Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) reported total fourth-quarter revenue increased 16.6% to $76.8 million, an increase of 16.6% year-over-year and 5.5% sequentially.
The company released its unaudited preliminary financial results for the fourth quarter and full year ending Dec. 31, 2022.
Jushi attributed the increase to the expansion of its retail network in Massachusetts and Nevada, in addition to opening Beyond Hello stores in Pennsylvania and Virginia.
Its wholesale revenue also grew 38% due to continued growth primarily in Massachusetts, Nevada, and Virginia.
Still, the company delivered a net loss of $139 million in the quarter, driven primarily by asset impairment charges as well as lower fair value gain on derivatives, loss on redemption of the 10% senior notes, and higher interest expense. Jushi noted that the net loss was partially offset by an increase in gross profit and a decrease in income tax expense.
“In the fourth quarter, we were able to successfully complete a $73.1 million financing to redeem our senior secured notes that were due in January,” said Jim Cacioppo, chief executive officer, chairman, and founder of Jushi Holdings Inc. “That being said, we are very aware of the challenging capital market environment facing us and the broader cannabis industry. As a result, our executive team is making real-time changes to our capital allocation strategy as we navigate these challenges and ensure we make the right investment decisions to secure our leadership position across each of our core markets.”
For the full year, Jushi’s revenue jumped 35.8% over last year to $284 million. In 2022, Jushi opened seven stores, and ended the year with 35 operating dispensaries in six states, as compared to 28 in five states in 2021. The company reported a net loss of $202 million.
“Given the challenging macroeconomic backdrop our industry is operating under, I am pleased to report solid annual and quarterly top-line growth,” Cacioppo said. “Jushi experienced many bright spots over the course of the year, including rapidly growing our retail network across six markets and diversifying our house of brands and product suite.
“In addition, we made meaningful progress on the completion of our expansion projects in Pennsylvania and Virginia, were awarded a retail dispensary license establishing our fifth vertically integrated state operation in Ohio, brought on a record number of new Jushi active patients in Virginia’s budding medical market, and scaled our presence in the expanding Nevada market,” Cacioppo continued. “In 2023, we will continue our focused efforts to realize the full value of the asset base we have built and maximize the return on investment for our shareholders.”
The company has stayed focused on cost-savings by reducing employee headcount from approximately 1,570 total employees at its peak in 2022 to approximately 1,310 total employees today.
“We expect to move to a new labor model resulting in a total estimated 50% labor hour savings since April of 2022,” read the company statement.
At the end of 2022, Jushi had approximately $27.1 million of cash, cash equivalents, and restricted cash.
In 2022, it spent roughly $55 million on expansion projects in Pennsylvania and Virginia. The company believes this is expected to lead to a reduction in capital expenditure in fiscal 2023.
Looking ahead, the company expects capital expenditures for new projects to be roughly $13 million, of which approximately $6 million is discretionary growth capital.
The company has approximately $206.4 million in principal amount of total debt, excluding leases and property, plant, and equipment financing obligations.
The company cautioned that these results are only preliminary and that final results will be posted to the SEC once the accounting is fully completed.