Curaleaf Posts Record Earnings, Takes Over Three Connecticut Dispensaries

Cannabis operator Curaleaf Holdings Inc. CURA CURLF posted Tuesday record fiscal year 2019 revenue of $221 million, up by 187% from the previous year.

The earnings report comes on the heels of an expansion effort for the Wakefield, Massachusetts-based company. That same day, Curaleaf announced that it will purchase three Arrow Alternative Care dispensaries in Connecticut.

"In fiscal 2019, the Curaleaf team delivered record results with our organic business growth and recent strategic acquisitions, solidifying our position as the leading cannabis operator in the United States,” Joseph Lusardi, CEO of Curaleaf said in a statement.

Among those record results was adjusted EBITDA of $25.9 million, versus an adjusted EBITDA loss of $10.4 million in 2018.

Curaleaf also reported fourth quarter record total revenue of $75.5 million, which compares to $32 million in the same quarter of the prior year.

The company also posted a record adjusted EBITDA of $13.8 million, versus a loss of $1.4 million; quarterly net loss of $27.2 million, compared to a net loss of $16.5 million in the corresponding period of 2018; and a fiscal year net loss of $69.8 million, versus a net loss of $61.9 million in 2018.

“The fourth quarter represented our third consecutive quarter of positive Adjusted EBITDA, driven by additional production and retail locations coming online in key states as well as the positive impact of our increasing economies of scale," Lusardi added. "With the completion of the Select acquisition, we are now focusing on the integration and rollout of the Select brand across Curaleaf. Overall, we remain well positioned for improving growth and profitability in 2020."

As for its M&A activity, Curaleaf regards Arrow Alternative Care as a “market leader” in dispensary cannabis retail across Connecticut with carefully selected locations in important metro areas — one in Hartford, another in Milford, and the third in Stamford.

"This acquisition will be immediately accretive and provides Curaleaf with vertical integration in Connecticut. We can now bring the knowledge we've cultivated through our experience across 15 states to Connecticut's medical cannabis patients directly,” Lusardi stated.

Terms of the deal were not disclosed.

Curaleaf has been operating in the state of Connecticut for the last six years, having one of four licenses for cannabis cultivation and a 60,000-square-foot cultivation facility, catering to the needs of more than 40,000 patients.

Curaleaf’s shares closed Tuesday’s market session 24.58% higher at $3.85 per share.

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