Columbia Care Reports Preliminary Full Year 2021 Results; Announces Revised Date for Fourth Quarter and Full Year 2021 Earnings Call
Columbia Care reports 2021 preliminary results, transitioning to U.S. GAAP. The company achieved record revenue of $460 million, a 156% increase YoY from $179.5 million. Adjusted EBITDA reached $58 million compared to a $109.9 million loss in 2020. The combined revenue for the year stands at $474 million, aligning with earlier IFRS guidance of $470M-$485M. The company anticipates fully compliant U.S. GAAP results to be released on March 24, 2022.
- Record revenue of $460 million, up 156% YoY.
- Adjusted EBITDA of $58 million, reversing a $109.9 million loss in 2020.
- Combined revenue of $474 million is in line with prior guidance.
- Net loss of $146.9 million, increasing from $119.6 million in 2020.
- Combined adjusted gross margin fell to 45.1% from a 46%+ target.
Company Now Reporting in
Full Year 2021 Combined Revenue of
Company Reports Preliminary
Full Year 2021 U.S. GAAP Preliminary Results
Year Ended |
||||||||
|
2021 |
|
2020 |
YoY Change |
||||
Revenue | $ |
460,080 |
$ |
179,503 |
|
|
||
Gross Profit | $ |
194,015 |
$ |
62,143 |
|
|
||
Net Loss | $ |
(146,853) |
$ |
(119,649) |
$ |
(27,204) |
||
EBITDA (Non-GAAP) | $ |
(63,698) |
$ |
(109,859) |
$ |
46,161 |
||
Adjusted EBITDA (Non-GAAP) | $ |
57,852 |
$ |
(19,800) |
$ |
77,652 |
Full Year 2021 IFRS Guidance and Preliminary Results
The following table represents a comparative between the Company’s preliminary results for the year ended
Metric | IFRS Guidance | IFRS Preliminary Results | ||
Combined Revenue | ||||
Combined Adjusted Gross Margin (Non-IFRS) (1) |
|
|||
Combined Adjusted EBITDA (Non-IFRS) | ||||
[1] Excludes changes in fair value of biological assets and inventory sold for all periods presented,
|
With respect to the table above, Combined Revenue, Combined Adjusted Gross Margin and Combined Adjusted EBITDA include dispensary operations in
See “Non-GAAP & Non-IFRS Financial Measures” at the end of this press release for more information regarding the Company’s use of non-GAAP and non-IFRS financial measures.
Conference Call and Webcast Details
The Company will host a conference call on
To access the live conference call via telephone, please dial 1-877-407-8914 (US Callers) or 1-201-493-6795 (international callers). A live audio webcast of the call will also be available in the Investor Relations section of the Company's website at https://ir.col-care.com/ or at https://themediaframe.com/mediaframe/webcast.html?webcastid=nUKUeVI9.
A replay of the audio webcast will be available in the Investor Relations section of the Company’s website approximately 2 hours after completion of the call and will be archived for 30 days.
Beginning with the quarter ended
A reconciliation of non-GAAP financial measures to their nearest comparable GAAP measure is included in this press release and a further discussion of these items will be contained in our annual report on Form 10-K.
Non-GAAP & Non-IFRS Financial Measures
In this press release,
With respect to non-GAAP financial measures, the Company defines EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization. Adjusted EBITDA is defined as EBITDA before (i) share-based compensation expense; (ii) goodwill impairment; (iii) fair value mark-up for acquired inventory (iv) acquisition and other non-core costs associated with our recent acquisitions, litigation expenses and COVID-19 expenses (v) fair value changes on derivative liabilities; (vi) impairment on disposal group; (vii) loss on conversion of convertible debt; (viii) earnout liability accrual; (ix) indemnification costs and (x) expenses relating to acquisition and settlement of pre-existing relationships. Adjusted Gross Margin is defined as gross margin before the fair mark-up for acquired inventory. With respect to non-IFRS financial measures, the Company defines Combined Adjusted Gross Margin and Combined Adjusted EBITDA as Adjusted Gross Margin and Adjusted EBITDA, respectively, before (i) net impact, fair value of biological assets and inventory sold; and (ii) impact of conversion for lease accounting from IFRS to
The Company views these non-GAAP and non-IFRS financial measures as a means to facilitate management’s financial and operational decision-making, including evaluation of the Company’s historical operating results and comparison to competitors’ operating results. These non-GAAP and non-IFRS financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to the corresponding GAAP and IFRS financial measure may provide a more complete understanding of factors and trends affecting the Company’s business. The determination of the amounts that are excluded from these non-GAAP and non-IFRS financial measures are a matter of management judgment and depend upon, among other factors, the nature of the underlying expense or income amounts. Because non-GAAP and non-IFRS financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety.
Reconciliations of non-GAAP financial measures to their nearest comparable GAAP measures, non-IFRS financial measures to their nearest comparable non-IFRS measures and GAAP and non-GAAP financial measures to IFRS and non-IFRS financial measures are included in this press release and a further discussion of some of these items will be contained in our annual report on Form 10-K.
About
Caution Concerning Forward-Looking Statements
This press release contains certain statements that constitute forward-looking information or forward looking statements within the meaning of applicable securities laws and reflect the Company’s current expectations regarding future events. Statements concerning Columbia Care’s objectives, goals, strategies, priorities, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of
The Company has made assumptions with regard to its ability to execute on initiatives, which although considered reasonable by the Company, may prove to be incorrect and are subject to known and unknown risks and uncertainties that may cause actual results, performance or achievements of the Company to be materially different from those expressed or implied by any forward-looking information. Securityholders should review the risk factors discussed under “Risk Factors” in Columbia Care’s Form 10 dated
The purpose of forward-looking statements is to provide the reader with a description of management's expectations, and such forward-looking statements may not be appropriate for any other purpose. In particular, but without limiting the foregoing, disclosure in this press release as well as statements regarding the Company's objectives, plans and goals, including timing for the filing of the Company’s annual report, timing for our conference call, future operating results and economic performance may make reference to or involve forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. No undue reliance should be placed on forward-looking statements contained in this press release. Such forward-looking statements are made as of the date of this press release.
TABLE 1 - REPORTED AND COMBINED REVENUE | |||||
(in US $ thousands, unaudited) | |||||
Year Ended |
|||||
|
2021 |
|
2020 |
||
Revenue, as reported | $ |
460,080 |
$ |
179,503 |
|
CannAscend revenues |
|
14,118 |
|
18,715 |
|
Eliminations |
|
(364) |
|
(309) |
|
Combined revenue (Non-GAAP) | $ |
473,834 |
$ |
197,909 |
|
TABLE 2 - RECONCILIATION OF US GAAP TO NON-GAAP MEASURES | |||||
(in US $ thousands, unaudited) | |||||
Year Ended |
|||||
|
2021 |
|
2020 |
||
Gross profit, as reported | $ |
194,015 |
$ |
62,143 |
|
CannAscend gross profit |
|
5,747 |
|
7,411 |
|
Eliminations |
|
(174) |
|
(185) |
|
Combined gross profit (Non-GAAP) | $ |
199,588 |
$ |
69,369 |
|
Fair value mark-up for acquired inventory |
|
7,663 |
|
3,111 |
|
Combined Adjusted gross profit (Non-GAAP) | $ |
207,251 |
$ |
72,480 |
|
Impact on conversion of lease accounting from IFRS to US GAAP |
|
6,311 |
|
3,629 |
|
Combined Adjusted gross profit (Non-IFRS) | $ |
213,562 |
$ |
76,109 |
|
Combined Adjusted gross margin (Non-IFRS) |
|
|
|
|
|
Net loss | $ |
(146,853) |
$ |
(119,649) |
|
Income tax expense |
|
139 |
|
(16,197) |
|
Depreciation and amortization |
|
53,002 |
|
19,651 |
|
Net interest and debt amortization |
|
30,014 |
|
6,336 |
|
EBITDA (Non-GAAP) | $ |
(63,698) |
$ |
(109,859) |
|
Share-based compensation |
|
25,018 |
|
29,805 |
|
|
72,328 |
|
- |
||
Fair value mark-up for acquired inventory |
|
7,663 |
|
3,111 |
|
Adjustments for acquisition and other non-core costs* |
|
9,954 |
|
7,477 |
|
Fair value changes on derivative liabilities |
|
(13,286) |
|
11,745 |
|
Impairment on disposal group |
|
2,000 |
|
1,969 |
|
Loss on conversion of convertible debt |
|
1,580 |
|
- |
|
Earnout liability accrual |
|
(59,362) |
|
21,757 |
|
Indemnification costs |
|
- |
|
14,195 |
|
Acquisition and settlement of pre-existing relationships |
|
75,655 |
|
- |
|
Adjusted EBITDA (Non-GAAP) | $ |
57,852 |
$ |
(19,800) |
|
Impact on conversion of lease accounting from IFRS to US GAAP |
|
24,248 |
|
15,662 |
|
Adjusted EBITDA (Non-IFRS) | $ |
82,100 |
$ |
(4,138) |
|
CannAscend Adjusted EBITDA (Non-GAAP) (Non-IFRS) |
|
3,156 |
|
3,357 |
|
Eliminations |
|
(190) |
|
(124) |
|
Combined Adjusted EBITDA (Non-GAAP) (Non-IFRS) | $ |
85,066 |
$ |
(905) |
Note: For the first six months of 2021, Combined Revenue includes
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Investor Contact
Investor Relations
+1.212.271.0915
ir@col-care.com
Media Contact
Communications
+1.978.662.2038
media@col-care.com
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