VANCOUVER, BC, May 2, 2023
/CNW/ - CubicFarm® Systems Corp. ("CubicFarms" or the
"Company") (TSX: CUB), a leading local chain agricultural
technology company, reports its financial results for the three
months and year ended December 31,
2022. All amounts are in Canadian dollars.
Fourth Quarter and Fiscal Year End Financial Results
- Revenue for the three months ended December 31, 2022, was $0.2 million, compared to $0.8 million in the prior year. Revenue for the
year ended December 31, 2022 was
$3.6 million, compared to
$5.3 million in the prior year. The
reduction was due to lower machine sales.
- Corporate overhead, which included general and administrative,
selling, and research and development expenses was $5.7 million for the three months ended
December 31, 2022, reduced by
$4.6 million or 45% compared to
$10.4 million in the prior year due
to the Company's cost reduction plan that was implemented in the
second half of 2022. For the year ended December 31, 2022, corporate overhead was
$31.6 million, compared to
$30.5 million in the prior year. The
Company believes it is on track to achieve annual savings of
$15.6 million of cash-based operating
expenses as previously announced in September 2022.
- The Company recorded non-cash impairment charges of
$23.1 million for the three months
and $26.5 million for the year ended
December 31, 2022 relating to its
Fresh and Feed divisions, as a result of the Company's assessment
of the carrying amount of its net assets in excess of the
recoverable amount.
- Net loss for the three months ended December 31, 2022 was $29.8 million, compared to $11.2 million in the prior year. The higher net
loss in Q4 2022 was primarily due to the impairment charges,
partially offset by lower operating expenses as mentioned above.
Net loss for the year ended December 31,
2022 was $60.4 million,
compared to $29.4 million in the
prior year.
- "As we move forward, CubicFarms is committed to operating as a
lean, efficient business focused on disciplined growth," said
Interim CEO of CubicFarms and President of HydroGreen, John de Jonge. "Our ongoing restructuring
efforts have focused on strengthening the future financial
viability of the company. We continue to explore all options and
remain optimistic about future prospects. With HydroGreen, we are
well-positioned to serve the dairy and cattle industries, which
have a strong demand for our technology and feed solution. The
world continues to face challenges such as climate change, drought,
and land scarcity, and so we remain dedicated to providing
innovative indoor growing solutions that conserve agricultural
resources and provide superior nutritious feed to benefit dairy and
beef animals."
- The Company's fourth quarter financial statements and
management's discussion and analysis will be issued and filed on
SEDAR at www.sedar.com on May 2,
2023, and will be available on the same day on CubicFarms'
website at https://cubicfarms.com/investors/.
About HydroGreen
HydroGreen produces Automated
Vertical Pastures™, a type of smart farming equipment that uses a
unique process to sprout grains such as wheat and barley, in a
controlled growing environment to efficiently produce a
high-performance feed ingredient for livestock 365 days a year.
HydroGreen's equipment is simple and easy to operate and performs
all growing functions automatically, including seeding, watering,
lighting, harvesting, and re-seeding, which allows livestock
businesses to feed consistent nutrition every day with minimal
labour. When balanced correctly in the ration, HydroGreen sprouted
grain modifies animal digestion which enhances productivity and
reduces the amount of enteric methane emitted in ruminant
livestock. The result also enables environmental benefits to the
farm while helping to meet increasing demand for valuable
farm-based inset and offset carbon credits.
About CubicFarms
CubicFarms is a leading local chain
agricultural technology company developing and deploying technology
to feed a changing world. Its proprietary ag-tech solutions enable
growers to produce high quality, predictable produce and fresh
livestock feed with HydroGreen Nutrition Technology, a division of
CubicFarm Systems Corp. The CubicFarms™ system contains patented
technology for growing leafy greens and other crops onsite,
indoors, all year round. CubicFarms provides an efficient,
localized food supply solution that benefits our people, planet,
and economy.
For more information, please visit www.cubicfarms.com.
Forward looking and other cautionary statements
This release may contain certain "forward-looking statements"
or "forward-looking information" under applicable securities laws,
including, without limitation, statements with respect to: the
future financial viability of the Company, the Company's ability to
achieve annual savings of $15.6
million of cash-based operating expenses as previously
announced in September 2022, the
Company's position to serve the beef and cattle industries and
demand for the Company's technology generally. Such statements
involve known and unknown risks, uncertainties, and other factors
and assumptions which may cause the actual results, performance, or
achievements of CubicFarm Systems Corp., or industry
results, to be materially different from any future results,
performance, or achievements expressed or implied by such
forward-looking statements. Such statements can be identified by
the use of words such as "intend", "expect", "believe", "plan",
"anticipate", "estimate", "scheduled", "forecast", "predict", and
other similar terminology, or state that certain actions, events,
or results "may", "can", "could", "would", "might", or "will" be
taken, occur, or be achieved.
These statements reflect the Company's current expectations
regarding future events, performance, and results and speak only as
of the date of this news release. Consequently, there can be no
assurances that such statements will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such statements. Except as required by securities
disclosure laws and regulations applicable to the Company, the
Company undertakes no obligation to update these forward-looking
statements if the Company's expectations regarding future events,
performance, or results change.
SOURCE CubicFarm Systems Corp.
