Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported its financial and operating results for the fourth quarter and year ended December 31, 2021. Total revenue was $320 million for the fourth quarter of 2021, an increase of only 1% from $317 million in the third quarter of 2021 and 39% from $230 million in the fourth quarter of 2020. Curaleaf said that the revenue growth was due to new retail store openings, the addition of new wholesale partner accounts, product launches, and the expansion of cultivation and production facilities.
The net loss for the quarter was $28 million versus the third quarter’s net loss of $55 million and last year’s $37 million in the fourth quarter of 2020. Curaleaf said that the year-over-year improvement in net loss was primarily driven by an approximately $20 million increase in operating income and $2 million of lower income tax expense, partially offset by $15 million of higher other expenses, net. The earnings per share were ($0.04), which missed the Yahoo Finance analyst estimate for earnings of ($0.03).
On the company’s earnings call, the company said it expected a soft cannabis market overall in the first quarter due to inflation issues. the company gave guidance on the conference call for revenues in the range of $1.4-$1.5 billion for 2022.
Full Year Results
Total revenue for the year ended 2021 was $1.2 billion, an increase of 93% from $627 million for the year ended 2020. Expectations were for revenues of $1.6 billion. The net loss for the year was $102 million versus a net loss of $57 million for the year ended 2020. The company said that the $103 million increase in operating income in 2021 was offset primarily by $69 million of higher total other expense, net, and $86 million of higher income tax expense. The year-over-year increase in total other expense, net, was primarily due to an approximately $38 million gain on an investment in 2020 that did not recur, $27 million of higher interest expense net of interest income, and $11 million of higher other expenses, partially offset by $9 million of lower impairment charges on intangible assets.
“2021 was another exceptional year for Curaleaf,” said Executive Chairman Boris Jordan. “We reached a significant milestone by generating over 90% revenue growth and exceeding $1.2 billion of total revenue for the first time. We continued to deliver gross and Adjusted EBITDA margin expansion and ended the year with one of the strongest balance sheets in the industry to support our ongoing growth strategies. In addition, we announced strategic acquisitions that have strengthened our ability to continue gaining share in key U.S. markets as well as internationally. Looking to 2022, we remain focused on executing our plan for strong, above-market revenue growth and margin accretion, and believe we are incredibly well-positioned to benefit from significant near-term catalysts such as the anticipated launch of New Jersey’s adult-use market.”
As of December 31, 2021, the Company had $299 million of cash and $436 million of outstanding debt net of unamortized debt discounts.
Joe Bayern, Chief Executive Officer of Curaleaf, stated, “In 2021, we made significant progress strengthening all areas of our business including growing our retail and wholesale distribution, introducing new products, expanding our cultivation and production capacity, and entering new markets such as Europe. I believe our focus and strong execution in 2021 set us up extraordinarily well for the significant growth opportunities that lie ahead in 2022 and beyond. I am incredibly proud of the hard work and dedication of all our team members who have made our continued success possible. I believe Curaleaf is better positioned than ever to capitalize on the massive and growing cannabis opportunity.”