Blüm Holdings, Inc. Reports Third Quarter 2024 Financial Results, Highlighting Key Milestone in Debt Reduction, Continued Growth and Financial Stability
Blüm Holdings (OTCQB: BLMH) reported Q3 2024 financial results showing significant improvements. Revenue from continuing operations increased 15% quarter-over-quarter and 182% year-over-year. The company achieved a gross margin of 56% and reduced debt to $9.2 million, an 83% reduction since December 2021.
Notable developments include the consolidation of three Northern California stores, contributing approximately $3 million in quarterly revenue, and the sale of Blüm Oakland and San Leandro locations for $3.18 million. While subsidiary Unrivaled Brands filed for Chapter 11 bankruptcy, Blüm Holdings remains unaffected and continues normal operations.
Blüm Holdings (OTCQB: BLMH) ha riportato i risultati finanziari del terzo trimestre 2024 mostrando miglioramenti significativi. I ricavi dalle operazioni in corso sono aumentati del 15% rispetto al trimestre precedente e del 182% rispetto allo scorso anno. L'azienda ha raggiunto un margine lordo del 56% e ha ridotto il debito a $9,2 milioni, con una riduzione dell'83% rispetto a dicembre 2021.
Sviluppi notevoli includono la razionalizzazione di tre negozi nel nord della California, contribuendo con circa $3 milioni di ricavi trimestrali, e la vendita delle sedi di Blüm Oakland e San Leandro per $3,18 milioni. Mentre la controllata Unrivaled Brands ha presentato domanda di fallimento ai sensi del Capitolo 11, Blüm Holdings rimane non coinvolta e continua le operazioni normalmente.
Blüm Holdings (OTCQB: BLMH) informó resultados financieros del tercer trimestre de 2024 que muestran mejoras significativas. Los ingresos de las operaciones continuas aumentaron un 15% en comparación con el trimestre anterior y un 182% en comparación con el año anterior. La compañía logró un margen bruto del 56% y redujo su deuda a $9.2 millones, una reducción del 83% desde diciembre de 2021.
Desarrollos notables incluyen la consolidación de tres tiendas en el norte de California, contribuyendo aproximadamente con $3 millones en ingresos trimestrales, y la venta de las ubicaciones Blüm Oakland y San Leandro por $3.18 millones. Mientras la filial Unrivaled Brands presentó una solicitud de quiebra bajo el Capítulo 11, Blüm Holdings permanece sin afectaciones y continúa con sus operaciones normalmente.
블룸 홀딩스 (OTCQB: BLMH)는 2024년 3분기 재무 결과를 보고하며 상당한 개선을 보여주었습니다. 지속적인 운영에서의 수익은 전 분기 대비 15%, 전년 대비 182% 증가했습니다. 회사는 56%의 총 이익률을 달성했으며, 부채를 920만 달러로 줄여 2021년 12월 이후 83% 감소했습니다.
주목할 만한 발전으로는 북부 캘리포니아의 세 개 매장 통합이 있으며, 이로 인해 분기 수익이 약 300만 달러 증가했습니다. 그리고 블룸 오클랜드 및 샌리안드로 지점들이 318만 달러에 매각되었습니다. 자회사인 언리발드 브랜드가 챕터 11 파산신청을 했지만, 블룸 홀딩스는 영향을 받지 않고 정상 운영을 계속하고 있습니다.
Blüm Holdings (OTCQB: BLMH) a annoncé des résultats financiers pour le troisième trimestre 2024 montrant des améliorations significatives. Le chiffre d'affaires des opérations continues a augmenté de 15 % par rapport au trimestre précédent et de 182 % par rapport à l'année précédente. L'entreprise a atteint une marge brute de 56% et a réduit ses dettes à 9,2 millions de dollars, soit une réduction de 83 % depuis décembre 2021.
Parmi les développements notables, on trouve la consolidation de trois magasins dans le nord de la Californie, contribuant à environ 3 millions de dollars de chiffre d'affaires trimestriel, et la vente des emplacements de Blüm Oakland et San Leandro pour 3,18 millions de dollars. Bien que la filiale Unrivaled Brands ait déposé une demande de faillite en vertu du chapitre 11, Blüm Holdings reste non affectée et poursuit ses opérations normalement.
Blüm Holdings (OTCQB: BLMH) hat die finanziellen Ergebnisse des dritten Quartals 2024 veröffentlicht, die signifikante Verbesserungen zeigen. Der Umsatz aus fortgeführten Betrieben stieg im Quartalsvergleich um 15 % und im Jahresvergleich um 182 %. Das Unternehmen erreichte eine Bruttomarge von 56% und reduzierte die Schulden auf 9,2 Millionen Dollar, was einer Reduzierung von 83 % seit Dezember 2021 entspricht.
Bemerkenswerte Entwicklungen umfassen die Konsolidierung von drei Geschäften in Nordkalifornien, die zu einem Umsatz von etwa 3 Millionen Dollar im Quartal beigetragen haben, sowie den Verkauf der Standorte Blüm Oakland und San Leandro für 3,18 Millionen Dollar. Während die Tochtergesellschaft Unrivaled Brands einen Antrag auf Insolvenz nach Kapitel 11 gestellt hat, bleibt Blüm Holdings unberührt und setzt die normalen Abläufe fort.
- Revenue from continuing operations grew 182% year-over-year
- Gross margins improved to 56% in Q3 2024
- Debt reduced by 83% to $9.2 million from $55.5 million in December 2021
- SG&A expenses decreased to $14.8 million from $30.3 million year-over-year
- Northern California stores adding approximately $3 million in quarterly revenue
- Subsidiary Unrivaled Brands filed for Chapter 11 bankruptcy
- Unrivaled holds approximately $35.0 million in liabilities against $6.0 million in assets
- Divestiture of two retail locations (Oakland and San Leandro)
DOWNEY, Calif., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Blüm Holdings, Inc. (OTCQB: BLMH) (the “Company,” “Blüm”, “Blüm Holdings,” “we” or “us”), a California-based cannabis retailer and brand operator, announced its financial results for the third quarter ended September 30, 2024. These results reflect substantial progress in financial stability, operational efficiency, and continued momentum across Blüm's core retail and brand segments.
On November 6, 2024, Unrivaled Brands, Inc. ("Unrivaled") and Halladay Holding, LLC ("Halladay Holding") entered Chapter 11 protection. This filing is limited to Unrivaled and Halladay Holding, meaning only their assets and liabilities are included in the Debtor-in-Possession estates. The value of the assets held by Unrivaled and Halladay Holding is unknown but estimated to be approximately
Key Highlights for Third Quarter 2024
- Northern California stores: In Q3 2024, the Company aligned three Northern California stores with the Company’s standard operational protocols. This strategic move included streamlining discount structures, standardizing markups, reallocating staffing hours to peak operational periods, and deploying a consistent ERP system across all locations. These efforts contributed to improved efficiency and consistency across the stores.
- Improved Gross Margins: As a direct result, targeted pricing strategies, and operational realignment, the Company reported an increase in gross margins, reaching
56% in Q3 2024, compared to the previous quarter. - Revenue Growth: Revenues from continuing operations increased by
15% quarter-over-quarter, bolstered by the enhanced operational measures. Compared to the same period last year, revenues from continuing operations saw an impressive182% increase, driven by the consolidation of the Northern California stores and supported by growth in the Korova brand. - Cost Management and Expenditure Reduction: In line with the Company’s commitment to operational efficiency, management undertook a comprehensive review of expenses, aligning them closely with revenue generation. This process included two strategic workforce reductions in the third quarter and a targeted decrease in corporate overhead. These measures were designed to streamline costs and support sustainable growth. Selling, general, and administrative (SG&A) expenses decreased to
$14.8 million for the nine months ending September 30, 2024, down from$30.3 million in the prior-calendar year period, underscoring Blüm’s commitment to operational efficiency. - Debt Reduction Achieved: Blüm reduced its debt to
$9.2 million as of September 30, 2024, a68% reduction since the start of the year, and$55.5 million as of December 2021 an83% reduction, enhancing financial flexibility and positioning the Company to capitalize on growth opportunities. - Beginning Shareholder Base Broadening Strategy: Blüm initiated a strategy to expand its shareholder base by attracting retail investors with a goal to add 5,000 to 10,000 new retail shareholders and enhance the Company’s market presence.
- Reinvigorating the Korova Brand: The Company enhanced its Korova brand, leveraging the expertise of its original founders to reinforce Korova’s position as a leading premium cannabis brand in California through emphasis on potency, quality, and innovation.
Key Highlights Post-Third-Quarter 2024
- Operational Developments: Blüm executed initiatives to streamline operations and expand its market presence, including consolidating three Northern California dispensaries, adding approximately
$3 million in quarterly revenue. Efforts also focused on cost reductions, workforce optimization, and technology adoption. - Disposition of Blüm Oakland and Blüm San Leandro: On November 5, 2024, Blüm Holdings, through its subsidiary Unrivaled Brands, Inc., completed the sale of Blüm Oakland and Blüm San Leandro to VLPS, LLC for a combined
$3.18 million through liability assumption. This divestiture allows Blüm to optimize its retail footprint and focus on high-performing locations. - Unrivaled Brands Chapter 11 Bankruptcy: Earlier this month, Unrivaled Brands, Inc. filed for Chapter 11 bankruptcy due to lawsuits from People’s California LLC and activist investor Frank Kavanaugh. Despite these challenges, Blüm reduced total liabilities by
$59.1 million —from$125.3 million in December 2021 to approximately$66.2 million as of September 2024—demonstrating resilience and financial stability. This would be a net reduction of$90.8 million compared to pro forma liabilities as of September 30, 2024 of$34.5 million . Refer to the unaudited pro forma information as of September 30, 2024 below.
Patty Chan, Chief Financial Officer of Blüm Holdings, stated: “The Northern California stores and the implementation of consistent operational practices have significantly strengthened our financial and operational foundation. We are confident that these enhancements position us well for continued growth and profitability.”
About Blüm Holdings
Blüm Holdings is a leader in the cannabis sector. Our commitment to quality, innovation, and customer service makes us a trusted name in the cannabis industry, dedicated to shaping its future. Blüm Holdings, through its subsidiaries, operates leading dispensaries throughout California as well as several leading company-owned brands including Korova, known for its high potency products across multiple product categories, including the legendary 1000 mg THC Black Bar.
For more info, please visit: https://blumholdings.com.
Contact:
Jason Assad
LR Advisors LLC.
jassad@blumholdings.com
678-570-6791
Non-GAAP Financial Information
This press release includes certain non-GAAP financial measures as defined by the U.S. Securities and Exchange Commission (the “SEC”). Management believes that these non-GAAP financial measures assess the Company’s ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparing financial results across accounting periods and to those of peer companies. These non-GAAP financial measures exclude certain material non-cash items and certain other adjustments the Company believes are not reflective of its ongoing operations and performance. Management uses non-GAAP financial measures, in addition to GAAP financial measures, to understand operational decision-making, for planning and forecasting purposes, and to evaluate the Company’s financial performance. Management believes that these non-GAAP financial measures enhance investors’ understanding of the Company’s financial and operating performance and enable investors to evaluate the Company’s operating results and future prospects in the same manner as management. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.
Cautionary Language Concerning Forward-Looking Statements
Certain statements contained in this communication regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management's intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. The Company uses words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on the Company’s expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.
New factors emerge from time-to-time and it is not possible for the Company to predict all such factors, nor can the Company assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. These risks, as well as other risks associated with the combination, will be more fully discussed in the Company’s reports with the SEC. Additional risks and uncertainties are identified and discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC. Forward-looking statements included in this release are based on information available to the Company as of the date of this release. The Company undertakes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this release.
| (in thousands) | |||||||
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Current Assets | $ | 3,549 | $ | 4,693 | |||
| Long-Term Assets | 35,129 | 27,378 | |||||
| Total Assets | $ | 38,678 | $ | 32,071 | |||
| Current Liabilities | $ | 51,868 | $ | 62,548 | |||
| Long-Term Liabilities | 14,288 | 15,219 | |||||
| Total Liabilities | 66,156 | 77,767 | |||||
| Mezzanine Equity and Stockholders' Deficit | (27,478 | ) | (45,696 | ) | |||
| Total Liabilities and Stockholders' Deficit | $ | 38,678 | $ | 32,071 | |||
| (in thousands) | |||||||
| Three Months Ended | |||||||
| September 30, | June 30, | ||||||
| 2024 | 2024 | ||||||
| Revenue | $ | 4,364 | $ | 3,795 | |||
| Cost of Goods Sold | 1,916 | 2,203 | |||||
| Gross Profit | $ | 2,448 | $ | 1,592 | |||
| Gross Profit % | 56% | 42% | |||||
| Operating Expenses | 4,648 | 8,174 | |||||
| Loss from Operations | (2,200 | ) | (6,582 | ) | |||
| Less: Other (Income) Expense | 996 | (13,976 | ) | ||||
| Income (Loss) from Continuing Operations Before Taxes | (3,196 | ) | 7,394 | ||||
| Provision for Income Tax Expense for Continuing Operations | (431 | ) | (262 | ) | |||
| Net Income (Loss) from Continuing Operations | $ | (3,627 | ) | $ | 7,132 | ||
| Net Income (Loss) from Discontinued Operations, Net of Tax | (112 | ) | 16,232 | ||||
| Net Income (Loss) | (3,739 | ) | 23,364 | ||||
| Non-Controlling Interests | (395 | ) | (479 | ) | |||
| Net Income (Loss) Attributable to Blum Holdings, Inc. | $ | (3,344 | ) | $ | 23,843 | ||
| Basic and Diluted Loss per Share: | |||||||
| Net Income (Loss) from Continuing Operations per Common Share - Basic | $ | (0.40 | ) | $ | 0.78 | ||
| Net Income (Loss) from Continuing Operations per Common Share - Diluted | $ | (0.40 | ) | $ | 0.65 | ||
| September 30, 2024 | |||||||||||
| Less: Estimated | |||||||||||
| ($ in thousands) | Consolidated | Pro Forma Adjustments | Pro Forma Consolidated | ||||||||
| Current Assets | $ | 3,549 | $ | (1,197 | ) | $ | 2,352 | ||||
| Long-Term Assets | 35,129 | (10,109 | ) | 25,020 | |||||||
| Total Assets | $ | 38,678 | $ | (11,306 | ) | $ | 27,372 | ||||
| Current Liabilities | $ | 51,868 | $ | (26,824 | ) | $ | 25,044 | ||||
| Long-Term Liabilities | 14,288 | (4,837 | ) | 9,451 | |||||||
| Total Liabilities | $ | 66,156 | $ | (31,661 | ) | $ | 34,495 | ||||
The unaudited pro forma information is presented as if the Chapter 11 petition had occurred on September 30, 2024 and has been prepared to illustrate the estimated effects of the Chapter 11 petition. The estimated pro forma adjustments are based on available information and certain assumptions that management believes are reasonable and are expected to have a continuing impact on our results of operations. The unaudited pro forma information is not necessarily indicative of what the Company’s financial condition would have been for the period presented.
FAQ
What was Blüm Holdings (BLMH) revenue growth in Q3 2024?
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