MedMen Enterprises Inc. MMEN MMNFF announced a net revenue decline of 40% to $27.4 million in the fourth quarter.
The Los Angeles cannabis retailer blamed the revenue drop on the current health crisis stemming from the coronavirus pandemic.
In May, MedMen temporarily shut down five of its eight Florida-based stores due to the financial setbacks.
In addition, it estimates to achieve an increase of 37% in revenue over the first quarter of 2021.
"We made significant progress during the fourth quarter by focusing on retail profitability, optimizing our corporate infrastructure and strengthening our balance sheet ahead of an exciting new chapter for the Company," the company's Interim CEO Tom Lynch said in a prepared statement.
- Systemwide Revenue (including the company's operation in California, Nevada, New York, Illinois, and Florida) totaled $157.1 million for the full year, up by 31% compared to 2019
- Adjusted EBITDA (non-GAAP financial measure) was a loss of $116.1 million for the full year, versus a loss of $169.3 million in 2019
- Fourth-quarter gross margin was 40% versus 32% in the previous quarter
- Selling, general and administrative expenses (non-GAAP financial measure) for the quarter amounted to $13.7 million, down by 21% sequentially and 58% year-over-year
- Negative adjusted EBITDA (non-GAAP financial measure) of $23.3 million for the last three months of this fiscal year, versus a loss of $26.1 million in the prior period
- The company had $575.4 million in total assets as of June 27
Meanwhile, in August, MedMen tapped NBA Player and Viola Inc.'s founder Al Harrington to its board of directors.
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