Harvest Health & Recreation Inc. (OTCQX: HRVSF) reported its financial and operating results for the first quarter of 2021 with revenue rising 101% to $88.8 million from $44.2 million in the first quarter of 2020. Revenue also rose sequentially by 27% from $69.9 million in the fourth quarter of 2020. This beat the average analyst estimate from Yahoo Finance for revenue of $87 million in the quarter. However, the company missed the estimate for the earnings loss which came in at ($0.06) per share while the estimate was for ($0.01.) per share.
The net loss before non-controlling interest was $23.0 million for the first quarter, compared to $7.4 million in the fourth quarter of 2020. The adjusted EBITDA in the first quarter was $26.9 million, compared to $9.1 million in the fourth quarter of 2020.
Harvest is raising its full-year 2021 revenue target to at least $400 million. The reported gross margins are expected to be at or above 50% and will likely continue to fluctuate from quarter to quarter.
“Our first-quarter results show the benefits of reaching impactful milestones such as the launch of recreational sales in Arizona,” said Chief Executive Officer Steve White. “We are focused on our key operational and financial priorities in 2021 as we continue to build on this positive momentum.”
Of course, the big news on Monday wasn’t Harvest’s Health earnings but the announcement that Trulieve would buy the company in a deal valued at $2.1 billion. It’s been a busy month for the company. In addition to today’s acquisition announcement, Harvest noted that it opened two new medical retail dispensaries in Florida on May 5 th and May 6 th in Olympia Heights and West Palm Beach. On May 7, 2021, the company announced that a settlement was reached regarding the grower/processor permittee AGRiMED Industries of PA, LLC.
The company said in its earnings that it has a cash position of $$106 million, but the company’s total liabilities are $554 million. As of March 31, 2021 , Harvest owned, operated, or managed 37 retail locations in six states, including 15 open dispensaries in Arizona.