Vertically integrated cannabis company Cresco Labs Inc. CL CRLBF 6CQ announced its financial results Thursday for the third quarter ended September 30, 2021, reporting revenue of $215.5 million, up by 40.6% year-over-year.
Q3 Financial Highlights
- Adjusted EBITDA of $56.4 million, or 26.2% of revenue, an increase of 24.0% quarter-over-quarter;
- Gross profit excluding fair value mark-up for acquired inventory of $116.7 million, or 54.2% of revenue, an increase of 9.0% quarter-over-quarter and 48.3% year-over-year;
- Net loss amounted to $263.45 million, compared to net income of $25.58 million in the same period a year ago;
- Record net wholesale revenue of $109.3 million;
- Record retail revenue of $106.2 million from 37 stores;
- At the end of the reporting period on September 30, 2021, current assets were $449 million, including cash and cash equivalents of $252.8 million.
Financial Outlook
The Company reaffirms the previously provided guidance of:
- Gross profit margins in excess of 50.0% in the remainder of 2021;
- Adjusted EBITDA margin of at least 30.0% by the end of 2021;
- Revenue in the fourth quarter between $235 million and $245 million;
“Q3 was another outstanding quarter at Cresco Labs and a very strong start to the second half of the year,” Charles Bachtell, co-founder and CEO of Cresco Labs stated. “During the quarter, we replenished our balance sheet with non-dilutive capital, we closed a transformative acquisition in Massachusetts creating our third top three market share in a billion-dollar market, we announced several new deals to drive market depth, and we made massive improvements in bottom-line profitability as infrastructure investments began to bear fruit.”
Recent Milestones
- August: The company closed an agreement with lenders to upsize its senior secured term loan, increasing the principal amount by $200 million, and reducing the interest rate to 9.5% per annum, with a maturity date of August 12, 2026.
It has executed a definitive agreement to acquire 100% of the outstanding equity interests in Blair Wellness, LLC, a Baltimore, Maryland medical cannabis dispensary.
- September: Cresco closed the previously announced acquisition of Cultivate Licensing LLC and BL Real Estate LLC, a vertically integrated Massachusetts operator.
It has also executed a definitive agreement to acquire 100% of the outstanding equity interests in Bay, LLC d/b/a Cure Pennsylvania, a Pennsylvania retail operator.
- October: Cresco executed a definitive agreement to acquire 100% of the outstanding equity interests in Laurel Harvest Labs, LLC, a Pennsylvania Clinical Registrant and vertically integrated operator.
The company reported that its “Summer of Social Justice” initiative raised over $250,000 and supported the expungement process for over 1,000 people with cannabis-related criminal records.
Price Action
Cresco’s shares closed Wednesday’s market session 1.09% lower at $8.76 per share.
Photo: Courtesy of Esteban Lopez on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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