Aphria Inc (NYSE:APHA) Q2 2020 Earnings Conference Call - Final Transcript
Jan 14, 2020 • 08:00 am ET
Good morning. My name is Suzanne and I will be your conference operator today. At this time, I would like to welcome everyone to the Aphria's Q2 Quarterly Investors Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session for analyst and/or investor firms only. [Operator Instructions] Thank you.
Katie Turner, you may begin your conference.
Katie M. Turner
Thanks, Suzanne. Good morning everyone. We appreciate you joining us to discuss Aphria Inc.'s financial results for the second quarter-ended November 30th, 2019.
On today's call are Irwin Simon and Carl Merton. By now, everyone should have access to the earnings release, financial statements, MD&A and investor presentation, which are available on the Investor section of Aphria's website at www.aphriainc.com. The financial statements have been filed with SEDAR and EDGAR.
Before we begin, please remember that during the course of this call, management may make forward-looking statements. These statements are based on management's current expectations and beliefs and involve known and unknown risks and uncertainties, which may prove to be incorrect and actual results could differ materially from those described in these forward-looking statements. Please note that in the text of Aphria's earnings press release and financial filings issued today are a discussion of the risks and uncertainties associated with such forward-looking statements.
And now, I would like to turn the call over to Irwin Simon.
Irwin D. Simon
Thank you, Katie. Good morning, everyone. We appreciate you joining us today to discuss our second quarter financial results. Our team has accomplished a lot on all fronts. Boy, what a difference a year makes. From enhancing our global team through our brand-building activities, new facilities, grow production capabilities, to invest in a new systems technology as well as evolving our corporate governance. I enjoy working closely with our team and it's great to remove the interim title. Together, we all appreciate the hard work and dedication that has propelled us forward and will continue our future success is on horizon.
So let's focus on Q2. A few key quarterly highlights include adult-use cannabis net revenue increased 46% and we nearly doubled our consolidated adjusted EBITDA as compared to the first quarter. Net cannabis revenue increased 9% and we nearly tripled cannabis operations adjusted EBITDA from the prior quarter. We ended the quarter with one of the strongest cash positions in the industry, a strong balance sheet, CAD498 million of cash and cash equivalent to fuel our future growth in Canada, Germany, and South America. As I like to say, cash is king and we're proving it. We believe that as the cannabis industry continues to evolve globally, our balance sheet and financial flexibility will continue to further and differentiate us.
We remain focused on the highest return priorities for growth. Our second quarter results demonstrate our emphasis on sustainable and profitable growth. At Aphria, our entire team of more than 1,200 employees is intensely focused on growing our brands, profitability, our strong cash position for