Multi-state operator Jushi Holdings Inc. (OTC:JUSHF) delivered its fourth-quarter and full-year earnings for the time period ending December 31, 2019, and pre-announced its first-quarter 2020 revenues. Overall, Jushi reported an increase in revenues, but also an increase in net losses as the expansion plans have been delayed as a result of the pandemic.
The company’s fourth-quarter revenues increased 68% sequentially to $6.0 million but reported a net loss of $17.1 million. The adjusted EBITDA loss was $(5.2) million. The company though still has a comfortable cash cushion of $51.2 million of cash and securities. It sold a minority interest in New York state medical marijuana license for a total estimated value of approximately $15 to $20 million (depending on the contingency payouts).
For 2019, the company delivered total revenue of $10.2 million with a net loss of $30.8 million. The adjusted EBITDA loss was $11.2 million.
“2019 was an extraordinarily productive year for the Company. We completed our going public transaction, successfully closed on, are under definitive agreements to acquire, or are in the process of building out several high-quality assets in Pennsylvania, Illinois, Virginia, California, Nevada, and Ohio,” said Jim Cacioppo, Chairman and Chief Executive Officer of Jushi. “For example, in Pennsylvania, we opened four medical dispensaries in the second half of 2019, bringing our total store count to six and expect to open an additional nine stores within the next twelve months. We expect to operate a total of 15 stores in Pennsylvania or 10 percent of the current overall market. In addition to the significant progress we made in our operations, we successfully raised $165 million through December 31, 2019, and an additional $20 million in January 2020.”
First Quarter 2020
The company felt comfortable in announcing its preliminary first-quarter 2020 revenue of $8.6 million, which was an increase of 43% sequentially. The amounts to an annualized revenue run-rate for March 2020 of approximately $50 million.
Cacioppo added, “In 2020, we remain focused on building out our high-quality footprint and pursuing attractive acquisition opportunities across the cannabinoid supply chain. We started the year very strong, acquiring two medical dispensaries in Illinois that come with an option to open up two additional dispensaries. Our dispensary in Sauget, IL (adjacent to East St. Louis) launched adult-use sales on March 2nd, and our dispensary in Normal, IL (Bloomington-Normal metropolitan area) is expected to transition to adult-use sales on May 11th. We expect to open the two additional adult-use dispensaries in Illinois by year-end.”
Jushi said that the COVID-19 crisis has caused delays in its plans to expand its footprint in key operating markets. “Specifically, regulatory and construction delays on current underway projects in Pennsylvania, California, Virginia, and Ohio may impact the timing as to when these new dispensaries and facilities become operational. Additionally, Jushi has prioritized the health and safety of its patients, customers, and employees, by limiting store hours to medical patients and those most susceptible to the virus.”
The company said it has also delayed the previously scheduled roll-out adult-use sales at its Illinois location in Bloomington-Normal metro area by several weeks, and now expects the dispensary to transition to adult-use sales on May 11th.