Village Farms International Reports Strong Q3/24 Results
Village Farms International reported strong Q3 2024 results with 20% year-over-year growth in consolidated sales to $83.4 million. Canadian Cannabis net sales increased 29%, Fresh Produce sales grew 20%, and International Medicinal Cannabis sales rose 111%. The company maintained its #2 position in Canadian market share and achieved #1 position in Quebec. Consolidated adjusted EBITDA increased 63% to $5.3 million, with positive cash flow from operations of $4.3 million. The company began cultivation in Netherlands, marking its first international recreational market entry. Both Canadian Cannabis and Fresh Produce segments delivered positive Adjusted EBITDA and net income.
Village Farms International ha riportato risultati solidi per il terzo trimestre del 2024, con una crescita del 20% rispetto all'anno precedente nelle vendite consolidate, raggiungendo i 83,4 milioni di dollari. Le vendite nette di Cannabis canadese sono aumentate del 29%, le vendite di Prodotti Freschi sono cresciute del 20%, e le vendite di Cannabis Medicinale internazionale sono aumentate dell'111%. L'azienda ha mantenuto la sua posizione #2 nella quota di mercato canadese e ha raggiunto la posizione #1 nel Québec. L'EBITDA consolidato rettificato è aumentato del 63% a 5,3 milioni di dollari, con un flusso di cassa operativo positivo di 4,3 milioni di dollari. L'azienda ha avviato la coltivazione nei Paesi Bassi, segnando il suo primo ingresso nel mercato ricreativo internazionale. Sia il segmento della Cannabis canadese che quello dei Prodotti Freschi hanno registrato un EBITDA rettificato e un reddito netto positivi.
Village Farms International reportó resultados sólidos para el tercer trimestre de 2024, con un crecimiento del 20% interanual en ventas consolidadas, alcanzando los 83,4 millones de dólares. Las ventas netas de Cannabis canadiense aumentaron un 29%, las ventas de Productos Frescos crecieron un 20% y las ventas de Cannabis Medicinal internacional aumentaron un 111%. La empresa mantuvo su posición #2 en participación de mercado canadiense y logró la posición #1 en Quebec. El EBITDA ajustado consolidado aumentó un 63% a 5,3 millones de dólares, con un flujo de caja operativo positivo de 4,3 millones de dólares. La empresa inició la cultivo en los Países Bajos, marcando su primera entrada en el mercado recreativo internacional. Tanto el segmento de Cannabis canadiense como el de Productos Frescos entregaron un EBITDA ajustado y una renta neta positivos.
Village Farms International은 2024년 3분기에 전년 대비 20% 성장한 8340만 달러의 매출을 보고했습니다. 캐나다 대마초의 순매출은 29% 증가했으며, 신선 농산물 매출은 20% 성장하고, 국제 의약용 대마초 매출은 111% 상승했습니다. 이 회사는 캐나다 시장 점유율에서 2위 자리를 유지하고 퀘벡에서 1위 자리를 차지했습니다. 조정된 EBITDA는 630만 달러로 63% 증가했으며, 운영에서 긍정적인 현금흐름은 430만 달러에 달했습니다. 이 회사는 네덜란드에서 재배를 시작하며, 국제 레크리에이션 시장 첫 진입을 알렸습니다. 캐나다 대마초와 신선 농산물 두 부문 모두 조정된 EBITDA 및 순이익에서 긍정적인 성과를 보였습니다.
Village Farms International a annoncé de solides résultats pour le troisième trimestre 2024, avec une croissance de 20% par rapport à l'année précédente des ventes consolidées atteignant 83,4 millions de dollars. Les ventes nettes de cannabis canadien ont augmenté de 29%, les ventes de produits frais ont crû de 20% et les ventes de cannabis médicinal international ont bondi de 111%. L'entreprise a maintenu sa position de #2 sur le marché canadien et a atteint la position de #1 au Québec. L'EBITDA ajusté consolidé a augmenté de 63% pour atteindre 5,3 millions de dollars, avec un flux de trésorerie opérationnel positif de 4,3 millions de dollars. L'entreprise a commencé sa culture aux Pays-Bas, marquant son premier entrée sur le marché récréatif international. Les segments de cannabis canadien et de produits frais ont tous deux réalisé un EBITDA ajusté et un revenu net positifs.
Village Farms International berichtete über starke Ergebnisse im dritten Quartal 2024 mit einem Wachstum von 20% im Jahresvergleich bei den konsolidierten Verkaufszahlen auf 83,4 Millionen Dollar. Die Nettoumsätze von kanadischem Cannabis stiegen um 29%, der Umsatz mit frischen Produkten wuchs um 20% und die internationalen medizinischen Cannabisverkäufe stiegen um 111%. Das Unternehmen behielt seine #2-Position im kanadischen Marktanteil und erreichte die #1-Position in Quebec. Das konsolidierte, angepasste EBITDA stieg um 63% auf 5,3 Millionen Dollar, mit einem positiven Cashflow aus der Betriebstätigkeit von 4,3 Millionen Dollar. Das Unternehmen begann mit dem Anbau in den Niederlanden, was den ersten internationalen Eintritt in den Freizeitsmarkt markiert. Sowohl der kanadische Cannabis- als auch der Frischproduktenbereich lieferten ein positives angepasstes EBITDA und einen Nettoertrag.
- 20% year-over-year growth in consolidated sales to $83.4 million
- 29% increase in Canadian Cannabis net sales to $36.5 million
- 111% growth in international medicinal cannabis sales
- 63% increase in consolidated adjusted EBITDA to $5.3 million
- Positive cash flow from operations of $4.3 million
- Achieved #1 market share position in Quebec
- Gross margin in Canadian Cannabis declined to 26% from 35% year-over-year
- U.S. Cannabis sales decreased to $3.9 million from $5.0 million
- Consolidated net loss of $0.8 million
Insights
Village Farms delivered a strong Q3 2024 with total sales growing
The company maintained its #2 market position in Canadian cannabis while achieving #1 share in Quebec. Gross margins in cannabis were impacted by non-branded spec sales but core branded margins remained healthy at
Strategic developments include commencing Netherlands cultivation for expected Q1 2025 sales start and strong international medicinal growth. The balance sheet shows improving operational cash flow of
The results demonstrate Village Farms' successful execution in both legacy and growth segments. In Canadian cannabis, maintaining the #2 market position while being the fastest growing producer validates their premium brand strategy. The Netherlands cultivation start is particularly significant as it represents their first international recreational market entry with potentially higher margins than Canada.
The
- Total Sales Grew
20% Year-over-Year:29% Canadian Cannabis Net Sales Growth;20% Fresh Produce Sales Growth;111% International Medicinal Cannabis Sales Growth - Canadian Cannabis Remained #2 by Market Share and was Fastest Growing LP over Last Year;
22% Year-over-Year Retail Branded Sales Growth - Commenced Cultivation in Netherlands; Company’s First International Recreational Market
- Canadian Cannabis Delivered Positive Adjusted EBITDA, Operating Cash Flow and Net Income
- Fresh Produce Delivered Positive Adjusted EBITDA and Net Income
VANCOUVER, British Columbia and ORLANDO, Fla., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) today reported its financial results for the third quarter ended September 30, 2024. All figures are in U.S. dollars unless otherwise indicated.
Management Commentary
“Strong performance in our Fresh Produce business, continued growth in Canadian Cannabis and a doubling of International Medicinal Cannabis Sales drove
“Our Canadian Cannabis business continues to deliver strong growth with leading market share as we realized revenue growth in all sales channels and positive EBITDA and operating cash flow. We were once again the fastest growing producer in Canada over the last year in terms of market share and, for the first time ever, were number one in Quebec, making us the top producer in Canada’s two most populus provinces. Out-of-stocks in some cultivars after a strong first half impacted sales growth in the quarter, and non-brand-spec sales that converted inventory to cash impacted gross margin. Gross margin, excluding non-brand-spec sales returned to our target range of 30 to
“We are also increasingly benefitting from our international cannabis focus. Exports from Canada increased
“Fresh Produce delivered positive adjusted EBITDA on solid sales growth, demonstrating our expected recovery from the softer pricing we experienced during the second quarter. We are continuing to drive this business toward sustained profitability as we benefit from ongoing yield and cost improvement initiatives.”
“As we close out fiscal year 2024, we are focused on driving more profitable sales in Canadian Cannabis, prioritizing profitable growth as we manage inventory levels with evolving supply dynamics and increasing international demand. We are looking forward to more exciting catalysts for our business in fiscal year 2025, with continued international expansion and contributions from sales in the Netherlands. We believe our Netherlands business has the potential to become a strong contributor of profitability and cash flow generation, driven by more favorable pricing and taxes in the Dutch market compared to Canada.”
Third Quarter Financial Highlights
(All comparable periods are for the third quarter of 2023 unless otherwise stated)
Consolidated
- Consolidated sales increased
20% to$83.4 million from$69.5 million ; - Consolidated net loss was (
$0.8 million ), or ($0.01) per share, compared with ($1.3 million ), or ($0.01) per share; - Consolidated adjusted EBITDA (a non-GAAP measure) increased
63% to$5.3 million from$3.2 million ; and, - Consolidated cash flow from operations was
$4.3 million compared with$12.1 million .
Canadian Cannabis
- Net sales increased
27% to$36.5 million (C$49.8 million ) from$28.8 million (C$38.7 million ); - Retail branded sales increased
22% , international medicinal sales increased111% , non-branded (wholesale) sales increased68% (in Canadian dollars); - Gross margin was
26% compared with35% ; (in Canadian dollars). This quarter’s gross margin was reduced by sales of non-branded spec inventory in the non-branded channel. Excluding the non-branded spec inventory sales, gross margin was31% (in Canadian dollars); - Net income was
$1.2 million (C$1.6 million ) compared with$2.9 million (C$3.8 million ); - Adjusted EBITDA was
$4.8 million (C$6.5 million ) compared with$4.6 million (C$6.2 million ); and, - Cash flow from operations was
$4.5 million (C$6.1 million ) compared with$4.8 million (C$6.8 million ).
U.S. Cannabis (Balanced Health Botanicals)
- Net sales were
$3.9 million compared with$5.0 million ; - Gross margin was
63% compared with64% ; - Net loss was (
$0.2 million ) compared with net income of$0.1 million ; - Adjusted EBITDA was (
$0.2 million ) compared with$0.2 million .
Village Farms Fresh (Produce)
- Sales increased
20% to$42.8 million from$35.7 million ; - Net income was
$0.4 million compared with a net loss of ($1.0 million ); and, - Adjusted EBITDA was
$2.3 million compared with$0.8 million .
Strategic Growth and Operational Highlights
Canadian Cannabis
- Was the fastest growing producer year-over year by market share1;
- Further expanded its number one national market share position in dried flower1;
- Continued to hold the number two producer position in Canada1;
- Continued to hold the number two national market share position in the pre-roll category1;
- Achieved the number one market share in Quebec2; maintained the number one market share in Ontario1;
- Super Toast remained the third fastest growing brand nationally in Q3 20241; and,
- Launched Neon Lambo cultivar to strong reception in Q4 2024; new category launches planned through the remainder of Q4 2024 and Q1 2025.
1. For the third quarter of 2024. Based on estimated retail sales from HiFyre, other third parties and provincial boards.
2. Based on estimated retail sales from HiFyre, other third parties and provincial boards.
International Cannabis
- Saw year-over-year increases in international medicinal sales to each of Australia, Germany and the United Kingdom for Q3 and year-to-date 2024 (reported within Canadian Cannabis)
- Currently hold the #1 and #3 cultivars in the German market through a supply agreement1
- Acquired the remaining equity ownership interest in Leli Holland, which holds one of 10 licenses to participate in the Netherlands recreational cannabis program, to increase its ownership to 100 percent from 85 percent.
- Completed build out of the Company’s first indoor cultivation facility in Drachten, Netherlands. The Drachten facility has five flower rooms and additional space for drying, manufacturing, and packaging of finished goods.
- Began cultivating in the Drachten facility October 2024. The Company continues to expect sales to participating jurisdictions to begin during the first quarter of 2025.
1. Based on estimates from Flowzz.
U.S. Cannabis
- The Company was one of 25 participants, and the only operator, selected to participate in the Drug Enforcement Administration’s (DEA) upcoming Administrative Law Judge (ALJ) hearing regarding the proposed rescheduling of marijuana in the United States from a Schedule I to a Schedule III drug under the Controlled Substances Act, which is currently expected to take place sometime in January or February 2025.
- The proliferation of unregulated hemp-derived products in the U.S. market, continues to challenge market share for the CBD industry and is causing certain states to impose significant restrictions on intoxicating hemp derived products; and,
- The Company’s application for a Texas medicinal marijuana license remains pending review by the Department of Public Services. If awarded, the Company plans to work with its listing authority to structure an acceptable ownership structure.
VF Fresh (Produce)
- Continued to benefit from implementing new cultivation technologies, including artificial intelligence, to drive further operational improvements; and,
- The Company has an ongoing sale process for its Monahans (Permian Basin, Texas) greenhouse facility. It is also evaluating other uses for the site and facility, some of which are outside its historical produce business.
Village Farms Clean Energy
- In April 2024, the Delta, British Columbia Renewable Natural Gas Project began operations, which immediately began contributing incremental net income to the Company.
- During the third quarter of 2024, Village Farms Clean Energy produced net income of
$0.3 million through royalty payments received from its clean energy partner.
Canadian Cannabis Performance Summary
| (millions except % metrics) | Three Months Ended September 30, | ||||||||
| 2024 | 2023 | ||||||||
| CAD $ | USD $ | CAD $ | USD $ | Change of C $ | |||||
| Total Net Sales | |||||||||
| Total Cost of Sales | |||||||||
| Gross Profit | - | ||||||||
| Gross Margin % | - | ||||||||
| SG&A | |||||||||
| Net income | - | ||||||||
| Adjusted EBITDA (1) | |||||||||
| Adjusted EBITDA Margin (1) | - | ||||||||
| Cash flow from Operations | - | ||||||||
| (millions except % metrics) | Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | ||||||||
| CAD $ | USD $ | CAD $ | USD $ | Change of C $ | |||||
| Total Net Sales | |||||||||
| Total Cost of Sales | |||||||||
| Gross Profit | |||||||||
| Gross Margin % | - | ||||||||
| SG&A | |||||||||
| Net income | - | ||||||||
| Adjusted EBITDA (1) | |||||||||
| Adjusted EBITDA Margin (1) | - | ||||||||
| Cash flow from Operations | |||||||||
1 Adjusted EBITDA is not a recognized earnings measure and does not have a standard meaning prescribed by GAAP.
Canadian Cannabis’ Composition of Sales by Channel
| (millions except % metrics) | Three Months Ended September 30, | ||||||||||||
| 2024 | 2023 | ||||||||||||
| CAD $ | USD $ | CAD $ | USD $ | Change of C $ | |||||||||
| Retail Branded Sales | |||||||||||||
| Non-Branded Sales | |||||||||||||
| International Sales | |||||||||||||
| Other | - | ||||||||||||
| Less: Excise Taxes | ( | ( | ( | ( | |||||||||
| Net Sales | |||||||||||||
| (millions except % metrics) | Nine Months Ended September 30, | ||||||||||||
| 2024 | 2023 | ||||||||||||
| CAD $ | USD $ | CAD $ | USD $ | Change of C $ | |||||||||
| Retail Branded Sales | |||||||||||||
| Non-Branded Sales | |||||||||||||
| International Sales | |||||||||||||
| Other | - | ||||||||||||
| Less: Excise Taxes | ( | ( | ( | ( | |||||||||
| Net Sales | |||||||||||||
Presentation of Financial Results
The Company’s financial statements for the three and nine months ended September 30, 2024, as well as the comparative periods for 2023, have been prepared and presented under United States Generally Accepted Accounting Principals (“GAAP”).
RESULTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)
Consolidated Financial Performance
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Sales | $ | 83,368 | $ | 69,510 | $ | 253,627 | $ | 211,378 | ||||||||
| Cost of sales | (67,660 | ) | (54,889 | ) | (213,158 | ) | (172,958 | ) | ||||||||
| Gross profit | 15,708 | 14,621 | 40,469 | 38,420 | ||||||||||||
| Selling, general and administrative expenses | (16,540 | ) | (15,822 | ) | (52,593 | ) | (49,980 | ) | ||||||||
| Interest expense | (784 | ) | (988 | ) | (2,606 | ) | (3,532 | ) | ||||||||
| Interest income | 229 | 262 | 757 | 741 | ||||||||||||
| Foreign exchange gain (loss) | 352 | (971 | ) | (929 | ) | (302 | ) | |||||||||
| Other income (loss) | 379 | (19 | ) | 528 | 5,613 | |||||||||||
| Goodwill and intangible asset impairments (1) | — | — | (11,939 | ) | — | |||||||||||
| Loss before taxes | (656 | ) | (2,917 | ) | (26,313 | ) | (9,040 | ) | ||||||||
| (Provision for) recovery of income taxes | (94 | ) | 1,664 | (674 | ) | (269 | ) | |||||||||
| Loss including non-controlling interests | (750 | ) | (1,253 | ) | (26,987 | ) | (9,309 | ) | ||||||||
| Less: net income attributable to non-controlling interests, net of tax | (70 | ) | (46 | ) | (234 | ) | (6 | ) | ||||||||
| Net loss attributable to Village Farms International Inc. shareholders | $ | (820 | ) | $ | (1,299 | ) | $ | (27,221 | ) | $ | (9,315 | ) | ||||
| Adjusted EBITDA (2) | $ | 5,302 | $ | 3,248 | $ | 5,334 | $ | 8,243 | ||||||||
| Basic loss per share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.25 | ) | $ | (0.09 | ) | ||||
| Diluted loss per share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.25 | ) | $ | (0.09 | ) | ||||
(1) Reflects impairment to goodwill and intangibles of
(2) Adjusted EBITDA is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect our business performance. Adjusted EBITDA includes the Company’s
We caution that our results of operations for the three and nine months ended September 30, 2024, and 2023 may not be indicative of our future performance.
SEGMENTED RESULTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)
| For The Three Months Ended September 30, 2024 | |||||||||||||||||||||||
| VF Fresh (Produce) | Cannabis Canada | Cannabis U.S. | Clean Energy | Corporate | Total | ||||||||||||||||||
| Sales | $ | 42,770 | $ | 36,463 | $ | 3,943 | $ | 192 | $ | — | $ | 83,368 | |||||||||||
| Cost of sales | (39,289 | ) | (26,864 | ) | (1,443 | ) | (64 | ) | — | (67,660 | ) | ||||||||||||
| Selling, general and administrative expenses | (2,690 | ) | (7,983 | ) | (2,692 | ) | (1 | ) | (3,174 | ) | (16,540 | ) | |||||||||||
| Other expense, net | (388 | ) | (16 | ) | — | 170 | 410 | 176 | |||||||||||||||
| Operating income (loss) | 403 | 1,600 | (192 | ) | 297 | (2,764 | ) | (656 | ) | ||||||||||||||
| (Provision for) recovery of income taxes | (27 | ) | (308 | ) | — | — | 241 | (94 | ) | ||||||||||||||
| Income (loss) from consolidated entities | 376 | 1,292 | (192 | ) | 297 | (2,523 | ) | (750 | ) | ||||||||||||||
| Less: net (income) loss attributable to non-controlling interests, net of tax | — | (124 | ) | — | — | 54 | (70 | ) | |||||||||||||||
| Net income (loss) | $ | 376 | $ | 1,168 | $ | (192 | ) | $ | 297 | $ | (2,469 | ) | $ | (820 | ) | ||||||||
| Adjusted EBITDA (2) | $ | 2,331 | $ | 4,752 | $ | (159 | ) | $ | 313 | $ | (1,935 | ) | $ | 5,302 | |||||||||
| Basic income (loss) per share | $ | 0.00 | $ | 0.01 | $ | (0.00 | ) | $ | 0.00 | $ | (0.02 | ) | $ | (0.01 | ) | ||||||||
| Diluted income (loss) per share | $ | 0.00 | $ | 0.01 | $ | (0.00 | ) | $ | 0.00 | $ | (0.02 | ) | $ | (0.01 | ) | ||||||||
| For The Three Months Ended September 30, 2023 | |||||||||||||||||||||||
| VF Fresh (Produce) | Cannabis Canada | Cannabis U.S. | Clean Energy | Corporate | Total | ||||||||||||||||||
| Sales | $ | 35,712 | $ | 28,810 | $ | 4,988 | $ | — | $ | — | $ | 69,510 | |||||||||||
| Cost of sales | (34,220 | ) | (18,866 | ) | (1,803 | ) | — | — | (54,889 | ) | |||||||||||||
| Selling, general and administrative expenses | (2,066 | ) | (7,598 | ) | (3,095 | ) | — | (3,063 | ) | (15,822 | ) | ||||||||||||
| Other expense, net | (598 | ) | (428 | ) | (11 | ) | (58 | ) | (621 | ) | (1,716 | ) | |||||||||||
| Operating (loss) income | (1,172 | ) | 1,918 | 79 | (58 | ) | (3,684 | ) | (2,917 | ) | |||||||||||||
| Recovery of income taxes | 221 | 1,034 | — | — | 409 | 1,664 | |||||||||||||||||
| (Loss) income from consolidated entities | (951 | ) | 2,952 | 79 | (58 | ) | (3,275 | ) | (1,253 | ) | |||||||||||||
| Less: net (income) loss attributable to non-controlling interests, net of tax | — | (89 | ) | — | — | 43 | (46 | ) | |||||||||||||||
| Net (loss) income | $ | (951 | ) | $ | 2,863 | $ | 79 | $ | (58 | ) | $ | (3,232 | ) | $ | (1,299 | ) | |||||||
| Adjusted EBITDA (2) | $ | 774 | $ | 4,585 | $ | 221 | $ | (57 | ) | $ | (2,275 | ) | $ | 3,248 | |||||||||
| Basic (loss) income per share | $ | (0.01 | ) | $ | 0.03 | $ | 0.00 | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.01 | ) | |||||||
| Diluted (loss) income per share | $ | (0.01 | ) | $ | 0.03 | $ | 0.00 | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.01 | ) | |||||||
| For The Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
| VF Fresh (Produce) | Cannabis Canada | Cannabis U.S. | Clean Energy | Corporate | Total | ||||||||||||||||||
| Sales | $ | 125,883 | $ | 114,654 | $ | 12,777 | $ | 313 | $ | — | $ | 253,627 | |||||||||||
| Cost of sales | (123,256 | ) | (84,842 | ) | (4,953 | ) | (107 | ) | — | (213,158 | ) | ||||||||||||
| Selling, general and administrative expenses | (8,996 | ) | (24,436 | ) | (9,058 | ) | (38 | ) | (10,065 | ) | (52,593 | ) | |||||||||||
| Other expense (loss) | (1,418 | ) | (687 | ) | — | 170 | (315 | ) | (2,250 | ) | |||||||||||||
| Goodwill and intangible asset impairments (1) | — | — | (11,939 | ) | — | — | (11,939 | ) | |||||||||||||||
| Operating (loss) income | (7,787 | ) | 4,689 | (13,173 | ) | 338 | (10,380 | ) | (26,313 | ) | |||||||||||||
| (Provision for) recovery of income taxes | (23 | ) | (896 | ) | — | — | 245 | (674 | ) | ||||||||||||||
| (Loss) income from consolidated entities | (7,810 | ) | 3,793 | (13,173 | ) | 338 | (10,135 | ) | (26,987 | ) | |||||||||||||
| Less: net (income) loss attributable to non-controlling interests, net of tax | — | (394 | ) | — | — | 160 | (234 | ) | |||||||||||||||
| Net (loss) income | $ | (7,810 | ) | $ | 3,399 | $ | (13,173 | ) | $ | 338 | $ | (9,975 | ) | $ | (27,221 | ) | |||||||
| Adjusted EBITDA (2) | $ | (1,991 | ) | $ | 13,643 | $ | (1,014 | ) | $ | 354 | $ | (5,658 | ) | $ | 5,334 | ||||||||
| Basic (loss) income per share | $ | (0.07 | ) | $ | 0.03 | $ | (0.12 | ) | $ | 0.00 | $ | (0.09 | ) | $ | (0.25 | ) | |||||||
| Diluted (loss) income per share | $ | (0.07 | ) | $ | 0.03 | $ | (0.12 | ) | $ | 0.00 | $ | (0.09 | ) | $ | (0.25 | ) | |||||||
| For The Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
| VF Fresh (Produce) | Cannabis Canada | Cannabis U.S. | Clean Energy | Corporate | Total | ||||||||||||||||||
| Sales | $ | 114,125 | $ | 81,987 | $ | 15,266 | $ | — | $ | — | $ | 211,378 | |||||||||||
| Cost of sales | (114,779 | ) | (52,873 | ) | (5,285 | ) | (21 | ) | — | (172,958 | ) | ||||||||||||
| Selling, general and administrative expenses | (7,836 | ) | (22,273 | ) | (10,098 | ) | (30 | ) | (9,743 | ) | (49,980 | ) | |||||||||||
| Other income (expense) net | 3,993 | (1,838 | ) | (8 | ) | (77 | ) | 450 | 2,520 | ||||||||||||||
| Operating (loss) income | (4,497 | ) | 5,003 | (125 | ) | (128 | ) | (9,293 | ) | (9,040 | ) | ||||||||||||
| Recovery of (provision for) income taxes | 229 | (922 | ) | — | — | 424 | (269 | ) | |||||||||||||||
| (Loss) income from consolidated entities | (4,268 | ) | 4,081 | (125 | ) | (128 | ) | (8,869 | ) | (9,309 | ) | ||||||||||||
| Less: net (income) loss attributable to non-controlling interests, net of tax | — | (149 | ) | — | — | 143 | (6 | ) | |||||||||||||||
| Net (loss) income | $ | (4,268 | ) | $ | 3,932 | $ | (125 | ) | $ | (128 | ) | $ | (8,726 | ) | $ | (9,315 | ) | ||||||
| Adjusted EBITDA (2) | $ | 1,110 | $ | 13,273 | $ | 424 | $ | (128 | ) | $ | (6,436 | ) | $ | 8,243 | |||||||||
| Basic (loss) income per share | $ | (0.04 | ) | $ | 0.04 | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.08 | ) | $ | (0.08 | ) | ||||||
| Diluted (loss) income per share | $ | (0.04 | ) | $ | 0.04 | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.08 | ) | $ | (0.08 | ) | ||||||
(1) Reflects impairment to goodwill and intangibles of
(2) Adjusted EBITDA is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect our business performance. Adjusted EBITDA includes the Company’s
A detailed discussion of our consolidated and segment results can be found in the 10Q MD&A on the Village Farms website under Financial Reports (https://villagefarms.com/financial-reports/) within the Investors section.
Reconciliation of Net Income to Adjusted EBITDA
The following tables reflects a reconciliation of net income to Adjusted EBITDA, as presented by the Company:
| For The Three Months Ended September 30, 2024 | |||||||||||||||||||||||
| (in thousands of U.S. dollars) | VF Fresh (Produce) | Cannabis Canada | Cannabis U.S. | Clean Energy | Corporate | Total | |||||||||||||||||
| Net income (loss) | $ | 376 | $ | 1,168 | $ | (192 | ) | $ | 297 | $ | (2,469 | ) | $ | (820 | ) | ||||||||
| Add: | |||||||||||||||||||||||
| Amortization | 1,348 | 2,734 | 50 | — | 72 | 4,204 | |||||||||||||||||
| Foreign currency exchange loss (gain) | 20 | (34 | ) | — | — | (349 | ) | (363 | ) | ||||||||||||||
| Interest expense, net | 560 | 149 | — | 16 | (63 | ) | 662 | ||||||||||||||||
| Provision for (recovery of) income taxes | 27 | 308 | — | — | (241 | ) | 94 | ||||||||||||||||
| Provision for income taxes attributable to non-controlling interest | — | (6 | ) | — | — | — | (6 | ) | |||||||||||||||
| Share-based compensation | — | 12 | (17 | ) | — | 863 | 858 | ||||||||||||||||
| Interest expense for NCI's | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||
| Amortization for NCI’s | — | 486 | — | — | 252 | 738 | |||||||||||||||||
| Foreign currency exchange gain for NCI’s | — | 4 | — | — | — | 4 | |||||||||||||||||
| Share-based compensation for NCI’s | — | 16 | — | — | — | 16 | |||||||||||||||||
| Adjusted EBITDA (2) | $ | 2,331 | $ | 4,752 | $ | (159 | ) | $ | 313 | $ | (1,935 | ) | $ | 5,302 | |||||||||
| For The Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
| (in thousands of U.S. dollars) | VF Fresh (Produce) | Cannabis Canada | Cannabis U.S. | Clean Energy | Corporate | Total | |||||||||||||||||
| Net (loss) income | $ | (7,810 | ) | $ | 3,399 | $ | (13,173 | ) | $ | 338 | $ | (9,975 | ) | $ | (27,221 | ) | |||||||
| Add: | |||||||||||||||||||||||
| Amortization | 4,029 | 7,550 | 154 | — | 178 | 11,911 | |||||||||||||||||
| Foreign currency exchange loss (gain) | 58 | (19 | ) | — | — | 715 | 754 | ||||||||||||||||
| Interest expense, net | 1,709 | 671 | — | 16 | (400 | ) | 1,996 | ||||||||||||||||
| Provision for (recovery of) income taxes | 23 | 896 | — | — | (245 | ) | 674 | ||||||||||||||||
| Provision for income taxes attributable to non-controlling interest | — | (156 | ) | — | — | — | (156 | ) | |||||||||||||||
| Share-based compensation | — | 52 | 66 | — | 3,284 | 3,402 | |||||||||||||||||
| Interest expense for NCI’s | — | (116 | ) | — | — | — | (116 | ) | |||||||||||||||
| Amortization for NCI’s | — | 1,285 | — | — | 785 | 2,070 | |||||||||||||||||
| Foreign currency exchange gain for NCI’s | — | 9 | — | — | — | 9 | |||||||||||||||||
| Share-based compensation for NCI’s | — | 58 | — | — | — | 58 | |||||||||||||||||
| Other expense, net for NCI’s | — | 4 | — | — | — | 4 | |||||||||||||||||
| Deferred financing fees | — | 10 | — | — | — | 10 | |||||||||||||||||
| Goodwill and intangible asset impairments (1) | — | — | 11,939 | — | — | 11,939 | |||||||||||||||||
| Adjusted EBITDA (2) | $ | (1,991 | ) | $ | 13,643 | $ | (1,014 | ) | $ | 354 | $ | (5,658 | ) | $ | 5,334 | ||||||||
| For The Three Months Ended September 30, 2023 | |||||||||||||||||||||||
| (in thousands of U.S. dollars) | VF Fresh (Produce) | Cannabis Canada | Cannabis U.S. | Clean Energy | Corporate | Total | |||||||||||||||||
| Net (loss) income | $ | (951 | ) | $ | 2,863 | $ | 79 | $ | (58 | ) | $ | (3,232 | ) | $ | (1,299 | ) | |||||||
| Add: | |||||||||||||||||||||||
| Amortization | 1,283 | 1,795 | 53 | — | 64 | 3,195 | |||||||||||||||||
| Foreign currency exchange loss | 66 | 28 | — | 1 | 834 | 929 | |||||||||||||||||
| Interest expense (income), net | 597 | 326 | — | — | (215 | ) | 708 | ||||||||||||||||
| Recovery of income taxes | (221 | ) | (1,034 | ) | — | — | (409 | ) | (1,664 | ) | |||||||||||||
| Share-based compensation | — | 160 | 78 | — | 452 | 690 | |||||||||||||||||
| Interest expense for NCI’s | — | 13 | — | — | — | 13 | |||||||||||||||||
| Amortization for NCI’s | — | 372 | — | — | 231 | 603 | |||||||||||||||||
| Foreign currency exchange loss for NCI’s | — | 3 | — | — | — | 3 | |||||||||||||||||
| Share-based compensation for NCI’s | — | 39 | — | — | — | 39 | |||||||||||||||||
| Other expenses for NCI’s | — | (14 | ) | — | — | — | (14 | ) | |||||||||||||||
| Deferred financing fees | — | 34 | — | — | — | 34 | |||||||||||||||||
| Other expenses | — | — | 11 | — | — | 11 | |||||||||||||||||
| Adjusted EBITDA (2) | $ | 774 | $ | 4,585 | $ | 221 | $ | (57 | ) | $ | (2,275 | ) | $ | 3,248 | |||||||||
| For The Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
| (in thousands of U.S. dollars) | VF Fresh (Produce) | Cannabis Canada | Cannabis U.S. | Clean Energy | Corporate | Total | |||||||||||||||||
| Net (loss) income | $ | (4,268 | ) | $ | 3,932 | $ | (125 | ) | $ | (128 | ) | $ | (8,726 | ) | $ | (9,315 | ) | ||||||
| Add: | |||||||||||||||||||||||
| Amortization | 3,839 | 5,078 | 279 | — | 188 | 9,384 | |||||||||||||||||
| Foreign currency exchange loss (gain) | 40 | (8 | ) | 19 | — | 145 | 196 | ||||||||||||||||
| Interest expense, net | 1,728 | 1,615 | (24 | ) | — | (595 | ) | 2,724 | |||||||||||||||
| (Recovery of) provision for income taxes | (229 | ) | 922 | — | — | (424 | ) | 269 | |||||||||||||||
| Share-based compensation | — | 424 | 263 | — | 2,286 | 2,973 | |||||||||||||||||
| Interest expense for NCI’s | — | 47 | — | — | — | 47 | |||||||||||||||||
| Amortization for NCI’s | — | 1,072 | — | — | 690 | 1,762 | |||||||||||||||||
| Foreign currency exchange loss for NCI’s | — | 5 | — | — | — | 5 | |||||||||||||||||
| Share-based compensation for NCI’s | — | 113 | — | — | — | 113 | |||||||||||||||||
| Other expenses for NCI’s | — | (29 | ) | — | — | — | (29 | ) | |||||||||||||||
| Deferred financing fees | — | 102 | — | — | — | 102 | |||||||||||||||||
| Other expense, net | — | — | 12 | — | — | 12 | |||||||||||||||||
| Adjusted EBITDA (2) | $ | 1,110 | $ | 13,273 | $ | 424 | $ | (128 | ) | $ | (6,436 | ) | $ | 8,243 | |||||||||
(1) Reflects impairment to goodwill and intangibles of
(2) Adjusted EBITDA is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA presented for these segments may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect the underlying business performance of the Company.
This press release is intended to be read in conjunction with the Company’s Consolidated Financial Statements ("Financial Statements”) and MD&A for the three and nine months ended September 30, 2024 in the Company Form 10-Q, which will be filed on (www.sec.gov/edgar.shtml) and SEDAR (www.sedar.com) and will be available at www.villagefarms.com.
Conference Call
Village Farms’ management team will host a conference call to discuss its third quarter financial results today, Thursday, November 7, 2024, at 8:30 a.m. ET. Participants can access the conference call via a webcast at Village Farms Third Quarter 2024 Conference Call Webcast or on the company website at Village Farms - Events. Participants wanting to access the conference call by telephone must register in advance at Village Farms Third Quarter 2024 Conference Call Registration to receive telephone dial-in information.
The live question and answer session will be limited to analysts; however, others are invited to submit questions ahead of the conference call via email at investorrelations@villagefarms.com. Management will address questions received via email during the question-and-answer session as time permits.
Conference Call Archive Access Information
For those unable to participate in the conference call at the scheduled time, it will be archived for replay beginning approximately one hour following completion of the call on Village Farms’ web site at http://villagefarms.com/investor-relations/investor-calls.
About Village Farms International
Village Farms leverages decades of experience as a large-scale, Controlled Environment Agriculture-based, vertically integrated supplier for high-value, high-growth plant-based Consumer Packaged Goods. The Company has a strong foundation as the leading and longest-tenured leading fresh produce supplier to grocery and large-format retailers throughout the US and Canada and is capitalizing on new high-growth opportunities in the cannabis and CBD categories in North America, the Netherlands and selected markets internationally.
In Canada, the Company's wholly-owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer and one of Canada’s best-selling brands. The Company also owns
Internationally, Village Farms is targeting selected, nascent, legal cannabis and CBD opportunities with significant medium- and long-term potential. The Company exports medical cannabis from its EU GMP certified facility in Canada to a growing list of international markets including Germany, the United Kingdom, Israel, and Australia. The Company is expanding its international presence with additional export contracts to new countries and customers in the Asia-Pacific and European regions, as well as select strategic investments in operating assets. In Europe, wholly-owned Leli Holland has one of 10 licences to grow and distribute recreational cannabis products.
In the US, wholly-owned Balanced Health Botanicals is one of the leading CBD brands and e-commerce platforms in the country. Subject to compliance with all applicable US federal and state laws and stock exchange rules, Village Farms plans to enter the US high-THC cannabis market via multiple strategies, leveraging one of the largest greenhouse operations in the country (more than 5.5 million square feet in West Texas), as well as the operational and product expertise gained through Pure Sunfarms' cannabis success in Canada.
Village Farms Clean Energy (VFCE), through a partnership with Atlanta-based Terreva Renewables, creates clean energy from landfill gas at its Delta RNG facility. VFCE receives royalties on all revenue generated. This partnership reduces Vancouver’s greenhouse gas emissions by 475,000 metric tons of CO2 per year, equivalent to removing more than 100,000 vehicles off the road or the energy use equivalent of powering 51,300 homes for one year.
Cautionary Statement Regarding Forward-Looking Information
As used in this Press Release, the terms “Village Farms”, “Village Farms International”, the “Company”, “we”, “us”, “our” and similar references refer to Village Farms International, Inc. and our consolidated subsidiaries, and the term “Common Shares” refers to our common shares, no par value. Our financial information is presented in U.S. dollars and all references in this Press Release to “$” means U.S. dollars and all references to “C$” means Canadian dollars.
This Press Release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is subject to the safe harbor created by those sections. This Press Release also contains "forward-looking information" within the meaning of applicable Canadian securities laws. We refer to such forward-looking statements and forward-looking information collectively as "forward-looking statements". Forward-looking statements may relate to the Company's future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, expansion plans, litigation, projected production, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company, the greenhouse vegetable or produce industry, the cannabis industry and market and our energy segment are forward-looking statements. In some cases, forward-looking information can be identified by such terms as "can", "outlook", "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "try", "estimate", "predict", "potential", "continue", "likely", "schedule", "objectives", or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts. The forward-looking statements in this Press Release are subject to risks that may include, but are not limited to: our limited operating history in the cannabis and cannabinoids industry, including that of Pure Sunfarms, Corp. (“Pure Sunfarms”), Rose LifeScience Inc. (“Rose” or “Rose LifeScience”) and Balanced Health Botanicals, LLC (“Balanced Health”); the limited operational history of the Delta RNG Project in our energy segment; the legal status of the cannabis business of Pure Sunfarms and Rose and the hemp business of Balanced Health and uncertainty regarding the legality and regulatory status of cannabis in the United States; risks relating to the integration of Balanced Health and Rose into our consolidated business; risks relating to obtaining additional financing on acceptable terms, including our dependence upon credit facilities and dilutive transactions; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp, CBD, cannabinoids, and agricultural businesses; our market position and competitive position; our ability to leverage current business relationships for future business involving hemp and cannabinoids; the ability of Pure Sunfarms and Rose to cultivate and distribute cannabis in Canada; existing and new governmental regulations, including risks related to regulatory compliance and regarding obtaining and maintaining licenses required under the Cannabis Act (Canada), the Criminal Code and other Acts, S.C. 2018, C. 16 (Canada) for its Canadian operational facilities, and changes in our regulatory requirements; legal and operational risks relating to expected conversion of our greenhouses to cannabis production in Canada and in the United States; risks related to rules and regulations at the U.S. Federal (Food and Drug Administration and United States Department of Agriculture), state and municipal levels with respect to produce and hemp, cannabidiol-based products commercialization; retail consolidation, technological advances and other forms of competition; transportation disruptions; product liability and other potential litigation; retention of key executives; labor issues; uninsured and underinsured losses; vulnerability to rising energy costs; inflationary effects on costs of cultivation and transportation; recessionary effects on demand of our products; environmental, health and safety risks, foreign exchange exposure, risks associated with cross-border trade; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; elevated interest rates; and tax risks.
The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Although the forward-looking statements contained in this Press Release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company's control, which may cause the Company's or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the Company's filings with securities regulators, including the Company’s most recently filed Quarterly Report on Form 10-Q and the Company’s most recently filed annual report on Form 10-K.
When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this Press Release relate only to events or information as of the date on which the statements are made in this Press Release. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Contact Information
| Sam Gibbons Senior Vice President, Corporate Affairs Phone: (407) 936-1190 ext. 328 Email: sgibbons@villagefarms.com Lawrence Chamberlain LodeRock Advisors Phone: (416) 519-4196 Email: lawrence.chamberlain@loderockadvisors.com |
| Village Farms International, Inc. Consolidated Statements of Financial Position (In thousands of United States dollars, except share data) (Unaudited) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 28,696 | $ | 30,291 | ||||
| Restricted cash | — | 5,000 | ||||||
| Trade receivables | 33,185 | 30,561 | ||||||
| Inventories | 60,022 | 78,472 | ||||||
| Income tax receivable | 8 | — | ||||||
| Other receivables | 937 | 294 | ||||||
| Prepaid expenses and deposits | 5,218 | 7,150 | ||||||
| Total current assets | 128,066 | 151,768 | ||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 200,271 | 205,613 | ||||||
| Investments | 2,656 | 2,656 | ||||||
| Goodwill | 44,996 | 55,918 | ||||||
| Intangibles | 27,494 | 32,275 | ||||||
| Deferred tax asset | 1,201 | 1,201 | ||||||
| Right-of-use assets | 10,978 | 12,596 | ||||||
| Other assets | 2,186 | 1,962 | ||||||
| Total assets | $ | 417,848 | $ | 463,989 | ||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Line of credit | $ | 4,000 | $ | 4,000 | ||||
| Trade payables | 18,428 | 21,753 | ||||||
| Current maturities of long-term debt | 8,649 | 9,133 | ||||||
| Accrued sales taxes | 13,334 | 15,941 | ||||||
| Accrued loyalty program | 1,624 | 1,773 | ||||||
| Accrued liabilities | 12,407 | 15,076 | ||||||
| Lease liabilities - current | 2,489 | 2,112 | ||||||
| Income tax payable | — | 28 | ||||||
| Other current liabilities | 1,694 | 2,340 | ||||||
| Total current liabilities | 62,625 | 72,156 | ||||||
| Non-current liabilities | ||||||||
| Long-term debt | 34,604 | 38,925 | ||||||
| Deferred tax liability | 23,954 | 23,730 | ||||||
| Lease liabilities - non-current | 9,453 | 11,335 | ||||||
| Other liabilities | 2,254 | 1,902 | ||||||
| Total liabilities | 132,890 | 148,048 | ||||||
| MEZZANINE EQUITY | ||||||||
| Redeemable non-controlling interest | 10,608 | 15,667 | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Common stock, no par value per share - unlimited shares authorized; 112,337,049 shares issued and outstanding at September 30, 2024 and 110,248,929 shares issued and outstanding at December 31, 2023. | 387,349 | 386,719 | ||||||
| Additional paid in capital | 30,338 | 25,611 | ||||||
| Accumulated other comprehensive loss | (6,951 | ) | (3,540 | ) | ||||
| Retained earnings | (136,386 | ) | (109,165 | ) | ||||
| Total Village Farms International, Inc. shareholders’ equity | 274,350 | 299,625 | ||||||
| Non-controlling interest | — | 649 | ||||||
| Total shareholders’ equity | 274,350 | 300,274 | ||||||
| Total liabilities, mezzanine equity and shareholders’ equity | $ | 417,848 | $ | 463,989 | ||||
| Village Farms International, Inc. Consolidated Statements of Operations and Comprehensive Income (Loss) (In thousands of United States dollars, except per share data) (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Sales | $ | 83,368 | $ | 69,510 | $ | 253,627 | $ | 211,378 | ||||||||
| Cost of sales | (67,660 | ) | (54,889 | ) | (213,158 | ) | (172,958 | ) | ||||||||
| Gross profit | 15,708 | 14,621 | 40,469 | 38,420 | ||||||||||||
| Selling, general and administrative expenses | (16,540 | ) | (15,822 | ) | (52,593 | ) | (49,980 | ) | ||||||||
| Interest expense | (784 | ) | (988 | ) | (2,606 | ) | (3,532 | ) | ||||||||
| Interest income | 229 | 262 | 757 | 741 | ||||||||||||
| Foreign exchange gain (loss) | 352 | (971 | ) | (929 | ) | (302 | ) | |||||||||
| Other income (loss) | 379 | (19 | ) | 528 | 5,613 | |||||||||||
| Goodwill and intangible asset impairments | — | — | (11,939 | ) | — | |||||||||||
| Loss before taxes | (656 | ) | (2,917 | ) | (26,313 | ) | (9,040 | ) | ||||||||
| (Provision for) recovery of income taxes | (94 | ) | 1,664 | (674 | ) | (269 | ) | |||||||||
| Loss including non-controlling interests | (750 | ) | (1,253 | ) | (26,987 | ) | (9,309 | ) | ||||||||
| Less: net income attributable to non-controlling interests, net of tax | (70 | ) | (46 | ) | (234 | ) | (6 | ) | ||||||||
| Net loss attributable to Village Farms International, Inc. shareholders | $ | (820 | ) | $ | (1,299 | ) | $ | (27,221 | ) | $ | (9,315 | ) | ||||
| Basic loss per share attributable to Village Farms International, Inc. shareholders | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.25 | ) | $ | (0.09 | ) | ||||
| Diluted loss per share attributable to Village Farms International, Inc. shareholders | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.25 | ) | $ | (0.09 | ) | ||||
| Weighted average number of common shares used in the computation of net loss per share (in thousands): | ||||||||||||||||
| Basic | 111,917 | 110,239 | 111,045 | 108,214 | ||||||||||||
| Diluted | 111,917 | 110,239 | 111,045 | 108,214 | ||||||||||||
| Loss including non-controlling interests | $ | (750 | ) | $ | (1,253 | ) | $ | (26,987 | ) | $ | (9,309 | ) | ||||
| Other comprehensive income (loss): | ||||||||||||||||
| Foreign currency translation adjustment | 2,595 | (5,986 | ) | (3,655 | ) | (899 | ) | |||||||||
| Comprehensive gain (loss) including non-controlling interests | 1,845 | (7,239 | ) | (30,642 | ) | (10,208 | ) | |||||||||
| Comprehensive (income) loss attributable to non-controlling interests | (222 | ) | 353 | 10 | (50 | ) | ||||||||||
| Comprehensive gain (loss) attributable to Village Farms International, Inc. shareholders | $ | 1,623 | $ | (6,886 | ) | $ | (30,632 | ) | $ | (10,258 | ) | |||||
| Village Farms International, Inc. Consolidated Statements of Cash Flows (In thousands of United States dollars) (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows provided by (used in) operating activities: | ||||||||
| Net loss attributable to Village Farms International, Inc. shareholders | $ | (27,221 | ) | $ | (9,315 | ) | ||
| Adjustments to reconcile net loss attributable to Village Farms International, Inc. shareholders to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 14,507 | 11,726 | ||||||
| Amortization of deferred charges | 10 | 102 | ||||||
| Net income attributable to non-controlling interest | 234 | 6 | ||||||
| Interest expense | 2,606 | 3,532 | ||||||
| Interest paid on long-term debt | (3,128 | ) | (3,645 | ) | ||||
| Unrealized foreign exchange loss | 143 | 92 | ||||||
| Goodwill and intangible asset impairments | 11,939 | — | ||||||
| Non-cash lease expense | 1,684 | 1,615 | ||||||
| Share-based compensation | 3,476 | 3,135 | ||||||
| Deferred income taxes | 384 | 1,748 | ||||||
| Changes in non-cash working capital items | 5,302 | (2,191 | ) | |||||
| Net cash provided by operating activities | 9,936 | 6,805 | ||||||
| Cash flows (used in) provided by investing activities: | ||||||||
| Purchases of property, plant and equipment | (8,147 | ) | (4,358 | ) | ||||
| Purchases of intangibles | (80 | ) | — | |||||
| Repayment of note receivable | — | 835 | ||||||
| Net cash used in investing activities | (8,227 | ) | (3,523 | ) | ||||
| Cash flows (used in) provided by financing activities: | ||||||||
| Repayments on borrowings | (4,301 | ) | (7,858 | ) | ||||
| Purchase of Non-controlling interest | (3,817 | ) | — | |||||
| Proceeds from issuance of common stock and warrants | — | 24,772 | ||||||
| Issuance costs | — | (1,437 | ) | |||||
| Proceeds from exercise of stock options | — | 83 | ||||||
| Net cash (used in) provided by financing activities | (8,118 | ) | 15,560 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (186 | ) | (35 | ) | ||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (6,595 | ) | 18,807 | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 35,291 | 21,676 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 28,696 | $ | 40,483 | ||||
FAQ
What was Village Farms' (VFF) revenue growth in Q3 2024?
How much did Village Farms' (VFF) Canadian Cannabis sales grow in Q3 2024?
What was Village Farms' (VFF) market position in Canadian cannabis during Q3 2024?
What was Village Farms' (VFF) adjusted EBITDA in Q3 2024?
