Glass House Brands Reports Record Setting Third Quarter 2024 Financial Results
Glass House Brands reported record Q3 2024 results with revenue of $63.8 million, up 32% year-over-year and 18% sequentially. Wholesale biomass production reached 232,295 pounds, up 128% year-over-year. Gross margin was 52%, and Adjusted EBITDA hit a record $20.4 million. The company achieved a record low cultivation cost of $103 per pound. Cash balance increased to $35.1 million from $25.9 million in Q2. The company plans to raise approximately $25 million through an ATM equity program to fund Phase III expansion.
Glass House Brands ha riportato risultati record per il terzo trimestre del 2024, con un fatturato di 63,8 milioni di dollari, in aumento del 32% rispetto all'anno precedente e del 18% rispetto al trimestre precedente. La produzione all'ingrosso di biomassa ha raggiunto 232.295 libbre, in aumento del 128% rispetto all'anno precedente. Il margine lordo è stato del 52%, e l'EBITDA rettificato ha toccato un massimo storico di 20,4 milioni di dollari. L'azienda ha ottenuto un costo di coltivazione record di 103 dollari per libbra. Il saldo di cassa è aumentato a 35,1 milioni di dollari rispetto ai 25,9 milioni di dollari del secondo trimestre. L'azienda prevede di raccogliere circa 25 milioni di dollari attraverso un programma di equity ATM per finanziare l'espansione della Fase III.
Glass House Brands reportó resultados récord en el tercer trimestre de 2024, con ingresos de 63,8 millones de dólares, un aumento del 32% interanual y del 18% secuencialmente. La producción de biomasa en el mercado mayorista alcanzó 232,295 libras, un aumento del 128% interanual. El margen bruto fue del 52%, y el EBITDA ajustado alcanzó un récord de 20,4 millones de dólares. La empresa logró un costo de cultivo mínimo histórico de 103 dólares por libra. El saldo de caja aumentó a 35,1 millones de dólares desde los 25,9 millones de dólares en el segundo trimestre. La empresa planea recaudar aproximadamente 25 millones de dólares a través de un programa de equidad ATM para financiar la expansión de la Fase III.
글래스 하우스 브랜드는 2024년 3분기 실적을 기록하며 수익이 6,380만 달러에 달했으며, 이는 전년 대비 32%, 전 분기 대비 18% 증가한 수치입니다. 도매 바이오매스 생산량은 232,295파운드에 이르며, 이는 전년 대비 128% 증가한 것입니다. 총 이익률은 52%였고, 조정된 EBITDA는 기록적인 2,040만 달러에 도달했습니다. 회사는 기록적으로 낮은 재배 비용인 파운드당 103달러를 달성했습니다. 현금 잔고는 2분기의 2,590만 달러에서 3,510만 달러로 증가했습니다. 회사는 III단계 확장을 위해 ATM 주식 프로그램을 통해 약 2,500만 달러를 모금할 계획입니다.
Glass House Brands a annoncé des résultats records pour le troisième trimestre 2024 avec un chiffre d'affaires de 63,8 millions de dollars, en hausse de 32 % par rapport à l'année précédente et de 18 % par rapport au trimestre précédent. La production de biomasse en gros a atteint 232,295 livres, en hausse de 128 % par rapport à l'année précédente. La marge brute était de 52 %, et l'EBITDA ajusté a atteint un niveau record de 20,4 millions de dollars. L'entreprise a réussi à obtenir un coût de culture record de 103 dollars par livre. Le solde de trésorerie a augmenté pour atteindre 35,1 millions de dollars, contre 25,9 millions de dollars au deuxième trimestre. L'entreprise prévoit de lever environ 25 millions de dollars grâce à un programme d'équité ATM pour financer l'expansion de la Phase III.
Glass House Brands hat im dritten Quartal 2024 Rekordergebnisse mit einem Umsatz von 63,8 Millionen Dollar erzielt, was einem Anstieg von 32% im Jahresvergleich und von 18% im Vergleich zum Vorquartal entspricht. Die Großhandelproduktion von Biomasse erreichte 232.295 Pfund, was einem Anstieg von 128% im Jahresvergleich entspricht. Die Bruttomarge betrug 52%, und das bereinigte EBITDA erreichte einen Rekordwert von 20,4 Millionen Dollar. Das Unternehmen erzielte einen Rekordtiefstand der Anbaukosten von 103 Dollar pro Pfund. Der Kassenbestand erhöhte sich von 25,9 Millionen Dollar im zweiten Quartal auf 35,1 Millionen Dollar. Das Unternehmen plant, etwa 25 Millionen Dollar durch ein ATM-Aktienprogramm zur Finanzierung der Phase-III-Erweiterung zu sammeln.
- Record Q3 revenue of $63.8M, up 32% YoY
- Record biomass production of 232,295 pounds, up 128% YoY
- Record Adjusted EBITDA of $20.4M
- Record low cultivation cost of $103 per pound
- Cash balance increased to $35.1M from $25.9M in Q2
- Operating cash flow of $13.2M, up from $9.1M YoY
- Gross margin declined to 52% from 54% YoY
- Average selling price dropped to $229 per pound from $336 YoY
- $6.3M non-cash impairment expense for store licenses
- Net loss of $3.2M compared to $10M profit in Q2 2024
- Glass House achieved record setting results for over 10 key metrics, including consolidated revenue and gross profit, wholesale biomass revenue, retail revenue, biomass production and cultivation cost per pound
- Wholesale biomass production was 232,295 pounds, up
- Third quarter 2024 revenue was
- Consolidated gross margin was
- Greenhouse 5 continues to surpass targets for both quantity and quality of flower
- Cash and restricted cash balance rose to
- Conference Call to be held today November 13, 2024 at 5:00 p.m. ET
LONG BEACH, Calif. and TORONTO, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Glass House Brands Inc. ("Glass House" or the "Company") (CBOE CA: GLAS.A.U) (CBOE CA: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one of the fastest-growing, vertically integrated cannabis companies in the U.S., today reported financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights
(Unaudited results, unless otherwise stated, all results and dollar references are in U.S. dollars)
- Net Revenue of
$63.8 million , an increase of32% from$48.2 million in Q3 2023 and up18% from$53.9 million in Q2 2024. - Gross Profit was
$33.4 million , compared to$26.0 million in Q3 2023 and$28.7 million in Q2 2024. - Gross Margin was
52% , compared to54% in Q3 2023 and53% in Q2 2024. - Adjusted EBITDA1 was
$20.4 million , compared to$10.7 million in Q3 2023 and$12.4 million in Q2 2024. - Operating Cash Flow was
$13.2 million , compared to$9.1 million in Q3 2023 and$8.9 million in Q2 2024. - Equivalent Dry Pound Production2 was 232,295 pounds, up
128% year-over-year. - Cost per Equivalent Dry Pound of Production3 was
$103 per pound, a decrease of13% compared to the same period last year. - Cash, Restricted Cash and Cash Equivalents balance was
$35.1 million at quarter-end versus$25.9 million at the end of Q2 2024.
Management Commentary
“Glass House Brands achieved record setting results for the third quarter of 2024, with all three business segments, wholesale biomass, retail and wholesale CPG, delivering positive year-over-year and sequential revenue growth,” said Kyle Kazan, Co-Founder, Chairman and CEO of Glass House. “This included a
“These strong quarterly results once again demonstrate Glass House’s ability to grow high quality cannabis at the lowest cost. They also showcased the benefits of the retail dispensary strategic pricing plan, which has created higher foot traffic, an increase in transactions and better consumer loyalty in the face of the current challenging market conditions in California. Our stores outperformed the market by a massive differential of almost 18 basis points, with Glass House retail sales up
“One of the brightest areas of our 2024 year-to-date performance has been the
“California, the most competitive cannabis market in the world, is experiencing pricing at levels which I would describe as destructive, meaning many cultivators in the state are likely having “going concern” issues. While we expect lower prices to continue in the short-term, longer-term we expect Glass House will benefit, as our Company is built to weather market cycles and emerge even stronger. Consolidation has always been our thesis and we see this as an opportunity to expand market share. As such, we have already begun procuring equipment for the Greenhouse 2 retrofit. We expect to start generating revenue by the fourth quarter of 2025, with Greenhouse 2 production estimated at 275,000 pounds of cannabis in its first full year of production. As is our custom, we will incorporate the learnings from our currently operating SoCal Farm Greenhouses into the Greenhouse 2 retrofit as we work to meet our long-term annual cultivation cost target of
“Over the past six months, we’ve had many conversations with bankers about raising debt and equity capital, and we aim to raise approximately
“We have procured our hemp license and are actively testing hemp strains at the farm so that we will be prepared to enter the hemp derived cannabis space. We expect to make a final decision to move forward with large scale production of hemp by the second quarter of 2025. Phase III capex spending requirements of
Third Quarter 2024 Operational Highlights
- Hosted Analyst & Institutional Investor Day on September 12, 2024 at the SoCal Farm in Camarillo, California
- Glass House Farms Earns Golden Bear Award at the California State Fair Cannabis Awards
- Glass House Brands Issues an Open Letter Urging President Biden, Former President Trump and Vice President Harris to De-Schedule Cannabis
- Glass House Brands Announces Court Dismissal of Catalyst Lawsuit
- Glass House Brands Welcomes Hector De La Torre Back to The Board of Directors
Q3 2024 Financial Results Discussion
Net revenues for Q3 2024 were a record
The core wholesale biomass business achieved revenue of
Retail and CPG revenue combined increased
Q3 2024 retail revenue was
Wholesale CPG revenues were
Third quarter consolidated gross profit was
Average selling price was
General and administrative expenses were
Sales and marketing expenses were
Professional fees were
Depreciation and amortization in Q3 2024 were
Adjusted EBITDA was a single quarter record high
Operating cash flow was
As of September 30, 2024, the Company had
During Q3 2024, we recognized
After careful analysis, management has determined that we do not owe taxes for the application of Section 280E, and 2023 federal income taxes have been filed accordingly. This decision was made after consulting with external tax and legal counsel. The change will result in about
2024 Outlook
The Company is providing the following guidance for the fourth quarter of 2024 based on the strength of third quarter results and current trends in 2024. This guidance does not contain any impact from potential Greenhouse 2 expansion.
Q4 2024 Outlook
We expect Q4 revenue of
We anticipate Q4 biomass production of 160,000 pounds to 165,000 pounds, representing
We project that the average selling price for wholesale biomass will be in the range of
We project that Q4 2024 cost of production will be
We expect combined Q4 retail and CPG revenue to remain flat to Q3, as we continue to expect a highly promotional and price driven retail landscape.
We expect consolidated gross margin to be in the high
We project that adjusted EBITDA will be
Capex is projected to be approximately
At-The-Market Program
We have entered into an equity distribution agreement (the “Equity Distribution Agreement”) with ATB Securities Inc. and Canaccord Genuity Corp., pursuant to which, the Company may from time to time sell up to US
Since the Equity Shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the Company's management and in accordance with the terms of the Equity Distribution Agreement.
Sales of Equity Shares, if any, under the ATM Program are anticipated to be made in transactions that are deemed to be "at-the-market distributions" as defined in National Instrument 44-102 Shelf Distributions, as sales made directly on Cboe Canada or any other recognized Canadian "marketplace" within the meaning of National Instrument 21-101 Marketplace Operation.
Financial results and analyses will be available on the Company’s website on the ‘Investors’ and ‘News & Events’ drop down menus (www.glasshousebrands.com) and SEDAR+ (www.sedarplus.ca).
Unaudited results, unless otherwise stated, all results are in U.S. dollars.
| Net Income / Loss | |||||||||||
| (in thousands) | Q3 2023 | Q2 2024 | Q3 2024 | ||||||||
| Revenues, Net | $ | 48,187 | $ | 53,938 | $ | 63,821 | |||||
| Cost of Goods Sold | 22,176 | 25,264 | 30,379 | ||||||||
| Gross Profit | 26,011 | 28,674 | 33,442 | ||||||||
| % of Net Revenue | 54 | % | 53 | % | 52 | % | |||||
| Operating Expenses: | |||||||||||
| General and Administrative | 15,187 | 17,366 | 14,424 | ||||||||
| Sales and Marketing | 555 | 682 | 620 | ||||||||
| Professional Fees | 1,706 | 1,860 | 891 | ||||||||
| Depreciation and Amortization | 3,676 | 3,723 | 3,731 | ||||||||
| Impairment | — | — | 6,300 | ||||||||
| Total Operating Expenses | 21,124 | 23,631 | 25,966 | ||||||||
| Income from Operations | 4,887 | 5,043 | 7,476 | ||||||||
| Interest Expense | 2,159 | 2,593 | 2,255 | ||||||||
| (Gain) Loss on Change in Fair Value of Contingent Liabilities and Shares Payable | (4,024 | ) | (7,910 | ) | 17 | ||||||
| Other Expense, Net | 469 | 118 | (523 | ) | |||||||
| Total Other (Income) Expense, Net | (1,396 | ) | (5,199 | ) | 1,749 | ||||||
| Income Taxes | 6,494 | 203 | 8,935 | ||||||||
| Net Income (Loss) | $ | (211 | ) | $ | 10,039 | $ | (3,208 | ) | |||
| Adjusted EBITDA | |||||||||||
| (in thousands) | Q3 2023 | Q2 2024 | Q3 2024 | ||||||||
| Net Income (Loss) (GAAP) | $ | (211 | ) | $ | 10,039 | $ | (3,208 | ) | |||
| Depreciation and Amortization | 3,676 | 3,723 | 3,731 | ||||||||
| Interest Expense | 2,159 | 2,593 | 2,255 | ||||||||
| Income Tax Expense | 6,494 | 203 | 8,935 | ||||||||
| EBITDA (Non-GAAP) | 12,118 | 16,558 | 11,713 | ||||||||
| Adjustments: | |||||||||||
| Share-Based Compensation | 2,565 | 3,621 | 2,947 | ||||||||
| Stock Appreciation Rights Expense | 86 | 51 | 25 | ||||||||
| (Gain) Loss on Equity Method Investments | (91 | ) | 94 | (45 | ) | ||||||
| Change in Fair Value of Derivative Asset | 93 | (32 | ) | (539 | ) | ||||||
| Impairment Expense for Intangible Assets | — | — | 6,300 | ||||||||
| Change in Fair Value of Contingent Liabilities and Shares Payable | (4,024 | ) | (7,910 | ) | 17 | ||||||
| Adjusted EBITDA (Non-GAAP) | $ | 10,747 | $ | 12,382 | $ | 20,418 | |||||
| Select Cash Flow Information | |||||||||||
| (in thousands) | Q3 2023 | Q2 2024 | Q3 2024 | ||||||||
| Net Income (Loss) | $ | (211 | ) | $ | 10,039 | $ | (3,208 | ) | |||
| Depreciation and Amortization | 3,676 | 3,723 | 3,731 | ||||||||
| Share-Based Compensation | 2,565 | 3,621 | 2,947 | ||||||||
| Impairment Expense for Goodwill and Intangibles | — | — | 6,300 | ||||||||
| (Gain) Loss on Change in Fair Value of Contingent Liabilities and Shares Payable | (4,024 | ) | (7,910 | ) | 17 | ||||||
| Other | 808 | 1,326 | 296 | ||||||||
| Cash From Net Income (Loss) | 2,814 | 10,799 | 10,083 | ||||||||
| Accounts Receivable | (1,124 | ) | (4,864 | ) | (251 | ) | |||||
| Income Taxes Receivable | — | — | (1,311 | ) | |||||||
| Prepaid Expenses and Other Current Assets | (128 | ) | (911 | ) | (1,937 | ) | |||||
| Inventory | 3,571 | (3,292 | ) | (2,265 | ) | ||||||
| Other Assets | (48 | ) | 71 | (3 | ) | ||||||
| Accounts Payable and Accrued Liabilities | (2,502 | ) | 7,366 | (916 | ) | ||||||
| Income Taxes Payable | 5,904 | (476 | ) | (3,320 | ) | ||||||
| Other | 573 | 207 | 13,095 | ||||||||
| Working Capital Impact | 6,246 | (1,899 | ) | 3,092 | |||||||
| Operating Activities Cash Flow | 9,060 | 8,900 | 13,175 | ||||||||
| Purchases of Property and Equipment | (4,939 | ) | (3,912 | ) | (1,417 | ) | |||||
| Other | 56 | — | — | ||||||||
| Investing Activities Cash Flow | (4,883 | ) | (3,912 | ) | (1,417 | ) | |||||
| Proceeds from the Issuance of Preferred Shares and Notes Payable | 10,901 | — | — | ||||||||
| Payments on Notes Payable, Third Parties and Related Parties | (13 | ) | (1,890 | ) | (1,888 | ) | |||||
| Distributions to Preferred Shareholders | (1,647 | ) | (1,936 | ) | (1,938 | ) | |||||
| Other | 1,785 | 309 | 1,249 | ||||||||
| Financing Activities Cash Flow | 11,026 | (3,517 | ) | (2,577 | ) | ||||||
| Net Increase in Cash, Restricted Cash and Cash Equivalents | 15,203 | 1,471 | 9,181 | ||||||||
| Cash, Restricted Cash and Cash Equivalents, Beginning of Period | 22,690 | 24,408 | 25,879 | ||||||||
| Cash, Restricted Cash and Cash Equivalents, End of Period | $ | 37,893 | $ | 25,879 | $ | 35,060 | |||||
| Select Balance Sheet Information | ||||||||
| (in thousands) | Q3 2023 | Q2 2024 | Q3 2024 | |||||
| Cash and Restricted Cash | $ | 37,893 | $ | 25,879 | $ | 35,060 | ||
| Accounts Receivable, Net | 4,199 | 7,717 | 7,892 | |||||
| Income Taxes Receivable | — | — | 1,311 | |||||
| Prepaid Expenses and Other Current Assets | 3,965 | 4,366 | 6,303 | |||||
| Inventory | 11,961 | 14,503 | 16,768 | |||||
| Total Current Assets | 58,018 | 52,465 | 67,334 | |||||
| Operating and Finance Lease Right-of-Use Assets, Net | 11,178 | 10,713 | 10,591 | |||||
| Long Term Investments | 2,110 | 2,251 | 2,296 | |||||
| Property, Plant and Equipment, Net | 212,813 | 215,179 | 213,218 | |||||
| Intangible Assets, Net and Goodwill | 53,269 | 20,868 | 14,381 | |||||
| Deferred Tax Asset | 2,017 | — | — | |||||
| Other Assets | 4,571 | 4,367 | 4,909 | |||||
| TOTAL ASSETS | $ | 343,976 | $ | 305,843 | $ | 312,729 | ||
| Accounts Payable and Accrued Liabilities | $ | 27,744 | $ | 33,739 | $ | 32,753 | ||
| Income Taxes Payable | 20,691 | 7,712 | 4,392 | |||||
| Contingent Shares and Earnout Liabilities | 28,684 | 33,132 | 32,165 | |||||
| Shares Payable | 8,561 | 5,825 | 2,975 | |||||
| Current Portion of Operating and Finance Lease Liabilities | 1,875 | 1,950 | 2,383 | |||||
| Current Portion of Notes Payable | 50 | 7,552 | 7,553 | |||||
| Total Current Liabilities | 87,605 | 89,910 | 82,221 | |||||
| Operating and Finance Lease Liabilities, Net of Current Portion | 9,501 | 8,926 | 8,386 | |||||
| Other Non-Current Liabilities | 4,315 | 6,624 | 20,191 | |||||
| Notes Payable, Net of Current Portion | 63,873 | 53,699 | 52,200 | |||||
| TOTAL LIABILITIES | 165,294 | 159,159 | 162,998 | |||||
| Preferred Equity Series B, C and D | 72,436 | 81,808 | 83,773 | |||||
| Additional Paid-In Capital, Accumulated Deficit and Non-Controlling Interest | 106,246 | 64,876 | 65,958 | |||||
| TOTAL SHAREHOLDERS' EQUITY | 178,682 | 146,684 | 149,731 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 343,976 | $ | 305,843 | $ | 312,729 | ||
| Notes Payable and Preferred Equity | |||||||||||||
| (in thousands) | Q1 2024 | Q2 2024 | Q3 2024 | Comments | |||||||||
| Notes Payable | |||||||||||||
| Secured Credit Facility | $ | 47,500 | $ | 45,625 | $ | 43,750 | Maturity is 11/30/26 | ||||||
| Series A | 11,895 | 11,895 | 11,895 | ||||||||||
| Series B | 4,111 | 4,111 | 4,111 | ||||||||||
| Plus Convertible Debt | 16,006 | 16,006 | 16,006 | ||||||||||
| Other | (1,072 | ) | (380 | ) | (3 | ) | Mostly original issue discount | ||||||
| Notes Payable Total | $ | 62,434 | $ | 61,251 | $ | 59,753 | |||||||
| Preferred Equity | |||||||||||||
| Series B | $ | 59,172 | $ | 60,881 | $ | 62,675 | Currently at | ||||||
| Series C | 5,763 | 5,927 | 6,098 | Currently at | |||||||||
| Series D | 15,000 | 15,000 | 15,000 | Currently at | |||||||||
| Preferred Equity Total | $ | 79,935 | $ | 81,808 | $ | 83,773 | |||||||
| Cash Payments | |||||||||||||
| Debt Amortization | $ | 1,888 | $ | 1,889 | $ | 1,889 | |||||||
| Cash Interest | 1,511 | 1,467 | 1,540 | Currently | |||||||||
| Debt Service | 3,399 | 3,356 | 3,429 | ||||||||||
| Series B | 1,250 | 1,247 | 1,250 | ||||||||||
| Series C | 125 | 125 | 125 | ||||||||||
| Series D | 563 | 563 | 563 | ||||||||||
| Preferred Equity Dividends | 1,938 | 1,935 | 1,938 | ||||||||||
| Total Debt Service and Dividends | $ | 5,337 | $ | 5,291 | $ | 5,367 | |||||||
| Dividend Rates for Series B, C, and D | |||||||||||||
| 22.5 | % | 25.0 | % | 20.0 | % | ||||||||
| Series B | 8/31/2024 | 8/31/2025 | 2/28/2027 | Currently at | |||||||||
| Series C | 12/30/2024 | 12/30/2025 | 6/30/2027 | Currently at | |||||||||
| Series D | 8/24/2028 | Currently at | |||||||||||
| *Dividend in excess of cash dividend is paid out as PIK, outstanding preferred equity balance compounds quarterly. | |||||||||||||
| Equity Table | |||||||||||
| (in thousands, except share price) | Q3 2024 | Q2 2024 | Change | Comments | |||||||
| Total Equity and Exchangeable Shares | 76,271 | 74,370 | 1,901 | Exercise of RSU's, ISO's and issuance of deferred shares associated with the NHC Acquisition | |||||||
| Warrants | |||||||||||
| Series D | 2,980 | 2,980 | — | Exercise price of | |||||||
| Series C | 1,000 | 1,000 | — | Exercise price of | |||||||
| Series B | 9,747 | 9,877 | (130 | ) | Exercise price of | ||||||
| Series A | — | — | — | Expired in June 2024 | |||||||
| SPAC | 30,665 | 30,665 | — | Exercise price of | |||||||
| Total Warrants | 44,392 | 44,522 | (130 | ) | |||||||
| Stock Options | 600 | 1,199 | (599 | ) | Exercise Price between | ||||||
| RSUs | 3,463 | 3,743 | (280 | ) | Up to 3-year vesting through 2027 | ||||||
| Total | 4,063 | 4,942 | (879 | ) | |||||||
| Share Price at Quarter End | $ | 9.19 | $ | 7.21 | $ | 1.98 | |||||
| Convertible Debentures | |||||||||||
| Series A | $ | 11,895 | $ | 11,895 | $ | — | |||||
| Series B | 4,111 | 4,111 | — | ||||||||
| Total Convertible Debentures | $ | 16,006 | $ | 16,006 | $ | — | |||||
| Number of Shares if Converted | 1,742 | 2,220 | (478 | ) | |||||||
| Assuming Share Price at Quarter End | |||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||
| (in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | FY 2022 | FY 2023 | ||||||||||||||||||||||||||
| Retail (B2C) | $ | 9,373 | $ | 10,073 | $ | 10,058 | $ | 9,574 | $ | 9,921 | $ | 10,885 | $ | 11,214 | $ | 26,731 | $ | 39,078 | |||||||||||||||||
| Wholesale CPG (B2B) | 3,715 | 3,954 | 4,290 | 4,103 | 4,253 | 3,979 | 4,777 | 16,770 | 16,062 | ||||||||||||||||||||||||||
| Wholesale Biomass (B2B) | 14,467 | 30,638 | 33,839 | 26,752 | 15,926 | 39,074 | 47,830 | 41,373 | 105,696 | ||||||||||||||||||||||||||
| Total | $ | 27,555 | $ | 44,665 | $ | 48,187 | $ | 40,429 | $ | 30,100 | $ | 53,938 | $ | 63,821 | $ | 84,874 | $ | 160,836 | |||||||||||||||||
| Sequential % Change | |||||||||||||||||||||||||||||||||||
| Retail (B2C) | (12)% | 7 | % | — | % | (5)% | 4 | % | 10 | % | 3 | % | |||||||||||||||||||||||
| Wholesale CPG (B2B) | (1)% | 6 | % | 8 | % | (4) % | 4 | % | (6) % | 20 | % | ||||||||||||||||||||||||
| Wholesale Biomass (B2B) | (7)% | 112 | % | 10 | % | (21)% | (40)% | 145 | % | 22 | % | ||||||||||||||||||||||||
| Total | (8)% | 62 | % | 8 | % | (16)% | (26) % | 79 | % | 18 | % | ||||||||||||||||||||||||
| % Change to Prior Year | |||||||||||||||||||||||||||||||||||
| Retail (B2C) | 93 | % | 108 | % | 56 | % | (10)% | 6 | % | 8 | % | 11 | % | 23 | % | 46 | % | ||||||||||||||||||
| Wholesale CPG (B2B) | 70 | % | — | % | (38)% | 10 | % | 14 | % | 1 | % | 11 | % | (13)% | (4)% | ||||||||||||||||||||
| Wholesale Biomass (B2B) | 182 | % | 358 | % | 142 | % | 71 | % | 10 | % | 28 | % | 41 | % | 87 | % | 155 | % | |||||||||||||||||
| Total | 126 | % | 188 | % | 77 | % | 35 | % | 9 | % | 21 | % | 32 | % | 34 | % | 89 | % | |||||||||||||||||
| Gross Profit | |||||||||||||||||||||||||||||||||||
| (in thousands) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | FY 2022 | FY 2023 | ||||||||||||||||||||||||||
| Retail (B2C) | $ | 5,281 | $ | 5,486 | $ | 5,594 | $ | 5,190 | $ | 5,253 | $ | 5,162 | $ | 4,952 | $ | 11,498 | $ | 21,551 | |||||||||||||||||
| Wholesale CPG (B2B) | 1,128 | 239 | 241 | (385 | ) | 1,065 | 886 | 1,398 | 76 | 1,223 | |||||||||||||||||||||||||
| Wholesale Biomass (B2B) | 6,165 | 18,647 | 20,176 | 13,207 | 6,208 | 22,626 | 27,092 | 9,138 | 58,195 | ||||||||||||||||||||||||||
| Total | $ | 12,574 | $ | 24,372 | $ | 26,011 | $ | 18,012 | $ | 12,526 | $ | 28,674 | $ | 33,442 | $ | 20,712 | $ | 80,969 | |||||||||||||||||
| % of Revenue | |||||||||||||||||||||||||||||||||||
| Retail (B2C) | 56 | % | 54 | % | 56 | % | 54 | % | 53 | % | 47 | % | 44 | % | 43 | % | 55 | % | |||||||||||||||||
| Wholesale CPG (B2B) | 30 | % | 6 | % | 6 | % | (9)% | 25 | % | 22 | % | 29 | % | — | % | 8 | % | ||||||||||||||||||
| Wholesale Biomass (B2B) | 43 | % | 61 | % | 60 | % | 49 | % | 39 | % | 58 | % | 57 | % | 22 | % | 55 | % | |||||||||||||||||
| Total | 46 | % | 55 | % | 54 | % | 45 | % | 42 | % | 53 | % | 52 | % | 24 | % | 50 | % | |||||||||||||||||
| Wholesale Biomass Production and Cost per Pound | |||||||||||||||||||||||||||||||||||
| Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | FY 2022 | FY 2023 | |||||||||||||||||||||||||||
| Equivalent Dry Pounds of Production | 48,099 | 103,336 | 101,825 | 103,462 | 61,334 | 149,717 | 232,295 | 193,723 | 356,722 | ||||||||||||||||||||||||||
| % Change to Prior Year | 188 | % | 282 | % | 36 | % | 37 | % | 28 | % | 45 | % | 128 | % | 100 | % | 84 | % | |||||||||||||||||
| Cost per Equivalent Dry Pounds of Production | $ | 196 | $ | 139 | $ | 118 | $ | 121 | $ | 182 | $ | 148 | $ | 103 | $ | 144 | $ | 136 | |||||||||||||||||
| % Change to Prior Year | (18)% | (12)% | (12)% | (5)% | (7)% | 6 | % | (13)% | (24)% | (6)% | |||||||||||||||||||||||||
| Ending Operational Canopy Licensed (000 sq. ft) | 959 | 959 | 959 | 959 | 959 | 1,525 | 1,525 | 959 | 959 | ||||||||||||||||||||||||||
| Wholesale Biomass Sold and Average Selling Price per Pound | |||||||||||||||||||||||||||||||||||
| Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | FY 2022 | FY 2023 | |||||||||||||||||||||||||||
| Equivalent Dry Pounds Sold | 49,923 | 90,174 | 100,661 | 98,199 | 56,432 | 137,866 | 209,175 | 172,392 | 338,958 | ||||||||||||||||||||||||||
| % Change to Prior Year | 179 | % | 354 | % | 47 | % | 49 | % | 13 | % | 53 | % | 108 | % | 149 | % | 97 | % | |||||||||||||||||
| Equivalent Dry Pounds Sold Average Selling Price | $ | 290 | $ | 340 | $ | 336 | $ | 272 | $ | 282 | $ | 283 | $ | 229 | $ | 218 | $ | 312 | |||||||||||||||||
| % Change to Prior Year | 54 | % | 43 | % | 65 | % | 15 | % | (3)% | (17)% | (32)% | (6)% | 43 | % | |||||||||||||||||||||
Equivalent Dry Pounds Average Selling Price excludes the impact of cultivation tax.
Conference Call
The Company will host a conference call to discuss the results today, November 13, 2024 at 5:00 p.m. Eastern Time.
| Webcast and Replay: | Register Here |
| Dial-In Number: | 1-888-596-4144 |
| Conference ID: | 7699737# |
(replay available for approximately 30 days)
In addition, content related to the earnings call including a transcript and audio recording of the call, as well as the Company’s financial statements and management’s discussion and analysis of financial condition and results of operations for the period (upon completion), will be posted to the Company’s website and can be found here. Content from previous reporting periods is also available.
Non-GAAP Financial Measures
Glass House defines EBITDA as Net Income (Loss) (GAAP) adjusted for interest and financing costs, income taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA excluding share-based compensation, stock appreciation rights expense, loss (gain) on equity method investments, impairment expense for goodwill and intangible assets, change in fair value of derivative liabilities, change in fair value of contingent liabilities and shares payable, certain debt-related fees, acquisition related professional fees, and non-operational start-up costs.
EBITDA and Adjusted EBITDA are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non- GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. Such supplemental non-GAAP financial measures are not standardized financial measures under U.S. GAAP used to prepare the Company's financial statements and might not be comparable to similar financial measures disclosed by other companies and, thus, should only be considered in conjunction with the GAAP financial measures presented herein.
The Company has provided a table above that provides a reconciliation of the Company's Net Income (Loss) (GAAP) to Adjusted EBITDA for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 and three months ended June 30, 2024.
Footnotes and Sources:
- EBITDA and Adjusted EBITDA are non-GAAP financial measures that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Please see “Non-GAAP Financial Measures” herein for further information and for a reconciliation of such non-GAAP measures to the closest GAAP measure.
- Equivalent Dry Pound Production includes all dry production (flower, smalls and trim) plus equivalent dry weight for wet weight and fresh frozen not converted into dry weight by the Company.
- Cost per Equivalent Dry Pound of Production, is the application of a subset of Costs of Goods Sold for cannabis biomass production (including all expenses from nursery and cultivation to curing and trimming - the point at which product is ready for sales as wholesale cannabis or to be transferred to CPG) applied to the Company's metric of dry production which includes all dry production (flower, smalls and trim) plus equivalent dry weight for wet weight and fresh frozen that is not converted into dry goods by the Company.
About Glass House Brands
Glass House is one of the fastest-growing, vertically integrated cannabis companies in the U.S., with a dedicated focus on the California market and building leading, lasting brands to serve consumers across all segments. From its greenhouse cultivation operations to its manufacturing practices, from brand-building to retailing, the company's efforts are rooted in the respect for people, the environment, and the community that co-founders Kyle Kazan, Chairman and CEO, and Graham Farrar, Board Member and President, instilled at the outset. Whether it be through its portfolio of brands, which includes Glass House Farms, PLUS Products, Allswell and Mama Sue Wellness, or its network of retail dispensaries throughout the state of California, which includes The Farmacy, Natural Healing Center and The Pottery, Glass House is committed to realizing its vision of excellence: outstanding cannabis products, produced sustainably, for the benefit of all. For more information and company updates, visit www.glasshousebrands.com/ and https://ir.glasshousebrands.com/contact/email-alerts/.
Forward Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this news release include, without limitation, the Company’s: ability to further deliver strong operational and financial results; ability to continue growing high quality cannabis at the lowest cost; statement that California, the most competitive cannabis market in the world, is experiencing pricing at levels which the Company would describe as destructive, meaning many cultivators in the state are likely having “going concern” issues; statement that while the Company expects lower prices to continue in the short-term, longer-term management expects Glass House will benefit, as the Company is built to weather market cycles and emerge even stronger; statement that consolidation has always been the Company’s thesis which the company sees as an opportunity to expand market share; statement that the Company expects to start generating revenue from Greenhouse 2 by the fourth quarter of 2025, with Greenhouse 2 production estimated at 275,000 pounds of cannabis in its first full year of production; statement that the Company, as is its custom, will incorporate the learnings from its currently operating SoCal Farm Greenhouses into the Greenhouse 2 retrofit as it works to meet its long-term annual cultivation cost target of
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including financial and operational results not proving to be as expected or on the timelines expected; the Company not completing certain proposed acquisition or financing transactions at all, or on the timelines expected; the Company not achieving the synergies expected; and other risks disclosed in the Company's Annual Information Form and other public filings on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements.
For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR+ at www.sedarplus.ca. The forward-looking statements and financial outlooks contained in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.
For further information, please contact:
Glass House Brands Inc.
John Brebeck, Vice President of Investor Relations
T: (562) 264-5078
E: ir@glasshousebrands.com
Mark Vendetti, Chief Financial Officer
T: (562) 264-5078
E: ir@glasshousebrands.com
Investor Relations Contact:
KCSA Strategic Communications
Phil Carlson
T: 212-896-1233
E: GlassHouse@kcsa.com
FAQ
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