Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf”or the “Company”), a leading vertically integrated cannabis operator in the U.S., reported its financial and operating results for the 3rd-quarter finished September 30, 2k19.
hird Quarter Highlights
Reported record quarterly Pro Forma Revenue of $129.00M, Managed Revenue of $73.2M, which grew 33.00 percent sequentially and Adjusted EBITDA of $9.00M, which grew 169.00 percent sequentially
Announced acquisition of Chicago, Illinois-based Grassroots, the largest private U.S. MSO for approximately $875.00M creating world’s largest cannabis company which will expand presence to 19 states
Received approval for three final and two provisional adult-use licenses by the Massachusetts Cannabis Control Commission
Closed on acquisitions of Glendale and Phyto in Arizona
Signed sale-leaseback agreement with Freehold Properties, Inc. for 6.0 properties generating net cash proceeds of approximately $24.80M
Fiscal Results for the 3rd-Quarter finished September 30, 2k19
Managed Revenue for the 3rd-quarter was $73.20M, an incline of 201.00 percent over the previous year and 33.00 percent over the previous quarter. Pro Forma Revenue for the 3rd-quarter was $129.00M.
Total Revenue for the 3rd-quarter of 2k19 inclined 189.00 percent year-over-year to $61.80M, compared to $21.40M in the 3rd-quarter of 2k18. Total Revenue for the 3rd-quarter of 2k19 inclined 27.00 percent over the previous quarter.
Retail and wholesale revenue inclined more than three-fold to $50.70M throughout the quarter, compared to $16.60M in the 3rd-quarter of 2k18. The incline in retail and wholesale revenue was primarily due to organic growth in Florida, New York and acquisitions in Arizona and Maryland. Additionally, wholesale revenue inclined in Massachusetts as a result of the number of newly opened adult-use dispensaries.
Gross profit before impact of biological assets for the 3rd-quarter of 2k19 was $34.70M, compared to $13.90M for the 3rd-quarter of 2k18. The incline was due to continued improvement in the operating capacity of the Company’s cultivation and processing facilities.
Gross profit on cannabis sales was $23.60M in the 3rd-quarter of 2k19, resulting in a 47.00 percent margin, compared to $9.10M in the 3rd-quarter of 2k18. The incline was due to the mix in retail revenue over wholesale revenue and continued improvement in the operating capacity of the Company’s cultivation and processing facilities.
Adjusted EBITDA was $9.00M for the 3rd-quarter of 2k19, compared to a loss of $3.20M for the 3rd-quarter of 2k18.
Net loss for the 3rd-quarter of 2k19 was $7.40M, compared to a net loss of $35.60M in the 3rd-quarter of 2k18. The decline was primarily driven by a decline in other cost related to a loss on the change in fair value of convertible notes in 2k18, partially offset by an incline of $7.70M in depreciation and amortization and an incline of $4.70M in share-based compensation, both of which are non-cash, an incline of $5.20M in one-time charges, primarily business development, acquisition and financing related, an incline of $3.20M in net interest cost and an incline of $2.60M in the provision for income tax.
Balance Sheet and Liquidity
As of September 30, 2k19, we had $91.20M of cash, $106.00M of outstanding debt and approximately 464.10M fully diluted shares outstanding.