Cansortium Inc. CNTMF TIUM, a vertically-integrated cannabis company operating under the Fluent brand, released its financial results for the second quarter ended June 30, 2022, revealing revenue increased 36% to $22.4 million compared to $16.5 million in Q2 2021.
Q2 2022 Financial Highlights (vs. Q2 2021)
Florida revenue increased 33% to $18.8 million compared to $14.2 million.
Adjusted gross profit increased 40% to $15.0 million or 67.0% of revenue, compared to $10.7 million or 65.1% of revenue.
Adjusted EBITDA increased 95% to $10.2 million or 45.4% of revenue, compared to $5.2 million or 31.7% of revenue.
Cash from operations increased significantly to $4.3 million compared to cash used of $(0.7) million.
At June 30, 2022, the company had approximately $8.9 million of cash and cash equivalents and $69.3 million of total debt, with approximately 252.3 million fully diluted shares outstanding (based on treasury stock method and share price on July 31, 2022).
In Florida, the company anticipates opening 4-5 new stores by the end of 2022. All of these locations are currently under contract and going through construction.
In Pennsylvania, the company opened its third dispensary in Annville in April.
In August, the company discontinued its operations in Michigan due to unfavorable market conditions. By ceasing operations in Michigan, Cansortium is expected to save approximately $500,000 in operating expenses per year.
"We generated a record quarter of results in Q2, highlighted by double-digit revenue growth, margin expansion and a material increase in adjusted EBITDA and cash flow generation," stated CEO Robert Beasley. "The investments we have made to add scale and improve cultivation in Florida are paying dividends. Our Sweetwater indoor cultivation facility is now fully operational and the yields in our Tampa facility have doubled from the start of 2022, all of which has led to dramatically improved productivity at the store level and a consistent increase in new patient count. In fact, revenue in Florida was up 16% from Q1 without adding a single new store during the quarter."
Beasley continued: "I am very proud of what our team has accomplished this year, however we still have significant room to grow. We remain on track to open 4-5 new stores in Florida by year-end, and the final phase of our cultivation expansion in Tampa is nearly complete. We expect product from this new space to hit shelves in the next couple of months, just in time for one of our strongest periods of the year in Florida as we enter the holidays."
The company continues to expect revenue in 2022 to range between $90-$95 million, reflecting an approximate 42% increase from 2021 at the midpoint. Cansortium also continues to expect adjusted EBITDA in 2022 to range between $25-$28 million, reflecting an approximate 35% increase from 2021.
Photo: Courtesy of CNW Group/Cansortium Inc
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