Tilray Inc. reduced losses and increased sales in the last three months of 2020, as it prepared to merge with Canadian marijuana company Aphria Inc.
Tilray TLRY,
reported a loss of $ 3 million, or 2 cents a share, after reporting losses of more than $ 200 million in the same quarter a year ago. The company said it was profitable on an adjusted Ebitda basis, bringing in $ 2.2 million based on that metric.
Tilray reported total sales of $ 56.6 million, or $ 50.7 million when excise taxes are included, after posting revenues of $ 46.9 million a year earlier, or $ 42.5 million after excise taxes. Analysts predicted an average loss of 14 cents a share on revenue of $ 56 million, according to FactSet, with a smaller projection for adjusted Ebitda of $ 300,000.
For the year, Tilray’s revenue increased to $ 210.5 million in 2020 from $ 167 million in 2019 without accounting for excise taxes, while losses fell to $ 271.1 million, or $ 2.15 per share, from $ 321.2 million or $ 3.20 per share. Tilray reported an adjusted loss of $ 30.3 million in 2020, an improvement from an adjusted loss of $ 89.8 million in 2019.
“These results required hard work and dedication and I sincerely appreciate everything the Tilray team has done to transform our business in 2020,” Brendan Kennedy, Tilray Chief Executive, said in a statement. “We now look forward to the start of the next chapter in our business journey.”
Tilray and Aphria APHA,
have agreed to merge in a deal they say will create the world’s largest revenue-based cannabis company, with the Tilray name and ticker remaining after the deal is completed. Tilray said in Wednesday’s release that the deal should close in the second quarter.
For More: To Take Advantage of Planned Pot Merger, Buy Analyst Aphria
Tilray shares were up more than 10% in after-hours trading on Wednesday, after the stock fell 9% in the regular session. Shares have more than quadrupled in the past three months, up 337%, as both hopes for the merger and hopes for federal legalization of marijuana in the US have won pot stocks.
Aphria shares were also up in late trading, rising more than 8% after rising more than 227% in the past three months. For comparison, the S&P 500 index SPX,
has won 9% in that time.