Aphria Reports Results for Fiscal Q2 2016

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Quarterly Revenue Over $2 Million With Adjusted Gross Margin of 68.6%

LEAMINGTON, ONTARIO--(Jan. 18, 2016) - Aphria Inc. ("Aphria" or the "Company") (TSX VENTURE:APH) today reported its financial results for the three and six months ended November 30, 2015. All amounts are expressed in Canadian dollars, unless otherwise stated.






Three months ended
November 30,



Six months ended
November 30,
2015
2014


2015
2014
$ 2,096,975
$ --
Revenue
$ 2,977,715
$ --
1,309,254
139,349
Gross profit
1,987,809
(48,211)
1,391,504
--
Adjusted gross profit
1,945,019
--
68.6%
--
Adjusted gross margin
65.3%
--
(431,098)
(1,358,849)
Net loss
(907,923)
(2,958,953)
(310,304)
(1,327,951)
EBITDA
(696,147)
(2,837,715)
4,108
(1,115,510)
Adjusted EBITDA
(368,592)
(2,115,775)

Revenue for the three months ended November 30, 2015 was $2,096,975, representing a 113% increase over the previous quarter's revenue of $950,740. Revenues for the six months ended November 30, 2015 was $2,977,715.

Adjusted gross profit for the second quarter was $1,391,504, with an adjusted gross margin of 68.6%, generated from both retail and wholesale shipments of medical marijuana. Adjusted gross profit for the year-to-date was $1,945,019, with an adjusted gross margin of 65.3%.

The net loss for the three months ended November 30, 2015 was $431,098 or $0.01 per share versus $476,825 or $0.01 in the previous quarter and $1,358,849 or $0.04 per share in the same period of the prior year. The net loss for the six months ended November 30, 2015 was $907,923 or $0.02 per share versus $2,958,953 or $0.08 in the same period of the prior year.

The adjusted EBITDA for the second quarter was $4,108, compared to an adjusted EBITDA loss of $1,115,510 in the second quarter of the prior year. The adjusted EBITDA loss for the year-to-date was $368,592, compared to an adjusted EBITDA loss of $2,115,775 in the same period of the prior year.

"Aphria's success story continues daily as we approach profitability," said Vic Neufeld, CEO. "Consistent patient growth, tied to managing growing costs and operational expenses remain our primary focus."

The adjusted gross profit, adjusted gross margin, EBITDA and adjusted EBITDA are non-GAAP measures, which are explained in Management's Discussion & Analysis, a copy of which has been filed today under the Company's profile on www.sedar.com.

About Aphria

Aphria, a company continued under the laws of the Province of Ontario and based in Leamington, Ontario, is in the business of producing, supplying and selling medical marijuana pursuant to the Marihuana for Medical Purposes Regulations (the "MMPR"). Under the MMPR, Health Canada is responsible for the oversight of commercial medical marijuana growers such as Aphria. Aphria's common shares are listed on the TSX Venture Exchange under the ticker symbol "APH".

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to patient growth, estimated margins and expectations for future growing capacity. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical marijuana industry in Canada generally, income tax and regulatory matters; the ability of Aphria to implement its business strategies; competition; crop failure; currency and interest rate fluctuations and other risks.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange (the "Exchange") nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

Vic Neufeld
President & CEO
1-844-427-4742

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