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Neptune Announces Fourth Quarter Results

LAVAL, QC, Jun 12, 2019 (Canada NewsWire via COMTEX) --

Initiates Expansion of Extraction Capacity to 1,500,000 kg Along With Additional Packaging and Finished Forms CapabilitiesCreates a One-Stop Shop for Licenced Cannabis Producers

Fiscal Year 2019 and Fourth Quarter Financial Highlights:

    --  Neptune began commercial production and shipping of cannabis
        extracts during the last weeks of the fourth quarter, recording
        its first cannabis revenues.
    --  Nutraceutical revenues of $24.4 million for fiscal year ended
        March 31, 2019, were stable with last year (excluding krill oil
        manufacturing business); revenues of $5.7 million in the fourth
        quarter of fiscal 2019 decreased versus $7.0 million for the
        fourth quarter of fiscal 2018.
    --  Net loss of $23.2 million for the fiscal year ended March 31,
        2019, versus a net income of $20 million for the fiscal year
        ended March 31, 2018; net loss of $12.4 million in the fourth
        quarter of fiscal 2019 versus a net loss of $4.8 million in the
        fourth quarter of fiscal 2018; variation reflecting litigation
        provisions of $7.9 million in the fourth quarter of fiscal
        2019, gain on sale of assets and a gain on loss of control of a
        subsidiary totalling $32.5 million in the fourth quarter of
        fiscal 2018.
    --  Non-IFRS operating loss(1) was $8.1 million for the fiscal year
        ended March 31, 2019, compared with a loss of $2.6 million in
        the fiscal year ended March 31, 2018; a non-IFRS operating loss
        (1) of $2.7 million in the fourth quarter of 2019 compared to a
        non-IRFS operating loss of $1.8 million in the fourth quarter
        of fiscal year 2018.


Subsequent to Quarter-end:

    --  Neptune's Board of Directors approved an $11 million investment
        to increase extraction capacity from 200,000 kg to 1,500,000 kg
        and to establish formulation, manufacturing and packaging
        capabilities in preparation for new product forms currently
        expected to be authorized by Health Canada this fall.
    --  Neptune signed a three-year contract with The Green Organic
        Dutchman ("TGOD") for a minimum of 230,000 kg of cannabis and
        hemp biomass. Neptune will provide extraction services as well
        as turnkey packaging solutions to TGOD covering a range of
        finished products.
    --  Neptune signed a contract with Tilray Inc. for the extraction
        of cannabinoids from cannabis and hemp biomass. Tilray has
        committed to provide minimum biomass volumes of 125,000 kg over
        a three-year period.
    --  Neptune announced a definitive agreement to acquire the assets
        of SugarLeaf Labs a U.S.-based hemp processor with an
        extraction capacity of 1,500,000 kg. SugarLeaf will provide
        Neptune with a platform to capture the significant CBD wellness
        opportunity in the U.S.


LAVAL, QC, June 12, 2019 /CNW Telbec/ - Neptune Wellness Solutions Inc. ("Neptune" or the "Corporation") (NASDAQ: NEPT) (TSX: NEPT), today announced it's financial and operating results for the 3-month period and full year ended March 31, 2019. All amounts are in Canadian dollars.

Management Commentary

"Fiscal 2019 was a pivotal year for Neptune, with our team's efforts recently culminating in material contract announcements and a U.S.-based acquisition. Reflecting on the last year, I am proud of what we have accomplished, building a powerful, differentiated value proposition and even more excited about what our expanded talent team will accomplish in the current year to accelerate our growth in the developing global cannabis marketplace," stated Jim Hamilton, CEO of Neptune. "Looking into this fiscal year and beyond, we are in the enviable position of having more contracted demand in hand than our approved capacity can satisfy. The capacity amendments and security clearance applications we have submitted to Health Canada, when approved, will alleviate the constraints we are currently facing and support our growth. In addition, the expansion plans just approved by our Board of Directors will increase our available processing capability and broaden our service offering to transform Neptune into a one-stop shop for Licenced Cannabis Producers. We are also pursuing our EU GMP certification as well as our organic certification, both of which should unlock incremental markets and revenue opportunities." "In summary, we are on track to achieve positive EBITDA this year, and on the threshold of creating a profitable, cash-generating business model. With the largest extraction facility in Canada, with a licence, and a transaction pending for a second facility in the United States, multiple supply partnerships now in hand, and solid and growing relationships with new clients, we are on our way to realizing our objective to become the global leader in cannabis extraction."

Financial Results Highlights

Cannabis investments were initiated during the three-month period ended December 31, 2017. Therefore, 6 months of cannabis results are included in the comparative results indicated below. The fourth quarter ended March 31, 2018, does not include any financial results of Acasti.

Fourth Quarter Financial Results

    --  Revenues decreased to $5.7 million for the three-month period
        ended March 31, 2019, versus revenues of $6.8 million for the
        three-month period ended March 31, 2018. Neptune began
        commercial production and shipping of cannabis extracts during
        the last weeks of the fourth quarter, recording its first
        cannabis revenues.
    --  Net loss was $12.4 million for the current quarter, versus $4.8
        million for the three-month period ended March 31, 2018,
        reflecting litigation provisions of $7.9 million in the current
        quarter.
    --  Non-IFRS operating loss(1) was $2.7 million for the current
        quarter, compared to $1.8 million for the three-month period
        ended March 31, 2018.


Year Ended Financial Results

    --  Revenues reached $24.4 million for the fiscal year ended March
        31, 2019, versus revenues of $24.4 million for the fiscal year
        ended March 31, 2018, when excluding the krill oil
        manufacturing business sold on August 7, 2017.
    --  Net loss was $23.2 million for the fiscal year ended March 31,
        2019, versus a net income of $20.0 million for the fiscal year
        ended March 31, 2018. The net loss for the year ended March 31,
        2019, includes litigation provisions of $7.9 million. The net
        income for the year ended March 31, 2018, includes a gain on
        sale of assets of $23.7 million, a gain on loss of control of a
        subsidiary of $8.8 million, derecognition of tax credits of
        $1.9 million, an income taxes recovery of $1.6 million and an
        impairment loss on inventories of $2.4 million.
    --  Non-IFRS operating loss(1) was $8.1 million for the fiscal year
        ended March 31, 2019, compared to $2.6 million for the fiscal
        year ended March 31, 2018. The variation of $5.5 million
        principally relates to the investment in the cannabis business.


Consolidated Results

The Corporation realized a net loss for the three-month period ended March 31, 2019, of $12.4 million compared to $4.8 million for the three-month period ended March 31, 2018, an increase of $7.6 million. The Corporation realized a net loss for the year ended March 31, 2019, of $23.2 million compared to a net income of $9.3 million for the year ended March 31, 2018, an increase of $32.5 million. The net income was $20 million before consideration of Acasti's net loss for the year ended March 31, 2018.

Cash and cash equivalents were $9.8 million as at March 31, 2019. Neptune is evaluating options to fund its growth with a focus on prudence and minimizing equity dilution.

Phase IIIA Extraction Capacity Expansion

In April 2019, Neptune finalized its Phase II ethanol-based extraction capacity expansion to 200,000 kg at the Corporation's facility in Sherbrooke, Québec, which is awaiting licence amendment approval from Health Canada. With the recent extraction contract announcements, Neptune's capacity for Phase II is already fulfilled for both fiscal 2020 and 2021. Therefore, in June, Neptune's Board of Directors approved the Phase IIIA extraction capacity expansion which, once completed, will add 1,300,000 kg of ethanol extraction capacity for a total extraction capacity of 1,500,000 kg in Canada. This capacity expansion is necessary to support the execution of Neptune's growth strategy to become the global leader in cannabis extraction and purification.

A staggered capacity expansion strategy has been chosen to accelerate our time to market. The Phase IIIA expansion reduces our commercialization timeframe significantly versus a full capacity expansion to 6,000,000 kg. Neptune will revisit further expansion plans as the global market evolves and demand for cannabis and hemp extracts increase. The projected investment required to complete the Phase IIIA expansion is $4 million, providing the Corporation with a very attractive return on investment. The extraction equipment already installed reduces greatly our investment needs and time to market. Phase IIIA is expected to be completed before the end of calendar year 2019.

Establishing Turnkey Formulation and Packaging Solutions

Neptune's strategic plan is to provide differentiated, value added services to its clients. To service newly signed commercial agreements, which include formulation and packaging services, and to deepen its relationships with Licenced Producers, the Corporation is establishing turnkey packaging solutions capabilities. Neptune's Board of Director approved an investment of $7 million to establish additional formulation, manufacturing and packaging infrastructure. This investment will allow Neptune to provide formulation services for new expected product forms such as vape pens, topicals, beverages, sprays and others, which are expected to take into effect this fall under new Health Canada regulations.

Neptune will also have filling, packaging and labeling abilities in order to become a one-stop shop for Licensed Cannabis Producers in addition to our existing capabilities with capsules. Neptune's turnkey solutions are anticipated to be available this fall and will deepen our relationships with Licenced Producers.

SugarLeaf Labs

On May 9, 2019, Neptune announced the signing of a definitive agreement to acquire the assets of U.S. based hemp processor SugarLeaf Labs and Forest Remedies LLC (collectively, "SugarLeaf"). Neptune will acquire SugarLeaf on a debt-free basis for initial consideration at closing of US$18 million, paid as US$12 million in cash and US$6 million in common shares. By achieving certain annual adjusted EBITDA and other performance targets, additional consideration of up to US$132 million would be paid over each of the next three years as a combination of cash and shares for a maximum aggregate purchase price of up to US$150 million. The transaction is expected to close on or before July 31, 2019, upon completion of standard closing requirements, including regulatory and stock exchange (NASDAQ and TSX) approvals.

Outlook

During the first quarter of fiscal year 2020, cannabis extraction operations have been constrained by several factors including limited biomass inventory to extract and constrained extraction capacity. As such, we expect our cannabis extraction revenues for the first quarter of fiscal year 2020 to be lower than $1 million. Pending Health Canada approval of expansion amendments and additional security personnel clearance should alleviate our capacity constraints.

Based on the total value of extraction and packaging contracts signed to date, we expect that our revenues growth from cannabis extraction and packaging will ramp significantly from the second quarter of fiscal 2020 and onwards.


            ________________________
    (1) See "Caution Regarding Non-IFRS Financial Measures" and
     "Reconciliation of Segment income (loss) from operating activities
     before corporate expenses to Adjusted Segment EBITDA (non-IFRS
     operating segment loss) and net income (loss) to non-IFRS
     operating loss" which follow.


About Neptune Wellness Solutions Inc.

Neptune Wellness Solutions specializes in the extraction, purification and formulation of health and wellness products. Neptune's wholly owned subsidiary, 9354-7537 Québec Inc., is licenced by Health Canada to process cannabis at its 50,000 square foot facility located in Sherbrooke, Quebec. Neptune brings decades of experience in the natural products sector to the legal cannabis industry. Leveraging its scientific and technological expertise, Neptune focuses on the development of value-added and differentiated products for the Canadian and global cannabis markets. Neptune's activities also include the development and commercialization of turnkey nutrition solutions and patented ingredients such as MaxSimil®, and of a variety of marine and seed oils. Its head office is located in Laval, Quebec.

Caution Regarding Non-IFRS Financial MeasuresThe Corporation uses two adjusted financial measures, Adjusted Segment Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) called non-IFRS operating segment loss when a segment is in a loss position, and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) called non-IFRS operating loss when the Corporation is in a loss position, to assess its operating performance. These non-IFRS financial measures are directly derived from the Corporation's financial statements and are presented in a consistent manner. The Corporation uses these measures for the purposes of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Corporation to plan and forecast for future periods as well as to make operational and strategic decisions. The Corporation believes that providing this information to investors, in addition to IFRS measures, allows them to see the Corporation's results through the eyes of management, and to better understand its historical and future financial performance.

Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Corporation uses Adjusted Segment EBITDA (or non-IFRS operating segment loss when in a loss position) and Adjusted EBITDA (or non-IFRS operating loss when in a loss position) to measure its performance from one period to the next without the variation caused by certain adjustments that could potentially distort the analysis of trends in our operating performance, and because the Corporation believes it provides meaningful information on the Corporation's financial condition and operating results. Neptune's method for calculating Adjusted Segment EBITDA (or non-IFRS operating segment loss) and Adjusted EBITDA (or non-IFRS operating loss) may differ from that used by other corporations.

Neptune obtains its Adjusted Segment EBITDA (or non-IFRS operating segment loss) measurement by adding depreciation and amortization and stock-based compensation to segment income (loss) from operating activities before corporate expenses. Neptune obtains its Adjusted EBITDA (or non-IFRS operating loss) measurement by adding to net income (loss), net finance costs, depreciation and amortization, income tax expense and by subtracting income tax recovery and net finance income. Other items such as stock-based compensation, litigation provisions, impairment loss on inventories, net gain on sale of assets, gain on loss of control of subsidiary, tax credits reversal from prior years and legal fees related to royalty settlements that do not impact core operating performance of the Corporation are excluded from the calculation as they may vary significantly from one period to another. Excluding these items does not imply they are non-recurring.

Forward Looking StatementsStatements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the U.S. securities laws and Canadian securities laws. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of Neptune to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "projects," "anticipates," "will," "should," or "plans" to be uncertain and forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking information in this press release includes, but is not limited to, information or statements about our ability to successfully develop, produce, supply, promote or generate any revenue from the sale of any cannabis-based products in the legal cannabis market.

The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement and the "Cautionary Note Regarding Forward-Looking Information" section contained in Neptune's latest Annual Information Form (the "AIF"), which also forms part of Neptune's latest annual report on Form 40-F, and which is available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on the Investor section of Neptune's website at www.neptunecorp.com. All forward-looking statements in this press release are made as of the date of this press release. Neptune does not undertake to update any such forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in Neptune public securities filings with the Securities and Exchange Commission and the Canadian securities commissions. Additional information about these assumptions and risks and uncertainties is contained in the AIF under "Risk Factors".

Neither NASDAQ nor the Toronto Stock Exchange accepts responsibility for the adequacy or accuracy of this release.

Conference Call DetailsNeptune will be holding a conference call on June 12, 2019, at 5:00 PM (EST) to discuss its fourth quarter and fiscal year-end results ended March 31, 2019.

     Date:
     Wednesday, June 12, 2019




     Time:
     5:00 PM Eastern Standard Time




     Call:
     1-888-231-8191 (Canada and U.S.)



     1-647-427-7450 (International)




     Webcast:
     A live webcast and presentation of the results can be accessed at:




                https://neptunecorp.com/en/investors/events-and-presentations/


A replay of the call will be available for replay shortly after the call's completion, until July 12, 2019. The replay can be accessed online in the Investors section of Neptune's website under Investor Events and Presentations. It is also under this section that you will find the archive of the webcast, along with its accompanying presentation.

                            Reconciliation of Segment income (loss) from operating activities before corporate expenses to Adjusted Segment EBITDA(1) (non-IFRS operating segment loss)(1) and net loss to
                             non-IFRS operating loss1
    (Expressed in thousands of dollars)

    ---



                            Three-month period ended March 31,
                             2019

    ---

                                                                                          Nutraceutical                          Cannabis                                      Corporate                       Total




              $
              $
              $
           $




              Total revenues                                                                     5,652                                 12                                                                           5,664



              Gross margin                                                                       1,523                                 12                                                                           1,535

    ---



               R&D expenses, net of tax
                credits and grants                                                                (172)                                                   (1,898)                                                           (2,070)



              SG&A expenses                                                                    (1,138)                                                     (373)                                                           (1,511)

    ---

               Segment income (loss) from
                operating activities before                                                         213                                                    (2,259)                                                           (2,046)

                  corporate expenses





              Unallocated costs:


               Corporate general and
                administrative expenses                                                                                                                                                                      (2,354)        (2,354)


               Litigation provisions                                                                                                                                                                         (7,930)        (7,930)



              Net finance costs                                                                                                                                                                                (38)           (38)



              Income tax expense                                                                                                                                                                               (16)           (16)

    ---


              Net loss                                                                                                                                                                                                    (12,384)

    ---



                            Adjusted Segment EBITDA(1)
                             (non-IFRS operating

                                            segment loss)(1) reconciliation


               Segment income (loss) from
                operating activities before                                                         213                                                    (2,259)

                  corporate expenses



              Add:


               Depreciation and amortization                                                        156                                                        554


               Stock-based compensation                                                             123                                                        245

    ---

                            Adjusted Segment EBITDA(1)
                             (non-IFRS operating                                                    492                                                    (1,460)

                                            segment loss)(1)

    ---



                            Non-IFRS operating loss(1)
                             reconciliation



              Net loss                                                                                                                                                                                                    (12,384)



              Add:


               Depreciation and amortization                                                                                                                                                                                    765



              Net finance costs                                                                                                                                                                                                 38


               Stock-based compensation                                                                                                                                                                                         928



              Income tax expense                                                                                                                                                                                                16


               Litigation provisions                                                                                                                                                                                          7,930

    ---

                            Non-IFRS operating loss(1)                                                                                                                                                                      (2,707)

    ---


              ________________________
    (1) See "Caution Regarding Non-IFRS Financial Measures".


                            Reconciliation of Segment loss from operating activities before corporate expenses to Adjusted Segment EBITDA(1) (non-IFRS operating segment loss)(1) and net loss to non-IFRS
                             operating loss(1)
    (Expressed in thousands of dollars)








                Three-month period ended March 31, 2018


                                                                                    Nutraceutical                          Cannabis                                      Corporate                            Total




              $
              $
              $
           $




              Total revenues                                                               7,005
              -                                                                                7,005



              Gross margin                                                                 1,458
              -                                                                                1,458

    ---



               R&D expenses, net of tax credits and
                grants                                                                    (1,952)                                                   (1,528)                                                               (3,480)



              SG&A expenses                                                              (1,255)                                                     (308)                                                               (1,563)



              Net gain on sale of assets                                                    (21)
              -                                                                  (21)

    ---

               Segment loss from operating activities
                before
              corporate expenses                                      (1,770)                                                   (1,836)                                                               (3,606)





              Unallocated costs:


               Corporate general and administrative
                expenses                                                                                                                                                                                    (2,418)       (2,418)



              Net finance costs                                                                                                                                                                              (408)         (408)



              Income tax recovery                                                                                                                                                                            1,680          1,680

    ---


              Net loss                                                                                                                                                                                                   (4,752)

    ===



                            Adjusted Segment EBITDA(1) (non-IFRS
                             operating

               segment
                             loss)(1) reconciliation


               Segment loss from operating activities
                before
               corporate expenses                                      (1,770)                                                   (1,836)



              Add:



              Depreciation and amortization                                                  186                                                        530



              Stock-based compensation                                                       160                                                        186



              Net gain on sale of assets                                                      21
              -



              Impairment loss on inventories                                                 658
              -


               Tax credits reversal from prior years                                        1,933
              -

    ---

                            Adjusted Segment EBITDA(1) (non-IFRS
                             operating

                segment loss)(1)                               1,188                                                    (1,120)

    ===



                            Non-IFRS operating loss(1) reconciliation



              Net loss                                                                                                                                                                                                   (4,752)



              Add (deduct):



              Depreciation and amortization                                                                                                                                                                                  768



              Net finance costs                                                                                                                                                                                              408



              Stock-based compensation                                                                                                                                                                                       842



              Net gain on sale of assets                                                                                                                                                                                      21



              Impairment loss on inventories                                                                                                                                                                                 658



              Income tax recovery                                                                                                                                                                                        (1,680)


               Tax credits reversal from prior years                                                                                                                                                                        1,933

    ---

                            Non-IFRS operating loss(1)                                                                                                                                                                    (1,802)

    ===


              ________________________
    (1) See "Caution Regarding Non-IFRS Financial Measures".


                            Reconciliation of Segment income (loss) from operating activities before corporate expenses to Adjusted Segment EBITDA(1) (non-IFRS operating segment loss)(1) and net loss to non-IFRS
                             operating loss1
    (Expressed in thousands of dollars)








                Year ended March 31, 2019


                                                                                    Nutraceutical                          Cannabis                                       Corporate                                Total




              $
              $
              $
              $




              Total revenues                                                              24,430                                 12                                                                                       24,442



              Gross margin                                                                 7,602                                 12                                                                                        7,614

    ---



               R&D expenses, net of tax credits and
                grants                                                                      (488)                                                    (6,723)                                                                       (7,211)



              SG&A expenses                                                              (4,525)                                                    (1,846)                                                                       (6,371)

    ---

               Segment income (loss) from operating
                activities before
              corporate
                expenses                                                                    2,589                                                     (8,557)                                                                       (5,968)





              Unallocated costs:


               Corporate general and administrative
                expenses                                                                                                                                                                                         (8,915)           (8,915)



              Litigation provisions                                                                                                                                                                             (7,930)           (7,930)



              Net finance costs                                                                                                                                                                                   (209)             (209)



              Income tax expense                                                                                                                                                                                  (170)             (170)

    ---


              Net loss                                                                                                                                                                                                           (23,192)

    ===



                            Adjusted Segment EBITDA(1) (non-IFRS
                             operating

               segment
                             loss)(1) reconciliation


               Segment income (loss) from operating
                activities before
              corporate
                expenses                                                                    2,589                                                     (8,557)



              Add:



              Depreciation and amortization                                                  719                                                       2,126



              Stock-based compensation                                                       492                                                       1,046

    ---

                            Adjusted Segment EBITDA(1) (non-IFRS
                             operating

                segment loss)(1)                               3,800                                                     (5,385)

    ===



                            Non-IFRS operating loss(1) reconciliation



              Net loss                                                                                                                                                                                                           (23,192)



              Add:



              Depreciation and amortization                                                                                                                                                                                         3,056



              Net finance costs                                                                                                                                                                                                       209



              Stock-based compensation                                                                                                                                                                                              3,713



              Income tax expense                                                                                                                                                                                                      170



              Litigation provisions                                                                                                                                                                                                 7,930

    ---

                            Non-IFRS operating loss(1)                                                                                                                                                                             (8,114)

    ===




              Total assets(3)                                                             21,007                                                      50,981                                                       18,232             90,220


               Cash, cash equivalents and short-term
                investment                                                                    276
              -                                                       9,591                            9,867



              Working capital(2)                                                           2,543                                                       (629)                                                       2,751              4,665

    ---


              ________________________
    (1) See "Caution Regarding Non-IFRS Financial
     Measures".


                            (2) The working capital is presented for
                             information purposes only and represents a
                             measurement of the Corporation's short-term
                             financial health mostly used in financial
                             circles. The working capital is calculated by
                             subtracting current liabilities from current
                             assets. Because there is no standard method
                             endorsed by IFRS, the results may not be
                             comparable to similar measurements presented
                             by other public companies.


                            (3) The corporate reportable segment assets
                             include the investment in Acasti.




                Reconciliation of Segment income (loss) from operating activities before corporate expenses to Adjusted Segment EBITDA(1) (non-IFRS operating segment loss)(1) and net income to non-IFRS operating loss(1)
    (Expressed in thousands of dollars)








                Year ended March 31, 2018


                                                                                                                                                                                                                                                                   Inter-
                                                                                                                                                                                                                                                                  segment


                                                                     Nutraceutical
               Cannabis                          Cardiovascular                                            Corporate               eliminations                Total




              $
              $
              $
              $
              $
              $




              Total revenues                                               27,646
              -
              -
      -                                27,646



              Gross margin                                                  6,324
              -
              -
      -                                 6,324

    ---



               R&D expenses, net of tax
                credits and grants                                         (2,732)                                   (2,969)                                                               (9,592)                                                                                1,742                     (13,551)



              SG&A expenses                                               (5,204)                                     (597)                                                               (2,761)
              -                          (8,562)


               Net gain on sale of assets                                   23,702
              -
              -
      -                                23,702

    ---

               Segment income (loss) from
                operating activities before
                corporate expenses                                          22,090                                    (3,566)                                                              (12,353)                                                                                1,742                        7,913




               Gain on loss of control of
                subsidiary
              -
              -
              -                                             8,784
             -                       8,784





              Unallocated costs:


               Corporate general and
                administrative expenses                                                                                                                                                                                                      (6,743)                                                        (6,743)



              Net finance costs                                                                                                                                                                                                             (2,255)                                                        (2,255)



              Income tax recovery                                                                                                                                                                                                             1,640                                                           1,640

    ---


              Net income                                                                                                                                                                                                                                                                                     9,339

    ===



                            Adjusted Segment EBITDA(1)
                             (non-IFRS operating
                                 segment loss)(1)
                                 reconciliation


               Segment income (loss) from
                operating activities before
                corporate expenses                                          22,090                                    (3,566)                                                              (12,353)                                                                                1,742



              Add (deduct):


               Depreciation and amortization                                 1,817                                      1,054                                                                  2,005                                                                               (1,742)


               Stock-based compensation                                        317                                        252                                                                    661
              -


               Net gain on sale of assets                                 (23,702)
              -
              -
      -


               Impairment loss on inventories                                2,377
              -
              -
      -


               Tax credits reversal from
                prior years                                                  1,933
              -
              -
      -


               Legal fees related to royalty
                settlements                                                     90
              -
              -
      -

    ---

                            Adjusted Segment EBITDA(1)
                             (non-IFRS operating
                                 segment loss)(1)                            4,922                                    (2,260)                                                               (9,687)
              -

    ===



                            Non-IFRS operating loss(1)
                             reconciliation



              Net income                                                                                                                                                                                                                                                                                     9,339



              Add (deduct):


               Depreciation and amortization                                                                                                                                                                                                                                                                  3,542



              Net finance costs                                                                                                                                                                                                                                                                              2,255


               Stock-based compensation                                                                                                                                                                                                                                                                       2,884


               Net gain on sale of assets                                                                                                                                                                                                                                                                  (23,702)


               Gain on loss of control of
                subsidiary                                                                                                                                                                                                                                                                                  (8,784)


               Impairment loss on inventories                                                                                                                                                                                                                                                                 2,377



              Income tax recovery                                                                                                                                                                                                                                                                          (1,640)


               Tax credits reversal from
                prior years                                                                                                                                                                                                                                                                                   1,933


               Legal fees related to royalty
                settlements                                                                                                                                                                                                                                                                                      90

    ---

                            Non-IFRS operating loss(1)                                                                                                                                                                                                                                                     (12,306)

    ===




              Total assets                                                 24,412                                     42,015                                                                  6,586                                             25,584
             -                      98,597


               Cash, cash equivalents and
                short-term investments                                       2,525
              -
              -                                            24,172
             -                      26,697



              Working capital(2)                                            4,014                                          2
              -                                            22,456
             -                      26,472

    ---


              ________________________
    (1) See "Caution Regarding Non-IFRS Financial
     Measures".


                            (2) The working capital is presented for
                             information purposes only and represents a
                             measurement of the Corporation's short-term
                             financial health mostly used in financial
                             circles. The working capital is calculated by
                             subtracting current liabilities from current
                             assets. Because there is no standard method
                             endorsed by IFRS, the results may not be
                             comparable to similar measurements presented
                             by other public companies.


View original content to download multimedia:http://www.prnewswire.com/news-releases/neptune-announces-fourth-quarter-results-300866623.html

SOURCE Neptune Wellness Solutions Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2019/12/c4424.html

SOURCE: Neptune Wellness Solutions Inc.

Neptune Wellness Solutions: Mario Paradis, VP & CFO, 1.450.687.2262 x236,
m.paradis@neptunecorp.com; Investor Relations Contact (Canada): Pierre Boucher,
MaisonBrison, 1.514.731.0000, pierre@maisonbrison.com; Investor Relations Contact
(U.S.): Carolyn Capaccio / Jody Burfening,LHA,1.212.838.3777, ccapaccio@lhai.com,
jburfening@lhai.com

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