Village Farms
Contents
Company Overview
Village Farms Inc. (TSX:VFF) (NASDAQ: VFF) has historically been one of North America’s largest producers of greenhouse vegetables, spanning about 30 years. Village Farms does its own sales, distribution, and marketing into large big box retailers such as WalMart and major grocery chains across North America. Village Farms owns and operates seven greenhouse facilities in British Columbia and Texas. In Canada, Village Farms has been shifting away from vegetable production, instead focusing on cannabis via its 50% owned J.V., Pure Sun Farms, with the other 50% owned by Emblem. Additionally, in the U.S. the large greenhouse footprint in Texas is being converted to growing hemp, and if/when the U.S. eventually legalizes federally, is likely to be converted to cannabis.
Management
Production Assets
Village Farms Canadian assets
Village Farms U.S. assets
Catalysts
- Expansion at Pure Sun Farms
Key Financials
(C$M Unless Otherwise Stated)
| DEC '16 | MAR '17 | JUN '17 | SEP '17 | DEC '17 | MAR '18 | JUN '18 | SEP '18 | DEC '18 | MAR '19 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Q3-17 | Q4-17 | Q1-18 | Q2-18 | Q3-18 | Q4-18 | Q1-19 | Q2-19 | Q3-19 | Q4-19 | |
| Income Statement | ||||||||||
| Cannabis Sales | ||||||||||
| Other Sales | ||||||||||
| Sales | 49.8 | 41.4 | 61.2 | 56.1 | 46.9 | 37.3 | 54.3 | 51.9 | 51.2 | 42.4 |
| Gross Income | 7.2 | 5.2 | 3.6 | 2.9 | 6.3 | 4.5 | 1.1 | 3.7 | 3.2 | 0.4 |
| Gross Margin | 14% | 13% | 6% | 5% | 13% | 12% | 2% | 7% | 6% | 1% |
| EBIT | 2.0 | 1.0 | -1.5 | -1.3 | 0.0 | 0.1 | -3.8 | -1.1 | -2.9 | -6.8 |
| EBITDA | 4.6 | 3.6 | 1.1 | 1.0 | 2.3 | 2.4 | -1.6 | 1.2 | -0.6 | -4.3 |
| Net Income | 0.6 | -0.3 | 5.8 | 0.4 | -0.8 | -1.4 | -2.9 | -2.6 | 0.4 | 10.2 |
| EPS (recurring) | 0.02 | 0.01 | 0.16 | 0.00 | -0.04 | -0.02 | -0.09 | -0.03 | 0.00 | 0.21 |
| EPS (diluted) | 0.01 | -0.01 | 0.15 | 0.01 | -0.02 | -0.04 | -0.06 | -0.06 | 0.01 | 0.21 |
| Diluted Shares Outstanding (M) | 39 | 39 | 40 | 40 | 42 | 42 | 43 | 44 | 48 | 50 |
| Balance Sheet | ||||||||||
| Cash & Short-Term Investments | 7.2 | 5.2 | 7.0 | 5.4 | 8.9 | 5.0 | 17.0 | 7.6 | 16.3 | 8.3 |
| Total Assets | 197.0 | 181.3 | 190.6 | 174.2 | 187.9 | 179.5 | 201.2 | 191.3 | 231.4 | 234.7 |
| Total Debt | 60.8 | 66.0 | 64.7 | 57.9 | 48.4 | 53.8 | 59.0 | 56.9 | 52.0 | 59.3 |
| Total Liabilities | 106.7 | 91.6 | 99.2 | 85.5 | 86.3 | 76.6 | 88.7 | 82.9 | 93.9 | 89.3 |
| Total Shareholders' Equity | 90.4 | 89.7 | 91.5 | 88.7 | 101.5 | 103.0 | 112.5 | 108.3 | 137.5 | 145.4 |
| Book Value per Share | 2.32 | 2.31 | 2.34 | 2.26 | 2.40 | 2.43 | 2.53 | 2.43 | 2.89 | 3.04 |
| Tangible Book Value per Share | 2.32 | 2.31 | 2.34 | 2.26 | 2.40 | 2.43 | 2.53 | 2.43 | 2.89 | 3.04 |
| Cash Flow | ||||||||||
| Net Operating Cash Flow | 6.2 | -6.9 | 2.4 | 3.8 | 1.6 | -7.5 | -1.2 | 2.1 | 0.5 | -6.9 |
| Capital Expenditures | -0.9 | -0.6 | -0.8 | -0.2 | -0.7 | -0.4 | -1.4 | -1.4 | -0.7 | 0.0 |
| Net Investing Cash Flow | -0.9 | -0.6 | -0.8 | -0.2 | -0.7 | -0.4 | -1.4 | -10.2 | -5.5 | -3.4 |
| Net Financing Cash Flow | -5.0 | 5.5 | 0.3 | -5.0 | 2.8 | 3.9 | 14.1 | -1.0 | 12.8 | 2.6 |
| Free Cash Flow | 5.3 | -7.5 | 1.7 | 3.6 | 0.9 | -7.9 | -2.6 | 0.6 | -0.2 | -6.9 |
Timeline