Sundial Growers (SNDL) - Get Report shares were rising Thursday after the Canadian cannabis company reported fourth-quarter sales results that beat analyst estimates. Sundial reported its results late, however, and moved its conference call to discuss its results to Thursday morning at 10:30 a.m. ET.
For the fourth quarter, Sundial reported revenues of C$16.9 million ($13.6 million), an increase of 4% year-over-year and ahead of analyst consensus estimates of $11.1 million, according to FactSet.
The company posted a net loss from continuing operations of C$64.1 million ($51.7 million), compared to a net loss of C$71.4 million ($57.6 million) in the third quarter.
Sundial shares were rising 7.1% to $1.65 after-hours. They are up almost 250% year-to-date as the company has been caught up in the Reddit-fueled retail investor frenzy. On Monday, Sundial shares shot up as the company announced it had formed a joint investing venture with SAF Opportunities LP.
"We entered our second year of commercial operations facing a number of internal and external challenges, including operational difficulties, excessive leverage, inadequate cost control, a lack of focus on our core value proposition, and rapidly evolving industry conditions," said Zach George, Chief Executive Officer of Sundial. "In response, we redefined our strategy and made material changes to position Sundial for improved performance. We successfully restructured the entire organization by repaying all outstanding debt, improving our operating practices, targeting a sustainable cost structure and a simplified business model."
George went on to note that the company's last two quarters have been negatively affected by the repositioning of its cultivation operations, and that while many of its rivals in Canada are moving away from cultivation, Sundial has gone in the opposite direction and renewed its commitment to cultivation as a way of differentiating itself.
Sundial said that it eliminated $227 million in debt during 2020. In February, Sundial shares sank after the company announced that it had filed a shelf registration with the Securities and Exchange Commission to issue up to $1 billion worth of securities over time.
For the year, gross revenue increased by 10% to C$73.3 million ($59.1 million) over the previous year. Net loss from continuing operations for 2020 was C$206.3 million ($166.3 million) in 2020 compared to C$142.7 million($115.1 million) in 2019.