Cannabis stocks are notching their second day of gains after the Drug Enforcement Administration confirmed it’s reviewing an August recommendation from the U.S. Department of Health and Human Services (HHS) to change the classification of marijuana to Schedule III from Schedule I under the Controlled Substances Act. In a letter to Rep. Earl Blumenauer, Democrat of Oregon, the DEA said it has “final authority” to make any rescheduling decisions. The Schedule III classification would potentially eliminate th ...

Aurora Cannabis (ACB -3.01%) stock capped off yet another bad year in 2023, with its shares falling by more than 45%. But this isn't new for investors; Aurora has consistently been a bad buy. This marks the sixth consecutive year that Aurora's stock has fallen by at least 30%. It's a painful but important reminder to investors that just because a stock has declined significantly doesn't mean it's due for a recovery -- or can't fall still more. For Aurora to turn things around for investors, it needs to be a ...

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Financial Data and Key Metrics Changes - Total net revenue increased by 30% in Q2, reaching $63.4 million compared to $48 million in the same period last year [18][19] - Adjusted EBITDA grew to $3.4 million, marking a $9.6 million improvement year-over-year and the highest result on record [7][18] - Adjusted gross margin held steady at 51%, with medical cannabis adjusted gross margin at 63% [19][20] Business Line Data and Key Metrics Changes - Medical cannabis segment revenue rose by 42% to $43.8 million, with international medical revenue up 126% to $18.4 million [18][19] - Canadian medical cannabis revenue increased by 11% to $25.4 million [19] - Consumer cannabis net revenue decreased by 8% to $12 million, attributed to the exit from the U.S. CBD business and timing of new product launches [20] Market Data and Key Metrics Changes - In Canada, Aurora maintained its leadership position in the medical cannabis market, benefiting from a broad product assortment and innovation [8][9] - In Germany, Aurora is one of only three companies with a production facility, and the market is expected to expand significantly with potential de-scheduling of cannabis [11][48] - In Poland, Aurora held the number one market position by volume in Q2, leveraging regulatory expertise [11] - Australia is anticipated to become the largest medical cannabis market outside the U.S., with significant sales volumes driven by clinician education [12][43] Company Strategy and Development Direction - The company is focused on innovation and plans to launch a steady stream of new products in Canada, which will also inform international market launches [9] - Aurora aims to achieve positive free cash flow in calendar 2024, supported by a strong balance sheet and reduced debt [8][16] - The company is diversifying its business model by leveraging Bevo's plant propagation business, which is expected to double revenue and EBITDA over the next two to three years [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing disruption in the Canadian marketplace and the potential for growth in medical cannabis [8][9] - The company is optimistic about the legislative changes in Germany that could expand the medical market significantly [48] - Management emphasized the importance of maintaining profitability and focusing on high-margin medical cannabis products [56] Other Important Information - The company has reduced its debt by approximately $531 million over the last three years, with plans to pay off the remaining convertible senior notes by the end of fiscal Q4 [17][26] - The company is committed to achieving $40 million in annualized savings by the end of the fiscal year [16][22] Q&A Session Summary Question: Update on Bevo's revenue doubling target - Management refrained from providing specific guidance but expressed confidence in Bevo's potential for expansion based on early market feedback [28][30] Question: Strategic fit of Tasty's launch - Management explained that Tasty's is designed to leverage existing resources without detracting from higher-margin medical cannabis, focusing on high potency infused pre-rolls and vapes [32][34] Question: Exit from the Netherlands and update on France - Management cited production cost advantages and regulatory challenges as reasons for exiting the Netherlands, while providing an update on the pilot program in France [37][39] Question: Australia's potential as a large medical market - Management highlighted the nascent nature of the Australian market and provided insights into market size projections based on prescription data [42][44] Question: German market outlook and recreational cannabis - Management expressed optimism about the medical market in Germany and the potential for legislative changes, while noting that recreational cannabis developments may take longer [46][48] Question: Improvement in gross margins - Management attributed margin improvements to higher medical cannabis sales and operational efficiencies, alongside increased yields from production [51][53]

Financial Performance - Total revenue for the three months ended September 30, 2023, was CAD 70,482 thousand, an increase of 27.8% compared to CAD 55,120 thousand in the same period of 2022[6]. - Net revenue for the six months ended September 30, 2023, reached CAD 138,451 thousand, up 39.6% from CAD 99,187 thousand in the same period of 2022[6]. - Gross profit before fair value adjustments for the three months ended September 30, 2023, was CAD 18,726 thousand, significantly higher than CAD 1,375 thousand in the same period of 2022[6]. - The company reported a net loss of CAD 2,127 thousand for the three months ended September 30, 2023, compared to a net loss of CAD 51,886 thousand in the same period of 2022[6]. - The comprehensive loss for the six months ended September 30, 2023, was $29,522 thousand, compared to a comprehensive loss of $672,728 thousand for the same period in 2022, indicating a reduction of approximately 95.6%[9]. - The net loss attributable to Aurora shareholders for the six months ended September 30, 2023, was $27.42 million, a significant improvement from a loss of $670.39 million in the same period of 2022[71]. Operational Metrics - The company reported a loss from operations of CAD 11,047 thousand for the three months ended September 30, 2023, an improvement from a loss of CAD 49,821 thousand in the same period of 2022[6]. - The company incurred research and development expenses of CAD 946 thousand for the three months ended September 30, 2023, compared to CAD 1,170 thousand in the same period of 2022[6]. - The company reported a depreciation of property, plant, and equipment of $7,255,000 for the three months ended September 30, 2023, down from $9,339,000 in the same period last year[19]. - The company recognized impairment losses of CAD 20.0 million for the three months ended September 30, 2023, a decrease of 57.8% compared to CAD 47.5 million in the same period of 2022[43]. Assets and Liabilities - Total assets decreased to CAD 818,371 thousand as of September 30, 2023, down from CAD 926,322 thousand as of March 31, 2023[4]. - Total liabilities decreased to CAD 269,323 thousand as of September 30, 2023, compared to CAD 409,185 thousand as of March 31, 2023, reflecting a reduction of 34.2%[4]. - Cash and cash equivalents decreased to CAD 128,917 thousand as of September 30, 2023, from CAD 234,942 thousand as of March 31, 2023[4]. - The total carrying value of property, plant, and equipment as of September 30, 2023, was CAD 306,840,000, down from CAD 322,969,000 on March 31, 2023[46]. Shareholder Information - Shareholders' equity attributable to Aurora Cannabis Inc. increased to CAD 503,781 thousand as of September 30, 2023, from CAD 486,076 thousand as of March 31, 2023[4]. - The total shares outstanding increased from 345,269,310 as of March 31, 2023, to 420,609,141 as of September 30, 2023, reflecting an increase of approximately 21.8%[13]. - Basic loss per share for continuing operations was $0.00 for the three months ended September 30, 2023, compared to a loss of $0.15 in the same period of 2022[71]. Revenue Sources - Canadian Cannabis segment net revenue for the three months ended September 30, 2023, was CAD 46.567 million, up from CAD 37.865 million in the same period of 2022, reflecting a growth of about 23.5%[94]. - Approximately CAD 6.7 million of net revenue for the three months ended September 30, 2023, came from Customer F in the Canadian Cannabis segment, contributing over 10% to the Company's net revenue[97]. - For the six months ended September 30, 2023, net revenues of approximately CAD 18.3 million were generated from Customer G in the Plant Propagation segment, which was a new contributor compared to the same period in 2022[98]. Cash Flow and Financing - Cash used in operating activities for the three months ended September 30, 2023, was $30,882,000, compared to $31,138,000 in the prior year, indicating a slight reduction in cash outflow[19]. - Net cash used in investing activities for the three months ended September 30, 2023, was $3,979,000, a significant decrease from $41,931,000 in the same period last year, suggesting improved cash management[19]. - Proceeds from long-term loans amounted to $3,982,000 for the three months ended September 30, 2023, compared to $842,000 in the same period last year, indicating increased financing activity[19]. - The Company closed a bought deal offering of 53,187,500 common shares at $0.73 per share, resulting in net proceeds of approximately $36.7 million[118]. Discontinued Operations - The net loss from discontinued operations for the three months ended September 30, 2023, was $(2.4) million compared to $(6.4) million in the same period of 2022[55]. - Discontinued operations reported a revenue of $120,000 for the three months ended September 30, 2023, down from $615,000 in the same period of 2022[55]. Government Grants and Provisions - The company recorded a government grant income of $12.55 million during the three months ended September 30, 2023, with no corresponding income in the same period of 2022[72]. - The Company recognized a $1.3 million provision for expected credit losses as of September 30, 2023, down from $3.4 million as of March 31, 2023[107].

Financial Data and Key Metrics Changes - Aurora Cannabis reported a net revenue of $75.1 million for Q1 fiscal 2024, up from $50.1 million in the same period last year, marking a significant growth across all business units [18][19] - The company achieved the highest adjusted EBITDA of $2.2 million in three years, demonstrating a positive trend in financial performance [18][28] - Adjusted gross margin for medical cannabis was 61%, consistent with the target range but down from 67% a year ago due to a higher volume of lower-margin international bulk exports [20] Business Line Data and Key Metrics Changes - The global medical cannabis business generated $41.6 million in revenue, with international medical revenue reaching $16.2 million, up 40% year-over-year [18][20] - Consumer cannabis net revenue was $13.2 million, reflecting a 5% increase from the previous year, despite a partial quarter of sales for a popular product [21] - Bevo, the plant propagation business, contributed $19.9 million in net revenue, an 85% sequential increase, marking its best quarter to date [22] Market Data and Key Metrics Changes - The Australian medical cannabis market is estimated to be about the same size as the Canadian medical market, around $400 million in annual revenue, with expectations for rapid growth [32][50] - Aurora's leadership in the medical cannabis market is supported by strong gross margins and market share positions in Canada, Europe, and Australia [28] Company Strategy and Development Direction - The company is focused on diversifying revenue streams beyond cannabis, with significant investments in plant propagation through Bevo, which is expected to double its revenue and cash flow in the next two to three years [9][10] - Aurora plans to introduce approximately 75 new products to the Canadian market in the coming quarters, aiming to enhance its product assortment and patient experience [12][28] - The company is committed to achieving further cost efficiencies, targeting an additional $40 million in annual savings during fiscal 2024 [16][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating positive free cash flow in calendar 2024, supported by improved operational efficiencies and a strong product pipeline [24][28] - The company is optimistic about the potential regulatory changes in Europe, particularly in Germany and France, which could significantly expand the medical cannabis market [15][50] - Management highlighted the importance of maintaining high-quality standards and EU GMP certification as a competitive advantage in international markets [34] Other Important Information - Over the past three years, Aurora has reduced its convertible debt from $531 million to approximately $63 million, showcasing prudent fiscal management [11] - The company has closed less efficient operations, including the Aurora Nordic facility and the US CBD business, which is expected to positively impact cash flows and margins [24] Q&A Session Summary Question: Growth in Australia and its impact on international medical cannabis segment gross margin - Management noted that the Australian market is growing rapidly, but margins may be lower compared to other markets due to less integration [32][33] Question: Magnitude of margin improvements in medical cannabis - Management indicated that margin improvements will be driven by transitioning services to Canadian facilities, which are more efficient [36][39] Question: Bevo's revenue comparison to prior owners - Management stated that Bevo's revenue has increased significantly since acquisition, with current run rates in the $45 million to $50 million range [40] Question: Future SG&A spending - Management confirmed the target of keeping SG&A below $30 million while continuing to invest in R&D and innovation [43][46] Question: Legalization of recreational cannabis in Australia - Management expressed that while there are discussions around legalization, it is not actionable at the moment, and they see significant upside in the medical market [48][50] Question: Sustainability of growth in Australia compared to Israel - Management highlighted differences in market size and regulatory stability, expressing more optimism for sustainable growth in Australia [53][56]

Financial Performance - Revenue for the three months ended June 30, 2023, was CAD 81,576,000, a 42.1% increase from CAD 57,455,000 in the same period of 2022[7] - Net revenue for the same period was CAD 75,110,000, up 49.9% from CAD 50,116,000 year-over-year[7] - Gross profit for the quarter was CAD 25,035,000, compared to CAD 7,130,000 in the prior year, reflecting a significant improvement[7] - The company reported a net loss of CAD 28,331,000 for the three months ended June 30, 2023, a decrease from a net loss of CAD 618,776,000 in the same quarter of 2022[10] - The net loss from continuing operations for the three months ended June 30, 2023, was $22,204,000, a significant improvement compared to a loss of $617,021,000 in the same period of 2022[17] - The company reported a total comprehensive loss of $26,898,000 for the period ending June 30, 2023[13] - The net loss attributable to Aurora shareholders for the three months ended June 30, 2023, was $26.9 million, compared to a loss of $618.8 million in the same period of 2022[75] - The company reported a net loss before taxes and discontinued operations of $22.108 million for the three months ended June 30, 2023, compared to a net loss of $618.384 million in the same period of 2022[86] Assets and Liabilities - Total assets decreased to CAD 832,188,000 as of June 30, 2023, down from CAD 926,322,000 at the end of March 2023[4] - Total liabilities were CAD 324,256,000 as of June 30, 2023, a reduction from CAD 409,185,000 at the end of the previous quarter[4] - Cash and cash equivalents decreased to CAD 157,855,000 from CAD 234,942,000 in the previous quarter[4] - The company’s total liabilities included accounts payable and accrued liabilities of $62.482 million as of June 30, 2023[90] - Non-current assets, excluding financial instruments, totaled $402.021 million as of June 30, 2023, compared to $417.150 million as of March 31, 2023[86] Cash Flow and Liquidity - The net cash used in operating activities for the three months ended June 30, 2023, was $11,237,000, an improvement from $26,642,000 in the same period of 2022[17] - The company has $1.5 million in future capital commitments due over the next 12 months[82] - The company’s cash and cash equivalents amounted to $157.855 million as of June 30, 2023[90] - The company believes its current liquidity position and access to the 2023 Shelf Prospectus are adequate to fund operating activities for the foreseeable future[98] - The company's primary short-term liquidity needs include funding net operating losses and lease payments[98] Inventory and Production - The total inventory as of June 30, 2023, was $103.008 million, a decrease from $106.132 million as of March 31, 2023, reflecting a 2.0% decline[36] - During the three months ended June 30, 2023, the inventory expensed to cost of goods sold was $64.4 million, down from $67.6 million in the same period of 2022[36] - The company produced 9,585 kilograms of dried cannabis, down from 16,109 kilograms in the same period of 2022[32] - The average selling price per gram of dried cannabis was CAD 5.05 as of June 30, 2023, with a potential impact of CAD 3,738 thousand on fair value for a CAD 1.00 change[32] - The weighted average yield per plant was 57.18 grams, with a sensitivity impact of CAD 1,247 thousand for a 5-gram change[32] Shareholder Information - The company issued 366,542,893 Common Shares as of June 30, 2023, an increase from 345,269,310 shares on March 31, 2023[56] - The weighted average number of common shares outstanding increased to 353,558,623 in Q2 2023 from 249,046,668 in Q2 2022[75] - The average exercise price of outstanding warrants decreased from CAD 7.09 to CAD 6.89 between March 31, 2023, and June 30, 2023[57] Expenses and Cost Management - The company incurred general and administrative expenses of CAD 21,874,000, down from CAD 30,139,000 in the same quarter of 2022[7] - Depreciation expense for the three months ended June 30, 2023, was $9.8 million, down from $14.5 million in the same period of 2022[39] - Share-based compensation for the three months ended June 30, 2023, amounted to $2,281,000, down from $3,472,000 in the same period of 2022[17] Future Outlook - The company’s future outlook includes continued focus on market expansion and product development to drive revenue growth[6] - The company has access to a 2023 Shelf Prospectus covering US$650.0 million of issuable securities, with approximately US$241 million available for potential new issuances[98]

Aurora Cannabis Inc. (NASDAQ:ACB) Q3 2023 Earnings Call Transcript June 14, 2023 8:15 AM ET Company Participants Ananth Krishnan - Vice President, Corporate Development and Strategy Miguel Martin - Chief Executive Officer & Director Glen Ibbott - Chief Financial Officer Conference Call Participants Michael Lavery - Piper Sandler Frederico Gomes - ATB Capital Markets Pablo Zuanic - Zuanic & Associates Robin Holby - TD Cowen Tamy Chen - BMO Capital Markets John Zamparo - CIBC Operator Greetings. Welcome to th ...

[Aurora Cannabis Inc. Press Release - March 30, 2023](index=1&type=section&id=Aurora%20Cannabis%20Inc.%20Press%20Release%20-%20March%2030%2C%202023) [Financial Transaction: Convertible Note Repurchase](index=1&type=section&id=Financial%20Transaction%3A%20Convertible%20Note%20Repurchase) Aurora Cannabis repurchased approximately **$46.6 million** principal of convertible senior notes for **$45.6 million** cash, achieving **$2.6 million** in annualized interest savings and leaving **$103 million** outstanding Convertible Note Repurchase Details | Metric | Amount (CAD) | Amount (USD) | | :--- | :--- | :--- | | **Principal Repurchased** | ~$46.6 million | ~$34.3 million | | **Total Cost (incl. interest)** | $45.6 million | $33.6 million | | **Annualized Interest Savings** | $2.6 million | - | | **Remaining Principal** | ~$103 million | ~$76 million | - The repurchase of the notes was executed at a **2.5% discount** to their par value[2](index=2&type=chunk) [Strategic Rationale and Financial Position](index=1&type=section&id=Strategic%20Rationale%20and%20Financial%20Position) Aurora's note repurchase strategy aims to reduce debt and interest costs, having cumulatively repurchased **$366 million** in notes for **$20 million** in annual savings, reinforcing financial discipline and focus on profitable growth - The primary purpose of the transaction was to **reduce the Company's debt and annual cash interest costs**, reinforcing its commitment to financial discipline[2](index=2&type=chunk) Cumulative Repurchases Since December 2021 | Metric | Amount (CAD) | Amount (USD) | | :--- | :--- | :--- | | **Total Principal Repurchased** | ~$366 million | ~$269 million | | **Total Annual Interest Savings** | ~$20 million | ~$15 million | - Aurora achieved its goal of **Adjusted EBITDA Profitability** for the quarter ended **December 31, 2022**, and expects to continue focusing on profitable growth in global medical and Canadian adult use markets[2](index=2&type=chunk) [Company Overview](index=1&type=section&id=About%20Aurora) Aurora is an Edmonton-based global cannabis company serving medical and consumer markets, with a diverse brand portfolio and a controlling interest in Bevo Farms Ltd., trading on NASDAQ and TSX under 'ACB' - Aurora operates in both the **medical and consumer cannabis markets** with a **portfolio of brands** including Aurora Drift, San Rafael '71, Daily Special, Whistler, MedReleaf, and CanniMed[4](index=4&type=chunk) - The company holds a **controlling interest in Bevo Farms Ltd.**, **North America's leading supplier** of propagated agricultural plants[4](index=4&type=chunk) - Aurora's common shares are traded on the **NASDAQ** and **TSX** exchanges under the ticker symbol **"ACB"**[5](index=5&type=chunk) [Forward-Looking Statements and Risk Factors](index=1&type=section&id=Forward%20Looking%20Statements) This section outlines forward-looking statements concerning financial discipline, interest savings, balance sheet strength, and profitable growth, cautioning that these are subject to various risks and uncertainties detailed in the company's Annual Information Form (AIF) - Key forward-looking statements include the Company's commitment to **financial discipline**, **future interest savings**, **balance sheet strength**, and **continued focus on profitable growth**[6](index=6&type=chunk) - These statements are subject to a variety of **risks and uncertainties** that could cause actual results to differ materially; a comprehensive list is available in the Company's **annual information form** dated September 20, 2022 (the "AIF")[7](index=7&type=chunk) - The Company **disclaims any intention or obligation to update or revise** any forward-looking statements, except as required by applicable securities law[7](index=7&type=chunk)