Aurora Cannabis Issues Second-Quarter Results but Doesn't Disclose Expected Loss

Aurora Cannabis issues its results for its second quarter but makes no mention of expected losses in the period.
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Aurora Cannabis (ACB) - Get Report issued fiscal second-quarter results on Thursday but failed to detail expected losses in the period. 

The cannabis company last week said it would take goodwill and asset-impairment charges with an expectation that losses would amount to about C$1 billion ($750 million). Those charges, however, weren't part of the company’s disclosure on Thursday.

Aurora Cannabis last week also announced the dismissal of CEO Terry Booth as part of "sweeping changes" in a restructuring plan. 

On Thursday, the company reported net cannabis revenue, excluding provisions, of C$63.2 million, which matched internal guidance between C$62 million to C$66 million for the quarter.

"As announced last week, being a profitable cannabis company for our investors is the singular near-term focus for Aurora and we have begun to implement a business transformation plan where we intend to manage the business with a high degree of fiscal discipline," said CEO Michael Singer in a statement Thursday.

The company did say Thursday that the average net selling price for cannabis, including provisions, fell to C$5.54 per gram from C$5.68 per gram in the previous quarter.

Aurora Cannabis produced 30,691 kilograms of cannabis in the quarter, in line with previous expectations, which the company said was the result of a realigned cultivation strategy designed to produce larger yields of higher value, higher potency strains.

The company said that it was taking steps toward EBITDA profitability. The company announced that it was downsizing its credit facility by $96.5 million through the elimination of undrawn term loan capacity.

"Despite delivering modest growth in our core medical and consumer business in Q2, we took immediate and deliberate actions to align our company to current market conditions," said Singer. 

The stock was down 1.7% at $1.44 in trading Thursday.