Cansortium Inc. TIUM CNTMF, a vertically-integrated cannabis company operating under the Fluent brand, announced its financial and operating results for the third quarter ended September 30, 2022.
"We continued to execute on our profitability objectives during the third quarter, leading to another period of gross margin expansion and a record bottom line with strong cash flow generation," said CEO Robert Beasley.
Q3 2022 Financial Highlights (vs. Q3 2021)
- Revenue increased 42% to $22.1 million compared to $15.6 million.
- Florida's revenue increased 39% to $18.2 million compared to $13.1 million.
- Adjusted gross profit increased 71% to $16.7 million or 75.5% of revenue, compared to $9.8 million or 62.7% of revenue.
- Adjusted EBITDA increased 140% to a record $11.7 million or 53.1% of revenue, compared to $4.9 million or 31.3% of revenue.
- Cash from operations increased significantly to $5.4 million compared to cash used of $(4.2) million.
- On September 30, 2022, "the Company had approximately $9.1 million of cash and cash equivalents and $69.4 million of total debt, with approximately 252.3 million fully diluted shares outstanding (based on treasury stock method and share price on September 30, 2022)," according to a press release.
Operational Highlights: In Florida, the Company anticipates opening one new store by the end of 2022 and an additional three stores in the first half of 2023. All of these locations are currently under contract and going through construction.
Moreover, during the third quarter, Cansortium temporarily closed twelve of its dispensaries in Florida during Hurricane Ian. All of the Company's stores reopened on October 2
"Had it not been for Hurricane Ian driving store closures in late September, we would have generated our 11th consecutive quarter of revenue growth, so I am very pleased with our team's consistent effort to deliver on our goals," Beasley said.
Additionally, in Pennsylvania, the Company's newest dispensary in Annville is ramping up and achieved a record month of sales in October 2022.
2022 Outlook: Cansortium now expects revenue for 2022 to range between $85-$90 million. The Company also expects to close the year with Adjusted EBITDA exceeding its previously issued guidance of $25-$28 million for 2022.
"As we exit the year and look to 2023, we expect to continue opening new stores in Florida while driving organic growth in our three Pennsylvania dispensaries. We also have plans to begin building out our footprint in Texas and look forward to growing our presence in the state in 2023," Beasley concluded.
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