Columbia Care Reports 232% YoY Pop In Q2 2021 Revenue, QoQ Improvement In Gross And EBITDA Margins

Columbia Care Inc. CCHW CCHW CCHWF (FSE:3LP) reported its financial and operating results Thursday for the second quarter ended June 30, 2021, revealing a 232% year-over-year and 19% sequential revenue pop to $109.7 million. Shares traded down roughly 1.86% at $4.74 per share in Wednesday’s after-hours session.

“We are pleased to report another record quarter for Columbia Care as we continue to execute on our strategic initiatives and build scale in markets across the country,” Nicholas Vita, CEO of Columbia Care, said.

Based in New York, the company said that the top markets by combined revenue during the quarter were California, Colorado, Massachusetts, Ohio and Pennsylvania.

Q2 2021 Financial Highlights

• Record quarterly adjusted gross profit of $47.7 million, an increase of 300% year-over-year and 26% sequentially.
• Record gross margin of 43%, an increase of 737bps year-over-year and 266bps quarter-over-quarter.
• Record positive adjusted EBITDA of $16.4 million, increasing $21.1 million year-over-year, 58% quarter-over-quarter.
• Record adjusted EBITDA margin of 15%, an increase of 2,930bps year-over-year, 371bps sequentially.

2021 Revenue Guidance, Convertible Debt, And Cash Balance

The company reaffirmed 2021 revenue guidance of $500 - $530 million and adjusted EBITDA guidance of $95 - $105 million.

Over the quarter, Columbia Care raised $74.5 million of 6% convertible debt, reflecting the lowest-priced debt in its history. In addition, it ended the quarter with a cash balance of roughly $149.2 million.

“Our results in the second quarter were driven by organic growth in new and maturing markets, increasing wholesale activity, and contribution from our recently closed acquisition of Green Leaf Medical (gLeaf),” Vita continued. “We saw continued year over year and sequential improvement in both gross and Adjusted EBITDA margins as we leverage the scale of our national portfolio and ramp in newer markets.”

More recent news from Columbia Care:

• Cantor Fitzgerald Says Columbia Care Could Be Attractive To Canadian Companies, Lowers Price Target Ahead Of Company Earnings
• Columbia Care Launches Cannabis Cultivation Operations in West Virginia
• Columbia Care Strengthens Its Position In Ohio Via Acquisition Of Four Dispensaries Run By CannAscend
• Cannabis Co. On The Move: Columbia Care Fuels Its Growth With $74.5M Raise Through Private Placement Offering

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