Organigram Global Inc. · TSX:OGI
Organigram Global — Q2 2020 Earnings Presentation
14 slides from Organigram Global's earnings presentation, Apr 14, 2020
Slide 1: OGI Q2 Fiscal 2020 Results
OGI Q2 FISCAL 2020 RESULTS April 14, 2020 NASDAQ (OGI) TSX (OGI) OGI INVESTORS’ PRESENTATION |
Slide 2: Cautionary Statement
Cautionary Statement This document is current as of April 9, 2020, except where otherwise stated. The information contained in this The financial information in this document contains certain financial performance measures that are not presentation is provided by Organigram (“OGI” or the “Company”)
Slide 3: Q2 Fiscal 2020 Highlights
Q2 Fiscal 2020 Highlights • Net revenue of $23.2 million compared to $26.9M in Q2 2019 and $25.2M in Q1 2020 • Adult-use recreational net revenue grew 16% to $15.0M from $12.9M in Q1 2020 • Ended the quarter with $41.2M in cash and short-term investments; estimated total capex to complete Phase 4 an
Slide 4: Corporate Action Plan – COVID-19
Corporate Action Plan – COVID-19 • On April 7, 2020, announced temporary layoff of ~45% of its workforce1 (or ~400 employees) primarily to help protect the health of employees • Made lump sum payments to affected employees and is absorbing employee paid portion of health, dental & short-term disabil
Slide 5: Q2 Fiscal 2020 Financial Results
Q2 Fiscal 2020 Financial Results NET REVENUE GROSS MARGIN (GM) ADJUSTED EBITDA1 NET LOSS3 before FV CHANGES to BIO ASSETS & Q2 2020 net revenue down from Q2 2019 INVENTORIES SOLD Q2 2020 negative adjusted EBITDA Q2 2020 net loss of $6.8 million, or primarily due to: the timing of large was largely i
Slide 6: Phase 4 Expansion of Moncton Campus
Phase 4 Expansion of Moncton Campus • Current licensed production capacity of 89,000kg/yr1, with all Phase PHASES 4A and Phase 4B rooms licensed 4A & 4B COMPLETE • Delayed completion of Phase 4C2 to: • Prioritize and effectively manage cash flow; and PHASES 4A & 4B COMPLETE • Potentially use portion
Slide 7: Phase 5 - Refurbishment for Edibles and Derivative Products
Phase 5 - Refurbishment for Edibles and Derivative Products • 56,000 square feet within existing Moncton Campus facility being refurbished and designed under EU GMP standards for: • An edibles and derivative production facility; and • Additional extraction capacity (CO2 and hydrocarbon) • Fully lice
Slide 8: OGI Vaporizer Pen Portfolio
OGI Vaporizer Pen Portfolio • As planned, began shipping Trailblazer Torch vape cartridges in December 2019 • Started shipping Edison + Feather ready-to-go distillate pens in February 2020 • Selected as one of the Canadian partners for PAX ERA, the premium closed loop vaporizer system created by PAX
Slide 9: Premium Cannabis-infused Chocolates
Premium Cannabis-infused Chocolates • ~$15M investment in high-speed, high-capacity, fully-automated production line that includes advanced engineering, robotics, high- speed labeling, automated carton packing • OGI product development and production team has more than deep chocolate expertise • Com
Slide 10: Proprietary Nano-Emulsification Technology Dissolvable Powder Product
Proprietary Nano-Emulsification Technology Dissolvable Powder Product • Proprietary nano-emulsion technology, developed by internal R&D team • An expected initial absorption of cannabinoids in 10-15 minutes once ingested by adding to a liquid • Anticipated stability to temperature variations, mechan
Slide 11: Liquidity and Capital
Liquidity and Capital • Cash and short-term investments of $41.2M as at end of Q2 Fiscal 2020 • Obtained waiver for violation of fixed charge ratio covenant on term loan to waive compliance until May 30, 2020 and currently renegotiating credit facility agreement • $30M remains undrawn on total term
Slide 12: Appendix
APPENDIX OGI INVESTORS’ PRESENTATION |
Slide 13: Select Key Financial and Operating Metrics
Select Key Financial and Operating Metrics (in 000s) unless otherwise indicated Q2-2020 Q2-2019 % Change Select Key Financial Metrics Gross revenue 27,309 33,473 -18% Excise taxes (4,088) (6,539) -37% Net revenue 23,221 26,934 -14% Cost of sales 15,811 10,890 45% Gross Margin (GM) before fair value
Slide 14: Select Key Balance Sheet Metrics
Select Key Balance Sheet Metrics Select Balance Sheet Metrics (in 000s) February 29, 2020 August 31, 2019 % Change Cash and short-term investments 41,239 47,935 -14% Biological assets and inventories 140,831 113,796 24% Other current assets 26,264 34,550 -24% Accounts payable and other current 111,5