TILT FY22 Revenue Declines 14%, What About Adjusted EBITDA?

TILT Holdings Inc. TLLTF TILT revenue was $174.2 million in the twelve months ended December 31, 2022, a decrease of 14% compared to $202.7 million in the prior year. The decrease in revenue was primarily driven by lower volumes and pricing in the company’s inhalation business, partially offset by continued growth in the company’s cannabis operations.

Q4 2022 Financial Summary

• Revenue was $44.3 million in the three months ended December 31, 2022, a decrease of 18% compared to $54.1 million in the prior year period.

• Gross profit was $8.3 million in the three months ended December 31, 2022, or approximately 19% of revenue, compared to $11.2 million or approximately 21% of revenue in the prior year period.

• Net loss was $73.1 million in the three months ended December 31, 2022, compared to a net loss of $20.1 million in the prior year period.

• Adjusted EBITDA was negative $368,000 in the three months ended December 31, 2022, compared to $4.5 million in the prior year period.

FY 2022 Financial Summary

• Gross profit was $38.2 million in the twelve months ended December 31, 2022, or approximately 22% of revenue, compared to $50.2 million or approximately 25% of revenue in the prior year.

• Net loss was $107.5 million in the twelve months ended December 31, 2022, compared to a net loss of $35.1 million in the prior year.

• Adjusted EBITDA was $2.8 million in the twelve months ended December 31, 2022, compared to $22.3 million in the prior year.

• Total cash balance was $2.2 million at December 31, 2022, compared to $7.0 million at December 31, 2021. This cash balance included restricted cash of $1.3 million at December 31, 2022, compared to restricted cash of $2.7 million at December 31, 2021. Unrestricted cash and cash equivalents were $2.2 million, compared to $4.2 million at December 31, 2021.

“2022 was a pivotal year for TILT and the cannabis industry at large,” stated CEO Gary Santo. “Our sector faced headwinds from the overall economic environment and, to a greater extent, the sector itself adapting to cannabis as a commodity more rapidly than expected. Our financial results were not immune to these patterns. We did maintain positive adjusted EBITDA and produced positive cash flow from operations for the year, and we are committed to upholding both these trends in 2023.”

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