Glass House Full Year Revenue Grows 44% To $69.4M, Adjusted EBITDA Loss Reaches $11.8M

Vertically integrated cannabis company Glass House Brands Inc. GLAS (GLAS.WT.U) GLASF GHBWF reported unaudited financial results for its fourth quarter and year ending December 31, 2021, with quarterly net sales of $18.4 million, up by 7% from the previous quarter.

Fourth Quarter 2021 and 2021 Full Year Highlights

• In 2021, net sales increased 44% to $69.4 million from $48.3 million in 2020.
• Equivalent dry pound production in Q4 was a record high of 29,738 pounds compared to 28,268 pounds in Q3 2021.
• Cash balance was $51.1 million at year-end 2021, compared to $28.9 million in Q3 2021 and $4.5 million at year-end 2020.
• Gross profit decreased 116% to a loss of $400,000 in Q4 2021 compared to a gain of $2.3 million in Q3 2021. In 2021, gross profit was $16.0 million compared to $18.7 million in 2020.
• Gross margin in Q4 2021 was (2)% compared to 14% in Q3 2021. Gross margin in 2021 was 23% compared to 39% in 2020.
• Adjusted EBITDA decreased 71% to a loss of $9.1 million in Q4 2021 compared to a loss of $5.4 million in Q3 2021.
• In 2021, Adjusted EBITDA was a loss of $11.8 million, compared to a loss of $300,000 in 2020.

Management Commentary

"With the first phase of our SoCal cultivation facility operational; and its construction on time and on budget; and the receipt of our nursery, cultivation and processing licenses, we are well on our way to becoming the top vertically integrated operator in California," stated Kyle Kazan, Glass House chairman and CEO. "I am delighted with our progress and thrilled to have started cultivation, with the first product sales expected in the third quarter, ahead of our initial projections."

Price Action

Glass House shares closed Wednesday market session 13.21% higher at $4.8 per share.

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