Sundial(US:SNDL)2024-03-21 14:11Financial Performance - Gross revenue for the year ended December 31, 2023, was CAD 957,725 thousand, an increase of 31.2% from CAD 729,694 thousand in 2022[30] - Net revenue for 2023 was CAD 909,006 thousand, up 27.7% from CAD 712,197 thousand in 2022[30] - The company reported a net loss of CAD 176,551 thousand for 2023, compared to a net loss of CAD 372,428 thousand in 2022, indicating a 52.7% improvement[30] - The company experienced a gross profit of CAD 190,415 thousand in 2023, compared to CAD 140,375 thousand in 2022, reflecting a 35.7% increase[30] - Adjusted EBITDA from continuing operations for the year was $29,205,000, with liquor retail contributing $61,739,000 and cannabis retail operations showing a loss of $12,425,000[37] - The total operating loss for the year ended December 31, 2023, was $162,818,000, primarily driven by cannabis operations which reported a loss of $112,445,000[41] - Adjusted operating income for the year ended December 31, 2023, was a loss of $97,675,000, with liquor retail showing a positive adjusted operating income of $24,630,000[41] - The company incurred restructuring costs of $19,573,000 for the year ended December 31, 2023, impacting overall profitability[41] - Depreciation and amortization expenses for the year totaled $60,216,000, with liquor retail accounting for $35,662,000[36] Cash Flow and Liquidity - Cash and cash equivalents at the end of 2023 were CAD 195,041 thousand, a decrease of 30.3% from CAD 279,586 thousand at the end of 2022[33] - Free cash flow for Q4 2023 was $1.383 million, a decrease of 87% compared to $10.584 million in Q4 2022[44] - Full-year free cash flow for 2023 was negative at $(60.883) million, compared to $(31.900) million in 2022[44] - The change in cash and cash equivalents for Q4 2023 was $(6.942) million, an improvement from $(11.841) million in Q4 2022[44] - Total cash used for common share repurchases in 2023 was $1.536 million, down from $13.390 million in 2022[44] - Cash provided by long-term investments in Q4 2023 was $8.325 million, compared to $17.693 million in Q4 2022[44] - The company had no cash used for acquisitions in Q4 2023, while it recorded $(2.509) million in Q4 2022[44] - Total cash used for changes to debt instruments was $0 in 2023, compared to $10 million in 2022[44] - The company reported a total change in cash and cash equivalents of $(84.545) million for the full year 2023, an improvement from $(278.665) million in 2022[44] - The company aims to enhance its financial performance by focusing on free cash flow as a key metric for investors[43] - The company continues to evaluate its operational cash flows by excluding non-operational cash uses in its free cash flow calculation[43] Strategic Initiatives - The company aims to achieve sustainable, positive gross margins and positive free cash flow in the future[28] - The company plans to expand its product offerings, including the expected expansion of its wine private label[28] - The company is focused on strategic capital deployment through investments and partnerships in the North American cannabis industry[27] Asset Management - Total assets decreased to CAD 1,473,164 thousand as of December 31, 2023, down from CAD 1,559,350 thousand in 2022[31] - The company recognized an asset impairment of $54,967,000, with cannabis operations contributing significantly to this figure[37] - For the year ended December 31, 2023, the total net loss from continuing operations was $172,016,000, with significant losses in cannabis operations amounting to $112,159,000[36] Other Financial Metrics - The company reported a net loss of $85,423,000 for the three months ended December 31, 2023, with cannabis retail operations incurring a loss of $65,434,000[37] - For the three months ended December 31, 2023, the company reported an adjusted EBITDA of $3,479,000, with liquor retail contributing $17,812,000[38] - The change in fair value of biological assets resulted in a gain of $7,936,000 for the year, indicating potential growth in cannabis operations[37]