Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported financial and operating results for the second quarter ending June 30, 2021, as revenue grew 232% to $109.7 million. This was a sequential increase of 19% and in line with the average analyst estimate from Yahoo Finance for revenue of $109 million. Columbia Care noted that the second quarter 2021 results included contributions from Green Leaf Medical as of the date of acquisition, June 10, 2021. With the close of the Ohio acquisition in July, all financial reporting will be consolidated under Reported Results going forward.
The net losses were trimmed to $10 million from last year’s $27 million. The earnings per share improved to ($0.03) from last year’s ($0.11) for the same time period. This missed the estimates for earnings of ($0.02). The company burned through $27 million in cash in the quarter. However, the cash balance is still a very healthy $148 million.
“We are pleased to report another record quarter for Columbia Care as we continue to execute on our strategic initiatives and build scale in markets across the country,” said Nicholas Vita, CEO of Columbia Care. “Our results in the second quarter were driven by organic growth in new and maturing markets, increasing wholesale activity, and contribution from our recently closed acquisition of Green Leaf Medical (gLeaf). We saw continued year over year and sequential improvement in both gross and Adjusted EBITDA margins as we leverage the scale of our national portfolio and ramp in newer markets.”
Columbia Care also stated that its top five markets by combined revenue were: California, Colorado, Massachusetts, Ohio, Pennsylvania. The top five markets by adjusted EBITDA were: Colorado, Illinois, Massachusetts, Ohio, Pennsylvania.
Vita continued, “The ongoing national rollout of our Cannabist retail storefront, with five Cannabist locations open to date, has been very successful and underpins our ongoing initiative to establish a portfolio of national product brands, beginning with our unique store-based experience. We are pleased to report a record number of new product and brand introductions in our markets, such as Seed & Strain flower and vapes, Triple Seven flower, and Plant Sugar edibles.”
The company reaffirmed its 2021 revenue guidance of $500 – $530 million and adjusted EBITDA guidance of $95 – $105 million. Columbia Care’s said its 2021 outlook is based on current trends and is consistent with the forecast previously provided on March 16, 2021. Columbia Care said its pro forma 2021 outlook does not assume any future changes in the regulatory environment in markets where Columbia Care currently operates.
“Fundamentals continue to improve as we build scale, execute on planned CAPEX expansion projects, and build brand equity at the retail and product levels from coast to coast. We have more growth initiatives underway than ever before, and with New York, New Jersey and Virginia poised to transition to adult use, the opportunities for Columbia Care have never been greater. We have set the stage for a tremendous second half of the year with momentum building into 2022 and look forward to continuing to execute our strategic vision.”