Columbia Care Beats On Revenue, Misses On Earnings

Columbia Care Inc. (OTCQX: CCHWF)  reported financial and operating results for the fourth quarter and full-year ended December 31, 2020. Revenue rose 234% in the fourth quarter to $81.7 million versus $24.5 million for the same time period in 2019. The actual revenue was $76 million, which combined with the CannAscend revenue to lead to the $81 million. This beat the analyst estimates for $77.9 million in the quarter according to Yahoo Finance.

The net loss for Columbia Care in the fourth quarter was $73 million versus last year’s net loss of $28 million for the same time period. The earnings per share were for a loss of $0.21, which was much worse than the analyst expectations for a loss of $0.04 per Yahoo Finance.

Revenue for the full-year 2020 rose 151% to $197 million versus 2019’s revenue of $78.8 million. The company delivered a net loss of $133 million for 2020 versus a net loss of $102 million in 2019.

“We closed out 2020 with record results across key metrics, demonstrating the strength of our growth strategy and the potential of our expansive market portfolio,” said Nicholas Vita, CEO of Columbia Care. “We generated significant sequential and year-over-year growth across combined revenue, gross profit, and Adjusted EBITDA, as well as robust gross margin expansion. We have outperformed our 2020 outlook, solidifying our position as an industry leading MSO. Corporate profitability continued to expand as we further leverage our national scale. Including the full fourth quarter’s financial contribution of Project Cannabis, Columbia Care generated approximately $87M in Combined Revenue and $12M in Adjusted EBITDA.”

“In 2020, we expanded our footprint in the top two global cannabis markets with accretive acquisitions in California and Colorado. We generated strong organic growth in our existing markets and plan to capitalize on favorable regulatory tailwinds in medical markets that are converting to adult use across the country. With our footprint in 17 U.S. markets, three of which will become operational in 2021, we are well-positioned to take advantage of the tremendous opportunity for growth as cannabis adoption progresses.”

Outlook

The company’s outlook for 2021 was a pro format outlook which suggested revenue would be in the range of $500 – $530 million. Columbia Care’s pro forma 2021 outlook assumes the pending acquisition of GLeaf closes in the third quarter but does not include any contribution from future acquisitions nor does it assume any changes in the regulatory environment in markets where Columbia Care currently operates, such as the pending adult-use program in New Jersey. The outlook also excludes markets where a conversion from medical-only to adult-use is under consideration by the Governor and/or legislatures, such as New York and Virginia.

Vita added, “Our acquisition of Green Leaf Medical (GLeaf) remains on track to close in 3Q 2021 and is expected to expand our scale and vertically integrated footprint in four key, limited license markets – Maryland, Ohio, Virginia, and Pennsylvania, where we will become one of the largest fully-integrated operators in each state. We are also on track to open the first co-located medical and adult-use dispensary in Boston in 2Q 2021, and recently launched adult-use sales in Arizona. In 2021, we will leverage our vertically integrated national platform for key branding initiatives, both at the product level and in our stores. We will be rolling out several of our nationally-recognized, trusted brands across our markets and introducing a more approachable, more curated retail experience at our dispensaries to redefine the customer journey.”

Columbia Care said it ended 2020 with $61 million in cash and raised $140 million following the end of 2020.

Debra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


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