Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced its financial results for the fourth quarter of 2021 and the full year ended December 31, 2021. Jushi said its total revenue rose 104% to $65.9 million over last year and increased 22% sequentially. The company attributed the sequential growth in revenue to the acquisition of Nature’s Remedy in Massachusetts, strong revenue growth at the company’s BEYOND / HELLO stores in Virginia and Illinois, and increased wholesale activity at the Company’s grower-processor facilities in Pennsylvania and Virginia. The net income was $9.1 million, or $0.05 per basic share with net loss per diluted share of $(0.14).
For the full year, total revenue of $209.3 million increased approximately 159% year-over-year. The net income was $25.3 million, an increase of $237.2 million year-over-year. Jushi said its cash and cash equivalents were $95.0 million as of the quarter-end.
“We closed out the year with another quarter of solid top-line revenue growth,” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi. Throughout 2021, we made significant progress scaling our operations and positioning our platform for sustained growth and market leadership. During the year, we nearly doubled our operational retail store count through organic and inorganic expansion opportunities and bolstered and expanded our cultivation and processing capabilities with the addition of various assets across both our core and developing markets.”
The company noted it was selected in the retail lottery for a provisional medical marijuana dispensary license in Clermont County, Ohio located in the Tri-State area of Cincinnati, awaiting certification as well as issuance of licenses by The Ohio Board of Pharmacy. It has also made strides in the Nevada market as the company has completed the acquisition of The Apothecarium in Las Vegas, Nevada making this the company’s fourth vertically integrated state-level operation and expanded national operating store count to 29. Jushi also entered into a definitive agreement to acquire NuLeaf, Inc., a Nevada-based vertically integrated operator with three adult-use and medical retail dispensaries, a 27,000 sq. ft. cultivation facility, and a 13,000 sq. ft. processing facility.
Jim Cacioppo continued, “Over the fourth quarter, we incurred additional operating expenses as we invested in the business to support our long-term growth outlook, which ultimately resulted in lower profitability than initially anticipated. The reduction in profitability in the fourth quarter was largely due to costs associated with bringing on and fostering the right talent to strengthen the organization, along with an increase in headcount associated with new store openings and the build-out of our cultivation and processing assets. Along with investing in the business, we have also begun executing several cost-savings measures that are expected to result in significant savings in the coming quarters.”
Mr. Cacioppo commented, “After reporting strong sequential revenue growth in the fourth quarter of 2021, we are experiencing a slowdown in revenue as we begin the year. Additionally, due to a combination of headwinds, including seasonality, macroeconomic factors, regulatory delays, and supply chain issues, we are revising our previously provided guidance range to an annualized fourth quarter 2022 run rate. We now expect fourth-quarter revenue on an annualized basis to be between $375 to $425 million and Adjusted EBITDA to be between $70 to $90 million on an IFRS basis.”