MariMed: 213% YoY Increase In Q3 Adjusted EBITDA, Reaffirms Full-Year Revenue Guidance Of $118M

Multi-state cannabis operator MariMed, Inc. MRMD reported its financial and operating results Monday for the quarter ended September 30.

Q3 2021 Financial Highlights

• Revenue totaled $33.2 million, representing an increase of 147% from the third quarter of 2020.
• Gross profit was $18.2 million, an increase of 109% from the third quarter of 2020.
• Adjusted EBITDA, s non-GAAP measure, of $12.9 million, a 213% increase from the third quarter of 2020.
• Net income of $2.1 million, a 25% increase from the third quarter of 2020.
• Working capital at the end of the quarter of $27.3 million compared to a working capital deficit of $2.2 million at the end of 2020.
• $10.7 million of cash flow from operations for the quarter and a total of $28.2 million of cash flow from operations year to date.
• The company also maintained the full year 2021 financial guidance of $118 million in revenue and $42 million in adjusted EBITDA.

Q3 2021 Operational Highlights

• Revenue from company-owned retail dispensary operations in Illinois (Thrive retail brand) and Massachusetts (Panacea Wellness retail brand) grew 207% year-over-year.
• Revenue from company wholesale sales of cannabis flower concentrates and infused products grew 91% year-over-year.
• Revenue from licensing, management fees, and real estate income increased 33% year-over-year.

“We are extremely pleased with our continued improving financial performance during the third quarter despite an industry-wide slowdown,” Bob Fireman, president and CEO of MariMed said. “This is a result of our financial discipline and our operational excellence at cultivation, production, and at retail.”

The company said that it expects continued strong financial performance through the execution of the four key components of its strategic growth plan:

• Completing the consolidation of the company’s state cannabis licensed operations, it developed and currently manages.
• Increasing revenues in current cannabis state businesses.
• Expanding the company’s footprint in additional legal cannabis states through new license applications and mergers and acquisitions.
• Expanding the company’s brand portfolio and licensing revenue.
• “Our strict financial discipline combined with our outstanding operations gives us the confidence we will meet or beat our full-year financial guidance,” Jon Levine, CFO of MariMed, said.

MRMD Price Action

MariMed’s shares traded 7.45% lower at $0.87 per share at the time of writing on Tuesday.