earnings Archives - Page 2 of 41 - Green Market Report

Adam JacksonAugust 29, 2022
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5min1330

Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) posted results that showed healthy margins despite revenues slightly slumping over the quarter amid the company’s international bid. The pharmaceutical cannabis company announced today its financial results for the second quarter ending June 30, 2022.

Khiron’s second-quarter revenues totaled $4.47 million, down 3% versus $4.6 million in the same period last year; and $2.8 million sequentially, according to the SEDAR filings. The company recorded a net loss of $2.2 million versus $4.8 million in the same quarter last year; and $4.5 million sequentially. Earnings went from a loss of one cent per share versus a loss of 3 cents per share in the same period last year.

“The results of the first half of the year and Q2 2022 demonstrate that we are a disciplined company building sustainable growth, reducing costs and optimizing cashflow, able to reach profitability in the near term,” said CEO Alvaro Torres. “During Q2 2022, we made key decisions to continue to build our global platform with the strategic acquisition of Pharmadrug in Germany, the opening of our new flagship clinic in Rio de Janeiro in Brazil, as well as our new mid-sized clinic and pharmacy in Bogota in one of the city’s busiest shopping centres.”

Gross profit before fair value adjustments for the second quarter was $2.2 million, up 5% quarter-over-quarter and 114% year-over-year, despite the lack of sales in Germany. The medical cannabis segment represented 89% of Khiron’s total gross profits, versus 70% a year ago.

Total gross margin before fair value adjustments for the second quarter increased to 50%, driven by growth in the highly profitable medical cannabis segment. The gross margin in the medical cannabis segment increased to 76%. The total gross margin for Khiron’s Health Services segment for the second quarter was 13%, up from 8% in the previous quarter due to improvements in margins in Colombia’s Zerenia operations; offset by the losses incurred in the early stages of Zerenia Clinics UK.

The company also recorded its lowest ever Adjusted EBITDA loss of $2.3 million, down 30% quarter-over-quarter and 39% year-over-year.

Khiron continued its cost-cutting initiatives to streamline its operations. Expenses in the second quarter fell by 16% to $5.5 million from the same period last year. The company said the expense reduction was driven by cost savings efforts mainly in corporate governance, salaries, and investor relations; offset by an increase in selling and marketing expenses in the growing U.K. cannabis market.

Khiron had $40 million in total assets, with $13.7 million in property, plant, and equipment, a high-quality medical cannabis inventory of $8.2 million, as well as healthy bookkeeping with credit-worthy clients in Colombia and Europe of $4.4 million, and $600,000 in financial debt.

The company also ended the quarter with net cash of $5.8 million, having spent $2.0 million on operating activities during the quarter and a total of $4.8 million in the first half of the year, versus $10.4 million in the first half of last year. The company attributed the savings as a result of actively managing the working capital cycle, improving collection times for the company’s accounts receivable, and extending payment terms on its accounts payables.

“These steps, coupled with the growing patient loyalty we experience across our bigger markets, will continue to drive Khiron’s leadership in Latin America and Europe,” said Torres. “This is possible because of an incredible team across many countries and continents who are committed to improving the quality of life of patients, and who continue to work very diligently to ensure we become indispensable to our patients in every market.”


Adam JacksonAugust 25, 2022
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4min1460

SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) revenues rose in the second quarter as the company looks toward snapping up new opportunities through a new M&A commission. The cannabis consumer packaged goods company released financial results for the second quarter ending June 30, 2022.

Slang’s second quarter revenues totaled $9.87 million, versus $10.50 million in the same period last year; and $8.37 million sequentially. The company recorded a net loss of $3.4 million versus $3.7 million in the same quarter last year, according to SEDAR filings. Earnings went for a loss of three cents a share versus a loss of five cents a share in the same period last year.

“The success of our operational transformation implemented at the end of 2021 continues to be reflected in our quarterly financial results,” said interim CEO and chairman Drew McManigle. “With operating efficiencies and a streamlined infrastructure in place, we are in the right position to achieve ongoing top and bottom-line growth as we leverage a stronger operational footprint and introduce new products to the market.”

Slang posted a gross profit of $4.49 million — 46% gross margin — in the second quarter, versus $3.67 million — 35% gross margin — in the same period last year, representing a 22% increase year-over-year and 31% increase in gross margin.

Adjusted EBITDA totaled $460,000 in the second quarter, versus $903,000 in the same quarter last year.

The company said that operating expenses this quarter was reduced by $430,000, or 6%, versus the previous quarter — excluding a $8.72 million recovery of previous credit losses. The company said this marks the second consecutive quarterly operating expense reduction, “which is a result of the cost cutting and restructuring initiatives implemented in Q4 2021 and Q1 2022.”

Slang had $15.72 million worth of cash and restricted cash by the end of the quarter versus to $20.83 million in the fourth quarter last year and $16.56 million sequentially.

Slang went through a shake up last November after a slew of executives departed in a C-suite overhaul. Newly-minted McManigle eventually issued a letter to its shareholders outlining the company’s plans to cut costs. McManigle is the founder and CEO of MACCO Restructuring Group. He said he planned on tapping Macco’s resources for strategic reviews and business plan implementation.

Since then, the company has said it would wind down operations in Oregon in favor of consolidating expansion in Colorado. Overall, the company has said that it would be pivoting its strategic agenda and focusing on its core markets of Colorado and Vermont.

“Our Board of Directors has recently established an M&A committee chaired by Kevin Albert and will continue to focus on new M&A opportunities while we organically grow our most popular brands,” said McManigle. “I am proud of the progress we have made, and the position SLANG is now in. I look forward to sharing our continued progress and the new level of growth we are set to achieve.”


Adam JacksonAugust 22, 2022
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4min760

The Greenrose Holding Company Inc. (OTC: GNRS, GNRSW) posted increasing losses for the consecutive quarter as its cultivators navigate demand headwinds. The multi-state cannabis SPAC (special purpose acquisition company) reported its second-quarter financials ending June 30, 2022.

While Greenrose reported approximately $9.2 million in rising revenue during the period, the company’s second-quarter net losses totaled $10.3 million, down 132% sequentially; versus a net income of $3.3 million in the same period last year. The earnings were a loss of $0.63 cent per share versus a loss of $0.92 cents in the first quarter.

The company attributed the loss to production interruptions at True Harvest and demand headwinds in the Connecticut market, as well as increased interest expense of $6.9 million, purchase accounting fair value inventory step-up of $2.2 million and intangible amortization expense of $4.0 million.

Theraplant said its second quarter revenues decreased year-over year as a result of “sustained demand headwinds in Connecticut’s medical market, as well as increased competition and impacts from the state’s illicit market.”

The company attributed True Harvest’s second quarter-revenue to production disruptions “stemming from construction on our additional grow rooms.”

“While we continued to incur higher costs associated with ramping our expanded cultivation capacity at both True Harvest and Theraplant, we believe this work improves our positioning for improving our operations in Arizona and preparing for Connecticut’s forthcoming recreational market, respectively,” CEO Mickey Harley said. “As we progress into the second half of 2022, we remain focused on leveraging our existing production efficiencies to deepen and expand our presence in our existing state markets.”

In Connecticut, Greenrose said that the company and its partners tried to apply for four retail licenses and two hybrid retail licenses as part of the state’s equity joint venture (EJV) program, but were denied Connecticut’s Social Equity Council.

“We are working to address deficiencies in the applications,” the company said.

Greenrose posted second-quarter adjusted EBITDA of $3.1 million versus $4.6 million in the prior year quarter. The company said the slump was “primarily driven by the aforementioned lower level of gross profit generated during the quarter, higher corporate general and administrative expenses, and costs related to ramping the Company’s production capacity at Theraplant and True Harvest.”

The company recorded cash and cash equivalents combined with restricted cash at $2.7 million versus to $9.1 million in the period ending December 31, 2021. It said the decrease was driven by acquisition-related expenses and debt obligations.

Greenrose suspended its previously stated full year 2022 guidance “Due to regulatory delays surrounding the expected timing of Connecticut’s recreational cannabis market…The Company expects to re-evaluate and provide further updates on its 2022 outlook as regulatory visibility improves.”


Adam JacksonAugust 18, 2022
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5min1380

Decibel Cannabis Company Inc. (TSX-V: DB) (OTCQB: DBCCF) posted promising results as it continues to find gains in the Canadian market and overseas. The Alberta-based company delivered its financial report card using Canadian dollars in the period ending June 30, 2022.

Decibel reported approximately $18.6 million in net revenue during the period, up 11% since the previous quarter; and a gain of 49% since the same period last year. Total gross sales were $26 .2 million for the quarter. Additionally, the company reached 4.5% market share in July, rising 70% year over year.

Second-quarter net losses totaled $2.1 million, up 77% sequentially; versus a net loss of $620,000  in the same period last year. The earnings were a loss of one cent per share; in line with the previous quarter.

“Our second quarter results continue to demonstrate that Decibel is on the path we projected in our 2022 operational outlook,” said CEO Paul Wilson. “Our New Unique and Innovative product development and revenue generating initiatives have once again produced quarter-over-quarter record performance. This progress has been compounded by our productivity initiatives and record gross profit, now resulting in positive cash flow, putting us on track for another projected milestone.”

Decibel said that net revenue growth was driven by expanded distribution “particularly in the Ontario market, the continued launch of new General Admission and Qwest infused products in various provinces and continued growth in demand for derivative products.” The company said that net revenue would have been $18.9 million, however, $320,000 of discounts were provided related to discontinued products.

The company also posted record gross margins, a sequential improvement to 41% in the second quarter versus 35% in the previous quarter; and 41% in the same period last year. Decibel said that the increase was driven by “initiatives realized midway through the second quarter” — such as operational efficiencies, automation equipment commissioned and sourcing of more cost-effective components related to the manufacturing of cannabis products.

Adjusted EBITDA was $3.2 million, rising 31% since the previous quarter and 49% since the same time last year — marking Decibel’s eighth quarter of consecutive quarterly positive adjusted EBITDA.

Decibel reported $1.8 million of cash flow from operations in the quarter, a sequential decrease of $1.2 million since the previous quarter and an improvement of $4.8 million since the same time last year.

The company repaid its 9.5% convertible debentures in May with the draw-down of a $12 million term loan fixed at 4.75% — extending the maturity date of $12 million of debt by four years and avoiding approximately 6% of potential shareholder dilution; resulting in $0.6 million of annual interest expense savings.

“The cost engineering initiatives and capital investments impacted the later part of the second quarter, with additional equipment landed early August expected to drive continued sequential margin expansion,” the release said. The company said it achieved its previously stated target of 40 – 45% gross margin ahead of the second half of this year.

At the end of June, the company announced that is had received its certification to export its cannabis products internationally. The IMC-G.A.P certification will allow for a new international sales channels in Israel, and the company expects initial international export to occur in the second half of the year.

“With more highlights scheduled for the back half of 2022,” Wilson said. “Decibel is delivering exactly what we’ve planned and forecasted to the market, ourselves, and our shareholders.”

Adam JacksonAugust 18, 2022
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4min1800

Ayr Wellness Inc. (OTCQX: AYRWF) hiked its outlook for the year on Thursday despite posting results that missed expectations — as sales slip and losses rise. The multi-state operator reported financial results for the first quarter ending June 30, 2022

Ayr reported approximately $110.1 million in revenue during the period, up 20.6% versus the same period last year; and a loss of 1% sequentially — below the Yahoo Finance Average analyst estimate for revenues of $114.81 million.

The company also reported a second-quarter net loss of $40.25 million, up 77% sequentially; versus a net loss of $37.4 million in the same period last year. The earnings were a loss of $0.56 per share versus a loss of $0.11 cents per share in the previous quarter.

“Our second half growth will be slower than previously expected, but the earnings power of the business remains outstanding,” said CEO Jonathan Sandelman. “We continue to make investments in people and processes, while remaining prudent through these turbulent economic times.”

Ayr reported a gross profit of $40.3 million, versus a gross profit of $45.5 million in the first quarter. Adjusted EBITDA was $19.6 million, down 28.5% from $27.4 million in the same period last year.

The company ended the quarter with a cash balance of $116.7 million and closed $81.5 million of real estate financing transactions, bringing the year-to-date total to $108 million with an annualized blended cost of capital of 7.8%.

East of the Mississippi

In May, the New Jersey Cannabis Regulatory Commission approved Ayr for adult-use cannabis sales for all three of its retail locations there — the maximum amount of dispensaries permitted under current state law.

The company since then has seen new revenue stream from both New Jersey and Boston; after Ayr received the green light to sell adult-use cannabis in Boston’s Back Bay, the company’s first adult-use dispensary in the neighborhood.

To the South, Ayr added two more Florida dispensaries to their 50 stores across the state.

Based on the second quarter results, “coupled with an uncertain macroeconomic backdrop,” Ayr also updated their guidance for the rest of the year; expecting revenue, adjusted EBITDA and operating income to grow around 10% sequentially by the third quarter, followed by “an acceleration in the pace of sequential growth in Q4 2022.”

“With our core operating footprint in place, the vast majority of our capex behind us, and a strong, $117 million cash position on our balance sheet,” Sandelman said, “we believe that we are well-placed to weather this economic environment and emerge stronger on the other side.”


Adam JacksonAugust 17, 2022
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6min1190

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) rose in early trading Wednesday morning with the company posting positive second-quarter results — reinforcing its position as the largest wholesale cannabis provider as it shores up its M&A moves. The Chicago-based cannabis operator released its financial results for the three months ended June 3o, 2022.

Cresco Labs reported approximately $218 million in revenue during the period, up 4% versus the same period last year; and a gain of 1.8% sequentially — in line with the Yahoo Finance Average analyst estimate for revenues of $218.44 million.

The company also reported a second-quarter net loss of $8.3 million, down from 64% sequentially; and a net income of $2.7 million in the same period last year. The company did not provide earning figures for loss per share, and the quarterly report could not be found on SEDAR.

“We reported solid results in the face of an unprecedented macro environment,” said CEO Charles Bachtell. “We generated $218 million in revenue, representing 4% year-over-year growth, and maintained our industry position as the no. 1 wholesaler of branded cannabis, the no. 1 branded product portfolio chosen by consumers, and the no. 1 most productive per-store national retailer. Importantly, we accomplished these results while maintaining our Adjusted Gross Margin at 53% and Adjusted EBITDA margin of 23%, in a market where prices fell between 10-30% depending on the state. The Columbia Care transaction is proceeding as expected — we’re checking off milestone after milestone, the divestiture and regulatory processes are on track and we continue to anticipate a closing around year-end.”

Cresco Labs posted an adjusted gross profit of $116 million, or 53% of revenue, an increase of 8% year-over-year, “excluding fair value mark-up for acquired inventory and cost of goods sold adjustments for acquisitions and other non-core costs.”

Adjusted EBITDA for the second quarter was $51 million, or 23% of revenue, an increase of 11% year-over-year.

Cresco Labs said that wholesale revenue of $95 million maintained the company’s position as the #1 U.S. seller of branded cannabis products with leading share positions in the flower, concentrates, and vape categories.

Additionally, the company said that it achieved the leading branded share position in Massachusetts and maintained #1 share position in both Illinois and Pennsylvania.

Retail revenue increased 22% year-over-year, to $123 million, or $2.5 million per average store open in the quarter; same-store-sales increased 6% year-over-year.

The company said that it ended the quarter with $90 million of cash on hand, in addition to working capital of $86 million and senior secured term loan debt of $379 million. Cresco Labs said that it paid a total of $89 million in taxes during the quarter, including tax distributions to non-controlling unit holders and other out-of-period payments of $67 million.

On July 8, the Columbia Care shareholders approved the $2 billion-dollar all-stock acquisition by Cresco Labs and the company said it will work toward closing the transaction around year-end.

Columbia Care is the largest of several recent acquisitions by Cresco. Toward the end of 2021, the company bought Laurel Harvest Labs and Bay for $80 million, which added dispensary and cultivation operations in Pennsylvania. Cresco also expanded in Massachusetts last year with the $158-million-dollar all-stock acquisition of Cultivate.

“We recognize the challenges currently facing the cannabis industry and the tough macro backdrop we are operating against,” Bachtell said. “In this environment, we are managing through today while remaining focused on the long game — we’re holding and growing market share, driving efficiencies across the business to maintain margins, and preparing for the integration of Columbia Care to drive future growth.

Over the next three years, growth will come from the transition to adult use in seven large markets: New Jersey, New York, Pennsylvania, Ohio, Virginia, Florida and Maryland. Our combined footprint with Columbia Care, gives us exposure to all of these markets and leading positions in several. This is arguably the highest value footprint in cannabis – 180 million Americans and all 10 of the 10 highest projected 2025 revenue states. The acquisition more than doubles our retail footprint, gives us a number one branded or retail share position in five markets, and optimizes our operational footprint. It gives us the breadth and depth that we believe ensures growth, diversifies our revenue mix and creates an industry leader.”


Adam JacksonAugust 16, 2022
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4min2330

Halo Collective Inc.  (NEO: HALO) (OTCQB: HCANF) posted mostly positive results with revenues ticking up over the quarter — illustrating the west-coast operator’s pursuit to shave losses and pay down debt. The company announced its financial results for the first quarter ending June 30, 2022.

Halo reported approximately $6.9 million in revenue during the period, a 24.9% gain versus the same period last year; and a gain of 9.7% sequentially.

The company also reported a second-quarter net loss of $11.4 million, down from $13.8 million sequentially; and a net income of $11.3 million in the same period last year. The earnings were a loss of $1.64 per share versus a loss of $0.28 cents per share in the previous quarter, according to SEDAR filings.

“During the quarter, we ramped up efforts in our brand sales business, specifically Hush and Budega which are resonating with West Coast consumers and continued the retail rollout in Los Angeles where we opened the second of three planned dispensaries,” said CEO Katie Field. “Meanwhile, we de-emphasized other areas such as bulk wholesale flower and trim sales which generated good revenue but yielded lower profitability. And, we have made the decision to walk away from other parts of the plan altogether such as the Ukiah Ventures buildout and Canadian retail.”

Total second-quarter sales were 2.0 million grams versus 5.0 million grams in the same period last year — a 59.4% decrease. Year-over-year, flower sales fell by 6.2%, sales of pre-rolls rose by 11.5%, oils and extract sales slumped by 68.3% and edibles sales fell by 88.8%.

Halo reported a gross profit of $2.1 million, or 31.9% gross margin, versus a gross profit of $2.2 million, or 24.1% gross margin, in the same period last year. Adjusted EBITDA loss of $4.1 million versus an adjusted EBITDA loss of $4.4 million in the same period last year.

The company said it repaid $7.7 million in debt financing and raised $8.0 million from convertible debentures. It had unrestricted cash available in the amount of $1.6 million at the end of the period.

“Our efforts to do more with less are already paying off,” Field said. “In the second quarter, we maintained steady gross margins despite the downward pressure on wholesale pricing and volumes across our markets. We have also made progress reducing Halo’s indebtedness through debt paydowns.”

“Importantly, we are transforming the Company into a focused West Coast operator amidst market conditions in California and Oregon that continue to be very challenging,” she added, “but longer-term, are expected to be fertile grounds for significant growth and profitability for well-positioned companies such as Halo. I am highly confident that Halo is on the right path as a leader in these attractive markets. The initiatives we are undertaking, including those in the second quarter, will strengthen the Company and ultimately enhance shareholder value.”


Adam JacksonAugust 16, 2022
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4min1451

InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) posted positive results despite barely missing revenue expectations, as the company looks to further its international reach and shore up it’s new-found partnerships.

The Israeli-based cannabis company — also known as Canndoc — reported its financial report card for the second quarter ending June 30, 2022.

InterCure reported approximately $37 million in revenue during the period, more than double versus the same period last year; and a gain of 9% sequentially — though missing the Yahoo Finance Average analyst estimate for revenues of $39 million.

The company also reported a second-quarter net income of $6 million, remaining flat sequentially; and a net income of $2 million in the same period last year. The earnings were a gain of $0.34 cents per share — above analyst expectation — versus a gain of $0.12 cents per share in the previous quarter, according to SEDAR filings.

“We are proud to deliver our tenth consecutive quarter of profitable growth, solidifying our operational excellency and leading position,” said CEO Alexander Rabinovitch. “We remain focused on developing and launching the highest quality pharmaceutical grade medical cannabis products as our target markets are evolving at a rapid pace. During the second quarter we have successfully ramped up our upstream and downstream operations and executed our global expansion to meet the solid demand for our high-quality branded products.”

InterCure said that it’s the tenth consecutive quarter of high growth representing an annualized run rate of $150 million. Adjusted EBITDA rose 90% year-over-year to $9 million, representing 23% of revenues and 4% sequential growth. Gross profit soared over 115% year-over-year and 16% sequentially to over $16 million.

InterCure also reported that it was the eighth consecutive quarter of positive cash flow from operations — with the company adding that it had $96 million cash on hand.

The company expects continued boosts in revenues during the third quarter of 2022 and throughout the year — especially as it bolster it’s operations at home and its springing European cannabis pharmacies in Austria and the U.K.; as well as breaking into the Australian medical cannabis market.

“Our teams delivered another strong quarter across all sectors, focusing on execution of our profitable growth strategy and fiscal discipline,” CFO Amos Cohen said. “With a strong balance sheet and over $96 million cash on hand, we are well positioned ahead of the consolidation process.”

We expect this growth to continue, while we remain focused and committed to expand our unique platform, building shareholder value and improving quality of life for patient communities,” said Rabinovitch.


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