Vibe Sees Record After Tax Net Income In Q2

Vibe Bioscience Ltd. VIBE, which recently signed a lease deal for its fourth store in California, reported record after-tax net income during the second quarter.

It amounted to $477,814, compared to a loss of $885,080 in the corresponding quarter of last year.

The company credited the income growth is driven by its California operations, including increased sales volumes at its dispensaries and cultivation assets.

"Some said it couldn't be done, but Vibe's second-quarter results show that a public cannabis company can both grow and be profitable, not in a few years, but right now," Vibe CEO Mark Waldron said. "Vibe's brand is firmly establishing itself in California."

Earnings breakdown:

• Revenue amounted to roughly $5.7 million in the second quarter, up by 83% over the year
• For the first six months of fiscal 2020, revenue (non-IFRS measure) was approximately $10 million, up by around 126% year-over-year
• Gross margin was 36% for the quarter, and 35.3% for the first half of 2020
• In the second quarter adjusted EBITDA was $792,925 versus and adjusted EBITDA of $113,322 in the same quarter last year
• For the six months ended June 30, adjusted EBITDA was around $1.13 million
• Net income for the quarter amounted to $477,814 versus a loss of $855,080 in the second quarter of 2019
• Net income for the first six months of this year was $255,483, compared to the loss of roughly $3 million in the same period last year

Meanwhile, in June, the Sacramento, California-based company closed the acquisition of 13,500 square feet cannabis cultivation facility in Crescent City.

Pursuant to the deal, Vibe issued 600,000 common shares and assumed around $463,000 in term debt.