Tilray Shares Fall On Q1 Results

Tilray Inc TLRY, a global cannabis research, cultivation, production, and distribution announced a first-quarter year-over-year revenue increase Monday of 126.2% to $52.1 million, beating the Street estimate of $50.62 million. 

Highlights From Tilray's Q1 Report 

The net loss of $184.1 million or $1.73 per share represents an increase from the $29.4 million 31-cent-per-share loss one year ago. 

The cannabis company attributed the loss to the change in the fair value of the $72-million warrant liability tied to the company's registered offering; $29.8 million in asset impairment; a weakening of the Canadian dollar; increased operating expenses; and severance costs related to layoffs. 

The net loss fell from $219.1 million and $2.14 per share in the fourth quarter of 2019, and Tilray attributed the sequential improvement due to a better gross margin in the first quarter and the significant impairments recorded in the fourth quarter. 

Tilray said it has liquidity of $174 million as of the end of the first quarter. 

Total cannabis kilogram equivalents sold rose 92.4% year-over-year from 3,012kg to 5,794 kg.

The average cannabis net selling price per gram fell from $5.60 to $5.28 year-over-year. 

Tilray posted a first-quarter gross margin of 21% and an adjusted EBITDA loss of $19.7 million.

"We are pleased to report strong sequential quarterly revenue growth across each of our core business segments for the first quarter of 2020," CEO Brendan Kennedy said in a statement. 

"We remain focused on executing on our long-term growth opportunities and our goal of generating positive adjusted EBITDA by the end of the fourth quarter. As evidenced by our International Medical sales in the quarter, we expect this segment to demonstrate continued growth and positively impact margins."

Tilray has taken steps to realize annualized cost savings of about $40 million compared to the fourth quarter, Kennedy said. 

"While the positive impact of these actions are not fully reflected in this quarter's results, they will become more clearly evident over the course of this year."

TLRY Price Action 

Tilray shares closed Monday's regular session higher by 3.86% at $8.08 and were falling by 5.69% to $7.62 in the after-hours session after the issuance of the quarterly report. 

Versión en Español: Acciones de Tilray (TLRY) Caen Luego de Reporte Trimestal