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    YCBD   US12482W1018

CBDMD, INC.

(YCBD)
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SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

CbdMD : Reports Second Quarter Fiscal 2021 Results

05/12/2021 | 04:18pm EDT

YOY Net Sales Increased 26% for the March 2021 Quarter Resulting in a Record Trailing Twelve Month Net Sales Of Over $46.4 Million

Company Expects Q1 Fiscal 2022 Net Sales to Range from $15.5 million to $16.25 million

Contacts

PR:

5W Public Relations

cbdMD@5wpr.com

(212) 999-5585

Investors:

cbdMD, Inc.

John Weston

Director of Investor Relations

John.Weston@cbdMD.com

(704) 249-9515

cbdMD, Inc. (NYSE American: YCBD, YCBDpA), one of the nation's leading and most highly trusted and recognized cannabidiol (CBD) brands, today announced its financial results and its business highlights for its second quarter and six months ended March 31, 2021.

Financial highlights for the Quarter Ended March 31, 2021:

  • Net sales of $11.8 million for the second quarter of fiscal 2021 increased by 26% year-over-year from $9.4 million in the second quarter of fiscal 2020 for a record high for the March quarter.
  • Gross profit margin for the second quarter of fiscal 2021 remained strong at approximately 69%, down slightly from 71% in the prior year's second quarter.
  • E-commerce direct-to-consumer net sales were $8.4 million, an increase of 23.3% from the prior year's second fiscal quarter.
  • Wholesale (including brick and mortar retail customers) net sales were $3.4 million, an increase of 31.3% from the prior year's second fiscal quarter.
  • Paw CBD (our award-winning CBD pet brand) had net sales of $1.4 million, an increase of 84% from the prior year's second fiscal quarter.
  • Quarterly operating expenses for the second quarter of fiscal 2021 remained relatively constant as compared to the second quarter of fiscal 2020 at $12.3 million.
  • Loss from operations decreased by 25.6% to $4.1 million for the second quarter of fiscal 2021 compared to $5.6 million from the prior year's second fiscal quarter.
  • Non-GAAP adjusted operating loss decreased by 44% to $2.7 million, compared to $4.9 million from the prior year's quarter, and for the six months ending March 31, 2021, our non-GAAP adjusted operating loss decreased by 67% to $3.3 million compared to $9.9 million for the prior year's period.
  • Net loss attributable to common shareholders for the second quarter of fiscal 2021 was approximately $13.1 million, or ($0.24) per share, as compared to net income of approximately $14.8 million, or $0.41 per share from the prior year's second fiscal quarter. Our net loss attributable to common shareholders was principally attributable to an increase of approximately $8.9 million in the non-cash contingent liability which is associated with earnout shares which may be issued under the terms of the December 2018 acquisition of Cure Based Development (which owned the cbdMD brand).
  • As of March 31, 2021, we had working capital of approximately $27.9 million and cash on hand of approximately $23.7 million as compared to working capital of approximately $16.0 million and cash on hand of approximately $14.8 million at September 30, 2020.

Business highlights since the start of the second quarter of fiscal 2021 include:

  • Entered Global Beauty and Skincare Market with the launch of cbdMD Botanicals.
  • Successfully implemented NetSuite as our new ERP.
  • Launched cbdMD Therapeutics subsidiary to advance cannabinoid science and clinical studies.
  • Hired Dr. Sibyl Swift, Former FDA to Co-Chair cbdMD Therapeutics.
  • Invested an additional $750,000 (total investment of $1 million) into ADRA Acquisition Corporation (SPAC), prior to its successful IPO of $115,000,000 (NYSE American:ADRA).
  • Renewed our NSF certification and underwent the US Hemp Authority audit, receiving our seal of approval on May 10, 2021.
  • Developed new merchant processing relationships, expected cost savings starting third quarter of fiscal 2021.
  • Expanded our portfolio of TV commercials to include Paw CBD and developed a new TV campaign that launched April 1, 2021.
  • Continued to strengthen our portfolio of strategic athlete and sponsorship programs, including Professional rally driver megastar Ken Block.
  • Signed an exclusive sponsorship agreement to be the Official CBD Partner of the NOBULL CrossFit Games.
  • Signed a sponsorship agreement with Master Champion and 9 Time PGA Tour Winner, Patrick Reed, who is now on Team cbdMD.
  • Won 2021 Product of the Year Awards for cbdMD's CBD Gummies and Paw CBD's CBD Hard Chews for Dogs.

'We continue to build upon our success and develop our science and infrastructure, which we believe will drive shareholder value and separate our brands from our competition. We believe that our proven ability to innovate our marketing as well as deliver award winning products to our consumers will achieve significant and lasting market brand recognition and consumer acceptance for our cbdMD, Paw CBD and cbdMD Botanicals brands,' said Martin Sumichrast, Chairman and Co-CEO of cbdMD, Inc.

cbdMD, Inc. will host a conference call at 4:15 p.m., Eastern time, on Wednesday, May 12, 2021, to discuss the company's first quarter fiscal 2021 financial results and business progress.

CONFERENCE CALL DETAILS

Title:

cbdMD Second Quarter 2021 Earnings Call

Event Date:

Wednesday, May 12, 2021 - 4:15 PM Eastern Time

Event Link:

Webcast URL

https://www.webcaster4.com/Webcast/Page/2206/41216

Webcast Replay Expiration:

Thursday, May 12, 2022

Participant Numbers:

Toll Free: 888-506-0062

International: 973-528-0011

Entry code (not required): 233626

Replay Number:

Toll Free: 877-481-4010

International: 919-882-2331

Replay Passcode: 41216

About cbdMD, Inc.

cbdMD, Inc. is one of the leading and most highly trusted and most recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced, THC-free1 CBD products. Our cbdMD brand currently includes over 130 SKUs of high-grade, premium CBD products including CBD tinctures, CBD gummies, CBD topicals, CBD capsules, CBD bath bombs, CBD bath salts, CBD sleep aids and CBD drink mixes. Our Paw CBD brand of pet products includes over 45 SKUs of veterinarian-formulated products including tinctures, chews, topicals products in varying strengths, and our CBD Botanicals brand of beauty and skincare products features 15 SKUs, including facial oil and serum, toners, moisturizers, clear skin, facial masks, exfoliants and body care. To learn more about cbdMD and their comprehensive line of U.S. grown, THC-free1 CBD oil products, please visit www.cbdmd.com, follow cbdMD on Instagram and Facebook, or visit one of the 6,000 retail outlets that carry cbdMD products.

1 THC-free is defined as below the level of detection using validated scientific analytical methods.

Forward-Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and ''proposes.'' These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, but not limited to, our ability to achieve our first quarter fiscal 2022 net sales guidance. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading 'Risk Factors' in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 as filed with the Securities and Exchange Commission (the 'SEC') on December 22, 2020, Item 1A. Risk Factors, contained in our Quarterly Report on Form 10-Q for the period ended March 31, 2021 as filed with the SEC on May 12, 2021 and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.

Non-GAAP Financial Measures

This press release includes a financial measure that excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles ('GAAP'). cbdMD, Inc. has included adjusted loss from operations because management uses this measure to assess operating performance in order to highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. The adjusted operating loss has not been prepared in accordance with GAAP. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net loss from operations as an indicator of our operating performance. Further, this non-GAAP financial measure, as presented by cbdMD, Inc., may not be comparable to similarly titled measures reported by other companies. cbdMD, Inc. has attached to this press release a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

cbdMD, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 2021 AND SEPTEMBER 30, 2020
(Unaudited)
March 31,

September 30,

2021

2020

Assets
Current assets:
Cash and cash equivalents

$

23,711,600

$

14,824,644

Accounts receivable

1,848,465

911,482

Accounts receivable - discontinued operations

22,217

447,134

Marketable securities

32,034

26,472

Investment other securities

1,000,000

250,000

Inventory

4,331,545

4,603,360

Inventory prepaid

478,629

288,178

Prepaid software

-

174,308

Prepaid sponsorship

1,777,304

1,203,300

Prepaid expenses and other current assets

1,544,541

983,374

Total current assets

34,746,335

23,712,252

Other assets:
Property and equipment, net

2,976,904

3,183,487

Operating lease assets

6,240,059

6,851,357

Deposits for facilities

789,583

790,708

Intangible assets, net

21,635,000

21,635,000

Goodwill

54,669,997

54,669,997

Total other assets

86,311,543

87,130,549

Total assets

$

121,057,878

$

110,842,801

CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 2021 AND SEPTEMBER 30, 2020
(continued)
(Unaudited)

March 31,

September 30,

2021

2020

Liabilities and shareholders' equity
Current liabilities:
Accounts payable

$

2,835,236

$

2,850,421

Accrued expenses

1,729,594

2,769,920

Operating leases - current portion

1,213,891

1,159,098

Paycheck Protection Program loan, current portion

1,027,403

854,000

Note payable

57,522

55,639

Total current liabilities

6,863,646

7,689,078

Long term liabilities:
Long term liabilities

-

264,367

Note payable

139,215

-

Paycheck Protection Program loan

428,697

602,100

Operating leases - long term portion

5,414,751

6,010,208

Contingent liability

22,300,000

16,200,000

Deferred tax liability

27,000

895,000

Total long term liabilities

28,309,663

23,971,675

Total liabilities

35,173,309

31,660,753

cbdMD, Inc. shareholders' equity:
Preferred stock, authorized 50,000,000 shares, $0.001
par value, 2,800,000 and 500,000 shares issued and outstanding, respectively

2,800

500

Common stock, authorized 150,000,000 shares, $0.001
par value, 56,337,787 and 52,130,870 shares issued and outstanding, respectively

56,338

52,131

Additional paid in capital

155,780,222

126,517,784

Accumulated deficit

(69,954,791

)

(47,388,367

)

Total cbdMD, Inc. shareholders' equity

85,884,569

79,182,048

Total liabilities and shareholders' equity

$

121,057,878

$

110,842,801

cbdMD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2021 and 2020
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,

2021

2020

2021

2020

Gross Sales

$

12,457,386

$

9,703,800

$

25,520,568

$

20,116,291

Allowances

(658,775

)

(304,764

)

(1,393,654

)

(569,019

)

Total Net Sales

11,798,611

9,399,036

24,126,914

19,547,272

Cost of sales

3,643,127

2,732,076

7,073,402

6,432,613

Gross Profit

8,155,484

6,666,960

17,053,512

13,114,659

Operating expenses

12,323,207

12,267,637

22,981,180

24,827,934

(Loss) from operations

(4,167,723

)

(5,600,677

)

(5,927,668

)

(11,713,275

)

Realized and Unrealized gain (loss) on marketable and other securities, including impairments
2,852 (813,152

)

545,562 (875,162

)

(Increase) decrease of contingent liability

(8,871,000

)

21,261,994

(17,371,000

)

38,160,000

Interest (expense) income

(10,603

)

35,607

(20,990

)

42,875

Income (loss) before provision for income taxes

(13,046,474

)

14,883,772

(22,774,096

)

25,614,438

Benefit for income taxes

536,000

-

868,000

2,240,300

Net (Loss) Income from continuing operations

(12,510,474

)

14,883,772

(21,906,096

)

27,854,738

Net (Loss) from discontinued operations, net of tax (Note 14)

-

-

-

(41,202

)

Net (Loss) Income

(12,510,474

)

14,883,772

(21,906,096

)

27,813,536

Preferred dividends

560,280

100,016

660,330

166,750

Net (Loss) Income attributable to cbdMD, Inc. common shareholders

$

(13,070,754

)

$

14,783,756

$

(22,566,426

)

$

27,646,786

Net (Loss) Income per share:
Basic earnings per share

(0.24

)

0.41

(0.43

)

0.76

Diluted earnings per share

(0.24

)

0.40

(0.43

)

0.74

Weighted average number of shares Basic:

53,471,607

36,503,005

52,793,872

36,503,005

Weighted average number of shares Diluted:

53,471,607

36,336,505

52,793,872

37,336,505

cbdMD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2021 AND 2020
(Unaudited)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,

2021

2020

2021

2020

Net (Loss) Income

$

(12,510,474

)

$

14,883,772

$

(21,906,096

)

$

27,813,536

Comprehensive (Loss) Income

(12,510,474

)

14,883,772

(21,906,096

)

27,813,536

Preferred dividends

(560,280

)

(100,016

)

(660,330

)

(116,750

)

Comprehensive (Loss) Income attributable to cbdMD, inc. common shareholders

$

(13,070,754

)

$

14,783,756

$

(22,566,426

)

$

27,696,786

cbdMD, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED MARCH 31, 2021 AND 2020
(unaudited)
Six Months Six Months
Ended Ended
March 31, March 31,

2021

2020

Cash flows from operating activities:
Net (Loss) Income

$

(21,906,096

)

$

27,813,536

Adjustments to reconcile net (income) loss to net
cash used by operating activities:
Stock based compensation

451,527

972,225

Restricted stock expense

547,140

138,000

Issuance of stock / warrants for service

155,695

28,250

Impairment on discontinued operations asset

-

38,002

Depreciation and amortization

473,324

287,457

Other than temporary impairment other securities and other accounts receivable

-

760,000

Increase/(Decrease) in contingent liability

17,371,000

(38,160,000

)

Realized and unrealized loss of Marketable and other securities

(5,562

)

115,162

Merchant reserve settlement

-

132,657

Termination benefit

352,279

-

Non-cash lease expense

611,298

585,020

Changes in operating assets and liabilities:
Accounts receivable

(936,983

)

763,303

Deposits

1,125

(22,365

)

Merchant reserve

-

106,590

Inventory

271,815

(2,270,110

)

Prepaid inventory

(190,451

)

386,149

Prepaid expenses and other current assets

44,408

649,308

Accounts payable and accrued expenses

(1,366,373

)

849,113

Operating lease liability

(540,664

)

(496,834

)

Note payable

-

175,124

Deferred revenue / customer deposits

(41,418

)

(7,339

)

Collection on discontinued operations accounts receivable

424,917

250,000

Deferred tax liability

(868,000

)

(2,240,300

)

Cash used by operating activities

(5,151,019

)

(9,147,052

)

Cash flows from investing activities:
Proceeds from sale of other investment securities

(750,000

)

-

Purchase of property and equipment

(226,542

)

(1,796,346

)

Cash provided (used) by investing activities

(976,542

)

(1,796,346

)

Cash flows from financing activities:
Proceeds from issuance of common stock

-

16,771,756

Proceeds from issuance of preferred stock

15,798,115

4,421,928

Note payable

(123,268

)

-

Preferred dividend distribution

(660,330

)

(166,750

)

Deferred issuance costs

-

62,197

Cash provided by financing activities

15,014,517

21,089,131

Net increase (decrease) in cash

8,886,956

10,145,733

Cash and cash equivalents, beginning of period

14,824,644

4,689,966

Cash and cash equivalents, end of period

$

23,711,600

$

14,835,699

Supplemental Disclosures of Cash Flow Information:
Six Months Six Months
Ended Ended
March 31, March 31,

2021

2020

Cash Payments for:
Interest expense

$

7,117

$

17,097

Non-cash financial activities:
Issuance of Contingent earnout shares:

$

11,271,000

$

-

Warrants issued to representative

$

254,950

$

524,113

cbdMD, Inc.
SUPPLEMENTAL FINANCIAL INFORMATION
RECONCILIATION OF NON-GAAP ADJUSTED INCOME (LOSS) FROM OPERATIONS
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,

2021

2020

2021

2020

(Unaudited)
GAAP (loss) from operations

$

(4,167,723

)

$

(5,600,677

)

$

(5,927,668

)

$

(11,721,275

)

Adjustments:
Depreciation

240,517

174,205

473,323

287,457

Employee and director stock compensation (1)

825,833

435,301

1,090,007

1,115,875

Other non-cash stock compensation for services (2)

33,358

55,479

69,071

146,548

Accrual for severance

299,610

-

703,022

-

Accrual / expenses for discretionary bonus

-

-

300,000

222,500

Non-GAAP adjusted (loss) from operations

$

(2,768,405

)

$

(4,935,692

)

$

(3,292,245

)

$

(9,948,895

)

(1)

Represents non-cash expense related to options and restricted stock expenses that have been amortized during the period.

(2)

Represents non-cash expense related to restricted stock expenses that have been amortized during the period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005860/en/

Disclaimer

cbdMD Inc. published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 20:17:00 UTC.


© Publicnow 2021
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Financials (USD)
Sales 2021 50,2 M - -
Net income 2021 -26,0 M - -
Net cash 2021 19,6 M - -
P/E ratio 2021 -5,73x
Yield 2021 -
Capitalization 152 M 152 M -
EV / Sales 2021 2,64x
EV / Sales 2022 2,29x
Nbr of Employees 165
Free-Float 63,7%
Chart CBDMD, INC.
Duration : Period :
cbdMD, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CBDMD, INC.
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 3
Last Close Price 2,58 $
Average target price 5,42 $
Spread / Average Target 110%
EPS Revisions
Managers and Directors
Martin A. Sumichrast Chairman & Co-Chief Executive Officer
Raymond Scott Coffman President, Co-Chief Executive Officer & Director
T. Ronan Kennedy Chief Operating & Financial Officer
Sibyl Swift Vice President-Scientific & Regulatory Affairs
Bakari Sellers Independent Director
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