Canopy Growth Corp (CGC) 10-K Annual Report June 2021

Maintains #1 market share¹ of the total flower category in Canada; recently announced acquisitions further solidify Canopy’s leadership position in the Canadian recreational market

The U.S. ecosystem strategy continues to gain traction with focus to further capitalize on growth opportunities in the U.S.

Remains on track to achieve positive Adjusted EBITDA during the second half of FY 2022

June 1, 2021

SMITHS FALLS, ON — Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX:WEED, NASDAQ:CGC) today announces its financial results for the fourth quarter and Fiscal Year 2021 ended March 31, 2021. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

“During Fiscal 2021, Canopy Growth transformed into a CPG-modelled organization, reinforcing a foundation for sustained growth and long-term success. By leveraging consumer insights and innovation to deliver best-in-class products, Canopy Growth is positioned to achieve our goal of unleashing the power of cannabis to improve lives," said David Klein, CEO, Canopy Growth. “We are starting to see strong momentum across all of our key businesses and remain firmly focused on capitalizing on U.S. opportunities in Fiscal 2022.”

“We made tremendous progress improving our supply chain and right-sizing our manufacturing footprint, bringing supply and demand into balance,” added Mike Lee, CFO. “Our cost savings program is on track to deliver $150-$200 million of savings within the next 18 months, and we remain committed to our path to profitability by the end of Fiscal 2022, while continuing to invest in an organization that is focused on insights, innovation and gaining momentum in the U.S. market.”

Unless otherwise indicated, market share data disclosed in this press release is calculated using the Company’s internal proprietary market share tool that utilizes point of sales data supplied by a third-party data provider, government agencies and our own retail store operations across the country. Tool captures point of sale data from an average of 29% of stores in Alberta, British Columbia, Saskatchewan, Manitoba and Newfoundland & Labrador, point of sale data from 100% of stores in New Brunswick, Nova Scotia and Prince Edward Island, as well as depletions and ecommerce sales data from the OCS.

The following information was filed by Canopy Growth Corp (CGC) on Tuesday, June 1, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Canopy Growth Corp's 10-K Annual Report:

Financial - Shares Highlight
Pursuant to the terms of the Supreme Arrangement Agreement, shareholders of Supreme Cannabis will be entitled to receive 0.01165872 of a Canopy Growth Share and C$0.0001 in cash for each Supreme Cannabis Share held immediately prior to closing of the Supreme Arrangement.

Financial - Income Highlight
The increase of $140.0 million in deferred income tax recovery was primarily a result of (i) recording a reduction in deferred tax liabilities that arose in connection with the required revaluation of the accounting carrying value, but not the tax basis, of property, plant and equipment, intangible assets, and other financial assets; and (ii) the recognition of losses carried forward net of the use of losses carried forward from prior years for which a deferred tax asset had been recorded.
M & A - Other Highlight
On December 21, 2020, we entered into an arrangement agreement (the "RIV Arrangement Agreement") with our wholly-owned subsidiary The Tweed Tree Lot Inc. ("Tweed NB"), RIV Capital and its wholly-owned subsidiary RCC, pursuant to which we acquired certain assets from RCC, as set out below, in exchange for cash, Canopy Growth common shares and the surrender of all shares in the capital of RIV Capital held by us by way of a plan of arrangement under the Business Corporations Act (Ontario) (the "RIV Arrangement").
Financial - Income Highlight
The increase of $14.3 million in current income tax expense arose primarily in connection with acquired legal entities that generated taxable income, where income could not be offset against the group's tax attributes, and legal entities which have fully utilized their loss carry forward balances and have current period taxable income.
Other - Other Highlight
While our cash and cash equivalents and short-term investment balance, on a combined basis, increased $322.7 million from March 31, 2020 to March 31, 2021, we received net proceeds of $877.1 million in March 2021 pursuant to the Credit Facility, as discussed in "Recent Developments" above.
Financial - Expense
A decrease in non-cash expense...Read more
Financial - Expense
A summary of the pre-tax...Read more
Financial - Shares
As additional consideration for the...Read more
Financial - Expense
Comparatively, in fiscal 2020 these...Read more
Financial - Expense
In fiscal 2020 these costs...Read more
Financial - Cash Flow
Management believes that free cash...Read more
Financial - Income
The increase of $4.7 million...Read more
Financial - Expense
The year-over-year decrease in the...Read more
Financial - Earnings
The year-over-year increase in our...Read more
Financial - Earnings
Excluding the items highlighted above,...Read more
Financial - Expense
Fiscal 2021 Total restructuring, asset...Read more
Financial - Shares
As of the date of...Read more
Financial - Expense
The increase of $293.1 million...Read more
Financial - Income
The income amount recognized in...Read more
Revenue - Product
Certain negative trends, including slower...Read more
Financial - Earnings
Excluding the items highlighted above,...Read more
M & A - Other
Pursuant to the RIV Arrangement,...Read more
Financial - Shares
Canopy Growth beneficially owns, and...Read more
Financial - Income
Management calculates Adjusted EBITDA as...Read more
Financial - Expense
In fiscal 2021, these costs...Read more
Revenue - Geography
We also benefited in fiscal...Read more
Revenue - Product
Partially offsetting the aforementioned cash...Read more
Financial - Income
Excluding this cash inflow, our...Read more
M & A - Other
Indefinite lived intangible assets -...Read more
Other - Other
Our "Adjusted EBITDA" is a...Read more
Financial - Expense
This included the rationalization of...Read more
Financial - Expense
The fiscal 2021 expense amount,...Read more
Financial - Cash Flow
Partially offsetting these year-over-year fair...Read more
M & A - Other
C (acquired in April 2019)...Read more
M & A - Other
This Works (acquired in May...Read more
Revenue - Product
In addition to the full...Read more
M & A - Other
The year-over-year change is primarily...Read more
Financial - Shares
Accordingly, the significant number of...Read more
Financial - Income
The increase in the cash...Read more
Financial - Expense
For example, a longer useful...Read more
Financial - Income
The increase in the net...Read more
Financial - Shares
Pursuant to the terms of...Read more
Financial - Earnings
The year-over-year decrease in the...Read more
Financial - Income
We use judgment to determine...Read more
Other - Other
Accordingly, management believes that Adjusted...Read more
Revenue - Product
However, we were impacted in...Read more
Financial - Income
Incremental interest income of $17.0...Read more
M & A - Other
Pursuant to the Acreage Amended...Read more
Financial - Shares
The year-over-year decrease is primarily...Read more
Other - Other
The following table presents Adjusted...Read more
Other - Other
The following table presents Adjusted...Read more
Financial - Debt
Therefore, we are subject to...Read more
M & A - Other
Year ended March 31, 2020...Read more
Revenue - Product
The year-over-year increase is due...Read more
Financial - Income
An increase of $27.3 million...Read more
Financial - Expense
Comparatively, the expense amount in...Read more
Financial - Expense
These charges are detailed below...Read more
Financial - Shares
Accordingly, the year-over-year increase was...Read more
Financial - Income
The stock price declined approximately...Read more
Financial - Earnings
The year-over-year increase in the...Read more
Other - Other
The year-over-year increase in the...Read more
Other - Other
In connection with certain deferred...Read more
Other - Other
In connection with certain deferred...Read more
Revenue - Product
Revenue from the business-to-consumer channel...Read more
Revenue - Product
International and other cannabis revenue...Read more
Financial - Expense
Comparatively, the expense amount of...Read more
Financial - Cash Flow
There can be no assurance...Read more
Legal - Other
Losses recorded in the second...Read more
Revenue - Geography
If the judgements relating to...Read more
Other - Other
The year-over-year decrease in the...Read more
Financial - Expense
The expense amount in the...Read more
Financial - Shares
The following table presents loss...Read more
Financial - Income
The decrease of $103.8 million...Read more
Revenue - Product
Revenue from Storz & Bickel...Read more
Revenue - Product
Other revenue was $53.7 million...Read more
Financial - Earnings
The year-over-year decrease in the...Read more
Financial - Earnings
Our adjusted gross margin percentage...Read more
Financial - Cash Flow
Free cash flow is a...Read more
Other - Other
Both companies have interests in...Read more
Other - Other
Both companies have interests in...Read more
Financial - Expense
Additionally, costs were incurred in...Read more
Financial - Expense
Additionally, costs were incurred in...Read more
Other - Other
When performing a qualitative assessment,...Read more
Financial - Expense
The year-over-year decrease is primarily...Read more
Other - Other
The expected credit losses reflected...Read more
Other - Other
These expected credit losses and...Read more
Financial - Expense
The year-over-year increase in the...Read more
Other - Other
Partially offsetting these increases was...Read more
M & A - Other
In the fourth quarter of...Read more
M & A - Other
Pursuant to the RIV Arrangement,...Read more
M & A - Other
The estimated fair value of...Read more
Financial - Expense
The year-over-year increase was primarily...Read more
Financial - Income
A decrease in interest income...Read more
Financial - Earnings
The year-over-year increase in the...Read more
Revenue - Product
The most significant assumptions used...Read more
Financial - Earnings
Excluding these items, our adjusted...Read more
Financial - Shares
The decrease associated with share-based...Read more
Other - Other
Partially offsetting these outflows of...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Canopy Growth Corp provided additional information to their SEC Filing as exhibits

Exhibit 4.1: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 10.1: Material Contract

Exhibit 10.3: Material Contract

Exhibit 10.4: Material Contract

Exhibit 10.6: Material Contract

Exhibit 10.12: Material Contract

Exhibit 10.18: Material Contract

Exhibit 14.1: Code Of Ethics

Exhibit 21.1: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: CGC
CIK: 1737927
Form Type: 10-K Annual Report
Accession Number: 0001564590-21-031214
Submitted to the SEC: Tue Jun 01 2021 5:21:32 PM EST
Accepted by the SEC: Tue Jun 01 2021
Period: Wednesday, March 31, 2021
Industry: Medicinal Chemicals And Botanical Products