Market Overview

GreenSpace Brands Inc. Reports a 47% YOY Revenue Increase, 17% Quarterly Sequential Revenue Increase with Annualized Run Rate Revenue approaching $80 million

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GreenSpace Brands Inc. Reports a 47% YOY Revenue Increase, 17% Quarterly Sequential Revenue Increase with Annualized Run Rate Revenue approaching $80 million

Canada NewsWire

TORONTO, June 20, 2018 /CNW/ - GreenSpace Brands Inc. ("GreenSpace" or "the Company") (TSXV:JTR) today reported its fourth quarter and fiscal year financial results for the period ending March 31, 2018.

GreenSpace Brands Inc. (CNW Group/GreenSpace Brands Inc.)

Key Highlights for the Fourth Quarter of Fiscal 2018:

  • Gross revenue of $19.1 million sets record high, representing a 47% increase over the prior year period
  • Adjusted gross margin declined to 20.4% compared to 22.5% for the prior year period due to one-time liquidation of unsold seasonal inventory and commodity increases in butter.
  • Adjusted EBITDA margins fell to (1.5%) as a percentage of net revenue excluding listing fees, from 3.4% earned in the third quarter of fiscal 2018, due in part to expected costs associated with the Go Veggie business and acquisition.
  • Rebates and Discounts as a percentage of gross revenue stayed relatively consistent at 11.1% in the fourth quarter versus 11.0% in the third quarter.

Consolidated Performance Summary


Three months ended

Year ended


March 31

March 31

(in thousands of Canadian dollars, except per share amounts)

2018

2017

2018

2017

$

$

$

$






Gross revenue

19,132

12,945

65,082

41,959

Less: rebates and discounts

(2,116)

(1,485)

(7,408)

(4,076)

Less: listing fees

(543)

(354)

(1,369)

(796)

Net revenue

16,473

11,106

56,305

37,087






Gross profit

2,935

2,227

11,434

8,327

Adjusted gross profit1

3,478

2,581

12,083

9,123

Adjusted gross profit margin1

20.4%

22.5%

22.2%

24.1%






SG&A expenses

4,579

2,572

13,412

8,497

Amortization of intangible assets

600

322

1742

1,102

Deferred income tax (recovery)

20

(85)

(283)

(292)

Interest expense

272

91

518

485

Accretion expense

22

104

171

1,335

Unrealized foreign exchange loss

317

-

317

-

Loss from continuing operations

(2,875)

(775)

(4,443)

(2,800)

Loss from discontinued operations, net of income taxes

-

-

-

(503)

Net income (loss)

(2,875)

(775)

(4,443)

(3,303)

Net loss per share (basic and diluted)

(0.04)

(0.02)

(0.06)

(0.07)

EBITDA

(1,530)

(274)

(1,668)

38

EBITDA, as a percentage of net revenue

(9.3%)

(2.5%)

(3.0%)

0.1%

Adjusted EBITDA1

(262)

34

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