Fire & Flower Reduces Net Loss By 19.49% To $49.81M In 2021

Fire & Flower Holdings Corp. FFLWF FFLWD FAF released its financial and operational results for the fiscal year and fourth quarter ended January 29, 2022.

2021 & Q4 Financial and Operational Highlights

• Revenue of CA$42.7 million and CA$175.5 million ($137.49 million) for the fourth quarter and fiscal year ended January 29, 2022, representing decrease of 1% for the comparable quarter and a 37% increase year-over-year.

• Gross profit of CA$13.7 million and CA$62.1 million for the fourth quarter and fiscal year ended January 29, 2022 represented a decrease of 17% for the comparable quarter and a 37% increase year-over-year.

• Adjusted EBITDA of negative CA$2.4 million for the fourth quarter and positive CA$5.1 million for the fiscal year ended January 29, 2022.

• Net loss of CA$19.5 million for the quarter and CA$63.6 million for the fiscal year ended January 29, 2022, compared to a net loss of CA$11.4 million for the comparable quarter and CA$79.0 million for the fiscal year ended January 30, 2021.

• An increase of 32 stores during the fiscal year, with 105 stores open and operating at the fiscal year end.

• Alimentation Couche-Tard ANCTF increased its equity ownership to 20.8% with CA$20 million outstanding on the ACT Loan and CA$2.4 million in convertible debentures outstanding.

• As part of the company's continued digital strategy, completed the acquisitions of Pineapple Express Delivery, PotGuide and Wikileaf.

• Amended the strategic licensing agreement with Fire & Flower U.S. Holdings (formerly American Acres Managers) to derive additional U.S. based digital revenue.

Other Highlights

• Hifyre cannabis consumer technology platform generated a record CA$14.3 million for the fiscal year, an increase of 129% year-over-year

• Hifyre revenue for the fourth quarter generated a record of CA$4.1 million representing a 7% sequential increase quarter-over-quarter

• Completed one of the final steps in preparation for listing on the NASDAQ including filing of the 40-F registration statement and DTC eligibility for common shares

• Announced intent to exercise Series B warrants by strategic partner Alimentation Couche-Tard, owner of Circle K convenience stores

"Fiscal 2021 has been a year of significant advancement and growth for Fire & Flower and we have delivered meaningful year-over-year revenue growth. The Hifyre Digital Platform has exhibited impressive 129% annual and 7% quarterly sequential growth and is the core value proposition of our business. This year, we have refined our vision to, 'Deliver Cannabis to the World' positioning our business as a consumer e-commerce platform, supported by a distributed retail network enhanced by our Circle K store co-location program. This position is enabled through the acquisition of Pineapple Express Delivery, one of the largest cannabis delivery platforms in the world," stated Trevor Fencott, CEO of Fire & Flower.

Adjusted EBITDA has been calculated differently than in periods prior to Q1 2021, where the company previously included lease liability cash payments as disclosed in accordance with IFRS 16 "Leases" accounting standards. The updated measure reflects the company's new approach to analyzing the consolidated operating performance across the business lines.

Adjusted EBITDA for the fourth quarter ended January 29, 2022 and 2021 fiscal year was negative CA$2.4 million and a positive CA$5.1 million compared to positive Adjusted EBITDA of CA$3.5 million for the comparable quarter and CA$5.2 million for the 2020 fiscal year respectively.

Lease liability cash payments for the thirteen weeks and fiscal year ended January 29, 2022 were CA$2.4 million and CA$9 million, respectively.

Photo: Courtesy of Mackenzie Marco on Unsplash

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