Cansortium Reports Steady Growth In Q3, Revises Its 2021 Outlook

Vertically-integrated cannabis company Cansortium Inc. TIUM CNTMF, operating under the Fluent brand, published its financial results Tuesday for the third quarter ended September 30, 2021.

Robert Beasley, the company's CEO, said that Cansortium had executed "several key initiatives" during the period, including the launch of a new retail location in Pennsylvania and the opening of two new dispensaries in Florida.

"We also received approval from the Florida Department of Health to commence operation in several new bays at our recently expanded Sweetwater facility," Beasley said.

Q3 2021 Financial Highlights

• Revenue increased 9% year-over-year to $15.6 million.
• Florida revenue increased 4.3% to $13.1 million compared to $12.6 million in the same quarter of last year.
• Adjusted gross profit increased to $9.8 million or 62.7% of revenue, compared to $9.5 million or 66.6% of revenue in the prior year's quarter.
• Adjusted EBITDA increased 34% to $4.9 million or 31.4% of revenue compared to $3.6 million or 25.5% of revenue in the same period of last year.
• Total expenses amounted to $8.5 million, down from $9.7 million in the prior year's period.
• At the quarter-end, the company had $184.3 million in total assets and total liabilities of $112.17 million.

Recent Operational Highlights

• Opened its 2nd store in Mechanicsburg, PA in August.
• Opened its 27th store in Fruitland Park, Florida - the city's first medical marijuana dispensary – in September.
• Received approval from the Florida Department of Health to commence operations at several new bays at its Sweetwater-based cultivation facility.
• Appointed a new auditor, Baker Tilly US, LLP, in preparation for reporting financial results in accordance with U.S. GAAP in 2022.

The company revised its 2021 outlook for revenue and now expects it to range between $63-$66 million.

In addition, it expects adjusted EBITDA to range between $18-$26 million and anticipates achieving the lower end of the range. This compares to approximately $52 million of revenue and $10 million of adjusted EBITDA in 2020.

Related News

• Cansortium Adjusted EBITDA Doubles YoY, Q2 2021 Revenue Increases 24%, CEO Optimistic
• Fluent By Cansortium Expands Cultivation Operations In Florida

CNTMF Price Action

Consortium's shares traded 1.87% lower at $0.75 per share at the time of this writing on Wednesday morning.

Photo: Courtesy of Towfiqu barbhuiya on Unsplash