Record net revenue and net cash provided by
operating activities for the fourth quarter of 2022
CALGARY,
AB, April 24, 2023 /CNW/ - SNDL Inc.
(NASDAQ: SNDL) ("SNDL" or the "Company") reported its
financial and operational results for the full year and fourth
quarter ended December 31, 2022. All
financial information in this press release is reported in millions
of Canadian dollars unless otherwise indicated. Liquor retail
includes operations for the period of March
31, 2022, to December 31,
2022, and cannabis retail includes the operations of Nova
Cannabis Inc. ("Nova") retail stores for the period of
March 31, 2022, to December 31, 2022.
SNDL has also posted a supplemental investor presentation and
shareholder letter on its website, which can be found at
https://sndl.com.
The Company will hold a conference call and webcast at
10:30 a.m. EST (8:30 a.m. MST) on Tuesday,
April 25, 2023. The conference call details can be found
below.
FULL YEAR AND FOURTH QUARTER 2022
FINANCIAL AND OPERATIONAL HIGHLIGHTS
- Record net revenue for 2022 of $712.2
million, an increase of 1170% over the previous year. Net
revenue for the fourth quarter of 2022 was $240.4 million, an increase of 4% over the third
quarter of 2022, with sequential growth in Liquor Retail, Cannabis
Retail and Cannabis Operations segments.
- Net cash used in operating activities for 2022 was $6.7 million compared to $155.8 million in 2021. Net cash provided by
operating activities for the fourth quarter of 2022 was a record
$28.6 million, an increase of 233%
when compared to $8.6 million in the
third quarter of 2022.
- Gross margin grew to a record $140.4
million for 2022, compared to a loss of $9.0 million in the previous year, and represents
an increase of 1,660%. Gross margin of $43.6
million for the fourth quarter of 2022, compared to
$50.3 million in the third quarter of
2022, as a result of fourth quarter monetization of low value
inventory and inventory impairments.
- Net loss of $372.4 million for
2022, compared to $226.8 million in
the previous year. Non-cash inventory and asset impairments were
$203.0 million in 2022 compared to
$77.0 million in 2021. Net loss for
the fourth quarter of 2022 was $161.6
million compared to $98.8
million in the third quarter of 2022. The net loss for 2022
was largely driven by fourth quarter non-cash charges including the
impairment of goodwill related to the Alcanna Inc.
("Alcanna") transaction, including Nova. Despite improving
fundamentals for Nova, the share price decline of 53% since the
acquisition date warranted a $88.0
million non-cash adjustment.
- Adjusted EBITDA loss was $15.8
million in 2022, compared to Adjusted EBITDA of $30.4 million in the previous year. Adjusted
EBITDA loss was $7.5 million for the
fourth quarter of 2022, compared to Adjusted EBITDA of $16.7 million in the fourth quarter of 2021.
Excluding SNDL's equity pick-up loss of $18.3 million driven by non-cash fair value
adjustments from its investment in SunStream Bancorp
("SunStream"), Adjusted EBITDA would have been $10.8 million in the fourth quarter of 2022.
- SNDL currently has six credit exposures in the SunStream
portfolio, including two that are under active negotiations
regarding potential restructuring. The Company expects that, on a
structured and regulatory compliant basis, it may become a majority
owner of one or more multi-state operators ("MSO") in the US
in 2023.
- $918.0 million of unrestricted
cash, marketable securities, and long-term investments and no
outstanding debt at December 31,
2022, resulting in a net book value per share of
$5.02; and $207 million of unrestricted cash at April 19, 2023. SNDL has not raised cash through
share offerings since June 2021.
- In December 2022, SNDL announced
a proposed strategic partnership with its 63% owned subsidiary Nova
Cannabis, designed to create a well-capitalized cannabis retail
platform through a vertical integration model leveraging SNDL's
upstream and midstream capabilities. The restructuring of Nova, if
approved by Nova's minority shareholders, will enable SNDL to
continue to evolve in a still immature sector by becoming a trusted
partner to the Canadian cannabis ecosystem.
- Acquired Alcanna on March 31,
2022, creating the largest private sector liquor and
cannabis retail network in Canada.
January
2023 Valens Acquisition
SNDL's acquisition of The Valens Company ("Valens")
closed in January of 2023. The combined entities create a
low-cost vertically integrated Canadian company
generating over a billion dollars in annualized pro forma revenue.
Through the combination of a diverse portfolio of brands, a 197
store multi-banner cannabis retail network, low-cost biomass
sourcing, premium indoor cultivation and low-cost manufacturing
facilities, SNDL expects to be one of the largest adult-use
cannabis manufacturers and retailers in Canada. The Valens transaction is expected to
accelerate the optimization and rationalization of SNDL's
manufacturing and operational footprint to better address market
saturation and oversupply while also generating synergies in the
Company's manufacturing operations.
"2022 was another transformational year for SNDL. We increased
the sustainability of our business model by achieving
record-breaking revenue and gross margin as well as positive and
increasing cash provided from operating activities in our two most
recent quarters," said Zach George,
Chief Executive Officer of SNDL. "Our vertical integration strategy
is beginning to show its intended results, and we are working to
gain stability in a challenging and dynamic industry. Our
acquisition of Valens provides midstream capabilities in every
material cannabis product category and the ability to selectively
balance higher cost cultivation costs while taking advantage of the
current massive oversupply in Canadian markets. We now expect to
materially outperform our originally contemplated savings and are
on target to realize more than $20.0
million in cost synergies. Despite the positive milestones
and growth we have achieved, SNDL's shares are trading at near
all-time lows, well below our book value and materially less than
1X our annualized revenue. We must continue to find ways to unlock
value and evaluate all options regarding the future of our business
and operating segments. Sustainability is a key priority, which
means sustainably profitable operations, sustainable product
quality, and sustainable environmental practices. Our drive to
create exceptional consumer products and experiences is key to
SNDL's momentum and future success. We continue to see positive
results across all of our key operating segments and remain
committed to our goal of becoming free cash flow
positive."
FULL YEAR AND FOURTH QUARTER
2022 KEY FINANCIAL METRICS
OPERATING
SEGMENTS
|
|
|
|
|
|
($000s)
|
Liquor
Retail
|
Cannabis
Retail
|
Cannabis
Operations
|
Investments
|
Corporate
|
Total
|
As at
December 31, 2022
|
|
|
|
|
|
|
Total assets
|
351,338
|
200,393
|
163,130
|
825,151
|
19,338
|
1,559,350
|
Three months
ended December 31, 2022
|
|
|
|
|
|
Net revenue
|
159,745
|
68,402
|
12,258
|
—
|
—
|
240,405
|
Gross margin
|
36,927
|
15,650
|
(9,009)
|
—
|
—
|
43,568
|
Interest and fee
revenue
|
—
|
—
|
—
|
5,989
|
—
|
5,989
|
Investment (loss)
income
|
—
|
—
|
—
|
(6,868)
|
—
|
(6,868)
|
Share of loss of
equity-accounted investees
|
—
|
—
|
—
|
(18,291)
|
—
|
(18,291)
|
Depreciation and
amortization
|
11,303
|
3,879
|
190
|
—
|
6,251
|
21,623
|
Income (loss) before
income tax
|
(1,316)
|
(98,374)
|
(12,932)
|
(28,641)
|
(18,932)
|
(160,195)
|
|
|
|
|
|
|
|
As at
December 31, 2021
|
|
|
|
|
|
|
Total assets
(1)
|
—
|
157,022
|
147,887
|
1,093,596
|
29,155
|
1,427,660
|
Three months ended
December 31, 2021
|
|
|
|
|
|
Net revenue
|
—
|
9,951
|
12,768
|
—
|
—
|
22,719
|
Gross margin
(1)
|
—
|
2,840
|
(7,350)
|
—
|
—
|
(4,510)
|
Interest and fee
revenue
|
—
|
—
|
—
|
3,647
|
—
|
3,647
|
Investment
loss
|
—
|
—
|
—
|
(41,755)
|
—
|
(41,755)
|
Share of profit of
equity-accounted investees
|
—
|
—
|
—
|
19,271
|
—
|
19,271
|
Depreciation and
amortization (1)
|
—
|
(427)
|
666
|
—
|
428
|
667
|
Income (loss) before
income tax (1)
|
—
|
312
|
(23,190)
|
(23,176)
|
(2,919)
|
(48,973)
|
(1) Adjustments to
provisional amounts have been made in the comparative period due to
the finalization of business combination accounting for the Inner
Spirit acquisition. Refer to note 5(b) in the Company's Audited
Financial Statements and the notes thereto for the year ended
December 31, 2022
|
FULL YEAR AND FOURTH QUARTER 2022
RESULTS
SNDL's business is operated and reported in four segments:
Liquor Retail, Cannabis Retail, Cannabis Operations and
Investments.
Liquor Retail
SNDL is Canada's largest
private sector liquor retailer, operating 169 locations,
predominantly in Alberta, under its three retail banners:
Wine and Beyond, Liquor Depot and Ace Liquor. The
Company's Liquor Retail segment brought material stability and
opportunity to SNDL in 2022. SNDL's Liquor segment strengthens
SNDL's broader regulated retail technology infrastructure, the
ability to own the customer relationship and the expertise to shape
the customer retail experience.
- Gross revenue for Liquor Retail sales for the three banners
combined was $462.2 million in 2022
and $159.7 million in the fourth
quarter of 2022, an increase of 4.8% compared to the third quarter
of 2022.
- Gross margin for the Liquor Retail segment in 2022 was
$106.3 million or 23% of sales. Gross
margin for the Liquor Retail segment was $36.9 million, or 23% of sales, in the fourth
quarter of 2022 compared to $35.6
million in the third quarter of 2022. The Liquor Retail
business maintained its margin throughout the year through an
effective pricing and product mix strategy.
- In 2022, the Company actively drove operational growth by
expanding its destination shopping brand, Wine and Beyond, from
nine to 12 stores. This expansion effectively provided consumers
with an increased range of options, further enhancing the Company's
position within the marketplace.
- Subsequent to the quarter end, SNDL announced that it
successfully obtained two liquor retail licenses in Regina and Saskatoon, through the Saskatchewan Liquor and
Gaming Authority auction. The Company will leverage these licenses
to further expand its premium liquor banner, Wine and Beyond, into
the final stage of the liquor retail transition to the private
sector in Saskatchewan.
- Preferred label sales were $41.7
million, an increase of approximately 95% compared to the
previous year. The increase in preferred label sales has led to
increased revenue, while also allowing SNDL to implement a more
effective margin strategy, as the gross margin on preferred label
products in 2022 was 30.1%.
- As of April 19, 2023, the Ace
Liquor store count is 137, the Liquor Depot store count is 20 and
the Wine and Beyond store count is 12.
Cannabis Retail
With its ownership interest in Nova, SNDL is Canada's largest private sector cannabis
retailer, operating 197 locations under its four retail banners:
Value Buds, Spiritleaf, Superette and Firesale Cannabis. SNDL's
Cannabis Retail strategy is based on a number of factors, including
the quality of its store locations, the range of products it
offers, and the unique experiences it provides to customers. The
use of data and insights from a large volume of monthly
transactions enables SNDL to leverage technology and analytics to
inform and improve its retail strategy.
- Gross revenue from the Cannabis Retail segment was $205.6 million in 2022 compared to $16.1 million in 2021, and $68.4 million in the fourth quarter of 2022,
compared to $10.0 million in the
fourth quarter of 2021. The Nova acquisition in 2022 and increased
Value Buds sales were the material drivers of the increase with
$61.4 million of revenue during the
fourth quarter of 2022.
- Gross margin from the Cannabis Retail segment was $47.3 million in 2022, or 23% of sales, compared
to $6.5 million in 2021. Gross margin
for the Cannabis Retail segment was $15.7
million, or 23% of sales, in the fourth quarter of 2022,
compared to $2.8 million in the
fourth quarter of 2021. The increase is primarily due to Value
Buds' new locations and discount pricing strategy.
- In the fourth quarter of 2022, Value Buds, Spiritleaf and
Superette's combined market share represents 9.9% of provincial
markets, solidifying SNDL's position as a leading national
multi-banner cannabis retail operator in an increasingly
competitive market.
- The Company successfully launched its private label program
with Spiritleaf Selects and Value Buds in 2022. The curated private
label launches are designed with each banner's target shopper in
mind, creating meaningful differentiation within the cannabis
retail space, as well as enhancing gross margins, brand awareness
and customer loyalty. Value Buds private label made up 12% of total
28-gram sales and 36% of 14-gram sales in Alberta Value Buds stores
for the period ended December 31,
2022.
- SNDL announced a proposed strategic partnership with Nova
Cannabis to create a well-capitalized cannabis retail platform
through a vertical integration model leveraging SNDL's upstream and
midstream capabilities. The restructuring of Nova, if approved by
Nova's minority shareholders, will enable SNDL to continue to
evolve in a still immature sector by becoming a trusted partner to
the Canadian cannabis ecosystem.
- In February 2023, SNDL announced
the acquisition of five Superette stores in Ontario.
- As of April 19, 2023, the
Spiritleaf store count is 99 (22 corporate stores and 77 franchise
stores), the Superette store count is five corporate stores, the
Firesale store count is two corporate stores and the Value Buds
store count is 91 corporate stores.
Cannabis Operations
The Cannabis Operations segment is a key enabler of SNDL's
vertical integration strategy. As many LPs shift towards an
'asset-light' model, SNDL is dedicated to taking on the challenging
and capital-intensive tasks necessary to deliver top-quality
products to consumers. The success of this segment depends on a
combination of factors, including a diverse portfolio of brands, a
multi-banner cannabis retail network, low-cost biomass sourcing,
premium indoor cultivation, and efficient manufacturing facilities.
With these advantages, SNDL has now become one of the largest
manufacturers of adult-use cannabis products in Canada.
- Gross revenue from the Cannabis Operations segment in 2022 was
$61.9 million, compared to
$51.2 million in 2021, a 21% increase
year-over-year. Gross revenue for the fourth quarter of 2022 was
$18.7 million compared to
$15.7 million for the fourth quarter
in 2021, a 19% increase.
- Provincial board revenue increased by $6.8 million in the fourth quarter of 2022
compared to the same quarter in 2021, which can be attributed to
the successful implementation of a streamlined and targeted product
mix strategy and notable improvements in product quality, along
with SNDL's owned retail strategy.
- Gross margin for Cannabis Operations was negative $13.3 million in 2022, compared to negative
$15.5 million in 2021. Gross margin
for the fourth quarter of 2022 was negative $9.0 million compared to negative $7.4 million in the fourth quarter of 2021.
- SNDL acquired the assets of Zenabis Global Inc.
("Zenabis") including the Atholville cannabis production facility in
New Brunswick in November of 2022.
This acquisition establishes a coast-to-coast cultivation
footprint, monetizable cannabis inventory and increased
international opportunities.
- The Company expanded its national distribution footprint to all
10 provinces by introducing SNDL's branded products to Newfoundland and Labrador.
- Subsequent to the quarter end, SNDL announced changes to its
operations through a rightsizing of cannabis cultivation in
Olds, Alberta, in an effort to
focus the facility on premium products and brands. The Valens
transaction has accelerated the need to optimize and rationalize
SNDL's manufacturing and operational footprint to better address
market saturation, oversupply and efficiency. The Company's ongoing
focus on high-quality cannabis cultivation operations, combined
with Valens' low-cost biomass procurement capabilities, will
enhance SNDL's ability to offer a wide range of customized,
innovative products to meet customer demand and current market
conditions.
Investments
- As of the end of the fourth quarter of 2022, the Company had
deployed capital to a portfolio of cannabis-related investments
with a carrying value of $638.4
million, including $519.3
million to SunStream.
- For the fourth quarter of 2022, the investment portfolio
generated interest and fee revenue of $6.0
million, compared to $3.6
million in the fourth quarter of 2021, share of loss of
equity-accounted investees generated from investments by SunStream
of $18.3 million, compared to profit
of $19.3 million in the fourth
quarter of 2021, and an investment loss of $6.9 million, compared to a loss of $41.8 million in the fourth quarter of 2021 on
marketable securities, which includes unrealized losses on publicly
disclosed strategic investments in Village Farms International,
Inc. and Valens.
- SunStream's credit portfolio currently consists of six
investments: Jushi Holdings, SKYMINT Brands, Ascend Wellness
Holdings, Parallel, Inc., Columbia Care Inc. and AFC Gamma,
Inc.
|
Three months
ended
December 31
|
Year ended
December 31
|
($000s)
|
2022
|
2021
|
2022
|
2021
|
Interest and fee
revenue
|
|
|
|
|
Interest revenue from
investments at amortized cost
|
923
|
861
|
3,660
|
1,654
|
Interest and fee
revenue from investments at Fair Value
Through Profit or Loss
|
2,282
|
2,116
|
6,036
|
8,514
|
Interest revenue from
cash
|
2,784
|
670
|
7,043
|
2,981
|
|
5,989
|
3,647
|
16,739
|
13,149
|
Investment
revenue
|
|
|
|
|
Realized
gains
|
—
|
1,995
|
389
|
20,213
|
Unrealized
losses
|
(6,868)
|
(43,750)
|
(65,553)
|
(64,714)
|
|
(6,868)
|
(41,755)
|
(65,164)
|
(44,501)
|
Revenue from direct
investments
|
(879)
|
(38,108)
|
(48,425)
|
(31,352)
|
Share of profit (loss)
of equity-accounted investees
|
(18,291)
|
19,271
|
(43,002)
|
32,913
|
Total investment
activities
|
(19,170)
|
(18,837)
|
(91,427)
|
1,561
|
Liquidity Position
- As at December 31, 2022, and
April 19, 2023, the Company had
unrestricted cash balances of $279.6
million and $207million,
respectively, and a total of 260.1 million shares outstanding as at
April 19, 2023.
- For the 12 months ended December 31,
2022, the Company purchased and cancelled 4.3 million common
shares at a weighted average price of $3.12 (US$2.33) per
common share for a total cost of $13.3
million under its share repurchase program (the "Share
Repurchase Program"). In the three months ended December 31, 2022, the Company purchased and
cancelled 2.6 million common shares at a weighted average price of
$2.80 (US$2.06) per common share for a total cost of
$7.2 million under its Share
Repurchase Program. SNDL has 8.9 million shares remaining under its
current buyback program allowing the Company to repurchase common
shares from time to time at prevailing market prices, enabling SNDL
to opportunistically return value to shareholders. The Share
Repurchase Program will expire on November
19, 2023, if not extended.
STRATEGIC AND ORGANIZATIONAL
UPDATE
SNDL remains focused on building long-term shareholder value
through vertical integration, accretive deployment of cash
resources, expansion of its retail distribution network, enhanced
offerings of high-quality brands within both the Cannabis
Operations and Cannabis Retail segments, and further streamlining
of the Company's operating structure.
The strategic value of SNDL's vertical integration is unfolding
as the Company is delivering exceptional products and services to
its valued customers. The Company is leveraging its ability to
capitalize on its diverse portfolio of brands, its efficient
manufacturing facilities, and its commitment to low-cost biomass
sourcing and premium indoor cultivation to maintain its position as
a leading manufacturer, retailer and industry partner in the
adult-use cannabis market.
The integration of SNDL and Valens is anticipated to deliver
substantial benefits in the form of cost rationalization and
operational efficiencies. A detailed bottom-up analysis of
available synergies is currently in progress, and the Company is
uncovering further cost savings. SNDL expects to realize more than
$20 million in annual cost synergies
as a result of this process, exceeding the $10 million that was announced in January 2023. Additionally, enhanced distribution
of Valens products through the SNDL retail network is expected to
generate incremental revenue, which is also being evaluated and
realized. The Company looks forward to providing updates on the
progress of these synergies with reporting on the first quarter of
2023 and believes that this transaction will enhance SNDL's
competitive position and generate value for its shareholders.
SPECIFIED FINANCIAL
MEASURES
Certain specified financial measures in this news release are
non-IFRS measures. These terms are not defined by IFRS and,
therefore, may not be comparable to similar measures provided by
other companies. These non-IFRS financial measures should not be
considered in isolation or as an alternative for or superior to
measures of performance prepared in accordance with IFRS. These
measures are presented and described in order to provide
shareholders and potential investors with additional measures in
understanding the Company's operating results in the same manner as
the management team.
ADJUSTED EBITDA
Adjusted EBITDA is a non-IFRS measure which the Company uses to
evaluate its operating performance. Adjusted EBITDA provides
information to investors, analysts, and others to aid in
understanding and evaluating the Company's operating results in a
manner similar to its management team. Adjusted EBITDA is defined
as net income (loss) from continuing operations before finance
costs, depreciation and amortization, accretion expense, income tax
recovery and excluding changes in fair value of biological assets,
changes in fair value realized through inventory, unrealized
foreign exchange gains or losses, unrealized gains or losses on
marketable securities, changes in fair value of derivative
warrants, share-based compensation expense, asset impairment, gain
or loss on disposal of property, plant and equipment and certain
one-time non-operating expenses, as determined by management. The
Company presents both consolidated or total Adjusted EBITDA and
Adjusted EBITDA by operating segment.
OPERATING
SEGMENTS
|
|
|
|
|
|
($000s)
|
Liquor
Retail
|
Cannabis
Retail
|
Cannabis
Operations
|
Investments
|
Corporate
|
Total
|
Three months ended
December 31, 2022
|
|
|
|
|
|
Net earnings
(loss)
|
(1,316)
|
(98,374)
|
(12,932)
|
(30,017)
|
(18,932)
|
(161,571)
|
Adjustments
|
|
|
|
|
|
|
Finance
costs
|
(2,599)
|
(57)
|
19
|
9,098
|
—
|
6,461
|
Change in estimate of
fair value of
derivative warrants
|
—
|
(27)
|
—
|
—
|
(3,900)
|
(3,927)
|
Loss on cancellation of
contracts
|
—
|
—
|
(290)
|
—
|
—
|
(290)
|
Depreciation and
amortization
|
11,303
|
3,879
|
190
|
—
|
6,251
|
21,623
|
Income tax
recovery
|
—
|
—
|
—
|
1,376
|
—
|
1,376
|
Change in fair value of
biological
assets
|
—
|
—
|
2,712
|
—
|
—
|
2,712
|
Change in fair value
realized through
inventory
|
—
|
—
|
279
|
—
|
—
|
279
|
Unrealized foreign
exchange (gain)
loss
|
3
|
(4)
|
25
|
—
|
—
|
24
|
Unrealized (gain) loss
on marketable
securities
|
—
|
—
|
—
|
6,868
|
—
|
6,868
|
Share-based
compensation
|
—
|
372
|
—
|
—
|
2,588
|
2,960
|
Asset
impairment
|
10,079
|
97,299
|
283
|
—
|
—
|
107,661
|
Loss (gain) on
disposition of PP&E
|
17
|
14
|
471
|
—
|
—
|
502
|
Cost of sales non-cash
component (1)
|
—
|
—
|
1,702
|
—
|
—
|
1,702
|
Inventory impairment
(recovery) and
obsolescence
|
—
|
—
|
3,467
|
—
|
—
|
3,467
|
Restructuring
costs
|
—
|
—
|
—
|
212
|
—
|
212
|
Transaction
costs
|
—
|
—
|
—
|
—
|
2,392
|
2,392
|
Government
subsidies
|
—
|
—
|
—
|
—
|
—
|
—
|
Other expenses
|
—
|
—
|
—
|
—
|
—
|
—
|
Adjusted
EBITDA
|
17,487
|
3,102
|
(4,074)
|
(12,463)
|
(11,601)
|
(7,549)
|
OPERATING
SEGMENTS
|
|
|
|
|
|
($000s)
|
Liquor
Retail
|
Cannabis
Retail
|
Cannabis
Operations
|
Investments
|
Corporate
|
Total
|
Three months ended
December 31, 2021
|
|
|
|
|
|
Net earnings
(loss)
|
—
|
(9,746)
|
(23,190)
|
(20,905)
|
(2,919)
|
(56,760)
|
Adjustments
|
|
|
|
|
|
|
Finance
costs
|
—
|
—
|
—
|
3,300
|
230
|
3,530
|
Change in estimate of
fair value of
derivative warrants
|
—
|
—
|
—
|
—
|
(8,200)
|
(8,200)
|
Loss on cancellation of
contracts
|
—
|
—
|
5,116
|
—
|
—
|
5,116
|
Depreciation and
amortization
|
—
|
(427)
|
666
|
—
|
428
|
667
|
Income tax
recovery
|
—
|
10,058
|
—
|
(2,271)
|
—
|
7,787
|
Change in fair value of
biological
assets
|
—
|
—
|
(2,158)
|
—
|
—
|
(2,158)
|
Change in fair value
realized through
inventory
|
—
|
—
|
1,756
|
—
|
—
|
1,756
|
Unrealized foreign
exchange (gain)
loss
|
—
|
—
|
—
|
—
|
(1)
|
(1)
|
Unrealized (gain) loss
on marketable
securities
|
—
|
—
|
—
|
43,750
|
—
|
43,750
|
Share-based
compensation
|
—
|
—
|
—
|
—
|
2,443
|
2,443
|
Asset
impairment
|
—
|
—
|
—
|
—
|
—
|
—
|
Loss (gain) on
disposition of PP&E
|
—
|
(374)
|
—
|
—
|
—
|
(374)
|
Cost of sales non-cash
component (1)
|
—
|
—
|
772
|
—
|
—
|
772
|
Inventory impairment
and
obsolescence
|
—
|
—
|
9,702
|
—
|
—
|
9,702
|
Restructuring
costs
|
—
|
—
|
—
|
874
|
—
|
874
|
Transaction
costs
|
—
|
—
|
—
|
—
|
7,837
|
7,837
|
Government
subsidies
|
—
|
—
|
—
|
—
|
—
|
—
|
Other expenses
|
—
|
—
|
—
|
—
|
—
|
—
|
Adjusted
EBITDA
|
—
|
(489)
|
(7,336)
|
24,748
|
(182)
|
16,741
|
(1) Cost of sales
non-cash component is comprised of depreciation expense
|
|
This press release is intended to be read in conjunction with
the Company's Financial Statements and Notes for the period ended
December 31, 2022, and the
accompanying Management's Discussion and Analysis
("MD&A"). These reports are available under the
Company's profile on SEDAR at www.sedar.com and EDGAR at
www.sec.gov/edgar.shtml.
CONFERENCE CALL
The Company will hold a conference call and webcast at
10:30 a.m. EST (8:30 a.m. MST) on Tuesday,
April 25, 2023.
WEBCAST ACCESS
To access the live webcast of the call, please visit the
following link:
https://services.choruscall.ca/links/sndl2022q4.html
REPLAY
A telephone replay will be available for one month. To access
the replay, dial:
Canada/USA Toll Free: 1-800-319-6413 or International
Toll: +1-604-638-9010
When prompted, enter Replay Access Code: 0070 #
The webcast archive will be available for three months via the link
provided above.
ABOUT SNDL INC.
SNDL is a public company whose shares are traded on the Nasdaq
under the symbol "SNDL." SNDL is the largest private-sector liquor
and cannabis retailer in Canada
with retail banners that include Ace Liquor, Wine and Beyond,
Liquor Depot, Value Buds, Spiritleaf, Superette and Firesale
Cannabis. SNDL is a licensed cannabis producer and one of the
largest vertically integrated cannabis companies in Canada specializing in low-cost biomass
sourcing, premium indoor cultivation, product innovation, low-cost
manufacturing facilities, and a cannabis brand portfolio that
includes Top Leaf, Contraband, Citizen Stash, Sundial Cannabis,
Palmetto, Bon Jak, Spiritleaf Selects, Versus Cannabis, Value Buds,
Vacay, Grasslands and Superette. SNDL's investment portfolio seeks
to deploy strategic capital through direct and indirect investments
and partnerships throughout the global cannabis industry. For more
information on SNDL, please go to www.sndl.com.
Forward-Looking Information
Cautionary Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"), including,
but not limited to, statements regarding the Company's operational
goals, demand for the Company's products, the Company's ability to
achieve profitability or its goal of sustainable, positive gross
margin and positive free cash flow, the development of the legal
cannabis industry, performance of the Company's investments,
including through the SunStream joint venture, any potential forms
of shareholder value creation, and the expansion of product
offerings, brand and market share and retail networks, and the
realization of expected benefits from the acquisition of Valens,
Zenabis and Superette, and its expectation that it may become a
majority owner of one or more MSOs in 2023, its expectation to be
one of the largest adult-use cannabis manufacturers and retailers
in Canada, its expectation to
materially outperform its originally contemplated savings and its
estimated cost synergies. Forward-looking statements are frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "likely",
"outlook", "forecast", "may", "will", "potential", "proposed" and
other similar words, or statements that certain events or
conditions "may" or "will" occur. These statements are only
predictions. Various assumptions were used in drawing the
conclusions or making the projections contained in the
forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. Please see "Item
3.D.—Risk Factors" in the Company's annual report on Form 20-F,
filed with the Securities and Exchange Commission ("SEC") on
April 24, 2023, and the risk factors
included in our other SEC filings for a discussion of the material
risk factors that could cause actual results to differ materially
from the forward-looking information. The Company is under no
obligation, and expressly disclaims any intention or obligation, to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
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SOURCE Sundial Growers Inc.