Yahoo Finance CubicFarm Systems Corp. Announces Fourth-Quarter and Full-Year 2022 Financial Results
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.
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