Curaleaf Reports Third Quarter 2024 Results
Curaleaf Holdings reported Q3 2024 results with revenue of $331 million, down 1% year-over-year, and adjusted gross margin of 49%, up 312 basis points. International revenue grew 82% year-over-year to $30 million. The company secured a $40 million revolving credit facility at 7.99% interest rate. Q3 highlights include net loss of $44 million, adjusted EBITDA of $75.3 million (23% margin), and cash balance of $90 million. Year-to-date operating cash flow reached $119 million with free cash flow of $53 million. The company expanded operations by opening new dispensaries in New York and Florida, bringing total U.S. retail stores to 151.
Curaleaf Holdings ha riportato i risultati del terzo trimestre 2024, con ricavi di 331 milioni di dollari, in calo dell'1% rispetto all'anno precedente, e un margine lordo rettificato del 49%, in aumento di 312 punti base. I ricavi internazionali sono cresciuti dell'82% anno su anno, raggiungendo i 30 milioni di dollari. L'azienda ha assicurato una linea di credito revolving di 40 milioni di dollari con un tasso d'interesse del 7,99%. I punti salienti del Q3 includono una perdita netta di 44 milioni di dollari, EBITDA rettificato di 75,3 milioni di dollari (margine del 23%) e un saldo di cassa di 90 milioni di dollari. Fino ad oggi, il flusso di cassa operativo ha raggiunto i 119 milioni di dollari, con un flusso di cassa libero di 53 milioni di dollari. L'azienda ha ampliato le operazioni aprendo nuovi negozi a New York e Florida, portando il numero totale di negozi al dettaglio negli Stati Uniti a 151.
Curaleaf Holdings informó los resultados del tercer trimestre de 2024 con ingresos de 331 millones de dólares, una disminución del 1% en comparación con el año anterior, y un margen bruto ajustado del 49%, un aumento de 312 puntos base. Los ingresos internacionales crecieron un 82% en comparación con el año anterior, alcanzando los 30 millones de dólares. La compañía aseguró una línea de crédito revolvente de 40 millones de dólares con una tasa de interés del 7.99%. Los aspectos destacados del tercer trimestre incluyen una pérdida neta de 44 millones de dólares, un EBITDA ajustado de 75.3 millones de dólares (margen del 23%) y un saldo de efectivo de 90 millones de dólares. El flujo de efectivo operativo hasta la fecha alcanzó los 119 millones de dólares, con un flujo de efectivo libre de 53 millones de dólares. La empresa expandió sus operaciones abriendo nuevas dispensas en Nueva York y Florida, llevando el total de tiendas minoristas en EE. UU. a 151.
큐레리프 홀딩스는 2024년 3분기 실적을 발표했으며, 매출은 3억 3천 1백만 달러로 전년 대비 1% 감소했으며, 조정된 총 매출 이익률은 49%로 312 베이시스 포인트 증가했습니다. 해외 매출은 전년 대비 82% 증가하여 3천만 달러에 달했습니다. 회사는 7.99% 이자율로 4천만 달러의 회전 신용 시설을 확보했습니다. 3분기 주요 내용으로는 4천4백만 달러의 순손실, 7530만 달러의 조정된 EBITDA(23%의 이익률), 9천만 달러의 현금 잔고가 포함됩니다. 연초부터 현재까지 운영 현금 흐름은 1억 1천9백만 달러에 이르렀으며, 자유 현금 흐름은 5천3백만 달러입니다. 회사는 뉴욕과 플로리다에 새로운 약국을 개설하여 미국의 소매점 총수를 151개로 늘렸습니다.
Curaleaf Holdings a publié ses résultats du troisième trimestre 2024 avec un chiffre d'affaires de 331 millions de dollars, en baisse de 1% par rapport à l'année précédente, et une marge brute ajustée de 49%, en augmentation de 312 points de base. Le chiffre d'affaires international a augmenté de 82% d'une année sur l'autre, atteignant 30 millions de dollars. L'entreprise a sécurisé une ligne de crédit renouvelable de 40 millions de dollars à un taux d'intérêt de 7,99%. Les temps forts du T3 incluent une perte nette de 44 millions de dollars, un EBITDA ajusté de 75,3 millions de dollars (marge de 23%) et un solde de trésorerie de 90 millions de dollars. Depuis le début de l'année, le flux de trésorerie d'exploitation a atteint 119 millions de dollars avec un flux de trésorerie libre de 53 millions de dollars. L'entreprise a élargi ses opérations en ouvrant de nouveaux dispensaires à New York et en Floride, portant le total des magasins de détail aux États-Unis à 151.
Curaleaf Holdings hat die Ergebnisse des dritten Quartals 2024 bekannt gegeben, mit einem Umsatz von 331 Millionen Dollar, was einem Rückgang von 1% im Vergleich zum Vorjahr entspricht, sowie einer bereinigten Bruttomarge von 49%, was einem Anstieg um 312 Basispunkte entspricht. Der internationale Umsatz wuchs im Jahresvergleich um 82% auf 30 Millionen Dollar. Das Unternehmen sicherte sich eine revolvierende Kreditlinie von 40 Millionen Dollar zu einem Zinssatz von 7,99%. Zu den Highlights des dritten Quartals gehören ein Nettoverlust von 44 Millionen Dollar, ein bereinigtes EBITDA von 75,3 Millionen Dollar (23% Marge) und ein Barguthaben von 90 Millionen Dollar. Der operative Cashflow bis heute erreichte 119 Millionen Dollar mit einem freien Cashflow von 53 Millionen Dollar. Das Unternehmen hat seine Aktivitäten durch die Eröffnung neuer Verkaufsstellen in New York und Florida ausgeweitet, wodurch die Gesamtanzahl der Einzelhandelsgeschäfte in den USA auf 151 gestiegen ist.
- International revenue growth of 82% year-over-year to $30 million
- Adjusted gross margin improved by 312 basis points to 49%
- Secured $40 million revolving credit facility at 7.99% interest rate
- Strong operating cash flow of $119 million year-to-date
- Retail expansion with new store openings, reaching 151 U.S. locations
- Revenue declined 1% year-over-year to $331 million
- Net loss of $44 million in Q3 2024
- Sequential revenue decrease of 3% from previous quarter
Third quarter 2024 revenue of
Third quarter International revenue increased
Year to date operating cash flow from continuing operations of
Secured
Boris Jordan, Chairman and CEO of Curaleaf, stated, "Third quarter revenue was
Third Quarter 2024 Financial Highlights
- Net Revenue of
, a year-over-year decrease of$330.5 million 1% compared to Q3 2023 revenue of . Sequentially, net revenue decreased$333.2 million 3% - Gross profit of
and gross margin of$160.5 million 49% - Adjusted gross profit(1) of
and adjusted gross margin(1) of$161.3 million 49% , an increase of 312 basis points year-over-year - Net loss attributable to Curaleaf Holdings, Inc. of
from continuing operations or net loss per share from continuing operations of$44 million $0.07 - Adjusted EBITDA(1) of
and adjusted EBITDA margin([1]) of$75.3 million 23% , a 23 basis point increase year-over-year - Cash at quarter end totaled
$90.0 million - Operating and free cash flow from continuing operations of
and$42.3 million , respectively$14.5 million
_________________________ | |
1 | Adjusted EBITDA, adjusted gross profit and free cash flow from continuing operations are non-GAAP financial measures, and adjusted EBITDA margin and adjusted gross margin are non-GAAP financial ratios, in each case without a standardized definition under GAAP and which may not be comparable to similar measures used by other issuers. See "Non-GAAP Financial Performance Measures" below for definitions and more information regarding Curaleaf's use of non-GAAP financial measures and non-GAAP financial ratios. See "Reconciliation of Non-GAAP financial measures" below for a reconciliation of each non-GAAP financial measure used in this press release from the most directly comparable GAAP financial measure. |
Nine Months Ended September 30, 2024 Financial Highlights
- Net revenue of
, a$1,011.7 million 1% increase year-over-year - Gross profit of
and gross margin of$481.9 million 48% - Adjusted gross profit(1) of
and adjusted gross margin(1) of$485.8 million 48% - Operating cash flow from continuing operations of
and free cash flow from continuing operations of$118.6 million $53.0 million - Net loss attributable to Curaleaf Holdings, Inc. of
from continuing operations or net loss per share from continuing operations of$144 million $0.20 - Adjusted EBITDA(1) of
and adjusted EBITDA margin of$225.0 million 22%
Third Quarter 2024 Operational Highlights
- In
New York , opened two new dispensaries in Rochester andSyracuse and expanded adult-use sales in two existing stores. - Commenced adult-use sales in
Ohio to wholesale customers and at our two retail dispensaries inNewark andCuyahoga Falls . - In
Florida , opened two new dispensaries inPensacola andDestin , bringing the total to 150 U.S. retail stores at quarter end. - Launched JAMS Remix, a new line of flavor-forward jellies in New
York, Arizona ,Illinois ,Connecticut , andMassachusetts .
Post Third Quarter 2024 Operational Highlights
- In
Florida , opened two new dispensaries inPort St. Lucie andMiami , bringing the state total to 66 retail stores and theU.S. total to 151 U.S. retail stores. - Successfully introduced Curaleaf flower into the German market.
- Rebranded our three
Nevada stores to Curaleaf stores. - Secured a
revolving credit facility with a major commercial regional bank at a$40 million 7.99% interest rate that matures December 15, 2026, a milestone for a cannabis company.
Third Quarter 2024 Revenues, net by Segment
Domestic | International | Total | |||
Retail revenue | $ 243,253 | $ 9,997 | $ 253,250 | ||
Wholesale revenue | 57,199 | 18,484 | $ 75,683 | ||
Other | 504 | 1,093 | $ 1,597 | ||
Total revenues, net | $ 300,956 | $ 29,574 | $ 330,530 |
Balance Sheet and Cash Flow
As of September 30, 2024, the Company had
During the nine months ended September 30, 2024, Curaleaf invested
Shares Outstanding
For the third quarter of 2024 and 2023, the Company's weighted average Subordinate Voting Shares plus Multiple Voting Shares outstanding amounted to 742,535,355 and 725,319,477 shares, respectively.
Conference Call Information
The Company will host a conference call and audio webcast for investors and analysts on Wednesday, November 6, 2024 at 5:00 P.M. ET to discuss Q3 2024 earnings results. The call can be accessed by dialing 1-844-512-2926 in the
A replay of the conference call can be accessed at 1-877-344-7529 in the
A webcast of the call can be accessed on the investor relations section of the Curaleaf website at ir.curaleaf.com. The teleconference will be available for replay starting at approximately 7:00 P.M. ET on November 6, 2024 and will end at 11:59 P.M. ET on November 13, 2024.
Non-GAAP Financial and Performance Measures
Curaleaf reports its financial results in accordance with GAAP and uses a number of financial measures and ratios when assessing its results and measuring overall performance. Some of these financial measures and ratios are not calculated in accordance with GAAP. Curaleaf refers to certain non-GAAP financial measures and ratios, such as "adjusted gross profit", "adjusted gross margin", "adjusted EBITDA", "adjusted EBITDA margin" and "Free cash flow from operations". These measures do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other issuers. The Company defines "adjusted gross profit" as gross profit net of cost of goods sold and related other add-backs. "Adjusted gross margin" is defined by Curaleaf as adjusted gross profit divided by total revenues. "Adjusted EBITDA" is defined by Curaleaf as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and other add-backs related to business development, acquisition, financing and reorganization costs. "Adjusted EBITDA margin" is defined by Curaleaf as adjusted EBITDA divided by total revenue. "Free cash flow from operations" is defined by Curaleaf as Net cash provided by operating activities from continuing operations less the Purchases of property, plant and equipment (i.e. net capital expenditures). Curaleaf considers these measures to be an important indicator of the financial strength and performance of our business. We believe the adjusted results presented provide relevant and useful information for investors, because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, our reported GAAP financial results as indicators of our performance, and they may not be comparable to similarly named measures from other companies. The tables below provide reconciliations of Non-GAAP measures to the most directly comparable GAAP measures.
Reconciliation of Non-GAAP financial measures | |||||
Adjusted Gross Profit from Continuing Operations (Unaudited) | |||||
($ thousands) | |||||
Three Months Ended | |||||
September 30, | June 30, 2024 | September 30, | |||
Gross profit from continuing operations | $ 160,516 | $ 160,465 | $ 150,052 | ||
Other add-backs(1) | 772 | 2,662 | 2,121 | ||
Adjusted gross profit from continuing operations(2) | $ 161,288 | $ 163,127 | $ 152,173 | ||
Adjusted gross profit margin from continuing operations(2) | 49 % | 48 % | 46 % |
(1) Other add-backs in Q3 2024 primarily include labor and overhead write-downs primarily associated with idling capacity. | |||||
(2) Represents a Non-GAAP measure or Non-GAAP ratio. See preceding "Non-GAAP Financial and Performance Measures" section for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Gross profit from continuing operations, the most comparable GAAP measure, to Adjusted gross profit from continuing operations, a non-GAAP measure. |
Gross profit from continuing operations was
Nine months ended September 30, | |||
2024 | 2023 | ||
Gross profit from continuing operations | $ 481,885 | $ 458,257 | |
Other add-backs(1) | 3,945 | 6,434 | |
Adjusted gross profit from continuing operations(2) | $ 485,830 | $ 464,691 | |
Adjusted gross profit margin from continuing operations(2) | 48 % | 46 % |
(1) Other add-backs for the nine months ended September 30, 2024 primarily include inventory and labor write-downs primarily associated with idling capacity. | |||
(2) Represents a Non-GAAP measure or Non-GAAP ratio. See preceding "Non-GAAP Financial and Performance Measures" section for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Gross profit from continuing operations, the most comparable GAAP measure, to Adjusted gross profit from continuing operations, a non-GAAP measure. |
Gross profit from continuing operations was
Adjusted EBITDA (Unaudited) | |||||
($ thousands) | |||||
Three Months Ended | |||||
September 30, | June 30, 2024 | September 30, | |||
Net loss | $ (42,728) | $ (49,830) | $ (93,729) | ||
Net income (loss) from discontinued operations | 1,620 | (1,277) | (25,915) | ||
Net loss from continuing operations | (44,348) | (48,553) | (67,814) | ||
Interest expense, net | 25,097 | 24,810 | 23,581 | ||
Provision for income taxes | 32,566 | 31,391 | 31,860 | ||
Depreciation and amortization(1) | 54,612 | 52,272 | 45,804 | ||
Share-based compensation | 6,017 | 6,843 | 6,222 | ||
Loss on impairment | 642 | 1,774 | 24,790 | ||
Other (income) expense, net | (4,728) | (1,908) | 2,796 | ||
Other add-backs(2) | 5,435 | 6,334 | 8,018 | ||
Adjusted EBITDA(3) | $ 75,293 | $ 72,963 | $ 75,257 | ||
Adjusted EBITDA Margin(3) | 23 % | 21 % | 23 % |
(1) Depreciation and amortization expense include amounts charged to Cost of goods sold on the statement of operations. | |||||
(2) Other add-backs in Q3 2024 primarily include costs related to salaries and benefits, legal and professional fees and lobbyist/PR spend. | |||||
(3) Represents a non-GAAP measure or Non-GAAP ratio. See "Non-GAAP Financial and Performance Measures" below for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Net loss, the most comparable GAAP measure to Adjusted EBITDA, a non-GAAP measure. |
Adjusted EBITDA held steady at
Nine months ended September 30, | |||
2024 | 2023 | ||
Net loss | $ (143,534) | $ (224,690) | |
Net income (loss) from discontinued operations | 910 | (46,410) | |
Net loss from continuing operations | (144,444) | (178,280) | |
Interest expense, net | 75,669 | 71,935 | |
Provision for income taxes | 104,046 | 114,540 | |
Depreciation and amortization(1) | 158,343 | 144,497 | |
Share-based compensation | 20,369 | 14,178 | |
(Gain) loss on impairment | (1,543) | 24,790 | |
Other income, net | (4,250) | (4,070) | |
Other add-backs(2) | 16,809 | 35,422 | |
Adjusted EBITDA(3) | $ 224,999 | $ 223,012 | |
Adjusted EBITDA Margin(3) | 22 % | 22 % |
(1) Depreciation and amortization expense include amounts charged to Cost of goods sold on the statement of operations. | |||
(2) Other add-backs in the current nine months ended primarily include costs related to salaries and benefits, inventory, legal and professional fees and lobbyist/PR spend. | |||
(3) Represents a non-GAAP measure or Non-GAAP ratio. See "Non-GAAP Financial and Performance Measures" below for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Net loss, the most comparable GAAP measure, to Adjusted EBITDA, a non-GAAP measure. |
Adjusted EBITDA was
Free Cash Flow (Unaudited) | |
($ thousands) | |
Nine months ended September 30, 2024 | |
Net cash provided by operating activities from continuing operations | $ 118,585 |
Less: Capital expenditures | (65,558) |
Free cash flow from continuing operations(1) | $ 53,027 |
(1) Represents a Non-GAAP measure or Non-GAAP ratio. See "Non-GAAP Financial and Performance Measures" above for definitions and more information regarding Curaleaf's use of Non-GAAP financial measures and Non-GAAP ratios. The table above provides a reconciliation of Net cash provided by operating activities from continuing operations, a GAAP measure, to Free cash flow from continuing operations, a non-GAAP measure. |
Condensed Interim Consolidated Balance Sheets (Unaudited) | |||
($ thousands) | As of | ||
September 30, 2024 | December 31, 2023 | ||
Unaudited | Audited | ||
Assets | |||
Cash, cash equivalents and restricted cash | $ 89,968 | $ 91,818 | |
Other current assets | 332,250 | 326,785 | |
Property, plant and equipment, net | 596,742 | 571,627 | |
Right-of-use assets, finance lease, net | 132,974 | 143,203 | |
Right-of-use assets, operating lease, net | 116,818 | 118,435 | |
Intangible assets, net | 1,126,917 | 1,172,445 | |
Goodwill | 634,617 | 626,628 | |
Other long-term assets | 44,296 | 45,635 | |
Total assets | $ 3,074,582 | $ 3,096,576 | |
Liabilities, Temporary equity and Shareholders' equity | |||
Total current liabilities | $ 379,259 | $ 494,034 | |
Total long-term liabilities | 1,610,664 | 1,431,250 | |
Total shareholders' equity | 958,923 | 1,050,642 | |
Redeemable non-controlling interest contingency | 125,736 | 120,650 | |
Total liabilities, temporary equity and shareholders' equity | $ 3,074,582 | $ 3,096,576 |
Condensed Interim Consolidated Statements of Operations (Unaudited) | |||||||
($ thousands, except for share and per share amounts) | |||||||
Three months ended | Nine months ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues, net: | |||||||
Retail and wholesale revenues | $ 328,933 | $ 331,796 | $ 1,007,348 | $ 997,100 | |||
Management fee income | 1,597 | 1,376 | 4,400 | 4,263 | |||
Total revenues, net | 330,530 | 333,172 | 1,011,748 | 1,001,363 | |||
Cost of goods sold | 170,014 | 183,120 | 529,863 | 543,106 | |||
Gross profit | 160,516 | 150,052 | 481,885 | 458,257 | |||
Operating expenses: | |||||||
Selling, general and administrative | 106,297 | 97,120 | 320,196 | 316,315 | |||
Share-based compensation | 6,017 | 6,222 | 20,369 | 14,178 | |||
Depreciation and amortization | 38,973 | 31,497 | 111,842 | 98,849 | |||
Total operating expenses | 151,287 | 134,839 | 452,407 | 429,342 | |||
Income from operations | 9,229 | 15,213 | 29,478 | 28,915 | |||
Other income (expense): | |||||||
Interest income | 274 | — | 601 | 23 | |||
Interest expense | (15,085) | (13,078) | (45,240) | (40,128) | |||
Interest expense related to lease liabilities and financial | (10,286) | (10,503) | (31,030) | (31,830) | |||
Gain (loss) on impairment | (642) | (24,790) | 1,543 | (24,790) | |||
Other income (expense), net | 4,728 | (2,796) | 4,250 | 4,070 | |||
Total other expense, net | (21,011) | (51,167) | (69,876) | (92,655) | |||
Loss before provision for income taxes | (11,782) | (35,954) | (40,398) | (63,740) | |||
Provision for income taxes | (32,566) | (31,860) | (104,046) | (114,540) | |||
Net loss from continuing operations | (44,348) | (67,814) | (144,444) | (178,280) | |||
Net income (loss) from discontinued operations | 1,620 | (25,915) | 910 | (46,410) | |||
Net loss | (42,728) | (93,729) | (143,534) | (224,690) | |||
Less: Net loss attributable to non-controlling interest | (2,032) | (1,382) | (5,674) | (6,721) | |||
Net loss attributable to Curaleaf Holdings, Inc. | $ (40,696) | $ (92,347) | $ (137,860) | $ (217,969) | |||
Per share from continuing operations – basic: | |||||||
Net loss per share from continuing operations, net of loss per | $ (0.07) | $ (0.09) | $ (0.20) | $ (0.24) | |||
Net income (loss) per share from discontinued operations, net of | — | (0.04) | — | (0.06) | |||
Net loss per share attributable to Curaleaf Holdings, Inc. – basic | $ (0.07) | $ (0.13) | $ (0.20) | $ (0.30) | |||
Weighted average common shares outstanding – basic and | 742,535,355 | 725,319,477 | 739,833,334 | 721,206,068 |
About Curaleaf Holdings
Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf") is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select, Grassroots, JAMS, Find, The Hemp Company and Zero Proof provide industry-leading service, product selection and accessibility across the medical and adult use markets. Curaleaf International is the largest vertically integrated cannabis company in
Curaleaf IR X Account: https://x.com/Curaleaf_IR
Investor Relations Website: https://ir.curaleaf.com/
Contact Information:
Investor Contact:
Curaleaf Holdings, Inc.
Camilo Lyon, Chief Investment Officer
ir@curaleaf.com
Media Contact:
Curaleaf Holdings, Inc.
Jordon Rahmil, VP Public Relations
media@curaleaf.com
Disclaimer
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and
Holders of securities of the Company are cautioned that forward-looking statements are not based on historical facts but instead are based on reasonable assumptions and estimates of management of the Company at the time they were provided or made and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, but not limited to, risks and uncertainties related to: risks and uncertainties related to the legality of cannabis in the
Neither the Toronto Stock Exchange nor its Regulation Service Provider has reviewed and does not accept responsibility for the adequacy or accuracy of the content of this press release.
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SOURCE Curaleaf Holdings, Inc.
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