You can use your smart phone to browse stories in the comfort of your hand. Simply browse this site on your smart phone.

    Using an RSS Reader you can access most recent stories and other feeds posted on this network.

    SNetwork Recent Stories

Decibel Announces Third Quarter Results with $30.2 Million of Net Revenue, $6.7 Million of Adjusted EBITDA, and Positive Free Cash Flow

HDownload Audio

by ahnationtalk on November 16, 202388 Views


CALGARY, ALBERTA – November 16, 2023 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a market leader in premium cannabis and extract manufactured products, is pleased to announce its interim financial results for the three and nine month periods ending September 30, 2023.

“With continued success in our ready to consume product strategy, our recent launches including General Admission Blinker, General Admission edibles, and our new brand Vox Popz crushable pre-rolls are expected to further cement our ready to consume position and meaningful growth in the coming year.” said Paul Wilson, CEO of Decibel. “Alongside these top line growth initiatives, we are pleased to have concluded the expansion of our manufacturing capacity, which will expand gross margin and support our new wave of product launches.”

Third Quarter Highlights

  • National Market Share(2) of7.5% in Q3 2023 which placed Decibel as the 2nd largest licensed producer in Canada by market share.
  • Net Revenue of $30.2 million in the third quarter of 2023, with a sequential decline of 2% over the prior quarter, and year over year growth of 65%. Net revenue growth was driven by growth in demand for vapes and infused products, increased manufacturing capacity, international sales(4), and the launch of the Company’s new brand Vox and General Admission Edibles. International sales were impacted by $1.4 million due to third party lab delays which have since been resolved with Q3 volumes having been sold in Q4 2023.
  • Gross Margin Before Fair Value Adjustments was43% in the third quarter of 2023, compared to 42% in the prior quarter and 52% in the third quarter of 2022. The third quarter was impacted by a $368 thousand write off of aged product and increased temporary labour of $566 thousand to meet market demand. The Company completed certain operational investments in November, including the expansion of its manufacturing capacity, which at current production and sales is anticipated to realize cash-flow savings of approximately $10 million at full year production rate.
  • Adjusted EBITDA(1) of$6.7 million in the third quarter of 2023, with a sequential decline of 8% over the prior quarter and year over year growth of 57%.
  • Positive Free Cash Flow(1) of$1.2 million in the third quarter of 2023, with a sequential increase of 152% over the prior quarter and a year over year decline of 50%.
  • Adjusted Net Income(1) of$523 thousand in the third quarter of 2023, with a sequential decline of 88% over the prior quarter and a year over year decline of 82%. Adjusted Net Income was negatively impacted by a litigation expense of $3 million related to arbitration that is now concluded.
  • Adjusted Earnings Per Share (“Adjusted EPS”)(3): of nil in the third quarter, a decrease of $0.01 from the prior quarter and a year over year decrease of $0.01.

Year to Date Highlights

  • Net Revenue of $88.2 million, an increase of 65% over 2022.
  • Adjusted EBITDA(1) of $20.8 million, an increase of 109% over 2022.
  • Positive Free Cash Flow(1) of $3.4 million, a decrease of 31% over 2022.
  • Adjusted EPS(3) of $0.02, an increase of $0.02 over 2022.

Notes:

1 Non-GAAP financial measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Measures” for further details.

2 HiFyre Retail Analytics, Licensed Producer Sales over Time Nationally

3 Non-GAAP ratio. Refer to “Cautionary Statement Regarding Certain Non-GAAP Measures” for further details.

4 Supplementary financial measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Measures” for further details.

Summary Highlights1

1  In the table above, wholesale inventory transferred to the retail stores and subsequently sold of $802 thousand and $2.2 million for the three and six month periods, has been eliminated from retail sales and attributed to gross Canadian recreational sales and net Canadian recreational sales to provide a more accurate depiction of business performance.

2  Supplementary financial measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Measures” for further details.

3  Non-GAAP financial measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Measures” for further details.

4  Non-GAAP ratio. Refer to “Cautionary Statement Regarding Certain Non-GAAP Measures” for further details.

Link to Decibel’s Investor Presentation

Decibel’s interim financial statements for the three and nine month periods ending September 30, 2023 (“FinancialStatements”) and related Management’s Discussion & Analysis for three and nine month periods ending September 30, 2023, are available under the Company’s profile atwww.sedarplus.ca.

As of September 30, 2023, Decibel was in compliance with all of its financial covenants under its credit facilities and expects to remain in compliance for the remainder of its twelve-month forecast period.

NT4

Send To Friend Email Print Story

Comments are closed.

NationTalk Partners & Sponsors Learn More