Columbia Care Reports Record Third Quarter 2021 Results
Columbia Care reported record financial results for Q3 2021 with revenues of $132.3 million, a 144% increase year-over-year and 21% sequential growth. Adjusted gross profit reached $64.5 million (up 205% YoY), achieving an adjusted gross margin of 49%.
Adjusted EBITDA was $31.0 million, reflecting a 634% YoY increase. The company revised its full-year 2021 revenue guidance to $470M - $485M due to regulatory delays and market dynamics. Key market highlights include significant growth in Florida and the opening of new dispensaries in New Jersey and Missouri.
- Record revenue of $132.3 million, a 144% YoY increase.
- Adjusted gross profit increased 205% YoY, reaching $64.5 million.
- Adjusted EBITDA surged 634% YoY, totaling $31.0 million.
- Adjusted gross margin improved to 49%, a 965 bps increase YoY.
- Expansion in markets like Florida and New Jersey, with new dispensaries opening.
- Revised 2021 revenue guidance down to $470M - $485M due to regulatory delays.
- Wholesale pricing pressures impacting revenue in California and Pennsylvania.
- Sequential revenue decline in several markets due to ADS contraction and discounting pressures.
-
Record Quarterly Revenue of
$132.3 Million 144% YoY,21% QoQ -
Record Quarterly Adjusted Gross Profit of
$64.5 Million 205% YoY,35% QoQ -
Record Adjusted Gross Margin of
49% , an Increase of 965bps YoY, 527bps QoQ -
Record Adjusted EBITDA of
$31.0 Million 634% YoY,89% QoQ -
Record Adjusted EBITDA Margin of
23% , an increase of 1,564bps YoY, 848bps QoQ -
Revises 2021 Guidance to
$470M $485M $85M $95M 46% Adjusted Gross Margin for Full Year 2021
“We are pleased to report accelerating momentum and another record quarter for
Vita continued, “In the third quarter, we opened new dispensaries in
“Our team continues to execute on our strategic objectives and to be the first to seize upon tactical milestones as they materialize. We were the first operator to offer whole flower in
Third Quarter 2021 Financial Highlights (in $ thousands, excl. margin items):
|
Q3 2021 (2) |
Q2 2021 (3) |
Q3 2020 (3) |
%QoQ |
%YoY |
|||
Revenue |
$ |
132,322 |
$ |
109,744 |
$ |
54,162 |
|
|
Adj. Gross Profit[1] |
$ |
64,462 |
$ |
47,678 |
$ |
21,157 |
|
|
Adj. Gross Margin[1] |
|
|
|
|
|
|
527 bps |
965 bps |
Adj. EBITDA |
$ |
31,022 |
$ |
16,422 |
$ |
4,226 |
|
|
[1] Excludes changes in fair value of biological assets and inventory sold for all periods presented, as well as |
[2] Represents Reported Results |
[3] Represents Combined Results, which include dispensary operations in |
Third quarter 2021 results include a full quarter of Green Leaf Medical. Since the close of the CannAscend transaction on
Top 5 Markets by Revenue[4]:
Top 5 Markets by Adjusted EBITDA[4]:
[4] Markets are listed alphabetically |
Select Market Highlights
- Cultivation upgrades to increase yield, efficiency, and quality of production in light of wholesale market softness and pricing pressure are nearly complete; awaiting approval for additional indoor cultivation capacity
-
Sequential revenue down
10% due to lower wholesale revenue, pricing pressure at the wholesale and retail level offset by record retail transaction volume - Gross margin impacted by declining wholesale prices due to supply glut and planned lower biomass output during cultivation upgrade efforts that were completed in early October; seeing early indications of gross margin improvement into Q4
-
Sequential revenue declined slightly due to retail softness from ADS contraction offset by increased transaction volume, up
160% YoY -
Gross margin stable as upgrades were completed in
Steele indoor cultivation facility; first significant harvest occurred in October -
Harvesting underway in
Trinidad with record grams per plant and THC levels vs historical metrics
-
Q3 revenue increased
241% over Q3 2020; following standout46% increase in revenue sequentially in Q2, sequential revenue declined7% in Q3 due to discounting pressures and softer ADS as we worked through existing legacy biomass and strains -
Nearly 1,700bps increase in gross margin quarter over quarter due to continued scale and yield improvements and discounting discipline;
Florida is now a Top 5 Market by Adj. Gross Margin - Continued focused on expanding product lines, increasing supply of edibles and other manufactured products across retail footprint to support continued market share gain
-
Sequential revenue increased
14% in Q3 and159% YoY, primarily driven by increased retail sales with transaction volumes up23% sequentially, offset by a decline in ADS -
Production efficiencies resulting in >
30% THC products and strong terpene profiles -
Jefferson Park dispensary expansion to triple the size of the space is expected to be completed in Q4 2021
-
With incorporation of gLeaf, sequential revenue increased more than
380% ;Maryland was a Top 5 contributor to EBITDA in Q3 - Vertical integration and robust wholesale distribution supported significant improvement in gross and EBITDA margins
-
Sequential revenue growth of
6% and19% YoY with record transaction volume and record wholesale revenue in the quarter - Adult use sales began at Boston Cannabist co-located dispensary in August
- Addition of automation equipment for flower and pre-roll, showed positive financial impact in Q3
-
Revenue increased
45% sequentially in Q3; gross margin continued to improve, increasing more than 2,700bps sequentially with record transaction volume and ADS -
Deptford Cannabist dispensary opened in August; third location in
Hamilton Township expected to open in Q1 2022 -
Second cultivation and production facility in
Vineland is under development and will provide 250,000sqft of additional canopy, manufacturing, and distribution space to support medical and adult-use in 2022
-
Revenue up
4% sequentially and43% YoY; gross margin improved 600bps with third consecutive quarter of increased ADS -
Cultivation operations began at
Long Island cultivation facility (~1M sqft) in September, with expected initial harvest in Q4 -
Flower sales began on
October 25 ;Columbia Care was first operator to offer whole flower sales inNew York -
As an existing
Registered Organization , we are in the process of locating four incremental medical dispensaries to add to our current four medical dispensaries; three of the added dispensaries will be co-located with adult-use for a total of eight dispensaries inNew York
-
Revenue increased
17% sequentially and83% YoY - Record transaction volumes offset by a decline in ADS
-
CannAscend and Corsa Verde acquisitions closed
July 1 , no longer reporting Combined metrics -
Columbia Care flower is available via wholesale in more than90% of all dispensaries in state -
Mt. Orab cultivation facility to have incremental canopy available by Q1 2022
-
Revenue increased
51% sequentially and85% YoY, including a full quarter of gLeaf -
Gross margin improved 1,350bps sequentially, as
Columbia Care is now vertically integrated in PA with the gLeaf’s 174,000sqft expansion underway, for a total of 274,000sqft upon completion -
gLeaf currently wholesales to nearly all dispensaries in
Pennsylvania (+95% ) - Introducing award winning Columbia Care brands and formats in PA in Q4 2021
-
Flower sales began
September 9 , which has driven revenue increase of225% QoQ, including gLeaf contribution followingJune 10 acquisition closing with record transaction volume and ADS - Sequential gross margin improvement of more than 5,500bps
-
Third dispensary opened in
Richmond suburb onNovember 8 , with two additional dispensaries expected to open by year-end; actively pursuing dispensary locations, for a total of 12 dispensaries betweenColumbia Care and gLeaf
2021 Outlook
Metric |
Previous Guidance |
Revised Guidance |
Revenue |
|
|
Adjusted Gross Margin |
|
|
Adjusted EBITDA |
|
|
The Company is revising its guidance for 2021, primarily driven by the impact of unanticipated regulatory delays, for example delays in opening of dispensaries in
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://78449.themediaframe.com/dataconf/productusers/colc/mediaframe/46646/indexl.html.
A replay of the audio webcast will be available in the Investor Relations section of the Company’s website approximately two hours after completion of the call and will be archived for 30 days.
Non-IFRS Financial Measures
In this press release,
About
Caution Concerning Forward-Looking Statements
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Statements concerning Columbia Care’s objectives, goals, strategies, priorities, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of
Certain material factors and assumptions were applied in providing these forward-looking statements. Forward-looking information involves numerous assumptions, including assumptions on revenue and expected gross margins, capital allocation, EBITDA break even targets and other financial results; growth of its operations via expansion; expectations for the potential benefits of any transactions including the acquisition of Green Leaf Medical; statements relating to the business and future activities of, and developments related to, the Company after the date of this press release, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company's business, operations and plans; expectations that planned acquisitions will be completed as previously announced; expectations regarding cultivation and manufacturing capacity; expectations regarding receipt of regulatory approvals; expectations that licenses applied for will be obtained; potential future legalization of adult-use and/or medical cannabis under
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 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.
This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Columbia Care’s Revenue, Gross Margins and Adjusted EBITDA, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Columbia Care’s future business operations.
| TABLE 1 - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in US $ thousands, except share and per share figures, unaudited) | ||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
|
|
|
|
|
|
||||||||||
| Revenue | $ |
132,322 |
|
$ |
48,703 |
|
$ |
320,804 |
|
$ |
103,439 |
|
||||
| Production costs |
|
(69,290 |
) |
|
(31,472 |
) |
|
(179,439 |
) |
|
(68,035 |
) |
||||
| Gross profit before fair value adjustments |
|
63,032 |
|
|
17,231 |
|
|
141,365 |
|
|
35,404 |
|
||||
| Fair value adjustments biological assets and inventory, net |
|
9,254 |
|
|
12,060 |
|
|
29,783 |
|
|
12,297 |
|
||||
| Gross profit |
|
72,286 |
|
|
29,291 |
|
|
171,148 |
|
|
47,701 |
|
||||
| Operating expenses |
|
(61,494 |
) |
|
(33,648 |
) |
|
(160,532 |
) |
|
(94,796 |
) |
||||
| Income (loss) from operations |
|
10,792 |
|
|
(4,357 |
) |
|
10,616 |
|
|
(47,095 |
) |
||||
| Other expense, net |
|
(60,135 |
) |
|
(6,864 |
) |
|
(76,024 |
) |
|
(11,477 |
) |
||||
| Income tax benefit (expense) |
|
12,160 |
|
|
(315 |
) |
|
2,021 |
|
|
(949 |
) |
||||
| Net loss |
|
(37,183 |
) |
|
(11,536 |
) |
|
(63,387 |
) |
|
(59,521 |
) |
||||
| Net loss attributable to non-controlling interests |
|
(998 |
) |
|
(681 |
) |
|
(1,628 |
) |
|
(4,422 |
) |
||||
| Net loss attributable to |
|
(36,185 |
) |
|
(10,855 |
) |
|
(61,759 |
) |
|
(55,099 |
) |
||||
| Weighted average common shares outstanding - basic and diluted |
|
325,416,684 |
|
|
235,682,767 |
|
|
311,446,922 |
|
|
223,461,261 |
|
||||
| Earnings per common share attributable to |
$ |
(0.11 |
) |
$ |
(0.05 |
) |
$ |
(0.20 |
) |
$ |
(0.25 |
) |
||||
| TABLE 2 - RECONCILIATION OF IFRS TO NON-IFRS MEASURES | ||||||||||||||||
| (in US $ thousands, unaudited) | ||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
|
|
|
|
|
|
||||||||||
| Net loss | $ |
(37,183 |
) |
$ |
(11,536 |
) |
$ |
(63,387 |
) |
$ |
(59,521 |
) |
||||
| Income tax expense |
|
(12,160 |
) |
|
315 |
|
|
(2,021 |
) |
|
949 |
|
||||
| Depreciation and amortization |
|
20,107 |
|
|
7,895 |
|
|
45,266 |
|
|
19,525 |
|
||||
| Net interest and debt amortization |
|
11,201 |
|
|
4,308 |
|
|
27,409 |
|
|
6,789 |
|
||||
| EBITDA | $ |
(18,035 |
) |
$ |
982 |
|
$ |
7,267 |
|
$ |
(32,258 |
) |
||||
| Share-based compensation |
|
4,993 |
|
|
7,218 |
|
|
17,833 |
|
|
22,341 |
|
||||
| Fair value adjustments biological assets and inventory, net |
|
(9,254 |
) |
|
(12,060 |
) |
|
(29,783 |
) |
|
(12,297 |
) |
||||
| Fair value mark-up for acquired inventory |
|
1,430 |
|
|
1,765 |
|
|
2,922 |
|
|
1,765 |
|
||||
| Adjustments for acquisition and other non-core costs |
|
3,009 |
|
|
2,616 |
|
|
8,102 |
|
|
3,483 |
|
||||
| Fair value changes on derivative liabilities |
|
(4,847 |
) |
|
2,556 |
|
|
(6,760 |
) |
|
2,556 |
|
||||
| Impairment on disposal group |
|
2,000 |
|
|
- |
|
|
2,000 |
|
|
1,969 |
|
||||
| Loss on conversion of convertible debt |
|
- |
|
|
- |
|
|
1,580 |
|
|
- |
|
||||
| Earnout liability accrual |
|
(23,583 |
) |
|
- |
|
|
(23,583 |
) |
|
- |
|
||||
| Acquisition and settlement of pre-existing relationships |
|
75,309 |
|
|
- |
|
|
75,309 |
|
|
- |
|
||||
| Adjusted EBITDA | $ |
31,022 |
|
$ |
3,077 |
|
$ |
54,887 |
|
$ |
(12,441 |
) |
||||
| TABLE 3 - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | ||||||||||||||||
| (in US $ thousands, unaudited) | ||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
|
|
|
|
|
|
||||||||||
| Net cash used in operating activities | $ |
19,256 |
|
$ |
(7,103 |
) |
$ |
4,289 |
|
$ |
(35,627 |
) |
||||
| Net cash used in investment activities |
|
(41,469 |
) |
|
5,810 |
|
|
(125,389 |
) |
|
(23,909 |
) |
||||
| Net cash provided by financing activities |
|
(9,606 |
) |
|
1,085 |
|
|
176,920 |
|
|
54,214 |
|
||||
| Net (decrease) increase in cash |
|
(31,819 |
) |
|
(208 |
) |
|
55,820 |
|
|
(5,322 |
) |
||||
| Cash balance - beginning of period |
|
148,750 |
|
|
42,350 |
|
|
61,111 |
|
|
47,464 |
|
||||
| Cash balance - end of period |
|
116,931 |
|
|
42,142 |
|
|
116,931 |
|
|
42,142 |
|
||||
| TABLE 4 - CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (SELECT ITEMS) | ||||||||||||||||
| (in US $ thousands, unaudited) | ||||||||||||||||
|
|
|||||||||||||||
| Cash | $ |
116,931 |
|
$ |
61,111 |
|
||||||||||
| Total current assets |
|
402,568 |
|
|
213,698 |
|
||||||||||
| Property and equipment, net |
|
258,730 |
|
|
114,400 |
|
||||||||||
| Right of use assets |
|
229,624 |
|
|
187,715 |
|
||||||||||
| Total assets |
|
1,483,860 |
|
|
792,591 |
|
||||||||||
| Total current liabilities |
|
294,032 |
|
|
148,966 |
|
||||||||||
| Total liabilities |
|
858,674 |
|
|
470,715 |
|
||||||||||
| Total equity |
|
625,186 |
|
|
321,876 |
|
||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20211112005432/en/
Investor Contact
Investor Relations
+1.212.271.0915
ir@col-care.com
Media Contact
+1.978.662.2038
media@col-care.com
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