Tilray, Inc. (Nasdaq: TLRY) reported financial results for the second quarter ending June 30, 2019 revenue increased 371.1% to $45.9 (C$60.9) million, compared to the second quarter of last year, driven by the Manitoba Harvest acquisition, the legalization of the Canadian adult-use market, and growth in international medical markets, particularly in Europe. Excluding excise tax, revenue was $42.0 (C$55.8) million.
The company reported a net loss of $35.1 million or $0.36 per share compared to a loss of $12.8 million or $0.17 per share for the same time period in 2018. The adjusted net loss for the quarter was $31.2 million or $0.32 per share for the second quarter of 2019. Tilray said that the adjustments to the net loss were non-recurring acquisition-related charges and a non-recurring non-cash charge related to purchase accounting for the fair value of inventory.
The company’s stock was falling in after-hours trading by over 5% to $43.35.
The adjusted EBITDA was a loss of $17.9 million compared to a loss of $4.7 million last year. The increased net loss and adjusted EBITDA declines were primarily due to the increase in operating expenses related to growth initiatives, interest expense from our convertible notes, the addition of Manitoba Harvest and Natura businesses, and the expansion of international operations.
“We are pleased with our second quarter results and strong business momentum,” said Brendan Kennedy, Tilray President and Chief Executive Officer. “Our team has executed against our plan, with adult-use revenue nearly doubling in the second quarter compared to the first quarter and gross margin increasing sequentially for the second quarter in a row. As we continue to grow, we remain focused on our long-term strategic objectives and deploying capital to maximize stockholder value.”
Kilograms Sold Tripled
The company said its total kilograms sold more than tripled to 5,588 kilograms from 1,514 kilograms in the prior-year period. The average net selling price per gram dropped to $4.61 (C$6.12) compared to $6.38 (C$8.36) in the prior-year period. The average net selling price excluding excise taxes was $3.92 (C$5.20) per gram for the second quarter of 2019. The decrease was due to a reduced mix of higher-priced extract products and a greater mix of adult-use revenue, which are at lower prices per gram compared to other channels.