MariMed, Inc. (OTCQX: MRMD) reported financial and operating results for the three and twelve-month periods ended December 31, 2020, after the market closed on Tuesday. MariMed’s cannabis revenues increased 292% in the fourth quarter to $20.4 million versus $5.2 million for the same time period in 2019.
Core cannabis revenues increased 207% to $50.9 million in 2020 versus $16.6 million in 2019. The company attributed the increase to the full-year consolidation of Illinois and the results from Massachusetts which began operations in December 2019. MariMed’s revenues also benefited from the robust adult-use markets in both of those states as well as the growth of our managed cannabis businesses in other states.
The net income for 2020 was $2.4 million for the quarter versus a net loss of $81.9 million in 2019. Excluding the net impact from the one-time hemp seed sales in 2019, the 2019 net loss was $30.8 million. The profit improvement results primarily from the consolidation of the company’s operations in Illinois and Massachusetts.
“This was an exceptional year for MariMed as we accomplished several important milestones while making significant progress executing on our strategic growth plan. In 2020, we achieved record revenue and saw improvements in profitability resulting from the inclusion of consolidated revenues from our Massachusetts and Illinois businesses. Revenue and profitability also benefitted from the continued success of our Branded Products which remain top sellers in their respective state markets.” said Bob Fireman, CEO of MariMed. “With the Hadron financing, we have strengthened our balance sheet and secured the necessary capital to further execute on our consolidation strategy and position ourselves for accelerated growth in the industry. We have improved our liquidity and capital resources and are profitable and tracking to continued revenue growth from the established businesses we have in place. We intend to continue to implement our strategic plan to acquire and consolidate the businesses we organically built into our public company and are poised to become one of the leading fully integrated and profitable multi-state operators in the cannabis industry.”
MariMed is initiating the full year 2021 revenue guidance of $100 million and EBITDA guidance of $30 million. the company said in a statement that over the last year it anticipates accelerated growth in 2021 driven by adding additional dispensaries and continued focus on consolidating key assets under management as well as facility expansion in Delaware and Maryland. In addition, MariMed said it will expand the licensing of its branded products into other states.
“In Massachusetts, we plan to identify and open two new dispensaries servicing both the medical and adult-use markets and the fourth dispensary in Illinois servicing the adult-use market. Growth will also result from having a full year of production from our New Bedford, Massachusetts facility. Additionally, the Company is reviewing plans to double the size of the New Bedford facility through expansion into the 65,000 square foot adjacent company-owned property, as well as further technology upgrades and expansion of extraction labs and production kitchens.
In Delaware, we are expanding cultivation and processing facilities.to meet the strong demand in that state. In Maryland, we will focus on cultivation and processing expansion and are currently receiving bids for the buildout of a dispensary facility in Anne Arundel County, Maryland, which we intend to open during 2021.”