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Quarterly Earnings: Vireo, Rubicon, TILT, Harborside

August 26, 2020 9:19 am
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Quarterly Earnings: Vireo, Rubicon, TILT, Harborside

As another busy week unfolds, several cannabis companies released their quarterly earnings reports. Here's a summary:

Vireo's Revenue Rose 70% YoY, Operating Cost Structure Improves

Cannabis company Vireo Health International Inc. (CSE:VREO) (OTCQX:VREOFrevealed Wednesday its total revenue, including contributions from discontinued operations, amounted to $12.2 million in the second quarter of 2020. 

That's up by 70% compared to the same period last year.

Its retail revenue increased by 46% over the year to roughly $9.2 million.

The Minneapolis-based company reported the gross profit (before fair value adjustments) of $3.5 million, or 32 % of revenue, versus $3 million in the second quarter of 2019.

Total operating expenses amounted to $15.4 million for the period ended June 30, while other expenses were $3.4 million.

Vireo posted a net loss of $7.7 million during the quarter.

"Our second-quarter results were in-line with our expectations both in terms of revenue growth and operating expenses," said Kyle Kingsley, M.D., the company's founder and CEO.

Meantime, in June, the co-founder and former CEO of Canopy Growth (NYSE: CGC), Bruce Linton, left the company after serving for seven months as executive chairman. Shortly after, Vireo hired John Heller as its new CFO.

Rubicon's Revenue Spikes 140% Sequentially

Rubicon Organics Inc. (CSE:ROMJ) (OTCQX:ROMJFreleased its second-quarter earnings report on Wednesday.

The Vancouver-based company reported a 140% sequential increase in gross revenue over the period to CA$1.2 million. 

Rubicon also posted a net loss of CA$1.8 million for the quarter, compared to a loss of around CA$3.8 million in the same quarter last year.

Other quarterly highlights include achieving the first full quarter of fully planted cultivation at its Delta, British Columbia-based facility, obtaining of Health Canada's medical sales license, and completion of previously upsized $13.5 million private placement, to name a few.

In addition, the company also formed and expanded its distribution channels within Canada.

"Our team at Rubicon Organics achieved a number of very significant milestones," commented the company's CEO Jesse McConnell.

TILT Revenue Drops By 9% Sequentially To $38.6M In Q2

TILT Holdings Inc. (CSE:TILT) (OTCQB:TLLTF), which recently welcomed 'Diddy' Protégé Dia Simms to its board of directors, disclosed Tuesday second quarter and half-year financial and operating results.

Its revenue dropped by 9% sequentially and 1% over the year to $38.6 million during the quarter.

Moreover, cannabis revenues for the first six months of 2020 were up by 196% year-over-year.

The Phoenix-based company posted a gross margin of 28.3%, up by 63 bps compared to the previous quarter, and 384 bps from the corresponding quarter of 2019.

Positive adjusted EBITDA was $1.2 million, down by $500,000 sequentially, and up by $5.2 million over the year.

The company's cash and cash equivalents increased $2.1 million, or 25% over the quarter to $10.5 million.

In addition, operating expenses declined by 76% year-over-year.

Mark Scatterday, the company's CEO, said that they generated positive adjusted EBITDA "for a second consecutive quarter…while navigating the effects COVID-19." 

Harborside Posts Revenue of $14.6M In Q1

Cannabis company Harborside Inc. (CSE:HBOR) reported its retail revenue amounted to $10.2 million in the first quarter of 2020, while wholesale revenue was around $4.4 million, before excise taxes.

That's a year-over-year increase of 23% and 57%, respectively.

Over the period, combined gross profit (non-IFRS measure), before biological asset adjustment, was $5 million versus $3.4 million in the same quarter last year.

Total operating expenses amounted to approximately $6.2 million, compared to roughly $6.9 million in the corresponding quarter of 2019. The Oakland, California-based company disclosed positive adjusted EBITDA (non-IFRS measure) of $0.432 million during the quarter, compared to a loss of around $2.4 million in the same quarter last year. Harborside estimates its cash position at roughly $13.6 million at June 30.

"I'm extremely proud of the incredible work the entire Harborside team continues to do to achieve the strong financial results we have published today," Peter Bilodeau, the company's chairman, and interim CEO, said Wednesday.

Meanwhile, the company tapped Peter Kampian to its board. Kampian brings years of financial executive experience. Earlier this year, Bloom Farms' Alexis Mora joined the company as the Head of Marketing.

Consortium Doubles Last Year's Revenue, Posts Half-Year Revenue

Consortium Inc. (CSE:TIUM) (OTCQB:CNTMF) announced Wednesday its earnings report for the second quarter and the first six months of fiscal 2020.

The Miami-based vertically-integrated medical cannabis company saw a 117% increase in consolidated revenue over the year, to $13.2 million in the second quarter. For the first half of 2020, the company posted consolidated revenue of $23.4 million. For the second quarter, consolidated income from operations amounted to $0.8 million, versus a loss from operations of $8.1 million in the same period of 2019.

Consolidated adjusted EBITDA (non-IFRS measure) was $2.6 million, compared to a loss of $1.7 million in the corresponding quarter of last year.

During the quarter, consolidated net loss was $5.5 million. For the first six months of this fiscal year, net loss amounted to $19.4 million. "We delivered strong results during the second quarter of 2020.

"Revenue more than doubled from a year ago and we continue to make significant improvements to deliver the 2020 projected financial results," noted CEO Marcos Pedreira.