Earnings Update: Canopy Rivers, Turning Point Brands, CbdMD, Pyxus International

TerrAscend Investment Helps Canopy Rivers Reach $82.2M In Income For Q3

Canopy Rivers Inc. disclosed Wednesday its total comprehensive income amounted to $82.2 million in the third quarter of this fiscal year, versus a loss of $40 million in the same period of last year.

The company attributes the growth to an $11.4 million increase in the value of its TerrAscend Canada Inc. TER TRSSF investment.

The Toronto-based venture capital firm invested some $10 million in Terrascend in October. Canopy acquired 13,243 units of TerrAscend as a part of the first tranche of the offering.

"Our portfolio companies continue to gain momentum, and we are further encouraged by the potential for regulatory reform in the U.S. given recent progress at the state level, and the new administration's position on cannabis reform," Canopy Rivers CEO Narbé Alexandrian said.

Operating income - before equity method investees and fair value changes - was roughly $3 million for the period, slightly less than operating expenses, which amounted to $3.4 million.

The company also reported a net operating loss of approximately $9.6 million.

Meantime, in December, Canopy transferred three of its portfolio assets to Canopy Growth Corp CGC. The transaction brought Rivers $115 million in cash and 3.75 million of Canopy Growth's common shares.

Alexandrian praised the deal, adding it will "provide substantial value to our shareholders."

Turning Point Q4 Net Sales Increase 31.2% YoY

Turning Point Brands Inc. TPB noted Wednesday its net sales rose 31.2% year-over-year to $105.3 million in the fourth quarter.

Moreover, its adjusted EBITDA increased 80.9% to $25.8 million over the period.

The company also saw an increase of 321.8%, coming from restructuring expenses from the previous year.

For the year, net sales amounted to $405.1 million. Net income increased by $19.3 million over the year.

In addition, its Zig-Zag Products segment saw an increase of 46.7% in net sales over the quarter and 22.1% over the year.

“Despite challenges related to COVID-19, our company remained focused on executing our plan throughout 2020 and finished the year strong with tremendous top-line growth in the fourth quarter,” Turning Point president and CEO Larry Wexler said.

CbdMD E-Commerce Sales Hit $9.7M In Q1

CbdMD Inc. YCBD says e-commerce direct-to-consumer sales spiked 41% year-over-year and 13% sequentially, to hit a record $9.7 million in the first quarter of fiscal 2021.

The Charlotte, North Carolina-based company has been broadening its direct-to-consumer offering over the last year, including the most recent U.K. expansion in December.

Net sales for the first three months of this year rose by 22% year-over-year to $12.3 million.

The gross profit margin for the period went up to 72.2% from 63.5%.

Quarterly net sales for the company's CBD pet brand, Paw CBD, amounted to $1.5 million, up by 83% from the prior year's quarter.

Operating expenses declined by 15% year-over-year and 2% sequentially to $10.7 million. Loss from operations was $1.8 million, down by 71% compared to last year's corresponding quarter.

Pyxus International Net Loos Improves 62.7% In Q3

Pyxus International Inc. PYX revenues went up 4.5% year-over-year, to $379.6 million in the third quarter of the 2021 fiscal year.

Adjusted EBITDA also improved, increasing 64.9% to $39.9 million, versus a positive adjusted EBITDA of $24.2 million for the corresponding quarter of last year.

“Since the completion of our financial restructuring, we have undergone a strategic review of all business units and categories in which we operate in order to develop a stronger, more streamlined strategy to improve financial performance,” Pyxus president and CEO Pieter Sikkel stated.

The gross profit — as a percent of sales — was 16.5% for the quarter ended Dec. 31. That's up by 1.3% year-over-year.

Selling, general, and administrative expenses amounted to $45.9 million for the period.

Net loss was $8.2 million, an improvement of 62.7% from the third quarter of the 2020 fiscal year.