Greenlane Expects Q3 Revenue At $40-$41M, Streamlines Operations For Stronger Balance Sheet

Cannabis company Greenlane Holdings, Inc. GNLN announced preliminary financial data Wednesday for its third quarter ended Sept. 30, with net sales expected to range between approximately $40 million and $41 million.

The results reflect roughly one month of combined operations following the successful merger of Greenlane and KushCo Holdings, Inc., which was completed on Aug. 31. The combined company, operating as Greenlane, brought together two of the pioneering cannabis ancillary product and service companies with more than 26 years of operating history to create an undisputed leader in the cannabis industry.

Nick Kovacevich, the company's CEO, said that a small part of Greenlane's legacy that competed with KushCo's packaging business was identified 

when the two companies merged.

"A significant portion of our rationalization work post-merger has been to eliminate the redundancies between those two units and to write off certain items that are not selling as efficiently," Kovacevich said. "We're paying close attention to items generating robust cash-to-cash cycles, taking out the lower-margin items that require us to invest significant working capital and instead reallocating those resources to higher-margin goods."

The initiative resulted in tightening up the company's SKU count and being more judicious with working capital while also "generating cash in a non-dilutive way by selling inventory that can fund our organic and inorganic growth initiatives," Kovacevich continued.

In addition, the initiative is expected to help the company achieve a stronger balance sheet.

Q3 2021 Preliminary (Unaudited) Financial Highlights

• GAAP gross margin of between approximately (2)% to 0%.
• Adjusted gross margin of between about 19% to 21%.
• Total cash balance of roughly $13 million.

Greenlane management will host a scheduled conference call and webcast on Tuesday, Nov. 16 at 8:30 a.m. EST. to discuss the results for its third quarter of fiscal 2021.

More recent news from Greenlane:

Greenlane And Cookies Founder Berner Collaborate On Newly Shaped Pre Roll - The Cali By VIBES

Greenlane To Acquire Portable Vaporizer Manufacturer DaVinci For Undisclosed Price

GNLN Price Action

Greenlane's shares traded 0.53% higher at $1.83 per share at the time of this writing Thursday mid-morning.

Photo: Courtesy of Colin Watts on Unsplash