TLRY Stock Increases Over 27% Intraday: Why It Happened

By Amit Chowdhry ● Jul 28, 2021
  • The stock price of Tilray Inc (NASDAQ: TLRY) increased by over 27% during intraday trading. This is why it happened.

The stock price of Tilray Inc (NASDAQ: TLRY) increased by over 27% during intraday trading. Investors are responding positively to the company’s financial results for the full fiscal year and fourth quarter ended May 31, 2021.

These are the highlights:

Q4 2021 Highlights

— Net revenue increased 25% to $142.2 million during the fourth quarter from $113.5 million in the prior-year quarter. And the increase was driven by 36% growth in net cannabis revenue to $53.7 million, which included four weeks of contribution from legacy-Tilray, a 10% decline in distribution revenue, net beverage alcohol revenue of $15.9 million following our SweetWater acquisition on November 25, 2020, and wellness revenue of $5.8 million from Manitoba Harvest.

— Net income of $33.6 million during the fourth quarter compared to a net loss of $84.3 million in the prior-year quarter.

— Adjusted EBITDA increased 285% to $12.3 million during the fourth quarter from $3.2 million in the prior-year quarter marking the ninth consecutive quarter of positive Adjusted EBITDA.

— Gross profit decreased 19% to $22.5 million during the fourth quarter from $27.8 million in the prior-year quarter. And included in gross profit was a one-time inventory valuation adjustment of $19.9 million resulting from excess inventory quantities upon the business combination with Aphria. 

— Adjusted gross profit, excluding inventory valuation adjustment, increased 53% to $42.4 million during the fourth quarter from $27.8 million in the prior-year quarter.

— Free cash flow increased 112% to $3.3 million in the fourth quarter from ($28.3) million in the prior-year quarter.
FY 2021 Highlights

— Net revenue increased 27% to $513.1 million during 2021 from $405.3 million in 2020. The increase was driven by 55% growth in net cannabis revenue to $201.4 million, which included 4 weeks of contribution from legacy-Tilray, 1% growth in distribution revenue to $277.3 million, net beverage alcohol revenue of $28.6 million following our SweetWater acquisition on November 25, 2020, and wellness revenue of $5.8 million from Manitoba Harvest due to our Tilray reverse acquisition on April 30, 2021.

— Net loss of $336 million in 2021 compared to net loss of $100.8 million in 2020 was driven by $63.6 million of transaction costs related to out-of-pocket fees to consummate our business combinations and $170.5 million of non-cash unrealized loss on our convertible debentures.

— Adjusted EBITDA increased 598% to $40.8 million in 2021 from $5.8 million in 2020.

— Gross profit increased 28% to $123.2 million during 2021 from $96.1 million in the prior year. And included in gross profit was a one-time inventory valuation adjustment of $19.9 million in Q4 resulting from excess inventory quantities upon the business combination with Aphria. 

— Adjusted gross profit, excluding inventory valuation adjustment, increased 50% to $143.9 million in 2021 from $96.1 million in 2020.

— Ended the year with a strong balance sheet and liquidity, including cash and cash equivalents of $488.5 million.

The company is expecting to deliver significant cost synergies totaling approximately $80 million within 18 months of closing the Aphria Tilray business combination and plans to achieve cost synergies in the key areas of cultivation and production, cannabis and product purchasing, sales, and marketing, and corporate expenses. To date so far, the company has achieved $35 million in synergies.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.