Harborside Trades Down After Posting $1.2M Q3 Net Loss, Announcing Restructuring

Harborside Inc HSDEF HBOR announced its third-quarter financial results Friday, posting revenue of $14.1 million — up 22.4% year-over-year. 

Adjusted EBITDA totaled $2.9 million, and the net loss for the third quarter was reported at $1.2 million. Harborside said its total assets are $53 million, including $16.6 million in liquidity.

2019's third quarter represents the 15th quarter in a row in which Harborside's revenue came in at more than $10 million, the dispensary operator said. 

“While we are pleased with our third quarter results, there is still much work to be done," interim CEO Peter Bilodeau said in a statement. 

“The company recognizes that a strong management team will be required to enable the company to achieve its goals, and to that end, our CEO search remains on track and we are devoting internal and external resources to identify the best candidate to lead Harborside to its next phase of growth in a nimble, yet prudent way.

Bilodeau referenced the recent promotion of Greg Sutton to the position of chief operating officer of cultivation and manufacturing; the hiring of Lisah Poore as chief retail officer; and Mireille Duclos as vice president of human resources. 

Harborside is also targeting costs, the interim CEO said. 

“To reach our goal of reducing our operating expenses, we have begun implementing the cost cutting initiatives the Alvarez & Marsal team identified to recognize the efficiencies in our business and have focused on streamlining our operating costs at our Salinas facility.”
Harborside shares were down 21.93% at 76 cents at the time of publication Friday.