Harvest Health Posts Q4 Results, CEO Addresses Recent Litigation

Cannabis operator Harvest Health & Recreation Inc. HARV HRVSF reported fourth-quarter revenue of $37.8 million Tuesday, up 123% from the same period in 2018.

For the full year, the Phoenix, Arizona-based company reported revenue of $116.8 million versus $47 million in the prior year.

Harvest Health posted a quarterly adjusted EBITDA loss of $6.8 million and a full-year adjusted EBITDA loss of $34.8 million versus an adjusted EBITDA loss of $10.9 million in the previous quarter and adjusted EBITDA of $7.9 million in 2018.

Harvest Health posted a net loss of $88.9 million for the quarter, which compares to a net loss of $71.1 million in the corresponding period of 2018. For the full year, its net loss amounted to $173.5 million, compared to a net loss of $67.5 million in the prior year.

Harvest Health CEO Steve White called 2019 "an important investment year," citing a broader retail presence, expanded manufacturing operations and "a return to profitability."

During the company’s conference call, White said Harvest is in litigation with Interurban Capital Group, the service providers of cannabis retailer Have a Heart, which Harvest acquired in March.

White said both companies agreed on a plan to "dispose of nonperforming assets,” but when they started to enact the plan, “it precipitated litigation with some of the former owners and license holders of that organization.”

While no particular details regarding the litigation were disclosed, White said he is optimistic about the outcome.

"We anticipate we will ultimately prevail with that litigation.”

Ex-Interurban employees told Marijuana Business Daily that Harvest has laid off 80% of the corporate staff at Seattle-based Have a Heart, while a Harvest spokesman said it cut 47%.

Photo courtesy of Harvest.