Goodness Growth Q4 Revenue Grows 10.5% To $13.7M, Withdraws Outlook Due To Pending Acquisition By Verano

Goodness Growth Holdings, Inc. GDNS GDNSF reported Friday financial results for its fourth quarter and full year ended December 31, 2021.

"Our fourth quarter results reflected continued growth across most of our markets, but we continued to experience the negative impact of crop loss in Arizona we've previously discussed which occurred during the third quarter," stated chairman and chief executive officer, Kyle Kingsley, M.D. "We continue to focus on the development of our new dispensaries in New York, as well as the construction of our new indoor cultivation facility, and expect these activities to continue through the closing of the previously-announced, pending transaction to be acquired by Verano Holdings Corp VRNO VRNOF. Finally, given this pending transaction, we no longer intend to provide frequent updates of our future performance expectations, and as a result are withdrawing our previous outlook at this time."

Full Year 2021 Financial Summary

• Total revenue of $54.4 million increased by 10.6% as compared to fiscal year 2020;
• Gross profit was $19.8 million, or 36.4%of revenue, as compared to gross profit of $17.1 million or 34.8% of revenue in last year.
• Total operating expenses were $40.3 million, or roughly flat compared to $40.2 million in fiscal year 2020.
• Adjusted EBITDA was a loss of $9.1 million, as compared to a loss of $5.2 million in fiscal year 2020.
• Net loss in 2021 was $33.7 million, compared to a loss of $22.9 million in fiscal year 2020.

Fourth Quarter 2021 Financial Summary

• Total revenue in the fourth quarter was $13.7 million, an increase of 10.5% as compared to Q4 2020.
• Gross profit was $2.2 million, or 15.8%of revenue, as compared to gross profit of $5.3 million or 42.7% of revenue in Q4 last year.
• Adjusted EBITDA was a loss of $4.4 million in Q4 2021, as compared to a gain of $0.1 million in Q4 2020.
• Net loss in Q4 2021 was $12.7 million, as compared a loss of $2.3 million in Q4 2020.

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