TILT Holdings Inc. (OTCQB: TLLTF) reported its financial and operating results for the fourth quarter and year ending December 31. Revenue for the quarter increased 8.1% sequentially to $42.3 million from $39 million and increased 35.4% over last year’s $31 million for the same time period. Tilt beat analyst estimate for revenue and fell within its own forecast.
The company is continuing its efforts to zero its focus on plants and Jupiter vapes. Standard Farms posted record revenue for the quarter, including the two highest sales months in company history. The company also noted that its Jupiter sales in 2021 have also experienced record orders.
The net loss for the quarter was a whopping $92 million versus last year’s net loss of $32 million. The net losses stemmed from the discontinued operations due to the sale of Blackbird, which closed in November 2020.
For the full year 2020, revenue came in at $158 million versus 2019’s revenue of $146 million. The net loss for 2020 was $105 million, while the net loss for 2019 was $133 million.
“The primary focus in 2020 was for TILT to become profitable, putting in place the pieces necessary to achieve scale and engage in a steady and sustainable growth trajectory,” said Gary Santo, President of TILT. “We made a number of key decisions throughout the year that have already started to pay off, allowing the Company to have a strong finish to 2020, producing $16.9 million in Adjusted EBITDA and $16.7 million in cash from operating activities for the year. We look to carry that momentum into 2021 and are already off to a great start across all business units, supporting management’s previously announced full-year 2021 revenue guidance of $205 million to $210 million and Adjusted EBITDA guidance of $30 million to $32 million.”
The company said in a statement that it had positive adjusted EBITDA for the fourth consecutive quarter at $4.5 million. The cash and cash equivalents were $7.4 million, a $3.1 million increase from the previous quarter, and attributed this to robust cash flow from operations. The working capital was $57.4 million, an $8.5 million increase from the previous quarter.
“TILT underwent significant changes in 2020,” added Mark Scatterday, CEO of TILT. “Through the tireless efforts of our team, we were able to stabilize our foundation, solidify our strategy and focus on how best to deploy available resources towards our high-growth plant-touching assets, allowing TILT to provide a differentiated B2B platform capable of supporting independent brands, U.S. MSOs, and Canadian LPs. We expect 2021 to be an exciting year as we continue our transition from being a holding company possessing a disparate collection of subsidiaries to an integrated operating company capable of benefitting from economies of scale and cross-selling opportunities.”
Streamline Efforts Continue
In the company’s annual report, Tilt said it decided not to pursue the expansion and obtaining of license to cultivate and sell cannabis in its British Colombia location. “This is consistent with the Company’s long-term strategy to streamline operations and improve profitability. As a result, the Company derecognized $4,981 of SVT’s property, plant and equipment within the construction in progress category for the year ended December 31, 2020, based on management’s expectations of limited economic benefits from the continuing use of these assets.”
Tilt also stated that it derecognized unoccupied modular units at its Massachusetts facility in order to accelerate acceptance for its final occupancy permit with the local government. As a result, Tilt derecognized $4,302 of the Sea Hunter’s property, plant, and equipment within the greenhouse-agricultural structure category for the year ended December 31, 2020, based on management’s expectations of limited economic benefits from the continuing use of these assets.