AmeriCann Records Historic Quarterly Net Income and Revenue

Rhea-AI Summary

AmeriCann (ACAN) reported impressive quarterly results for Q2 2022, showcasing record high net income and revenue. Revenue surged over 36% year-over-year, reaching an increase of $213,188, with gross margins at 98.5%. July 2022 also marked an all-time monthly revenue record. The growth is attributed to operations at Building 1 of the Massachusetts Cannabis Center, fully occupied by Bask Inc. AmeriCann achieved positive Adjusted EBITDA of $438,890, an 84% rise from the previous year. The company is set to expand its operations with the upcoming Building 2, increasing cultivation infrastructure significantly.

Positive

• Record revenue and net income for Q2 2022, with revenue up over 36% year-over-year.
• Gross margins at 98.5%, indicating strong cost management.
• Achieved positive Adjusted EBITDA of $438,890, up 84% from Q2 2021.
• July 2022 revenue set an all-time monthly record.
• Plans for expansion with Building 2, adding 400,000 square feet of cultivation and distribution space.

Negative

• None.

Company achieved impressive quarterly growth for both net income and EBITDA

BOSTON, Aug. 16, 2022 (GLOBE NEWSWIRE) -- via InvestorWire -- AmeriCann Inc. (ACAN), a cannabis company that develops state-of-the-art cultivation, product manufacturing and distribution facilities, announces the release of financial and operational results for its fiscal quarter ending June 30, 2022.

Financial Overview

The Company achieved a significant increase in year-over-year quarterly net income and revenue, with both being records for the Company for the quarter ending June 2022. Revenue increased over 36% for the quarter ended June 2022 relative to the quarter ended June 2021, an increase of $213,188. Quarterly gross margins were 98.5%.

AmeriCann also announced that revenue for July 2022 set an all-time monthly record for the Company.

The increase in financial performance is attributable to greater revenue received from products produced and manufactured at Building 1, the Company's initial building at its Massachusetts Cannabis Center development in Freetown, Massachusetts.

Building 1 is a 30,000-square-foot cultivation greenhouse and processing facility that utilizes AmeriCann’s proprietary “Cannopy” cultivation system. Building 1 is fully occupied by Bask Inc., an existing Massachusetts licensed vertically integrated cannabis operator.

AmeriCann receives base rent and a Revenue Participation Fee of 15% of all gross monthly sales of cannabis, cannabis-infused products and non-cannabis products produced at the Massachusetts Cannabis Center. As operations commenced and accelerated at Building 1, AmeriCann established many milestones for its financial performance.

A summary of operational highlights included the following:

• AmeriCann’s Operating Revenue from Building 1 increased over 36% from the quarter ended June 30, 2021, to the quarter ending June 30, 2022. Net Income increased by $261,689 to $162,734.
  
  
• The Company achieved positive Adjusted EBITDA for the quarter of $438,890, an increase of 84% over the quarter ending June 2021. Adjusted Operating EBITDA margins for the quarter were 55.0%.
  
  
• The manufacturing of cannabis-infused products, including the 1906 branded “Drops,” Howl’s Tincture, and Harpoon Extracts, has increased dramatically at the Massachusetts Cannabis Center. Sales of manufactured infused products are expected to be even stronger as continual increases in production and sales for 1906 “Drops” are realized.
  
  
• The 1906 branded “Drops” has been the top-selling edible product in the Massachusetts market. Howl’s Tincture was the top-selling brand in the tincture category.
  
  
• For the first five months of 2022, the total cannabis sales revenue for the Massachusetts market was $708 million, which was 16% greater than the first five months of 2021. The annualized revenue estimate based on the first five months of 2022 is approximately $1.7 billion. Experts believe the market will exceed $1.8 billion annually.
  
  
• The total Massachusetts market has sold $3.2 billion since the inception of the Commonwealth’s regulated cannabis program.
  

See definitions of non-GAAP measures later in this release.

Management Commentary

“The June 2022 financial results highlight the strength of our operations,” said AmeriCann CEO and President Tim Keogh. “Record revenue, combined with our high gross margins and low operating costs, resulted in all-time profits and cash flow for the company. Additionally, July 2022 revenue, which was not included in the most recent quarterly financials, set a monthly record.”

AmeriCann is in the final design phase of the expansion of its MCC development in Freetown, Massachusetts. AmeriCann has secured cultivation and manufacturing licenses for Building 2 – the next phase of the Massachusetts Cannabis Center. Building 2 calls for approximately 400,000 additional square feet of cannabis cultivation, manufacturing and distribution infrastructure.

About AmeriCann

AmeriCann (OTCQB:ACAN) develops and leases cannabis cultivation, processing and product manufacturing facilities.

AmeriCann uses greenhouse technology which is superior to the current industry standard of growing cannabis in warehouse facilities under artificial lights. According to industry experts, by capturing natural sunlight, greenhouses use 25% fewer lights, and utility bills are up to 75% less than in typical warehouse cultivation facilities. As such, AmeriCann's Cannopy System enables cannabis to be produced with a greatly reduced carbon footprint, making the final product less expensive. Additionally, greenhouse construction costs are nearly half of warehouse construction costs.

AmeriCann is also designing GMP-Certified cannabis extraction and product manufacturing infrastructure. AmeriCann has secured licenses to produce cannabis-infused products including beverages, edibles, topicals and concentrates. AmeriCann plans to operate a Marijuana Product Manufacturing business at the Massachusetts Cannabis Center.

To learn more about the Massachusetts Cannabis Center click HERE to watch a short video.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.

About Non-GAAP Financial Measures

The Company uses "adjusted EBITDA," as a non-GAAP financial measure to evaluate financial performance such as period-to-period comparisons. This non-GAAP measure is not defined under U.S. GAAP and should be considered in addition to, not as a substitute for, indicators of financial performance reported in accordance with U.S. GAAP. The Company may use non-GAAP measures that are not comparable to measures with similar titles reported by other companies. Also, in the future, the Company may disclose different non-GAAP financial measures in order to help investors more meaningfully evaluate and compare the Company's future results of operations to its previously reported results. The Company encourages investors to review its financial statements and publicly filed reports in their entirety and not rely on any single financial measure. The section titled "Reconciliation of Non-GAAP Financial Measures" includes a detailed description of this measure as well as a reconciliation to its most similar U.S. GAAP measure.

Reconciliation of Non-GAAP Financial Measures

The Company defines adjusted EBITDA as net income adjusted to exclude the impact of interest expense, interest income, income taxes, depreciation, depletion and amortization, stock-based compensation, impairment, and the plus or minus change in fair value of derivative assets or liabilities. The Company believes adjusted EBITDA is relevant because it is a measure of cash flow available to fund capital expenditures and service debt and is a metric used by some industry analysts to provide a comparison of its results with its peers. The following table presents a reconciliation of the Company's non-GAAP financial measures to the nearest GAAP measure.

AMERICANN, INC.
Quarter Ending June 30, 2022 Highlights
June 2022 Q vs. June 2021 Q
		Quarters ended
		June 30, 2022				June 30, 2021				$ Change				% Change
Rental income - related party		$	797,734			$	584,546			$	213,188			36%
Net income (loss)		$	162,734			$	(98,955	)		$	261,689			264%
Interest income			(1,822	)			(4,392	)			2,570			59%
Interest expense			152,445				215,667				(63,222	)		-29
Interest expense - related party			13,052				13,051				1			0%
Depreciation and amortization			112,481				112,711				(230	)		-0
EBITDA		$	438,890			$	238,082			$	200,808			84%
EBITDA		$	438,890			$	238,082			$	200,808			84.3%
EBITDA Margin			55.0	%			40.7	%			94.2	%
Gross Margin			98.5	%			98.7	%			-0.2	%
June 2022 Q vs. March 2022 Q
		Quarters ended
		June 30, 2022				March 31, 2022				$ Change				% Change
Rental income - related party		$	797,734			$	667,366			$	130,368			20%
Net (loss) income		$	162,734			$	24,240			$	138,494			571%
Interest income			(1,822	)			(3,119	)			1,297			42%
Interest expense			152,445				151,089				1,356			1%
Interest expense - related party			13,052				12,907				145			1%
Depreciation and amortization			112,481				112,480				1			0%
EBITDA		$	438,890			$	297,597			$	141,293			47%
EBITDA		$	438,890			$	297,597			$	141,293			47.5%
EBITDA Margin			55.0	%			44.6	%			108.4	%
Gross Margin			98.5	%			98.4	%			0.1	%

 

Contact Information:
Corporate:
info@americann.co
www.americann.co
@ACANinfo on Twitter
@AmeriCann on Facebook
@AmeriCannInc on Instagram
AmeriCann, Inc on LinkedIn

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f7f67baa-00cc-473f-8dfc-eb50e4e7e114

FAQ

What were AmeriCann's Q2 2022 financial results?

AmeriCann reported a 36% increase in revenue year-over-year, reaching a record high, with net income also showing significant growth.

How much did AmeriCann's revenue increase in Q2 2022?

Revenue increased by $213,188, which is over 36% compared to Q2 2021.

What is the Adjusted EBITDA for AmeriCann in Q2 2022?

AmeriCann achieved an Adjusted EBITDA of $438,890, an 84% increase from the prior year.

What is the significance of Building 1 for AmeriCann?

Building 1 at the Massachusetts Cannabis Center is fully occupied by Bask Inc. and is crucial for AmeriCann's revenue generation.

What expansion plans does AmeriCann have?

AmeriCann is in the final design phase for Building 2, which will add 400,000 square feet for cultivation, manufacturing, and distribution.