After the market closed on Monday, Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF) announced preliminary unaudited financial results for the fourth quarter and full-year ended December 31, 2021. In addition to that, Cansortium forecasted that its expected revenue in 2022 would range between $90–$95 million, reflecting an approximate 45% increase from 2021 at the midpoint. Cansortium said it also expects adjusted EBITDA in 2022 to range between $25–$28 million, reflecting an approximate 35% increase from 2021.
Cansortium reported that revenue increased 13% in the fourth quarter to $16.5 million versus $14.7 million for the same time period a year ago. The expected operating loss decreased to $(1.6) million compared to $(9.7) million. The expected Adjusted EBITDA increased 55% to $5.1 million or 31.0% of revenue, compared to $3.3 million or 22.5% of revenue.
For the full year of 2021, revenue increased 22% to $63.7 million compared to $52.4 million in 2020. The expected operating loss decreased to $(2.4) million compared to $(8.4) million. The expected Adjusted EBITDA increased 90% to $19.6 million or 30.8% of revenue, compared to $10.3 million or 19.6% of revenue.
“We ended 2021 on a high note with record fourth-quarter results, and our momentum has carried into the first quarter of 2022,” said CEO Robert Beasley. “We have grown revenue sequentially every month between October 2021 and March 2022 due to both cultivation improvements across our facilities in Florida as well as new capacity coming online in December and February. We are now harvesting double the biomass per week compared to last year. The recent 4/20 holiday was also our strongest day of sales in company history, further reflecting our continued momentum into Q2. I cannot thank our team enough for their hard work over the past year to help us reach this inflection point.
“Although our results are dramatically improving, we are disappointed to report that our auditors require more time to complete their audit procedures, delaying the filing of our 2021 audited financial statements. We understand the frustration this will cause with our shareholders, and we are equally frustrated as our auditors previously communicated that our required filings would be completed by today’s deadline. We have provided all the required information for the auditors to complete their review and expect to have our various filings completed soon.”
Not only did Cansortium give a rosy outlook for the full year, the company also noted that the first quarter is off to a good start. Revenue increased 33% year-over-year to $20.1 million compared to $15.1 million in this year’s first quarter. In Florida, the average biomass harvested per week has increased approximately 100% in Q1 2022 compared to Q4 2021 due to new cultivation ramping. Inventory shipped in Florida increased 75% in March 2022 compared to December 2021, reflecting the highest levels of inventory in company history.
Sales in milligrams (“mgs”) of THC increased by 173%, from 5.6 million mgs in the first week of Q1 2022 to 15.4 million mgs in the 16th week of 2022. New patient acquisition in Florida increased approximately 16% in Q1 2022 compared to Q4 2021 due to increased community outreach engagement, competitive pricing and fully stocked inventories.
In late April, the Company opened its third dispensary in Pennsylvania in Annville.
“Despite this frustration over the audit process, we expect another strong year of growth highlighted by new store openings, continued new patient acquisition, ramping new cultivation and further improving our flower quality. For the first time, we now have an adequate level of supply for our 27-store footprint in Florida, and our results over the past couple months validate that our stores can thrive with more product to sell. Our management team is highly motivated by the dramatic uptrend in sales and the morale within the company is at an all-time high.”