$ETRGF: Great call.............. excellent earnings here.
Very nicely done !
Now 0.05.... pretty low but this market is CRAP right now
GO $ETRGF
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Entourage Reports Record Fiscal Year 2021 Financial Results with $55.2 Million in Total Revenue for a 56% Year-Over-Year Increase and Preliminary Q1 2022 Record Revenue of $17.4 Million
10:49 AM ET 5/9/22 | GlobeNewswire
Entourage Reports Record Fiscal Year 2021 Financial Results with $55.2 Million in Total Revenue for a 56% Year-Over-Year Increase and Preliminary Q1 2022 Record Revenue of $17.4 Million
-- Net revenue increased to $42.2 million for the full year ended December
31, 2021
-- Preliminary unaudited Q1 2022 total revenue $17.4 million(1) representing
35% YOY growth
-- Upsized credit facility with LiUNA Pension Fund further improves
liquidity position
TORONTO, May 09, 2022 (GLOBE NEWSWIRE) -- Entourage Health Corp. (formerly WeedMD Inc.) (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE) ("Entourage" or the "Company"), a Canadian producer and distributor of award-winning cannabis products, announced today its financial results for the fiscal year ended December 31, 2021. The Company also announced preliminary unaudited first quarter 2022 total revenue of $17.4 million(1) , which represents a direct-to-consumer and patient record increase of approximately 35% on a year-over-year basis. The Company expects to report its first quarter 2022 financial results on or before May 31, 2022.
"Entourage achieved impressive growth in 2021 including expanded market share and increased retail brand recognition with Color Cannabis as a top 10 performer for the year, which drove 56% growth in revenues. Strong consumer sales in our main product categories included notable increases in premium flower & pre-roll market segments, with a 535%((2) () sales increase over the prior year," said George Scorsis, CEO and Executive Chair, Entourage. "This was also a breakout year for our medical business, with 20% patient growth and an expanded product portfolio of over 40 SKUs. Our preliminary Q1 results are noting another record increase with $17.4(1) million in total revenue representing a milestone achievement for Entourage. Based on our strong early-year momentum, we expect these favourable trends will continue through 2022 even as we realize the benefits of expanding our tissue culture business with the acquisition of CannTx Life Sciences."
Summary of Results
For the Year-Ended Dec. 31, 2021 Dec. 31, 2020
($000's) ($000's)
Total revenue 55,229 35,484
Net revenue (less Excise Tax) 42,272 29,434
Gross (loss) before changes in fair
value (3,592 (21,991)
Gross margin % before changes in fair
value (-8.0%) (-75%)
Loss and comprehensive loss (78,935 (89,607)
Adjusted EBITDA* (9,293) 7,658
---------------------------------------- ------ ------------- -------------
As at Dec. 31, 2021 Dec. 31, 2020
--------------------------------------- --- ----------------- -------------
($000's) ($000's)
Cash and cash equivalents 21,416 22,322
Inventory 29,641 30,665
Biological assets 607 1,956
Working Capital (54,967) 44,575
---------------------------------------- ------ ------------- -------------
*Adjusted EBITDA is not a recognized measurement under International Financial Reporting Standards ("IFRS") and this data may not be comparable to data presented by other companies. Management defines Adjusted EBITDA as EBITDA adjusted to exclude interest, tax, and depreciation, stock compensation, fair value changes and other non-cash items, and non-recurring items. This data is furnished to provide additional information and does not have any standardized meaning prescribed by IFRS. The Company uses this non-IFRS measure to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use this non-IFRS measure in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate Adjusted EBITDA differently than the Company, this metric may not be comparable to similarly titled measures reported by other companies. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities. See the Company's management's discussion and analysis for the 12 months ended December 31, 2021 (the "2021 MD&A") for a detailed reconciliation of Adjusted EBITDA to Net Income / (Loss). The Company's financial statements for the 12 months ended December 31, 2021 and the 2021 MD&A are available on SEDAR at www.sedar.com
Full Year 2021 Financial Highlights
-- For the fiscal year ended December 31, 2021, Entourage recorded sales of
$55.2 million, compared to approximately $35.4 million for the fiscal
year ended December 31, 2020, a 56% increase year-over-year.
-- The weighted average cost per gram from clone to harvest of plants on
hand was $0.68 in Q4 2021 compared to $0.89 in the comparable 2020
period. Weighted average cost per gram of inventory on hand increased to
$0.61 in Q4 2021 compared to $0.46 in the comparable 2020 period mainly
due to inventory write-downs recorded in 2021.
-- Gross loss before changes in fair value was $3.6 million for full year
2021 versus gross loss of $22.0 million for full year 2020. The
improvements were mainly due to lower cost to produce higher grade
products, sold at higher margins across expanded distribution channels.
-- Gross margins of (-8%) improved 66% over prior year also a result of
lower cost to produce higher grade products, sold at higher margins. The
preliminary number of 7% initially reported was adjusted as a result of
an inventory provision in Q4 2021.
-- EBITDA improved by $1.8 million to $(39.8) million for full year 2021
from $(41.6) million for full year 2020, also primarily driven by
business transformation initiatives to lower costs and partly due to
generating higher-margin revenue and spending lower selling, general and
administrative expenses.
Preliminary Q1 2022 Revenue(1)
Entourage also announced preliminary unaudited revenue highlights for the three months ended March 31, 2022. First quarter 2022 record total revenues of $17.4 million represent 35% growth year-over-year, reflecting continued increased sales of higher-margin, direct-to-consumer and direct-to-patient products. Revenue from adult-use and medical channels increased substantially quarter-over-quarter, driven by expanded product availability across retail outlets, broader distribution channels and customer acquisition initiatives.
Revenue Highlights
Q1 2022(1) Q1 2021 Change
($000's) ($000's) %
Net Revenue by Channel
-----------------------
Medical 8,538 5,779 47%
Adult-Use 8,606 7,110 21%
Bulk 217 100%
Total Revenue 17,361(1) 12,889 35%
------------------------ ---------- -------- ------
Corporate Highlights During and Subsequent to 2021
Leadership Appointments and Corporate News
-- In 2021, the Company announced a corporate name change and rebranding
from "WeedMD Inc." to "Entourage Health Corp." The Company's common
shares are publicly traded on the TSX Venture Exchange under the new
ticker symbol "ENTG" and U.S.-based OTC market under "ETRGF".
-- Appointed Executive Chairman, George Scorsis, as interim Chief Executive
Officer in January 2021, and subsequently named permanent CEO in 2022.
-- Also in January 2021, Jason Alexander was appointed to the Company's
Board of Directors and named Chair of Governance Committee and SVP of
Legal Affairs Vincent Doré named Corporate Secretary.
-- In November 2021, the Company announced the appointments of: Joseph Mele
to Chief Commercial Officer; James Afara (formerly Chief Operation
Officer of CannTx Life Sciences) to SVP of Strategic Sourcing and Quality
Assurance; and Pat Scanlon (co-founder of CannTx Life Sciences) as Head
of Cultivation.
-- Following the closing of the CannTx acquisition, Entourage announced on
November 1, 2021 the appointments of new Board directors Andrew Bulmer
and S. Randall Smallbone.
-- In December 2021, the Company confirmed its certification as an Ontario
Living Wage Employer, becoming one of only three cannabis cultivators
with this distinction.
-- In April 2022, Entourage announced the appointment of veteran finance
executive Vaani Maharaj as CFO, succeeding Beth Carreon, effective May 4,
2022.
Business Transformation Initiatives and CannTx Life Sciences Acquisition
-- In early 2021, the Company relocated its medical packaging, labelling and
distribution activities from Bowmanville, to its Aylmer, Ontario facility
which also houses the Company's extraction hub. The move improved
operational efficiencies and aligned its cost structure, following the
subsequent news in June 2021 that Entourage sold its fully licensed
Bowmanville operating assets to Final Bell Canada Inc.
-- Entourage announced in July 2021, it had signed an acquisition agreement
to purchase Guelph-based craft cultivator CannTx Life Sciences Inc. The
acquisition closed on November 1, 2021.
(MORE TO FOLLOW) Dow Jones Newswires
May 09, 2022 10:49 ET (14:49 GMT)
