MW Hexo shares slide 6.5% premarket after Canadian cannabis company's loss widens
Canadian cannabis company Hexo Corp.'s U.S.-listed shares (HEXO.T) fell 6.5% in premarket trade Tuesday, after the company's fiscal fourth-quarter loss widened from the year earlier. Gatineau, Quebec-based Hexo said it had a net loss of C$56.7 million ($43.4 million), or 28 cents a share, in the quarter, wider than the loss of C$10.5 million, or 5 cents a share, posted in the year-earlier period. Revenue net of excise taxes came to $15.4 million, up from C$1.4 million a year ago. The company said revenue from adult-use cannabis came to C$14.1 million, up from C$11.9 million a year ago, while medical cannabis revenue came to C$957,000, down from C$1.09 million a year ago. The company sold 4,009 kg equivalent in the quarter, up from 2,759 kg equivalent in the year-earlier period. The average gross selling price of adult-use dried gram and gram equivalents fell to C$4.74 from C$5.45 a year ago. The company confirmed that it has suspended cultivation at its Niagara facility and in 200,000 sq. ft. of its Gatineau facility, as part of a cost-cutting program announced last week that included 200 job cuts. The company said it expects first-quarter 2020 revenue to range from C$14.0 mln to C$18.0 million. It it is targeting positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in calendar 2020. Adjusted EBITDA is an adjustment of an adjusted number that has nothing to do with actual profit. MKM analyst Bill Kirk said Hexo had better sequential revenue growth than peers at about 18%. "We believe HEXO has taken the steps necessary to now deliver on heavily revised 2020 plans: 1) they are not assuming much change in revenue performance until 2.0 rolls out; and 2) headcount restructuring adjusts bloated cost structure," Kirk wrote in a note to clients. "We still contend, the problems faced by HEXO are more related to delays (versus expectations) than structural issues." Hexo shares are down 32% in 2019, while the ETFMG Alternative Harvest ETF (MJ) has fallen 19% and the S&P 500 has gained 21%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 29, 2019 08:08 ET (12:08 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
在加拿大大麻公司虧損擴大後，MW Hexo股價盤前下跌6.5%
加拿大大麻公司Hexo Corp.在美國上市的股票週二盤前交易中下跌6.5%，此前該公司第四季度財年虧損較上年同期擴大。總部位於魁北克加蒂諾的Hexo表示，該公司當季淨虧損5，670萬加元(合4，340萬美元)，或每股虧損28美分，較上年同期虧損1，050萬加元或每股虧損5美分為多.扣除消費税後的收入為1540萬美元，高於一年前的140萬加元。該公司表示，成人使用大麻的收入為1410萬加元，高於一年前的1190萬加元，而醫用大麻的收入為95.7萬加元，低於一年前的109萬加元。該公司本季度售出了4，009公斤當量，高於去年同期的2，759公斤當量。成人用幹克和等價物的平均總銷售價格從一年前的5.45加元下降到4.74加元。該公司證實，它已經暫停了尼亞加拉工廠的種植，面積為20萬平方。英國“金融時報”作為上週宣佈的成本削減計劃的一部分，該公司將關閉Gatineau工廠，其中包括裁員200人。該公司表示，預計2020年第一季度營收將在1，400萬加元至1，800萬加元之間。它的目標是2020年日曆調整後的EBITDA(利息、税項、折舊和攤銷前收益)。調整後的EBITDA是對調整後的數字的調整，與實際利潤無關。MKM分析師比爾·柯克(Bill Kirk)表示，Hexo的環比營收增幅高於同行，約為18%。柯克在給客户的一份報告中寫道：“我們相信，HEXO已經採取了必要的步驟，現在已經實施了經過大幅修訂的2020年計劃：1)在2.0推出之前，他們不會假設收入表現有多大變化；以及2)員工重組調整了臃腫的成本結構。”“我們仍然認為，HEXO面臨的問題更多地與延遲(相對於預期)有關，而不是結構性問題。”HEXO的股價在2019年下跌了32%，而ETFMG替代收穫ETF(MJ)下跌了19%，標準普爾500指數上漲了21%。
--Ciara Linnane；415-439-6400；AskNewswires@dowjones.com
(完)道瓊斯通訊社
2019年10月29日08：08美國東部時間(格林威治時間12：08)
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