Columbia Care: Q3 Record Revenue $132.3M, Adjusted EBITDA Growth 634% To $31.02M, Revises Guidance

Columbia Care Inc. CCHW CCHW CCHWF 3LP reported its financial results Friday for the third quarter ended September 30, revealing record quarterly revenue of $132.3 million, up by 144% year-over-year and 21% sequentially.

Q3 Financial Summary

• Adjusted EBITDA came in positive with a record $31.02 million, up by 634% from $4.22 million in the same period of 2020;
• Adjusted Gross profit was $64.46 million, compared to $21.16 million in the third quarter of the prior year;
• Adjusted Gross Margin was 49%, versus 39% in the corresponding period of last year;

“Each quarter, we continue to build momentum by focusing on initiatives that deliver profitably on our overall growth strategy – building scale in each of our markets, expanding our national retail platform and launching national brands,” Nicholas Vita, CEO of Columbia Care told Benzinga.  “Our team’s commitment to the pillars of our business have allowed us to not only see continually improving fundamentals, which is paramount to our shareholders, but have also enabled us to improve access to patients and customers around the country.”

Vita continued: “We are able to do this through opening new locations; transforming dispensaries to Cannabist to provide an enhanced, approachable shopping experience; launching an online cannabis discovery tool, Forage, that connects users with the right product and provides data that we can leverage to be more efficient in our operations; and bringing new, much-needed products to market quickly, like whole flower in New York and Virginia. We have built a strong foundation in our vertically integrated national platform, and we will continue to deliver on our growth objectives and capitalize on the incredible emerging opportunity.”

2021 Outlook

Columbia Care revised its revenue guidance from $500-$530 million to a new range of $470-485 million, and its adjusted EBITDA projections, which were previously $95-$105 million to $85-$95 million.

The company noted it has revised its guidance to address the impact of unanticipated regulatory delays, for example, delays in the opening of dispensaries in Massachusetts (Boston), New Jersey and West Virginia; delayed approvals for dispensary expansion in Illinois; delayed implementation of adult-use cannabis in New Jersey and a later than expected close of the Medicine Man transaction.

In addition, wholesale pricing dynamics in some markets, such as California and Pennsylvania as well as competitive market share dynamics in Florida, have also impacted results and expectations.

Price Action

Columbia Care’s shares closed Thursday market session 7.16% higher at $4.04 per share.

Photo: Courtesy of Tim Foster on Unsplash