Harvest Health Reports Q4 Revenue Of $69.9M, Success Of Rec Sales In Arizona

Vertically integrated cannabis company Harvest Health & Recreation Inc. HARV HRVSF revealed Tuesday afternoon its total revenue spiked 98%, reaching $231.5 million in 2020.

Total revenue in the fourth quarter amounted to $69.9 million, representing a year-over-year increase of 85%.

The company also said that its net loss in 2020, before non-controlling interest, was $59.6 million. This compares to $168.8 million in the prior year.

The net loss for the fourth quarter was $7.4 million, versus $85.2 million in the last year's corresponding quarter.

Adjusted EBITDA was positive, however, hitting $15.3 million in 2020, compared to a $43.7 million loss in 2019.

For the last three months of 2020, the company posted a positive adjusted EBITDA of $9.1 million versus a loss of $8.8 million in the same quarter of 2019.

CEO Steve White said, "fourth-quarter results and the initial success of recreational sales in Arizona demonstrate the efficacy of our strategy to make targeted investments in our core markets of Arizona, Florida, Maryland, and Pennsylvania."

The Tempe, Arizona-based company launched recreational cannabis sales in the Grand Canyon State in January.

Quarterly Operational Highlights

During the quarter, Harvest Health boosted its retail footprint in Pennsylvania by cutting the ribbon on the two new stores in Camp Hill and King of Prussia.

In November, the company opted to divest its Arkansas-based store and cultivation assets, owned and operated by Natural State Wellness Dispensary LLC and Natural State Wellness Enterprises LLC, securing $25 million in financing.

As of December 31, the company owned, operated, or managed 38 stores across six states.

However, in February, it divested North Dakota-based dispensary assets, including stores in Williston and Bismarck.

Harvest Health Expects to hit $380 million in revenue in 2021, including  $87 million in revenue it anticipates generating in the first quarter.