Cresco Labs Archives - Green Market Report

Debra BorchardtMay 18, 2022
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Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF)  released its financial results for the three months ended March 31, 2022, as revenue fell from the fourth quarter’s $217 million to the first quarter’s $214 million. Cresco Labs did note that the revenue increased 20% over last year’s $178 million for the same time period. This also beat the Yahoo Finance average analyst estimate for sales of $213 million.

Net losses for the quarter grew to $23 million over the fourth quarter’s net loss of $11 million. It was down slightly from last year’s net loss of $24 million for the same time period.

“Q1 was a solid quarter for the Cresco Labs team in a challenging environment for all consumer product categories. While our 10-state footprint saw a cumulative sequential contraction of 4.5%, we held or took market share in most of our states and outperformed the markets with our 2% decline. We understand that an emerging industry’s growth trajectory is rarely linear, especially a highly regulated industry with a fragmented state-by-state structure, conflicting federal and state laws, and the addition of general macro pressures. Notwithstanding, we continue to execute with a clear and focused strategy to obtain market leadership with a portfolio of cannabis brands consumers love and a plan to get them on as many shelves as possible. The strategy remains constant, and the Columbia Care acquisition announced in the quarter simply fits these stated priorities hand-in-glove. We are pairing the best consumer brands with a broad, deep and strategic footprint,” said Charles Bachtell, Co-Founder and CEO of Cresco Labs.

Revenue Breakdown

Cresco noted that it had wholesale revenue of $95 million and maintains that it has a position as the #1 seller of branded cannabis products in U.S. with leading share in the flower, concentrates, and vape categories. Retail revenue increased 44% year-over-year, to $119 million, or $2.5 million per average store open in the quarter and same-store sales increased 9% year-over-year.

Cash Burn

The company is certainly sitting on a comfortable level of cash with $179 million on hand at the end of the quarter. However, the company burned through $44 million in cash in the quarter, a big jump from the cash used in the fourth quarter of $28 million.

“The first quarter showed the resilience and strength of the business we have built over the past few years. We remain focused on playing the long game and building a business that will be a lasting leader in the cannabis industry under any regulatory outcome. The compliance-focused foundation of both Cresco Labs and Columbia Care is helping ensure a smooth progression towards deal approval through a reasonable and manageable regulatory process. We recently crossed our first milestone by passing the federal HSR review process on May 16 and we do not expect state regulatory approvals to be an issue for our closing timeline,” Mr. Bachtell concluded.

On March 23, 2022, the company announced a definitive arrangement agreement whereby Cresco will acquire Columbia Care in an all-stock transaction.

 

 


StaffMarch 23, 2022
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The Daily Hit is a recap of the day’s top business news for the cannabis industry for March 23, 2022.

On the Site

Cresco Labs

Cresco Labs (OTC: CRLBF) is buying New York-based Columbia Care (OTC: CCHWF) in a $2 billion deal that will make it the largest marijuana company in the U.S. The all-stock purchase would give Cresco a presence in new recreational-marijuana markets, such as New Jersey and Virginia. It’s the largest merger in the marijuana business since Trulieve, based in Quincy, Fla., bought Harvest Health & Recreation for $2.1 billion last year. The deal is the biggest involving a Chicago-based marijuana company since Grassroots was bought by Curaleaf, headquartered in Wakefield, Mass., for $715 million in 2020. Read more here.

While the news of the Columbia Care acquisition was the big news of the morning, Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) also reported its financial results for the fourth quarter and year ending December 31, 2021. Cresco’s fourth-quarter revenue rose 34% over last year to $218 million, this was only a slight increase over the third quarter’s revenue of $215 million. The cash flow from operations was $38 million. Taxes and interest payments pushed the company to report a net loss of $11 million the quarter. Read more here.

Agrify

Agrify Corporation (Nasdaq: AGFY)  announced financial results for the fourth quarter and fiscal year ended December 31, 2021, with revenue rising 481% to $25.3 million for the fourth quarter over last year’s $4.4 million for the same time period. It was also a big jump over the third quarter’s revenue of $15.8 million. Agrify delivered a net loss for the fourth quarter of $13.3 million, or $0.60 per diluted share, compared to a net loss of $13.1 million, or $2.23 per diluted share, in the prior-year period. Read more here.

In Other News

Aurora

 Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) reached an agreement to acquire all of the issued and outstanding shares of TerraFarma Inc. (parent company of Thrive Cannabis) for $38 million payable in cash and Aurora common shares , plus two earnout amounts payable in Aurora Shares or cash, if applicable, based on Thrive achieving certain revenue targets within two years of the closing of the Transaction. Founded in 2018, Thrive is a licensed producer of super-premium cannabis concentrates and craft dried flower, and leverages innovative cultivation and extraction techniques with a singular focus on achieving the highest quality standards. Thrive is most widely known for its award-winning flagship recreational brand, Greybeard Cannabis Co. (“Greybeard”), which amongst other accolades was recognized as the #1 brand recommended by Canadian budtenders in 2021, and was the 2021 winner of Best Concentrate from the Kind Magazine Awards, as voted for by budtenders. Read more here

Metrc

Metrc announced its new contract with the state of South Dakota to support the regulation of the state’s medical cannabis market. This marks Metrc’s 20th government contract to date nationwide for the implementation of its cannabis track-and-trace systems. “As South Dakota continues to ramp up their recently implemented medical cannabis market, we are thrilled to have the opportunity to spearhead the state’s first-ever track-and-trace program,” said Jeff Wells, CEO of Metrc. “Our team at Metrc is looking forward to working closely with the Departments of Health and Revenue, state regulators, and licensed operators to implement a strong regulatory framework that will effectively guide South Dakota’s newly emerging medical market down the path to success.” Read more here.


Debra BorchardtMarch 23, 2022
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While the news of the Columbia Care acquisition was the big news of the morning, Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) also reported its financial results for the fourth quarter and year ending December 31, 2021. Cresco’s fourth-quarter revenue rose 34% over last year to $218 million, this was only a slight increase over the third quarter’s revenue of $215 million. The cash flow from operations was $38 million. Taxes and interest payments pushed the company to report a net loss of $11 million the quarter.

A deeper dive into the quarterly revenue showed that wholesale revenue was $101 million and maintained the position as the number one seller of branded cannabis products in the U.S. with a leading share in the flower, concentrates, and vape categories. Retail revenue increased 10% sequentially, to $117 million, an average of $2.8 million per store. Same-store-sales increased 28% year-over-year, 1% sequentially.

Full Year Results

Cresco reported that revenue rose 73% in 2021 to $822 million over 2020’s $476 million. The net loss though was a whopping $296 million versus 2020’s net loss of $92 million.  The company said it ended the year with over $224 million of cash on hand.

“This has been an incredible year of growth and margin expansion for Cresco Labs. We generated $822 million in annual revenue, representing 73% annual growth. Adjusted EBITDA more than tripled as the investments we’ve made in the business start to bear fruit. We ended the year with 46 retail stores, more than double where we were at the end of last year. The Cresco Labs family expanded from approximately 2,300 employees to approximately 3,500, as we grew both organically and integrated five acquisitions,” said Charles Bachtell, Co-Founder, and CEO of Cresco Labs.

Growing Debt

Cresco noted in its release that total current liabilities crept up to $288 million by the end of 2021 from $252 million by the end of 2020. The total long-term liabilities also shot up to $694 million from 2020’s $404 million. The interest expense in 2021 was $51 million versus 2020’s $31 million.

“As we all saw, there was a slowing of market growth in the fourth quarter and we were not immune to this. The good news is our plan is working – consumers love our brands, we maintained our leadership as the #1 wholesaler of branded cannabis, and we were the most productive retailer in the industry. We competed very well, gaining or maintaining share in seven of our 10 states. We remain focused on driving growth for our shareholders through optimizing operations to drive margins and market share and by opening up new markets in which to sell our leading brands. With many more growth initiatives ahead, 2022 is set to be another record year as we continue to drive strategic breadth, depth and execute on our plan.”

 


StaffMarch 23, 2022
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Republished from Crain Chicago by John Pletz.

The $2 billion purchase of Columbia Care gives Cresco access to new markets and cements Chicago’s place at the center of the legal-marijuana industry.

Cresco Labs (OTC: CRLBF) is buying New York-based Columbia Care (OTC: CCHWF) in a $2 billion deal that will make it the largest marijuana company in the U.S.

The all-stock purchase would give Cresco a presence in new recreational-marijuana markets, such as New Jersey and Virginia.

It’s the largest merger in the marijuana business since Trulieve, based in Quincy, Fla., bought Harvest Health & Recreation for $2.1 billion last year. The deal is the biggest involving a Chicago-based marijuana company since Grassroots was bought by Curaleaf, headquartered in Wakefield, Mass., for $715 million in 2020.

The acquisition reinforces Chicago’s place at the center of the legal marijuana industry. Cresco is one of three large publicly traded cannabis companies headquartered in Chicago, along with Green Thumb Industries and Verano Holdings.

Cresco had $1 billion in sales last year, and Columbia Care had about $460 million. The combined companies would nominally be larger than Curaleaf, which had $1.2 billion in revenue. Cresco has 50 dispensaries and 21 cultivation facilities in 10 states. Columbia Care has 99 dispensaries and 32 cultivation facilities in 18 states. The combined companies have about 6,100 employees.

The deal puts Cresco in the 10 fastest-growing U.S. markets, including access to New Jersey, which is expected to begin recreational sales soon and become a $2 billion-a-year market, approaching the size of the Illinois market. The combined company will be the largest in Illinois, Pennsylvania, Colorado, and Virginia.

“The combination is highly complementary and provides unmatched scale, depth, diversification, and long-term growth,” Cresco CEO Charlie Bachtell said in a news release. “On a pro-forma basis, the combined company will be the largest cannabis company by revenue, the number one wholesaler of branded cannabis products, and the largest nationwide retail footprint outside of Florida.”

Getting a foothold in New Jersey will allow Cresco to remain in step with the largest multi-state cannabis companies, most of which have a presence in New Jersey. Acquiring Columbia Care also would provide Cresco an entry into Virginia, which will allow recreational sales. But Cresco and Columbia Care have overlapping operations in several states, including Illinois, where they might be forced to divest some operations. Cresco already has the maximum 10 dispensaries allowed by Illinois law, and Columbia Care has two dispensaries.

Both operate in the New York market, which also has approved recreational cannabis sales but has created limits on allowing “vertically integrated” companies that can grow and sell marijuana. Companies which already had medical marijuana licenses, such as Cresco and Columbia Care, were allowed to remain vertically integrated under the law. But it’s unclear whether regulators will allow two grandfathered entities to combine.

Florida, which only allows sales of medical marijuana, also doesn’t allow a company to own more than one license.

The deal would dramatically increase Cresco’s retail base. It’s the largest wholesale cannabis provider, getting roughly half its revenue from selling marijuana to retailers. After the Columbia Care acquisition, it would get two-thirds of revenue from retail.

Cresco said the deal provides a 16% premium to Columbia Care shareholders. Cresco, whose shares closed Tuesday at $6.53, has a market capitalization of about $2.5 billion. Columbia Care is valued at about $1 billion. The transaction is expected to close by the end of the year.

“We believe the acquisition may have considerable risk to close, given the significant footprint overlap and Cresco Labs having a spotty track record with three terminated acquisitions,” analyst Andrew Partheniou at Stifel GMP wrote in a note to clients.

Marijuana stocks have taken a beating in the past year, getting pummeled as hopes evaporated for federal marijuana legalization before inflation worries and the war in Ukraine tanked the broader market.

Before their deal was announced, shares of Cresco and Columbia Care were down by half over the past year.

Columbia Care is the largest of several recent acquisitions by Cresco. It bought Laurel Harvest Labs and Bay, which added dispensary and cultivation operations in Pennsylvania. Cresco also said it would expand in Massachusetts with the acquisition of Cultivate for as much as $158 million if certain targets are met.


StaffMarch 22, 2022
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The Westchester Business Journal reported that the planning board in the Town of Wawarsing in Ulster County has approved plans for Valley Agriceuticals LLC, whose parent company is Cresco Labs (OTC: CRLBF), to build 380,000-square-foot marijuana cultivation, manufacturing and distribution facility. The Business Journal said it was advised that passage of the approval resolution means that the developer can move forward with building the project. Once completed, the facility could end up employing over 300 people and Cresco has said it could be a $50 million investment for them.

In 2019, Cresco Labs Inc.(CSE: CL) (OTCQX: CRLBF) closed its acquisition of Gloucester Street Capital, LLC, the parent entity of Valley Agriceuticals, LLC via a merger between Gloucester and a subsidiary of Cresco Labs. As a result of that acquisition, Cresco Labs holds one of the 10 vertically integrated cannabis business licenses granted in the State of New York by the New York State Department of Health. Each license gives the operator the right to operate one cultivation facility and four dispensaries in New York. New York has legalized adult-use cannabis sales, but the program has not yet gotten underway.

According to the report, the facility will be built on a site covering 90.7 acres with 84.1 acres within the Town of Wawarsing and 6.6 acres in the Village of Ellenville. The site formerly was used as a manufacturing facility by the Schrade Knife company and Avnet Channel Master electronic components. Several cities in the country have given the green light to adult-use cannabis sales once the program is underway. They include Ellenville, Kingston, Lloyd, New Paltz, Rochester, Tuxedo, the town of Ulster, and the town of Warwick.

The article stated that the company says it intends to grow marijuana plants, produce marijuana products, and distribute those products from the facility. Cresco has 50 operational retail locations, 28 cultivation, and production facilities, and wholesales to over 1,000 dispensaries. The company had originally planned a large facility in the town Walkill in Orange County, but has changed its plans. The article also said that the facility would use about 98,000 gallons of water a day and its plans call for modifying two existing municipal lines to supply the plant’s water needs.

 


Debra BorchardtNovember 11, 2021
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Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) announced its financial results for the third quarter ending September 30, 2021, with revenue growing 2.6% sequentially to $215.5 million, and an increase of 40.6% year-over-year. Still, Cresco recorded a non-cash impairment charge of $291 million in the quarter as a result of the strategic shift in California operations. That resulted in a net loss for the quarter of $263 million.

Cresco reported a record net wholesale revenue of $109.3 million and record retail revenue of $106.2 million from 37 stores.

“Q3 was another outstanding quarter at Cresco Labs and a very strong start to the second half of the year. During the quarter, we replenished our balance sheet with non-dilutive capital, we closed a transformative acquisition in Massachusetts creating our third top three market share in a billion-dollar market, we announced several new deals to drive market depth, and we made massive improvements in bottom-line profitability as infrastructure investments began to bear fruit,” said Charles Bachtell, Co-Founder and CEO of Cresco Labs. “We are very proud of the record performance during a challenging quarter and continue to find that our differentiated strategy, localized for each individual state market, positions us to out-compete in both the current environment and long term. With many more growth initiatives up ahead, 2022 is set to be another record year, and we couldn’t be more excited for what’s to come as we continue driving strategic breadth, depth and execution.”

The company though is sitting pretty comfortably with current assets at $449.0 million, including cash and cash equivalents of $252.8 million. Cresco had working capital of $239.8 million and Senior Loan debt, net of discount and issuance costs, of $376.6 million. Following the end of the quarter, Cresco said it was buying Laurel Harvest Labs, LLC, a Pennsylvania Clinical Registrant and vertically integrated operator.

Outlook

Cresco reaffirmed the previously provided guidance of gross profit margins in excess of 50.0% in the remainder of 2021, adjusted EBITDA margin of at least 30.0% by the end of 2021 and revenue in the fourth quarter between $235 million and $245 million.


StaffOctober 15, 2021
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Cresco Labs (CSE:CL) (OTCQX:CRLBF)  is buying Pennsylvania-based Laurel Harvest Labs, LLC  in a deal valued at $80 million. The acquisition is expected to close in Q4 of 2021.

Laurel Harvest has one of the eight original Chapter 20 licenses in Pennsylvania. The company comes with approximately 52,000 sq. ft. of indoor grow/processing space and room for an additional 52,000 sq. ft. of indoor cultivation space. there is one operational dispensary in Montgomeryville PA and a second dispensary in Scranton is currently under construction. Laurel Harvest also has the option to open an additional four dispensaries throughout the state.

“As the medical market continues to grow and as legislators develop plans for adult-use, we are increasing our depth in the key state of Pennsylvania to strengthen our wholesale leadership while growing profitability and scale through new retail. This acquisition will provide Cresco Labs with immediate incremental cultivation capacity, simplify our ability to expand production capacity further, and add six additional retail dispensary permits in the state,” said Charlie Bachtell, CEO of Cresco Labs. “Importantly, we are excited to further our commitment in research and development through one of the few Chapter 20 clinical registrant licenses in the state. Laurel Harvest and its academic clinical research partner, Temple University, have established one of the most sophisticated cannabis research programs in the country. As an organization focused on normalizing and professionalizing the cannabis industry, we sincerely look forward to supporting and expanding upon this research that will continue to help create safe, effective and accessible cannabis products.”

Located in a medical-only state, Laurel Harvest is very focused on helping patients and research. The company has an academic clinical research partnership with Lewis Katz School of Medicine at Temple University. It is also conducting six ongoing cannabis research studies. The company has said with regards to its scientific mission,

We aim to be at the forefront of advancing research, science, and policy relating to the clinical benefits, limitations and uses of cannabinoids through evidence-based medicine. We will dedicate our resources and expertise to help patients understand how cannabis can help them improve wellness through science. To give our healthcare professionals access to the most credible and current research to help you understand how cannabis can impact your health and wellness.

Cresco Labs will report financial results for the third quarter ended September 30th, 2021 on Thursday, November 11th, 2021 before the market opens.


StaffSeptember 23, 2021
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Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) is buying Bay, LLC better known as Cure Pennsylvania in a deal valued at $90 million. The cash and stock acquisition is expected to close in the fourth quarter. The acquisition includes three operational Cure Penn dispensaries in Lancaster, Phoenixville, and Philadelphia. Cresco noted that the three new stores would be incremental and complementary to Cresco Labs’ four existing Sunnyside dispensaries in Pennsylvania

“As we implement localization strategies tailored to state level dynamics, this Transaction with Cure Penn is expected to expand our retail footprint in Pennsylvania, increase profitability, and strengthen our wholesale leadership position in the state. We’re thrilled to continue executing our playbook of achieving depth in strategic markets via rigorous capital allocation,” said Charlie Bachtell, CEO, and Co-Founder of Cresco Labs. “The Cure Penn team has developed a high-performing retail platform across three dispensaries that sets up another immediately accretive acquisition for Cresco Labs. We’ve proven our ability to drive incremental top and bottom-line growth from the implementation of Sunnyside’s best-in-class operating model, and we look forward to growing our house of brands which are already among the most sought after by patients in Pennsylvania.”

Cure Cannabis also has locations in Colorado and Oklahoma, but the group originated in Colorado. It was also one of the early licensees in the state of Pennsylvania.

Expansion Moves

Just last month Cresco Labs closed on its acquisition of vertically integrated Cultivate which operates three cannabis dispensaries in Leicester, Worcester, and Framingham Massachusetts. the deal included approximately 42,000 square feet of active flowering canopy, bringing combined canopy in-state to approximately 64,000 square feet. The three dispensaries bring the combined retail storefronts in-state to four. Concurrent with closing, the company’s Fall River retail location transitioned to medical sales only.

“The closing today constitutes another important step for Cresco Labs as we deepen our presence in large, attractive states like Massachusetts and increasingly tailor and strengthen our state-level strategies to optimize growth and profitability. Expanding operations in the most strategic U.S. cannabis markets is at the heart of our growth strategy and we’re thrilled to have the opportunity to show what can be achieved through a maximized footprint in Massachusetts,” said Charlie Bachtell, CEO and Co-Founder of Cresco Labs. “We have been thoroughly impressed with the Cultivate team and the quality of their operations. We look forward to a productive and efficient integration process to carry their historical strong momentum into the fourth quarter and beyond.”

 


Debra BorchardtAugust 13, 2021
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Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) announced its financial results for the second quarter ended June 30, 2021 as revenue jumped 122.8% to $210.0 million over last year and had a sequential increase of 17.7%. Cresco’s revenue was split almost evenly between wholesale revenue of $108.7 million and retail revenue of $101.3 million from 33 stores, an increase of 22.3% quarter-over-quarter and 157.6% year-over-year. Cresco also delivered a net income of $2.7 million, an increase of $26.8 million quarter-over-quarter and $44.4 million year-over-year.

Reaffirmed Guidance

Cresco did reaffirm its previous revenue guidance for $1 billion by the end of 2021. The company also forecast gross profit margins in excess of 50% in the remaining two quarters of 2021. It is estimating an adjusted EBITDA  margin run rate of at least 30% by the end of 2021.

The company also burned through quite a bit of cash during the quarter. Cresco ended the first quarter with $258 million in cash and cash equivalents. The second quarter saw that figure drop to $135 million as cash dropped by $123 million.

“Q2 was a strong quarter of head-down execution at Cresco Labs and once again we are hitting our stride as we enter the next phase of growth. During the quarter we continued to invest in infrastructure, operationalized new assets, and deployed our proven playbook to build top positions in the most important U.S. cannabis markets,” said Charles Bachtell, Co-Founder and CEO of Cresco Labs. “We are very proud of the record performance this quarter, driven primarily by organic growth, and we’re even more excited about what lies ahead as we begin recognizing contributions from growth initiatives initiated over the last 18 months. We remain dedicated to our differentiated strategy and continue to lay the foundation for long-term leadership in the U.S. cannabis industry.”

Cresco also announced that it upsized its senior secured term loan to $400 million. The Senior Loan bears interest at a reduced rate of 9.5% per annum, with a maturity date of August 12, 2026. The company said it plans to use the money from the Senior Loan to retire its existing $200 million credit facility, fund capital expenditures, and pursue other targeted growth initiatives within the U.S. cannabis sector. The Senior Loan does not include any equity or convertible components and the total facility amount is being provided by a syndicate of five existing, institutional lenders.

“Today we have secured funding to capitalize on new growth opportunities, improved our cost of capital without diluting shareholders, simplified our capital structure, and given ourselves enhanced flexibility in a dynamic capital environment,” said Bachtell. “This agreement to extend and increase our Senior Loan reflects the unique value proposition that Cresco Labs has demonstrated and the confidence our investors have in our differentiated strategy.”

Cresco Labs is the largest wholesaler of branded cannabis products in the U.S. Its brands are designed to meet the needs of all consumer segments and are made up of brands including Cresco, Cresco Reserve, High Supply, Mindy’s Edibles, Good News, Remedi, Wonder Wellness Co. and FloraCal Farms. Sunnyside, Cresco Labs’ national dispensary brand, is a wellness-focused retailer created to build trust, education, and convenience for both existing and new cannabis consumers.


Debra BorchardtMay 27, 2021
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Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF)  announced its financial results for the first quarter ended March 31, 2021, with revenue rising 168% to $178.4 million over last year and an increase of 9.9% sequentially. This beat the Yahoo Finance average analyst estimate for revenues of $170 million. Cresco trimmed its net losses to $24 million from last year’s $35 million for the same time period. The company is sitting in a comfortable cash position with current assets at $381.7 million, including cash and cash equivalents of $255.5 million.

“In Q1, we delivered sequential growth from existing assets, demonstrated our ability to reach and sustain #1 market share positions in two of this industry’s top-five states, and we’re gearing up to repeat that success in more markets this year. We’re accelerating growth through a diverse set of initiatives including several organic expansions and M&A that will benefit the Company in subsequent quarters. In order to execute all of our pending growth initiatives, we invested in the operating platform to support the growth. We laid the groundwork in Q4 and Q1 and now our expertise with integrating new assets and producing operating leverage will kick in,” said Charles Bachtell, Co-Founder and CEO of Cresco Labs. “We’re also pleased to take this opportunity at the outset of the year to make the transition to U.S. GAAP, remove the break-out of certain one-time items, and provide investors with clarity on the transition. This represents another step to prepare Cresco Labs for the future opportunities that await in the U.S. capital markets. On a U.S. GAAP basis, we’re pleased with the growth in Q1 and excited about the steps we’ve taken so far this year to put Cresco Labs on the path to accelerate revenue, profitability, and shareholder value in 2021 and beyond.”

Breaking down the revenue, Cresco noted that its net wholesale revenue was $95.6 million, an increase of 5.7% quarter-over-quarter and 150.8% year-over-year. The retail revenue of $82.8 million from 24 stores, was an increase of 15.2% quarter-over-quarter and 193.2% year-over-year.

Outlook

Cresco is now estimating that its annualized revenue run-rate will be more than $1 billion by the end of 2021. The gross profit margins will be in excess of 50% in the remaining three quarters of 2021. The adjusted EBITDA  margin run-rate will be at least 30% by the end of 2021.


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