equity-accounted investees generated from investments by SunStream
of $9.2 million, compared to
$9.9 million in the third quarter of
2021, and an investment loss of $5.5
million, compared to a loss of $18.0
million in the third quarter of 2021 on marketable
securities, which includes unrealized losses on publicly disclosed
strategic investments in Village Farms International, Inc. and The
Valens Company Inc.
- SunStream's credit portfolio currently consists of six
investments: Jushi Holdings, SKYMINT Brands, Ascend Wellness
Holdings, Parallel, Inc., Columbia Care Inc. and AFC Gamma, Inc.
|
|
Three months
ended
September 30
|
|
|
Nine months
ended
September 30
|
|
($000s)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Interest and fee
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest revenue from
investments at amortized cost
|
|
|
924
|
|
|
|
352
|
|
|
|
2,737
|
|
|
|
793
|
|
Interest and fee
revenue from investments at Fair Value Through Profit or
Loss
|
|
|
1,095
|
|
|
|
2,116
|
|
|
|
3,754
|
|
|
|
6,398
|
|
Interest revenue from
cash
|
|
|
2,293
|
|
|
|
841
|
|
|
|
4,259
|
|
|
|
2,311
|
|
|
|
|
4,312
|
|
|
|
3,309
|
|
|
|
10,750
|
|
|
|
9,502
|
|
Investment
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized
gains
|
|
|
—
|
|
|
|
5,988
|
|
|
|
389
|
|
|
|
18,218
|
|
Unrealized (losses)
gains
|
|
|
(5,513)
|
|
|
|
(23,996)
|
|
|
|
(58,685)
|
|
|
|
(20,964)
|
|
|
|
|
(5,513)
|
|
|
|
(18,008)
|
|
|
|
(58,296)
|
|
|
|
(2,746)
|
|
Revenue from direct
investments
|
|
|
(1,201)
|
|
|
|
(14,699)
|
|
|
|
(47,546)
|
|
|
|
6,756
|
|
Share of profit (loss)
of equity-accounted investees
|
|
|
9,176
|
|
|
|
9,918
|
|
|
|
(24,711)
|
|
|
|
13,642
|
|
Total investment
activities
|
|
|
7,975
|
|
|
|
(4,781)
|
|
|
|
(72,257)
|
|
|
|
20,398
|
|
Consolidated Financial Results
- General and administrative expenses for the three months ended
September 30, 2022 were $44.8 million, compared to $9.6 million for the three months ended
September 30, 2021. The increase of
$35.5 million was mainly due to
increases in salaries and wages and office and general expenses as
a result of the Alcanna and Inner Spirit Holdings Ltd. ("Inner
Spirit") acquisitions.
- Net loss for the three months ended September 30, 2022 was $98.8 million, compared to net income of
$16.7 million for three months ended
September 30, 2021. The increase in
net loss of $115.5 million was
largely due to higher general and administrative expenses
($35.5 million), depreciation and
amortization ($7.2 million), asset
impairment of intangibles and goodwill ($86.5 million), finance costs ($8.3 million) and change in fair value of
derivative warrants ($32.6 million),
partially offset by an increase in gross margin ($48.6 million), lower investment losses
($12.5 million) and transaction costs
($4.9 million).
Liquidity Position
- As at September 30, 2022, and
November 11, 2022, the Company had an
unrestricted cash balance of $291
million and $278 million,
respectively, and a total of 236 million shares outstanding as at
November 11, 2022.
- For the nine months ended September 30,
2022, the Company purchased and cancelled 1.7 million common
shares at a weighted average price of $3.61 (US$2.75) per
common share for a total cost of $6.1
million under its share repurchase program. In the three
months ended September 30, 2022, the
Company purchased and cancelled 1.2 million common shares at a
weighted average price of $3.53
(US$2.64) per common share for a
total cost of $4.1 million under its
share repurchase program. Subsequent to the end of the third
quarter of 2022 an additional 200,000 shares were purchased under
the share repurchase program. SNDL has 101 million shares remaining
under its current buyback program allowing the Company to
repurchase common shares from time to time at prevailing market
prices, enabling SNDL to opportunistically return value to
shareholders. The share repurchase program was set to expire on
November 19, 2022, but on
November 11, 2022, SNDL's board of
directors approved an extension to November
19, 2023.
STRATEGIC AND ORGANIZATIONAL UPDATE
SNDL remains focused on building long-term shareholder value
through vertical integration, accretive deployment of cash
resources, expansion of its retail distribution network, further
streamlining of the Company's operating structure and enhanced
offerings of high-quality brands within both the Cannabis
Operations and Cannabis Retail segments.
Valens Transaction
Valens announced that the special meeting of Valens Shareholders
to vote on the previously announced plan of arrangement between
SNDL and Valens will be held on Tuesday, November 29, 2022,
at 10 a.m. (ET). Shareholders are encouraged to vote well
in advance of the proxy deadline of November 25, 2022.
SPECIFIED FINANCIAL MEASURES
Certain specified financial measures in this news release are
non-IFRS measures. These terms are not defined by IFRS and,
therefore, may not be comparable to similar measures provided by
other companies. These non-IFRS financial measures should not be
considered in isolation or as an alternative for or superior to
measures of performance prepared in accordance with IFRS. These
measures are presented and described in order to provide
shareholders and potential investors with additional measures in
understanding the Company's operating results in the same manner as
the management team.
ADJUSTED EBITDA
Adjusted EBITDA is a non-IFRS measure which the Company uses to
evaluate its operating performance. Adjusted EBITDA provides
information to investors, analysts, and others to aid in
understanding and evaluating the Company's operating results in a
manner similar to its management team. Adjusted EBITDA is
defined as net income (loss) from continuing operations before
finance costs, depreciation and amortization, accretion expense,
income tax recovery and excluding changes in fair value of
biological assets, changes in fair value realized through
inventory, unrealized foreign exchange gains or losses, unrealized
gains or losses on marketable securities, changes in fair value of
derivative warrants, share-based compensation expense, asset
impairment, gain or loss on disposal of property, plant and
equipment and certain one-time non-operating expenses, as
determined by management. The Company presents both
consolidated or total Adjusted EBITDA and Adjusted EBITDA by
operating segment.
OPERATING
SEGMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($000s)
|
Liquor
Retail
|
|
Cannabis
Retail
|
|
Cannabis
Operations
|
|
Investment
|
|
Corporate
|
|
Total
|
|
Three months ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss)
|
|
10,736
|
|
|
(84,848)
|
|
|
(5,686)
|
|
|
10,179
|
|
|
(29,225)
|
|
|
(98,844)
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
2,570
|
|
|
1,142
|
|
|
13
|
|
|
4,684
|
|
|
—
|
|
|
8,409
|
|
Change in estimate of
fair value of derivative warrants
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,500
|
|
|
8,500
|
|
Depreciation and
amortization
|
|
407
|
|
|
2,076
|
|
|
—
|
|
|
—
|
|
|
7,300
|
|
|
9,783
|
|
Income tax
recovery
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,927)
|
|
|
—
|
|
|
(6,927)
|
|
Change in fair value
of biological assets
|
|
—
|
|
|
—
|
|
|
1,899
|
|
|
—
|
|
|
—
|
|
|
1,899
|
|
Change in fair value
realized through inventory
|
|
—
|
|
|
—
|
|
|
1,506
|
|
|
—
|
|
|
—
|
|
|
1,506
|
|
Unrealized foreign
exchange (gain) loss
|
|
(2)
|
|
|
—
|
|
|
(73)
|
|
|
—
|
|
|
—
|
|
|
(75)
|
|
Unrealized (gain) loss
on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,513
|
|
|
—
|
|
|
5,513
|
|
Share-based
compensation
|
|
—
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
1,964
|
|
|
2,069
|
|
Asset
impairment
|
|
—
|
|
|
84,366
|
|
|
2,156
|
|
|
—
|
|
|
—
|
|
|
86,522
|
|
Loss (gain) on
disposition of PP&E
|
|
(4)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6)
|
|
Cost of sales non-cash
component (1)
|
|
—
|
|
|
—
|
|
|
1,861
|
|
|
—
|
|
|
—
|
|
|
1,861
|
|
Inventory
impairment
(recovery) and obsolescence
|
|
—
|
|
|
—
|
|
|
(2,307)
|
|
|
—
|
|
|
—
|
|
|
(2,307)
|
|
Transaction costs
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
417
|
|
|
417
|
|
Adjusted
EBITDA
|
|
13,707
|
|
|
2,839
|
|
|
(631)
|
|
|
13,449
|
|
|
(11,044)
|
|
|
18,320
|
|
(1) Cost of sales
non-cash component is comprised of depreciation expense
|
|
(2) Transaction costs
relate to financing activities
|
|
OPERATING
SEGMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($000s)
|
Liquor
Retail
|
|
Cannabis
Retail
|
Cannabis
|
Operations
|
|
Investment
|
|
Corporate
|
|
Total
|
|
Three months
ended
September 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss)
|
|
—
|
|
|
14,979
|
|
|
(10,177)
|
|
|
(6,012)
|
|
|
17,918
|
|
|
16,708
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
—
|
|
|
115
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
135
|
|
Change in estimate of
fair value of derivative warrants
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,100)
|
|
|
(24,100)
|
|
Depreciation and
amortization
|
|
—
|
|
|
1,709
|
|
|
660
|
|
|
—
|
|
|
262
|
|
|
2,631
|
|
Income tax
recovery
|
|
—
|
|
|
(15,701)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,701)
|
|
Change in fair value
of biological assets
|
|
—
|
|
|
—
|
|
|
(2,975)
|
|
|
—
|
|
|
—
|
|
|
(2,975)
|
|
Change in fair value
realized through inventory
|
|
—
|
|
|
—
|
|
|
(15)
|
|
|
—
|
|
|
—
|
|
|
(15)
|
|
Unrealized foreign
exchange (gain) loss
|
|
—
|
|
|
—
|
|
|
(2,071)
|
|
|
—
|
|
|
—
|
|
|
(2,071)
|
|
Unrealized (gain) loss
on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,996
|
|
|
—
|
|
|
23,996
|
|
Share-based
compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,869
|
|
|
1,869
|
|
Cost of sales non-cash
component (1)
|
|
—
|
|
|
—
|
|
|
915
|
|
|
—
|
|
|
—
|
|
|
915
|
|
Inventory impairment
and obsolescence
|
|
—
|
|
|
—
|
|
|
3,871
|
|
|
—
|
|
|
—
|
|
|
3,871
|
|
Transaction costs
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,276
|
|
|
5,276
|
|
Adjusted
EBITDA
|
|
—
|
|
|
1,102
|
|
|
(9,772)
|
|
|
17,984
|
|
|
1,225
|
|
|
10,539
|
|
(1) Cost of sales
non-cash component is comprised of depreciation expense
|
|
(2) Transaction costs
relate to financing activities
|
|
This press release is intended to be read in conjunction with
the Company's Financial Statements and Notes for the period ended
September 30, 2022 and year ended
December 31, 2021 and the
accompanying Management's Discussion and Analysis ("MD&A").
These reports are available under the Company's profile on SEDAR at
www.sedar.com and EDGAR at www.sec.gov/edgar.shtml.
CONFERENCE CALL
The Company will hold a conference call and webcast at
10:30 a.m. EST (8:30 a.m. MST) on Monday,
November 14, 2022.
WEBCAST ACCESS
To access the live webcast of the call, please visit the
following link:
https://services.choruscall.ca/links/sndl2022q3.html
REPLAY
A telephone replay will be available for one month. To access
the replay, dial:
Canada/USA Toll Free: 1-800-319-6413 or International
Toll: +1-604-638-9010
When prompted, enter Replay Access Code: 9541 #
The webcast archive will be available for three months via the link
provided above.
ABOUT SNDL INC.
SNDL is a public company whose shares are traded on Nasdaq under
the symbol "SNDL."
SNDL is the largest private sector liquor and cannabis retailer
in Canada with retail banners that
include Ace Liquor, Wine and Beyond, Liquor
Depot, Value Buds, and Spiritleaf. SNDL is a
licensed cannabis producer that uses state-of-the-art indoor
facilities to supply wholesale and retail customers under a
cannabis brand portfolio that includes Top Leaf, Sundial
Cannabis, Palmetto, Spiritleaf Selects,
Re-Up, Namaste, Value Buds and
Grasslands. SNDL's investment portfolio seeks to deploy
strategic capital through direct and indirect investments and
partnerships throughout the global cannabis industry.
For more information on SNDL, please go
to www.sndl.com.
Forward-Looking Information
Cautionary Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"), including, but not
limited to, statements regarding the Company's operational goals,
demand for the Company's products, the Company's ability to achieve
profitability or its goal of sustainable, positive gross margin and
positive free cash flow, the development of the legal cannabis
industry, performance of the Company's investments, including
through the SunStream joint venture, any potential forms of
shareholder value creation, , and the expansion of product
offerings, brand and market share and retail networks, and the
closing, integration and realization of expected benefits of, as
applicable, the acquisition of The Valens Company, Zenabis and
Superette. Forward-looking statements are frequently characterized
by words such as "plan", "continue", "expect", "project", "intend",
"believe", "anticipate", "estimate", "likely", "outlook",
"forecast", "may", "will", "potential", "proposed" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. These statements are only predictions.
Various assumptions were used in drawing the conclusions or making
the projections contained in the forward-looking statements
throughout this news release. Forward-looking statements are based
on the opinions and estimates of management at the date the
statements are made and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. Please see "Item 3.D.—Risk Factors" in
the Company's annual report on Form 20-F, filed with the Securities
and Exchange Commission ("SEC") on April 28,
2022, and the risk factors included in our other SEC filings
for a discussion of the material risk factors that could cause
actual results to differ materially from the forward-looking
information. The Company is under no obligation, and expressly
disclaims any intention or obligation, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by
applicable law.
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SOURCE Sundial Growers Inc.