Achieved 13th consecutive quarter of profitability; Announces definitive agreement to acquire Harvest Health & Recreation Inc., one of the largest US cannabis acquisitions to date which would establish our southwest hub and expand national footprint
TALLAHASSEE, Fla.,
Q1 2021 Highlights
- Achieved record quarterly revenues of
$193.8 million , a sequential increase of 15% over Q4 2020 - Generated net income of $30.1 million
- Delivered Adjusted EBITDA of
$90 .8 million - Achieved gross profit of $135.3 million and gross margin of 70%
- Delivered $60.4 million in cash flows from operations
2021 Operational Highlights and Recent Events
- Recently announced definitive agreement to acquire Harvest Health & Recreation Inc., the largest cannabis acquisition announced in the
U.S. to date. - Harvest reported first quarter revenue of $88.8 million and Adjusted EBITDA of $26.9 million1
- Reported first full quarter of operations in
Pennsylvania and opened phase 1 of our new cultivation facility adding 45,000 square feet for a total of 80,000 square feet of cultivation - Well-positioned to become a first-mover, vertically-integrated operator in
West Virginia through successful application wins and the recent acquisition ofMountaineer Holding - Expanded our
Florida operations by eight stores and 116,000 square feet of cultivation, ending the quarter with 82 stores and over 2 million square feet of cultivation inFlorida
_________________ | |
1 | As reported May 10, 2021 on the Harvest Q1 2021 Earnings Press Release |
"During Q1 we continued to execute on growth in
Rivers continued, "Our continued strength in our home state of
Financial Highlights
Results of operations |
For the Three Months Ended, |
For the Three Months Ended March, | |||||||||||||
(Figures in millions and % change based on these figures) | 2021 | 2020 | % change |
2021 |
2020 | % change | |||||||||
Total Revenue | $ | 193.8 | $ | 168.4 | 15% | $ | 193.8 | $ | 96.1 | 102% | |||||
Gross Profit | $ | 135.3 | $ | 119.9 | 13% | $ | 135.3 | $ | 73.8 | 83% | |||||
Gross Profit % | 70% | 71% | - | 70% | 77% | - | |||||||||
Operating Expenses | $ | 57.3 | $ | 52.0 | 10% | $ | 57.3 | $ | 29.1 | 97% | |||||
Operating Expenses % | 30% | 31% | - | 30% | 30% | - | |||||||||
Net income | $ | 30.1 | $ | 3.0 | 889% | $ | 30.1 | $ | 23.6 | 27% | |||||
Adjusted EBITDA1 | $ | 90.8 | $ | 81.4 | 12% | $ | 90.8 | $ | 48.5 | 87% |
1 | See "Non-GAAP Financial Measures" below for a reconciliation to GAAP. |
The Company's Form 10-Q for the quarter ended
This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Conference Call
The Company will host a conference call and live audio webcast on,
All interested parties can join the conference call by dialing 1-888-231-8191 or 1-647-427-7450, conference ID: 4880609. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until
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Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days by clicking the link above.
About
To learn more about
Non-GAAP Financial Measures
Our management uses financial measures that are not in accordance with generally accepted accounting principles in
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA, for each of the periods presented:
Reconciliation of Non-GAAP Adjusted EBITDA |
For the Three Months Ended, | For the Three Months Ended March, | |||||||||||||||||
(Figures in millions and % change based on these figures) | % change | 2021 | 2020 | % change | |||||||||||||||
Net Income (GAAP) | $ | 30.1 | $ | 3.0 | 889% | $ | 30.11 | $ | 23.6 | (27)% | |||||||||
Add (Deduct) Impact of: | |||||||||||||||||||
Depreciation and Amortization | $ | 5.4 | $ | 36% | $ | 5.4 | $ | 2.2 | 148% | ||||||||||
Depreciation included in Cost of Goods Sold | $ | 3.7 | $ | 4.1 | 0% | $ | 3.7 | $ | 2.5 | 0% | |||||||||
Interest Expense, Net | $ | 7.9 | $ | 3.7 | 115% | $ | 7.9 | $ | 5.9 | 34% | |||||||||
Share-Based Compensation | $ | 0.7 | $ | 0.6 | 33% | $ | 0.7 | $ | 1.2 | (39)% | |||||||||
Other Expense (Income), Net | $ | 0.0 | $ | 29.9 | (100)% | $ | 0.0 | $ | (4.9) | (101)% | |||||||||
Provision for Income Taxes | $ | 34.5 | $ | 27.3 | 26% | $ | 34.5 | $ | 17.9 | 93% | |||||||||
Acquisition and Transaction Costs | $ | 2.0 | $ | 4.7 | (57)% | $ | 2.0 | $ | - | - | |||||||||
COVID Related Expenses | $ | 3.8 | $ | 3.2 | 21% | $ | 3.8 | $ | 0.1 | 3,252% | |||||||||
Inventory Step up, Fair Value | $ | 2.5 | $ | 1.0 | 165% | $ | 2.5 | $ | - | - | |||||||||
Total Adjustments | $ | 60.7 | $ | 78.4 | (23)% | $ | 60.7 | $ | 24.9 | 143% | |||||||||
Adjusted EBITDA | $ | 90.8 | $ | 81.4 | 12% | $ | 90.8 | $ | 48.5 | 87% |
1. | Excluding the revaluation of our debt warrants in the fourth quarter, an impact of |
Forward-Looking Statements
This news release includes forward-looking information and statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the Company's expectations or forecasts of business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs and include statements regarding the Company's pending acquisition of Harvest, the Company's expected financial performance for fiscal 2021, the operations and prospects of the Company, the current and projected market and growth opportunities for the Company, and the timing and completion of the Harvest acquisition, including all the required conditions thereto. Words such as "expects", "continue", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, prospects, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein, including, without limitation, the risks discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended
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