Columbia Care Unaudited Q1 Revenue Grows 43% YoY, Here Are The Details

Columbia Care Inc. CCHWF CCHW CCHW (FSE:3LP) reported unaudited financial and operating results for the first quarter ended March 31, 2022.

Financial Highlights for Q1 2022

• Revenue of $123 million, an increase of 43% YoY

• Gross profit of $57 million, an increase of 68% YoY

• Gross margin of 46%, an increase of 676bps YoY, 149bps QoQ over prior adjusted gross margin

• Adjusted EBITDA of $17 Million, an Increase of 355% YoY and adjusted EBITDA margin of 14%, an increase of 930bps YoY

Operational Highlights for Q1 2022

• Opened 5 additional retail locations in Q1: 4 in West Virginia and 1 in Virginia Beach, VA to bring active total to 84

• Additional dispensaries in development include 8 in Virginia, 1 in West Virginia, and 1 in New Jersey

• Commercialized flower harvests from Riverhead, New York greenhouse for the medical market, helping to drive 1 million grams QoQ increase in finished flower grams

• In-house brands reached a record percentage of total revenue, supporting gross margin expansion; owned brands made up 69% of flower sales at Columbia Care locations

• Subsequent to quarter close, launched Seed & Strain and Classix in Colorado market; Classix is now available in 13 markets and Seed & Strain is now available in 12 markets

• Converted Brooklyn, New York location to Cannabist retail experience; 31 Cannabist locations nationwide out of 84 active retail locations

Capital Markets & Liquidity Highlights

• On February 3, 2022, company completed a private placement of $185 million aggregate principal amount of 9.50% senior-secured first-lien notes due 2026

• The company exited Q1 2022 with $168.4 million in cash, up $86.2M from Q4 2021

“The results of the first quarter of 2022 demonstrate how Columbia Care overcame a number of macro-economic headwinds by exercising strong operational discipline. We materially increased our gross and EBITDA margins, as we continued leveraging the scale we have built across our strategic national platform. During the first quarter, we drove a revenue increase of 43% over the prior year, achieved nearly 700 basis points of improvement in adjusted gross margin and more than 930 basis points in adjusted EBITDA margin. As our recent capital investments yield enhanced efficiencies throughout the value chain, this will not only allow us to capitalize on our growth opportunities throughout the country, but continue to further improve profitability,” stated Nicholas Vita, CEO of Columbia Care.

Conference Call

The company will host a conference call on May 16, 2022 at 8:00 a.m. ET to discuss financial and operating results for the first quarter.