High Tide Reports Third Quarter 2024 Financial Results Featuring Record Revenue of $131.7 Million, and 2nd Consecutive Quarter of Positive Net Income
High Tide reported record revenue of $131.7 million for Q3 2024, a 6% YoY and sequential increase. This marks the 2nd consecutive quarter of positive net income, improving to $0.8 million from $(3.6) million YoY. The company also achieved its 5th consecutive quarter of positive free cash flow at $3.1 million, contributing to a trailing total of $21.8 million. High Tide reached a 12% market share in its operating provinces, up from 10% a year ago.
Other highlights include:
- Gross profit of $35.5 million, a 3% YoY increase.
- Adjusted EBITDA of $9.6 million, an 18th consecutive positive quarter.
- 1.55 million Cabana Club members, up 41% YoY.
- Opening 11 new Canna Cabana locations.
- Cash and cash equivalents of $35.3 million, a record high.
High Tide ha riportato un fatturato record di 131,7 milioni di dollari per il terzo trimestre del 2024, con un aumento del 6% rispetto all'anno precedente e rispetto al trimestre precedente. Questo segna il secondo trimestre consecutivo di utile netto positivo, migliorato a 0,8 milioni di dollari rispetto a (3,6) milioni di dollari dell'anno precedente. L'azienda ha anche raggiunto il suo quinto trimestre consecutivo di flusso di cassa libero positivo con 3,1 milioni di dollari, contribuendo a un totale cumulativo di 21,8 milioni di dollari. High Tide ha raggiunto una quota di mercato del 12% nelle province in cui opera, in aumento dal 10% di un anno fa.
Altri punti salienti includono:
- Utile lordo di 35,5 milioni di dollari, un aumento del 3% rispetto all'anno precedente.
- EBITDA rettificato di 9,6 milioni di dollari, un diciottesimo trimestre consecutivo positivo.
- 1,55 milioni di membri del Cabana Club, in aumento del 41% rispetto all'anno precedente.
- Apertura di 11 nuove sedi di Canna Cabana.
- Cassa e disponibilità liquide di 35,3 milioni di dollari, un massimo storico.
High Tide reportó unos ingresos récord de 131,7 millones de dólares para el tercer trimestre de 2024, un aumento del 6% interanual y secuencial. Esto marca el segundo trimestre consecutivo con ingresos netos positivos, mejorando a 0,8 millones de dólares desde (3,6) millones de dólares del año pasado. La compañía también alcanzó su quinto trimestre consecutivo de flujo de caja libre positivo, con 3,1 millones de dólares, contribuyendo a un total acumulado de 21,8 millones de dólares. High Tide logró una cuota de mercado del 12% en sus provincias de operación, en comparación con el 10% del año pasado.
Otros puntos destacados incluyen:
- Beneficio bruto de 35,5 millones de dólares, un aumento del 3% interanual.
- EBITDA ajustado de 9,6 millones de dólares, el décimo octavo trimestre positivo consecutivo.
- 1,55 millones de miembros del Cabana Club, un aumento del 41% interanual.
- Apertura de 11 nuevas ubicaciones de Canna Cabana.
- Efectivo y equivalentes de efectivo de 35,3 millones de dólares, un máximo histórico.
하이 타이드는 2024년 3분기 동안 1억 3,170만 달러의 기록적인 수익을 보고했으며, 이는 전년 대비 6% 증가한 수치입니다. 이는 2분기 연속으로 긍정적인 순이익을 기록한 것으로, 전년 대비 (3.6)백만 달러에서 0.8백만 달러로 개선되었습니다. 이 회사는 또한 3.1백만 달러의 긍정적인 자유 현금 흐름을 기록하며 5분기 연속 성과를 달성했으며, 총 2,180만 달러에 기여했습니다. 하이 타이드는 운영하는 주에서 12%의 시장 점유율을 달성했으며, 이는 전년의 10%에서 증가한 수치입니다.
기타 주요 내용은 다음과 같습니다:
- 총 이익이 3,550만 달러로 전년 대비 3% 증가했습니다.
- 조정된 EBITDA는 960만 달러로 18분기 연속 긍정적인 결과를 기록했습니다.
- 카바나 클럽 회원이 155만 명으로 전년 대비 41% 증가했습니다.
- 11개의 새로운 캔나 카바나 지점을 개설했습니다.
- 현금 및 현금성 자산이 3,530만 달러로 기록적인 최고치에 도달했습니다.
High Tide a annoncé un chiffre d'affaires record de 131,7 millions de dollars pour le troisième trimestre 2024, soit une augmentation de 6 % par rapport à l'année précédente et séquentiellement. Cela marque le deuxième trimestre consécutif de bénéfice net positif, qui s'est améliore à 0,8 million de dollars contre (3,6) millions de dollars l'année précédente. L'entreprise a également atteint son cinquième trimestre consécutif de flux de trésorerie libre positif avec 3,1 millions de dollars, contribuant à un total cumulé de 21,8 millions de dollars. High Tide a atteint une part de marché de 12 % dans ses provinces d'exploitation, en hausse par rapport à 10 % l'année dernière.
D'autres faits marquants incluent :
- Bénéfice brut de 35,5 millions de dollars, soit une augmentation de 3 % par rapport à l'année précédente.
- EBITDA ajusté de 9,6 millions de dollars, le dix-huitième trimestre positif consécutif.
- 1,55 million de membres du Cabana Club, en hausse de 41 % par rapport à l'année précédente.
- Ouverture de 11 nouveaux emplacements Canna Cabana.
- Trésorerie et équivalents de trésorerie de 35,3 millions de dollars, un record historique.
High Tide meldete einen Rekordumsatz von 131,7 Millionen Dollar für das 3. Quartal 2024, was einem Anstieg von 6% im Vergleich zum Vorjahr und im Quartalsvergleich entspricht. Dies markiert das zweite aufeinanderfolgende Quartal mit positivem Nettoergebnis, das sich von (3,6) Millionen Dollar auf 0,8 Millionen Dollar im Vergleich zum Vorjahr verbessert hat. Das Unternehmen erreichte auch sein fünftes aufeinanderfolgendes Quartal mit positivem Free Cashflow von 3,1 Millionen Dollar, was zu einem Gesamtsaldo von 21,8 Millionen Dollar beiträgt. High Tide erreichte einen Marktanteil von 12% in seinen Betriebsprovinzen, ein Anstieg von 10% im Vergleich zum Vorjahr.
Weitere Highlights sind:
- Bruttogewinn von 35,5 Millionen Dollar, ein Anstieg von 3% im Vergleich zum Vorjahr.
- Bereinigtes EBITDA von 9,6 Millionen Dollar, das 18. positive Quartal in Folge.
- 1,55 Millionen Mitglieder im Cabana Club, ein Anstieg von 41% im Vergleich zum Vorjahr.
- Eröffnung von 11 neuen Canna Cabana Standorten.
- Bargeld und Bargleichwerte von 35,3 Millionen Dollar, ein Rekordhoch.
- Record revenue of $131.7 million, a 6% YoY increase.
- Positive net income of $0.8 million, up from $(3.6) million YoY.
- 5th consecutive quarter of positive free cash flow, totaling $21.8 million.
- Gross profit increased to $35.5 million, up 3% YoY.
- 18th consecutive positive adjusted EBITDA at $9.6 million.
- Market share increased to 12% in operating provinces, up from 10% a year ago.
- 1.55 million Cabana Club members, a 41% YoY increase.
- Cash and cash equivalents at $35.3 million, a record high.
- Gross profit margin decreased to 27% from 28% YoY.
- Adjusted EBITDA decreased to $9.6 million from $10.2 million YoY.
- Free cash flow decreased by 24% to $3.1 million from $4.1 million YoY.
- Income from operations was $3.1 million, reduced from $(0.7) million YoY.
High Tide's Q3 2024 results demonstrate strong financial performance and market positioning. Key highlights include:
- Record revenue of
$131.7 million , up6% year-over-year and sequentially - Positive net income of
$0.8 million , improving from a loss of$3.6 million last year - Fifth consecutive quarter of positive free cash flow, totaling
$21.8 million over the trailing four quarters - Market share increase to
12% in operating provinces, up from10% a year ago
The company's ability to generate consistent free cash flow and grow market share amidst industry challenges is noteworthy. With a strong cash position of
High Tide's performance reflects its strong market positioning and effective strategies:
- Cabana Club membership grew
41% year-over-year to 1.55 million, with 57,000 paid ELITE members - Same-store sales increased
1% year-over-year and5% sequentially - Annualized retail sales per square foot of
$1,658 , outperforming major retailers - Expanded to 183 store locations, with plans to reach 300 nationwide
The company's discount club model and loyalty program are driving customer engagement and sales growth. High Tide's market share gains and expansion plans indicate potential for continued growth, especially as it capitalizes on opportunities like white label products in Alberta and potential entry into the German market.
High Tide's retail strategy shows promise in a challenging cannabis market:
- Organic store growth financed through internal cash flows
118% increase in same-store sales since launching the discount club model- Strong performance of ELITE paid membership program
- Diversification through white label products and potential cannabis hospitality sector entry
The company's focus on customer loyalty, efficient operations and strategic expansion sets it apart from struggling competitors. High Tide's ability to maintain profitability and market share growth while others face bankruptcy demonstrates the effectiveness of its retail-forward approach. The planned global expansion of the Cabana Club could further enhance its competitive position.
The Company Also Reports 5th Consecutive Quarter of Positive Free Cash Flow With Trailing Free Cash Flow Totaling
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated August 31, 2023, to its short form base shelf prospectus dated August 3, 2023.
- High Tide Remains the Highest Revenue Generating Cannabis Company Reporting in Canadian Dollars2, Delivers Quarterly Revenue of
$131.7 6% Year-Over-Year and Sequentially and Reaches an Annualized Run Rate Exceeding$525 Million - Income From Operations Was
$3.1 Million $(0.7) Million $2.0 Million $0.8 Million $(3.6) Million $0.2 Million - The Company Now Exceeds 1.55 Million Members of the Cabana Club, an Increase of over
41% Year-Over-Year and8% Sequentially. The Company Has Reached 57,000 ELITE Members, an Increase of203% Year-Over-Year and30% Sequentially, Representing its Fastest Pace of Growth Since Inception - Same Store Sales Increased By
1% Year-Over-Year and5% Sequentially. When Calculated Daily, Same Store Sales Increased by3% Sequentially. From October 2021 to June 2024, Same Store Sales at Canna Cabana are up118% , While the Average Operator in the Five Provinces Where the Company Operates has Experienced a21% Decline3 - The Company Generated
$3.1 Million $21.8 Million 9% Compared to the Company's Enterprise Value as of Market Close on September 13, 2024 - During May and June 2024, Canna Cabana Held a
21% Share of the Cannabis Retail Market inAlberta and11% inOntario . Across the Five Provinces in Which the Company Has a Presence, Canna Cabana Represented12% Market Share in Dollars While Only Representing5% of the Total Cannabis Retail Store Count in Those Provinces4 - Annualized Retail Sales Per Square Foot Were
$1,658
Third Fiscal Quarter 2024 – Financial Highlights:
- Revenue increased to
$131.7 million $124.4 million 6% year-over-year and sequentially - Gross profit increased to
$35.5 million $34.6 million 3% year-over-year and was consistent sequentially - Gross profit margin in the three months ended July 31, 2024, was
27% , compared to28% in the same period last year and sequentially - 18th consecutive quarter of positive Adjusted EBITDA6, which was
$9.6 million $10.2 million $2.4 million Manitoba and compared to$10.0 million $8.9 million - Adjusted EBITDA margin was
7.3% , which increased from6.3% during the same period last year, excluding the impact of the SRF and was8.1% sequentially - Given the strong cost controls the Company has been implementing, general and administrative expenses represented
3.7% of revenue in the third fiscal quarter of 2024, which improved from5.2% during the same period last year and4.5% sequentially and was the lowest level in four years - Salaries, wages, and benefits represented
13% of revenue in the third fiscal quarter of 2024. This marked an increase compared to11% during the same period last year and12% sequentially driven by the 11 organic store openings during the quarter, which need significant staffing requirements while ramping up to maturity - The Company generated positive net income of
$0.8 million $(3.6) million $0.2 million $3.1 million $(0.7) million $2.0 million - Earnings per fully diluted share were
$0.01 $(0.04) $(0.00) - Cabanalytics Business Data and Insights platform, advertising revenue, and other revenue, which includes management fees, interest income, and rental income, was
$9.0 million $6.7 million $9.0 million 36% compared to the same period last year and was up1% sequentially - Cash and cash equivalents as of July 31, 2024 totaled
$35.3 million $25.7 million $34.5 million 37% from the same period last year and2% sequentially
"Over the last year, the High Tide team has presented investors with compelling proof points as to how we're different than other retailers, and our third quarter results offer even further evidence of this. Our numbers continue to drive home the fact that we are a well-managed, innovative company that has grown responsibly while continuing to build value for shareholders. Numbers don't lie and this quarter's record revenue, positive net income and free cash flow, for the fifth consecutive quarter, sit in stark contrast to some of our big-name competitors recently filing for bankruptcy protection or shutting down completely. Unlike these competitors, we are generating strong free cash flow from our operations, which has been powering our organic growth trajectory in recent months. This has allowed us to grow our cash on hand balance to
"With 21 new Cabanas launched from the profits of our existing store network, we have already surpassed the low end of our previously communicated target of adding 20 to 30 new sites this year. Given our current momentum, I believe we can approach the high end of this projection. This rapid store growth and a
Third Quarter 2024 – Operational Highlights (May 1 - July 31):
- The Company opened 11 new Canna Cabana locations - 4 in
Alberta , 1 inSaskatchewan , and 6 in Ontario - On May 1, 2024, the Company announced the appointment of Mayank Mahajan to the role of Chief Financial Officer
- The Company welcomed the announcement by Alberta Gaming Liquor and Cannabis (AGLC) that it has amended its Retail Cannabis Store Handbook to allow private label cannabis sales
- The Company entered into a binding subscription agreement with arm's length institutional credit providers for
$15 million - The Company held its Annual General and Special Meeting of Shareholders, where all members of the Board of Directors were re-elected with near unanimous support
Subsequent Events (August 1 - Present):
- The Company opened 3 new Canna Cabana locations in
Ontario - The Company closed its previously announced asset purchase, pursuant to an asset purchase agreement dated June 25, 2024, whereby High Tide acquired a retail cannabis store in Mississauga,
Ontario , for$600,000 - The Company grew its World Vision sponsorship support to 366 children internationally after committing to sponsoring two additional children for every new store that opens in
Canada - The Company announced the initial closing of its previously disclosed
$15 million - The Company announced the re-launch of the website of its flagship Canadian bricks-and-mortar retail brand, Canna Cabana, which represents more than 90 per cent of High Tide's revenue
- Fastendr retail kiosks have been installed in 140 Canna Cabana locations, up from 130 in the previous quarter, with all remaining installations expected to be completed by the end of September
- The Company announced the launch of Queen of Bud branded white label products in
British Columbia ,Alberta ,Saskatchewan ,Manitoba andOntario - The Company announced that it has entered into a joint venture with Positive Intent Events (PIE) to establish a leading position in
Canada 's nascent cannabis hospitality sector. The announcement followedAlberta 's announcement to allow cannabis pop-ups at adult-only events
Selected financial information for the second quarter ended July 31, 2024:
(Expressed in thousands of Canadian Dollars)
Three months ended July 31 | Nine Months Ended July 31 | |||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||
$ | $ | ∆ | $ | $ | ∆ | |||||||
Free cash flow(i) | 3,092 | 4,051 | (24) % | 16,083 | 1,253 | 1184 % | ||||||
Cash from operating activities | 6,213 | 7,545 | (18) % | 25,895 | 11,025 | 135 % | ||||||
Revenue | 131,685 | 124,352 | 6 % | 384,011 | 360,564 | 7 % | ||||||
Gross profit | 35,454 | 34,578 | 3 % | 106,747 | 98,330 | 9 % | ||||||
Gross profit margin(ii) | 27 % | 28 % | (1) % | 28 % | 27 % | 1 % | ||||||
Total operating expenses | (32,399) | (35,240) | 8 % | (98,913) | (105,551) | 6 % | ||||||
Income (loss) from operations | 3,055 | (662) | 562 % | 7,834 | (7,221) | 209 % | ||||||
Adjusted EBITDA(iii) | 9,614 | 10,181 | (6) % | 30,090 | 22,273 | 35 % | ||||||
Adjusted EBITDA margin(iv) | 7 % | 8 % | (1) % | 8 % | 6 % | 2 % | ||||||
Net Income (loss) | 825 | (3,574) | 123 % | 991 | (9,147) | 111 % | ||||||
Basic and diluted income (loss) per share | 0.01 | (0.04) | 125 % | 0.00 | (0.12) | 100 % | ||||||
(i) | The Company defines free cash flow as net cash provided by (used in) operating activities minus sustaining capex minus lease liability payments. Sustaining Capex is defined as leasehold improvements and maintenance spending required in the existing business. The most directly comparable financial measure is net cash provided by operating activities, as disclosed in the consolidated statement of cash flows. It should not be viewed as a measure of liquidity or a substitute for comparable metrics prepared in accordance with IFRS. |
(ii) | Gross profit margin - a non-IFRS financial measure. Gross profit margin is calculated by dividing gross profit by revenue. |
(iii) | Adjusted EBITDA - a non-IFRS financial measure. A reconciliation of the Adjusted EBITDA to Net income (loss) is found under "Select financial highlights and operating performance" section in the Company's MD&A. |
(iv) | Adjusted EBITDA margin - a non-IFRS financial measure. This metric is calculated as adjusted EBITDA divided by revenue. |
The following is a reconciliation of Adjusted EBITDA to Net Loss:
2024 | 2023 | 2022 | ||||||
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | |
Net Income (loss) | 825 | 171 | (5) | (31,805) | (3,717) | (1,568) | (3,862) | (52,503) |
Income/deferred tax (recovery) expense | 671 | (878) | (233) | (4,571) | 204 | (2,041) | (1,236) | (1,782) |
Accretion and interest | 1,681 | 1,712 | 1,743 | 1,632 | 1,931 | 1,759 | 1,814 | 782 |
Depreciation and amortization | 5,678 | 7,505 | 6,848 | 8,583 | 8,493 | 7,699 | 7,986 | 8,249 |
EBITDA | 8,855 | 8,510 | 8,353 | (26,161) | 6,911 | 5,849 | 4,702 | (45,254) |
Foreign exchange (gain) lose | 19 | (5) | 5 | (152) | 31 | 2 | (15) | (14) |
Finance and other costs | 12 | 1,314 | 515 | 691 | 801 | 435 | 664 | 2,444 |
(Gain) loss revaluation of put option liability | (159) | (110) | (300) | 544 | 73 | (1,288) | (1,261) | (3,166) |
Other loss | (6) | 337 | - | 37 | 18 | - | - | - |
Loss (gain) on extinguishment of debenture | - | - | - | - | - | - | - | 609 |
Impairment loss | - | - | - | 34,265 | - | - | - | 48,592 |
Share-based compensation | 881 | 549 | 795 | (284) | 2,350 | 1,532 | 1,436 | 2,091 |
Loss (gain) on revaluation of marketable securities | 12 | - | 77 | (13) | - | (19) | (8) | 81 |
(Gain) loss on revaluation of debenture | - | (240) | 755 | (505) | - | - | - | (366) |
(Gain) loss on extinguishment of financial liability | - | (314) | 235 | (60) | - | 78 | (18) | - |
Adjusted EBITDA(i) | 9,614 | 10,041 | 10,435 | 8,362 | 10,184 | 6,589 | 5,500 | 5,017 |
(i) Adjusted EBITDA is a non-IFRS financial measure |
Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | ||||||
Cash flow from operating activities | 8,928 | 8,032 | 9,363 | 7,207 | 8,395 | |||||
Changes in non-cash working capital | (2,715) | 4,777 | (2,490) | 2,430 | (850) | |||||
Net cash provided by operating activities | 6,213 | 12,809 | 6,873 | 9,637 | 7,545 | |||||
Sustaining capex | (279) | (528) | (511) | (1,080) | (705) | |||||
Lease liability payments | (2,842) | (2,898) | (2,754) | (2,870) | (2,789) | |||||
Free cash flow | 3,092 | 9,383 | 3,608 | 5,687 | 4,051 |
Outlook
Through its Canna Cabana brand, High Tide is the largest cannabis retailer in
The Company's Cabana Club loyalty program continues to expand at a rapid pace across
The Company's market share in dollars during the first two months of the quarter rose to
Given
The Company has been free cash flow positive over the past five quarters, having generated approximately
The Company continues to monitor legislative and regulatory developments in
Webcast Link for High Tide Earnings Event:
https://events.q4inc.com/attendee/471302144
Participants are encouraged to pre-register for the webcast by clicking on the link above prior to the beginning of the live webcast. Three hours after the live webcast, a replay of the webcast will be available at the same link above.
Participants who wish to ask questions during the event may do so through the call-in line, the access information for which is as follows:
Global Dial-In Numbers: https://www.netroadshow.com/events/global-numbers?confId=65906
Participant Access Code: 604413
ATM PROGRAM QUARTERLY UPDATE
Pursuant to the Company's at-the-market equity offering program (the "ATM Program") that allows the Company to issue up to
Pursuant to an equity distribution agreement dated August 31, 2023, entered into among the Company, ATB Capital Markets Inc. and ATB Capital Markets
The Company intends to use the net proceeds of the ATM Program, if any, and at the discretion of the Company, to fund strategic initiatives it is currently developing, to support the growth and development of the Company's existing operations, funding future acquisitions as well as working capital and general corporate purposes.
Common Shares issued pursuant to the ATM Program are issued pursuant to a prospectus supplement dated August 31, 2023 (the "Canadian Prospectus Supplement") to the Company's final base shelf prospectus dated August 3, 2023, filed with the securities commissions or similar regulatory authorities in each of the provinces and territories of
The ATM Program is effective until the earlier of (i) the date that all Common Shares available for issue under the ATM Program have been sold, (ii) the date the Canadian Prospectus Supplement in respect of the ATM Program or Canadian Shelf Prospectus is withdrawn and (iii) the date that the ATM Program is terminated by the Company or Agents.
ABOUT HIGH TIDE
High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world's most powerful plant and is the second-largest cannabis retailer globally by store count7. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including:
Bricks & Mortar Retail: Canna Cabana™ is the largest cannabis retail chain in
Retail Innovation: Fastendr™ is a unique and fully automated technology that employs retail kiosks to facilitate a better buying experience through browsing, ordering and pickup.
Consumption Accessories: High Tide operates a suite of leading accessory e-commerce platforms across the world, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com.
Brands: High Tide's industry-leading and consumer-facing brand roster includes Queen of Bud™, Cabana Cannabis Co™, Daily High Club™, Vodka Glass™, Puff Puff Pass™, Dopezilla™, Atomik™, Hue™, Evolution™ and more.
CBD: High Tide continues to cultivate the possibilities of consumer CBD through Nuleafnaturals.com, FABCBD.com, blessedcbd.de and blessedcbd.co.uk.
Wholesale Distribution: High Tide keeps that cannabis category stocked with wholesale solutions via Valiant™.
Licensing: High Tide continues to push cannabis culture forward through fresh partnerships and license agreements under the Famous Brandz™ name.
High Tide consistently moves ahead of the currents, having been named one of
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. The forward-looking statements herein include, but are not limited to, statements regarding:
The Company's business objectives and milestones and the anticipated timing of, and costs in connection with, the execution or achievement of such objectives and milestones (including, without limitation, proposed acquisitions, expansions and store openings); the Company's future growth prospects and intentions to pursue one or more viable business opportunities; the development of the Company's business and future activities following the date hereof; expectations relating to market size and anticipated growth in the jurisdictions within which the Company may from time to time operate or contemplate future operations; expectations with respect to economic, business, regulatory, or competitive factors related to the Company or the cannabis industry generally; the market for the Company's current and proposed product offerings, as well as the Company's ability to capture market share; the distribution methods expected to be used by the Company to deliver its product offerings; the Company's strategic investments and capital expenditures, and related benefits; changes in general and administrative expenses; future business operations and activities and the timing and performance thereof; the future tax liability of the Company; the estimated future contractual obligations of the Company; the future liquidity and financial capacity of the Company and its ability to fund its working capital requirements and forecasted capital expenditures; the competitive landscape within which the Company operates and the Company's market share or reach; the Company adding the number of additional cannabis retail store locations the Company proposes to add to the Company's business upon the timelines indicated herein, and the Company remaining on a positive growth trajectory; same-store sales continuing to increase; the Company making increases to its revenue profile; the Company completing the development of its cannabis retail stores; the Company's ability to remain free cash flow positive; free cash flow allowing the Company to finance its growth with internal cash flows; the Company achieving sustained growth while remaining free cash flow positive; the Company's ability to maximize shareholder value; the Company's ability to obtain, maintain, and renew or extend, applicable authorizations, including the timing and impact of the receipt thereof; the realization of cost savings, synergies or benefits from the Company's recent and proposed acquisitions, and the Company's ability to successfully integrate the operations of any business acquired within the Company's business; the anticipated sales from continuing operations; Cabana Club and ELITE loyalty programs membership continuing to increase; the anticipated changes to and effects of the ELITE program on the business and operations of the Company; the Company expanding its Canna Cabana brand internationally; the Company hitting its forecasted revenue and sales projections; the intention of the Company to complete the ATM Program and any additional offering of securities of the Company; the aggregate amount of the total proceeds that the Company will receive pursuant to the ATM Program and/or any future offering; the Company's expected use of the net proceeds from the ATM Program and/or any future offering; the listing of Common Shares offered in the ATM Program and/or any future offering; the anticipated effects of the ATM Program and/or any future offering on the business and operations of the Company; legislative changes occurring in
Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Although the Company believes that the expectations reflected in these statements are reasonable, such statements are based on expectations, factors, and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including but not limited to the risk factors discussed under the heading "Non-Exhaustive List of Risk Factors" in Schedule A to our current annual information form, and elsewhere in this press release, as such factors may be further updated from time to time in our periodic filings, available at www.sedarplus.ca and www.sec.gov, which factors are incorporated herein by reference. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results, or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION
This press release may contain future oriented financial information ("FOFI") within the meaning of applicable securities legislation about prospective results of operations, financial position or cash flows, which is subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above "Cautionary Note Regarding Forward-Looking Statements". FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement. FOFI does not purport to present the Company's financial condition in accordance with IFRS as issued by the International Accounting Standards Board, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments as of the applicable date. However, because this information is highly subjective and subject to numerous risks, readers are cautioned not to place undue reliance on the FOFI as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI.
Importantly, the FOFI contained in this press release are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including, but not limited to, assumptions about: (i) the future pricing for the Company's products, (ii) the future market demand and trends within the jurisdictions in which the Company may from time to time conduct the Company's business, (iii) the Company's ongoing inventory levels, and operating cost estimates, and (iv) the Company's net proceeds from the ATM Program and future financings. The FOFI or financial outlook contained in this press release do not purport to present the Company's financial condition in accordance with IFRS as issued by the International Accounting Standards Board, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled "Cautionary Note Regarding Forward-Looking Statements" and under the heading "Risk Factors" in the Company's public disclosures, FOFI or financial outlook within this press release should not be relied on as necessarily indicative of future results.
Readers are cautioned not to place undue reliance on the FOFI, or financial outlook contained in this press release. Except as required by Canadian securities laws, the Company does not intend, and does not assume any obligation, to update such FOFI.
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1 Market share reflects the months of May & June, 2024 per publicly available Statistics Canada data |
2 Based on publicly available data from Statistics Canada and provincial regulators |
3 Based on publicly available data from Statistics Canada and provincial regulators |
4 Based on publicly available data for the months of May & June 2024, in the five Canadian provinces where Canna Cabana operates and as per publicly available data from Statistics Canada and provincial regulators |
5 Data sourced from most recent public filings of the mentioned retailers |
6 Adjusted EBITDA is a non-IFRS financial measure |
7 As reported by ATB Capital Markets based on store counts as of February 8, 2024 |
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SOURCE High Tide Inc.
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