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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index edged down a fraction to 122.71, while the CSE Composite Index slipped 4.36 points to 437.36. Trevor Fencott's Fire & Flower Holdings Corp. (FAF) lost three cents to 88 cents on 1.35 million shares, after releasing its financials for the fiscal second quarter ended Aug. 1. It touted revenue of $28.6-million. This is up from $23.1-million in the fiscal first quarter, bucking the recent industry trend toward flat or declining sequential revenues. Alas, the company is still not turning a profit. Net loss of $29-million or 18 cents a share was sharply worse than analysts' predictions of a loss of four cents a share.
Fire & Flower also did not manage the even easier target of positive adjusted EBITDA -- a metric sometimes ridiculed as "earnings before everything," although not of course by Fire & Flower. Its chief executive officer, Mr. Fencott, insisted that the company is making "meaningful progress toward this critical goal." (Its adjusted EBITDA in the quarter was a loss of $300,000.) Meanwhile, one "critical goal" that investors would doubtless like to see more attention on is trimming expenses, especially those in the notorious "other" category (meaning beyond G&A and other basics). Fire & Flower pegged its "other" expenses at $26.5-million in the quarter, including financing costs of $8.2-million, being almost equal to revenue and gross profit, respectively. Those are not flattering figures.
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