First Quarter 2023 Highlights
- Revenue for the quarter ended
March 31, 2023 remained consistent with the prior quarter at$8.7 million . Revenue for the quarter endedMarch 31, 2023 was driven by our four retail stores and sales of our in-house cultivated flower and Korova-branded products. - While revenues for the quarter ended
March 31, 2023 remained consistent quarter-over-quarter, gross margin increased to 48% for the quarter endedMarch 31, 2023 as compared to 44% during the prior quarter endedDecember 31, 2022 , and up from 31% from the quarter endedMarch 31, 2022 . - Net income from continuing operations for the quarter ended
March 31, 2023 was$0.4 million compared to previous quarter of$3.9 million . - EBITDA from continuing operations for the quarter ended
March 31, 2023 was$2.9 million compared to previous quarter of$9.7 million . - For the quarter ended
March 31, 2023 , the Company had a$3.0 million gain on extinguishment of debt and a$1.5 million gain on settlement of liabilities. The Company also had$1.0 million of interest expense and$1.4 million of non-cash expense for income taxes, depreciation, and amortization. - In
February 2023 , the Company held a grand re-opening for its BlümSan Leandro store and revenues continue to grow as we reconnect with customers. - During the fiscal first quarter, the Company entered into a binding term sheet to resolve outstanding litigation with People’s
California, LLC , subject to final documentation, staying all pending litigation and restructuring debt. As a result,$15.0 million of debt related to the People’s acquisition was reclassified from current liabilities to long-term liabilities as ofMarch 31, 2023 . - During the fiscal first quarter, the Company entered into a binding settlement term sheet to settle approximately
$3.3 million of indebtedness to certain noteholders of the Company. - Operationally, the Company implemented two new major operating systems that will enable Unrivaled to increase revenues and streamline operations:
- All retail stores have now launched a branded customer loyalty and customer relationship management (“CRM”) solution from Alpine IQ. This tool will not only drive repeat customer visits, but also enable targeted customer outreach to tailor communications and promotions to specific customer segments; and
- The cloud-based Acumatica ERP (enterprise resource planning) system is now the Company’s system of record for all financial workflows and reporting. The Company is in the process of bringing cultivation and distribution activities online to add further transparency across the organization.
- All retail stores have now launched a branded customer loyalty and customer relationship management (“CRM”) solution from Alpine IQ. This tool will not only drive repeat customer visits, but also enable targeted customer outreach to tailor communications and promotions to specific customer segments; and
- The Company made additional investments at its Hegenberger cultivation facility to substantially improve the quality and competitiveness of Unrivaled’s Korova-branded products.
- As of
March 31, 2023 , the Company had 153 employees, a reduction from 185 employees a year ago.
Non-GAAP Financial Information:
This press release includes certain non-GAAP financial measures as defined by the
About
For more info, please visit: https://unrivaledbrands.com.
Cautionary Language Concerning Forward-Looking Statements
Certain statements contained in this communication regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management's intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. The Company uses words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on the Company’s expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.
New factors emerge from time-to-time and it is not possible for the Company to predict all such factors, nor can the Company assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. These risks, as well as other risks associated with the combination, will be more fully discussed in the Company’s reports with the
Contact:
jassad@unrivaledbrands.com
678-570-6791
Consolidated Balance Sheets (Unaudited) | ||||||||
(in thousands) | ||||||||
2023 | 2022 | |||||||
Current Assets | $ | 5,526 | $ | 4,575 | ||||
Long-Term Assets | 33,940 | 35,933 | ||||||
Total Assets | $ | 39,466 | $ | 40,508 | ||||
Current Liabilities | $ | 38,614 | $ | 59,143 | ||||
Long-Term Liabilities | 34,554 | 17,902 | ||||||
Total Liabilities | 73,168 | 77,045 | ||||||
Stockholders' Deficit | (33,702 | ) | (36,537 | ) | ||||
Total Liabilities and Stockholders' Deficit | $ | 39,466 | $ | 40,508 |
Consolidated Statements of Operations (Unaudited) | ||||||||
(in thousands, except for per share data) | ||||||||
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Revenue | $ | 8,729 | $ | 8,726 | ||||
Cost of Goods Sold | 4,545 | 4,905 | ||||||
Gross Profit | $ | 4,184 | $ | 3,821 | ||||
Operating Expenses (Income) | 7,104 | (4,953 | ) | |||||
(Loss) Income from Operations | (2,920 | ) | 8,774 | |||||
Less: Other (Income) Expense | (3,988 | ) | 2,026 | |||||
Income from Continuing Operations Before Taxes | 1,068 | 6,748 | ||||||
Provision for Income Tax Expense for Continuing Operations | (658 | ) | (2,802 | ) | ||||
Net Income from Continuing Operations | $ | 410 | $ | 3,946 | ||||
Net Loss from Discontinued Operations, Net of Tax | — | (380 | ) | |||||
Net Income Attributable to | $ | 410 | $ | 3,566 | ||||
Basic and Diluted Earnings per Share: | ||||||||
Net Income from Continuing Operations per Common Share | $ | — | $ | 0.01 | ||||
Net Income Attributable to | $ | — | $ | 0.01 |
Non-GAAP Reconciliation (Unaudited) | ||||||||
(in thousands) | ||||||||
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Net Income | $ | 410 | $ | 3,566 | ||||
Less: Net Loss from Discontinued Operations, Net | — | 380 | ||||||
Add (Deduct) Impact of: | ||||||||
Interest Expense | 1,024 | 1,587 | ||||||
Provision for Income Tax Expense | 658 | 2,802 | ||||||
Depreciation Expense | 212 | 869 | ||||||
Amortization of Intangible Assets | 563 | 490 | ||||||
EBITDA Income from Continuing Operations (Non-GAAP) | $ | 2,867 | $ | 9,694 | ||||
Non-GAAP Adjustments: | ||||||||
Stock-based Compensation Expense | 455 | 507 | ||||||
Loss on Sale of Investments | 61 | — | ||||||
Unrealized Loss on Investments | — | 260 | ||||||
Gain on Disposal of Assets | — | (9,066 | ) | |||||
Gain for Debt Forgiveness | (1,507 | ) | — | |||||
Gain on Extinguishment of Debt | (3,026 | ) | — | |||||
Adjusted EBITDA (Loss) Income from Continuing Operations (Non-GAAP) | $ | (1,150 | ) | $ | 1,395 |
Source:
2023 GlobeNewswire, Inc., source