Jushi Holdings Inc. Reports Second Quarter 2024 Financial Results
Jushi Holdings Inc. (OTCQX: JUSHF) reported its Q2 2024 financial results, showing improved margins and reduced losses. Key highlights include:
- Total revenue of $64.6 million, down 2.8% year-over-year
- Gross profit of $32.6 million with a 50.4% margin
- Net loss reduced to $1.9 million from $14.0 million in Q2 2023
- Adjusted EBITDA increased to $14.5 million with a 22.4% margin
- Launched 308 new high-margin SKUs across five markets
- Expanded Jushi-branded product sales to 55.9% of total retail revenue
- Completed refinancing of first lien debt and reduced short-term debt
The company attributed its improved performance to operational efficiencies, cost-saving measures, and a successful commercialization strategy. Jushi also strengthened its balance sheet post-quarter by reducing debt and enhancing financial flexibility.
Jushi Holdings Inc. (OTCQX: JUSHF) ha riportato i risultati finanziari per il secondo trimestre del 2024, mostrando margini migliorati e perdite ridotte. I principali punti salienti includono:
- Fatturato totale di 64,6 milioni di dollari, in calo del 2,8% rispetto all'anno precedente
- Utile lordo di 32,6 milioni di dollari con un margine del 50,4%
- Perdita netta ridotta a 1,9 milioni di dollari rispetto ai 14,0 milioni di dollari nel Q2 2023
- EBITDA rettificato aumentato a 14,5 milioni di dollari con un margine del 22,4%
- Lancio di 308 nuovi SKU ad alto margine in cinque mercati
- Espansione delle vendite di prodotti a marchio Jushi al 55,9% del fatturato totale al dettaglio
- Completamento del rifinanziamento del debito senior e riduzione del debito a breve termine
L'azienda ha attribuito le sue prestazioni migliorate ad efficienze operative, misure di risparmio sui costi e a una strategia di commercializzazione di successo. Jushi ha anche rafforzato il proprio bilancio dopo il trimestre riducendo il debito e migliorando la flessibilità finanziaria.
Jushi Holdings Inc. (OTCQX: JUSHF) informó sus resultados financieros del segundo trimestre de 2024, evidenciando márgenes mejorados y pérdidas reducidas. Los puntos destacados incluyen:
- Ingresos totales de 64.6 millones de dólares, una disminución del 2.8% en comparación con el año anterior
- Beneficio bruto de 32.6 millones de dólares con un margen del 50.4%
- Pérdida neta reducida a 1.9 millones de dólares desde 14.0 millones de dólares en el Q2 2023
- EBITDA ajustado aumentado a 14.5 millones de dólares con un margen del 22.4%
- Lanzamiento de 308 nuevos SKU de alto margen en cinco mercados
- Expansión de las ventas de productos de marca Jushi al 55.9% de los ingresos totales minoristas
- Finalización del refinanciamiento de la deuda senior y reducción de la deuda a corto plazo
La empresa atribuyó su mejora en el rendimiento a eficiencias operativas, medidas de ahorro de costos y una estrategia de comercialización exitosa. Jushi también fortaleció su balance después del trimestre al reducir la deuda y mejorar la flexibilidad financiera.
Jushi Holdings Inc. (OTCQX: JUSHF)는 2024년 2분기 재무 결과를 보고하며 개선된 마진과 감소한 손실을 나타냈습니다. 주요 하이라이트는 다음과 같습니다:
- 총 수익 6460만 달러, 전년 대비 2.8% 감소
- 총 이익 3260만 달러, 마진 50.4%
- 순손실 190만 달러로 감소, 2023년 2분기 1400만 달러에서
- 조정 EBITDA 1450만 달러로 증가, 마진 22.4%
- 5개 시장에서 308개의 신규 고마진 SKU 출시
- Jushi 브랜드 제품 판매가 총 소매 수익의 55.9%로 확대
- 첫 담보 채무의 재융자 완료 및 단기 부채 감소
회사는 운영 효율성, 비용 절감 조치 및 성공적인 상용화 전략 덕분에 성과가 개선되었다고 설명했습니다. Jushi는 또한 분기 이후 부채를 줄이고 재무 유연성을 향상시킴으로써 자산 부담을 강화했습니다.
Jushi Holdings Inc. (OTCQX: JUSHF) a déclaré ses résultats financiers pour le deuxième trimestre de 2024, montrant des marges améliorées et des pertes réduites. Les principaux points forts incluent :
- Revenus totaux de 64,6 millions de dollars, en baisse de 2,8 % par rapport à l'année précédente
- Bénéfice brut de 32,6 millions de dollars avec une marge de 50,4 %
- Perte nette réduite à 1,9 million de dollars contre 14,0 millions de dollars au T2 2023
- EBITDA ajusté augmenté à 14,5 millions de dollars avec une marge de 22,4 %
- Lancement de 308 nouveaux SKU à forte marge sur cinq marchés
- Expansion des ventes de produits sous la marque Jushi à 55,9 % du chiffre d'affaires total au détail
- Achèvement du refinancement de la dette senior et réduction de la dette à court terme
L'entreprise a attribué ses performances améliorées à des gains d'efficacité opérationnelle, à des mesures d'économie de coûts et à une stratégie de commercialisation réussie. Jushi a également renforcé son bilan après le trimestre en réduisant sa dette et en améliorant sa flexibilité financière.
Jushi Holdings Inc. (OTCQX: JUSHF) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und zeigt verbesserte Margen und reduzierte Verluste. Zu den wichtigsten Highlights gehören:
- Gesamtumsatz von 64,6 Millionen Dollar, ein Rückgang von 2,8 % im Jahresvergleich
- Bruttogewinn von 32,6 Millionen Dollar mit einer Marge von 50,4 %
- Nettogewinn auf 1,9 Millionen Dollar gesenkt von 14,0 Millionen Dollar im Q2 2023
- Bereinigtes EBITDA stieg auf 14,5 Millionen Dollar mit einer Marge von 22,4 %
- Einführung von 308 neuen hochmargigen SKUs in fünf Märkten
- Ausweitung des Verkaufs von Jushi-Markenprodukten auf 55,9 % des gesamten Einzelhandelsumsatzes
- Abschluss der Refinanzierung der ersten Hypothekenschuld und Reduzierung der kurzfristigen Schulden
Das Unternehmen schrieb die verbesserten Ergebnisse betrieblicher Effizienz, Einsparungsmaßnahmen und einer erfolgreichen Kommerzialisierungsstrategie zu. Jushi stärkte auch nach dem Quartal die Bilanz, indem es die Schulden reduzierte und die finanzielle Flexibilität erhöhte.
- Gross profit margin improved to 50.4% from 46.0% in Q2 2023
- Net loss reduced significantly to $1.9 million from $14.0 million in Q2 2023
- Adjusted EBITDA increased 14.7% year-over-year to $14.5 million
- Adjusted EBITDA margin improved to 22.4%
- Launched 308 new high-margin SKUs, bringing year-to-date total to 751
- Expanded Jushi-branded product sales to 55.9% of total retail revenue, a 920 basis point improvement
- Wholesale revenue increased 11.6% year-over-year to $7.6 million
- Operating expenses reduced by 11.0% year-over-year to $24.2 million
- Reduced short-term debt to less than $1.0 million post-quarter
- Total revenue decreased 2.8% year-over-year to $64.6 million
- Sales declined in Illinois (4%), Massachusetts (6%), Nevada (13%), and Pennsylvania (11%)
- Net loss of $1.9 million, primarily due to income tax expense of $9.3 million
- Interest expense of $9.1 million in Q2 2024
Margin Growth with Gross Profit and Gross Margin Reaching
Net Loss of
Grew Adjusted EBITDA and Adjusted EBITDA Margin to
Progressed Commercialization Strategy with the Debut of 308 New High-Margin SKUs
Improved Capital Structure and Advanced Debt Reduction Plan with Refinancing of the Acquisition Facility
BOCA RATON, Fla., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, is pleased to announce its financial results for the second quarter ended June 30, 2024 (“Q2 2024”). All financial information is unaudited and provided in U.S. dollars unless otherwise indicated and is prepared under U.S. Generally Accepted Accounting Principles (“GAAP”).
Second Quarter 2024 Financial Highlights
- Total revenue of
$64.6 million - Gross profit and gross profit margin of
$32.6 million and50.4% , respectively - Net loss of
$1.9 million - Adjusted EBITDA1 of
$14.5 million - Adjusted EBITDA1 margin of
22.4% - Cash, cash equivalents, and restricted cash of
$35.0 million as of quarter end - Net cash flows provided by operations of
$5.5 million
1 See “Use of Non-GAAP Financial Information” and “Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA and Calculation of Adjusted EBITDA Margin” below.
Second Quarter 2024 Company Highlights
- Appointed Todd West as Chief Operating Officer, adding over 25 years of experience in retail, manufacturing, and wholesale operations experience within the food and beverage and cannabis industries.
- Debuted 308 new unique SKUs across the Company’s five vertical markets, including the introduction of The Lab 2g vape carts in Pennsylvania, The Lab and Tasteology brands full product suites in Nevada, as well as new flavors, ratios, and potencies of Tasteology troches in Pennsylvania and edibles in Virginia and Massachusetts.
- Advanced to build-out phase of an additional adult-use retail dispensary in Illinois, enabling the Company to open the fifth Beyond Hello™ location in the state with Beyond Hello™ Peoria, which is anticipated to become operational in the fourth quarter of 2024, subject to final regulatory approvals.
- Expanded Jushi-branded product sales as a percentage of total retail revenue to
55.9% across the Company’s five vertical markets, a 920 basis point improvement compared to Q2 2023.
Post Quarter-End Developments
- Completed the refinancing of our first lien debt with SunStream Bancorp Inc. (the "Acquisition Facility") through the issuance of a
$48.5 million principal amount of secured term loans from a syndicate of lenders and approximately$4.3 million of cash on hand. - Strengthened our balance sheet through additional debt repayments, resulting in our short-term debt subject to scheduled repayments being reduced from
$10.0 million as of June 30, 2024 to less than$1.0 million . - Awarded non-medical retail sales license in Ohio for the Company’s planned Beyond Hello™ dispensary in Springdale, which is expected to open in the first quarter of 2025 and be the Company’s second Ohio location.
- Executed an agreement for the sale of one of our dispensaries at a sale price of
$3.0 million . This sale is subject to regulatory approvals and customary closing conditions, and is expected to be completed by the first quarter of 2025.
Management Commentary
“Our second quarter performance underscores our efforts to strengthen our asset base while maintaining prudent cost-saving measures, and we believe this will help position us on a steady path to sustained profitability,” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi. “Our organization-wide operational improvement plan is yielding promising results, with gross margin reaching
Mr. Cacioppo continued, “Our commercialization strategy remains a pivotal driver of our performance improvements, particularly in markets such as Ohio and Virginia. This includes the diversification of our brands and product offering with new, exclusive cultivars, and consistent enhancements to quality, potency, and yields. Throughout the second quarter, we launched an additional 308 new, high-margin SKUs across our footprint, bringing our year-to-date total to an impressive 751 new SKUs. We were thrilled to bring our full offerings of The Lab and Tasteology brands to Nevada to bolster our presence in this market, as well as launch our highly anticipated The Lab 2g vape cartridges in Pennsylvania. Our wholesale business also continues to perform well, particularly in Ohio which saw a
Mr. Cacioppo concluded, “Subsequent to the quarter end, we took crucial steps to enhance our capital structure by reducing our debt to increase our financial flexibility, aligning us positively for the second half of the year. We’ve successfully refinanced our Acquisition Facility debt with a new term loan in the amount of
Financial Results for the Second Quarter Ended June 30, 2024
($ in millions)
| Quarter Ended June 30, 2024 | Quarter Ended June 30, 2023 | % Change | Quarter Ended June 30, 2024 | Quarter Ended March 31, 2024 | % Change | |||||||||||||
| Revenue, net | $ | 64.6 | $ | 66.4 | (2.8 | ) | % | $ | 64.6 | $ | 65.5 | (1.3 | ) | % | ||||
| Gross profit | $ | 32.6 | $ | 30.6 | 6.6 | % | $ | 32.6 | $ | 32.3 | 0.7 | % | ||||||
| Operating expenses | $ | 24.2 | $ | 27.2 | (11.0 | ) | % | $ | 24.2 | $ | 28.2 | (14.4 | ) | % | ||||
| Other income (expense) | $ | (1.0 | ) | $ | (8.9 | ) | (88.6 | ) | % | $ | (1.0 | ) | $ | (12.7 | ) | (92.0 | ) | % |
| Net loss | $ | (1.9 | ) | $ | (14.0 | ) | 86.2 | % | $ | (1.9 | ) | $ | (18.4 | ) | (89.4 | ) | % | |
| Adjusted EBITDA | $ | 14.5 | $ | 12.6 | 14.7 | % | $ | 14.5 | $ | 13.3 | 8.5 | % | ||||||
Revenue in Q2 2024 decreased
- A decline in sales Illinois of
4% - while the number of units sold increased approximately12% , the average price per unit declined as a result of pricing pressures due to the neighboring state of Missouri moving to recreational use; - A decline in sales in Massachusetts of
6% and in Nevada of13% - while the number of units sold in Massachusetts increased approximately2% and in Nevada approximately4% , the average price per unit declined due to market price compression and continued competition; and - A decline in sales in Pennsylvania of
11% due to a decline in units sold of approximately13% driven by increased competition. However, average price per unit remained stable year-over year.
These declines were partially offset by an increase in sales in Virginia of
Wholesale revenue increased
Gross profit in Q2 2024 was
Operating expenses for Q2 2024 were
Net loss for Q2 2024 was
Adjusted EBITDA1 in Q2 2024 was
1See “Use of Non-GAAP Financial Information” and “Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA and Calculation of Adjusted EBITDA Margin” below.
Balance Sheet and Liquidity
As of June 30, 2024, the Company had approximately
As of August 2, 2024, the Company’s issued and outstanding shares were 196,643,264 and its fully diluted shares outstanding were 330,964,842.
Use of Non-GAAP Financial Information
The Company believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the “Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA and Calculation of Adjusted EBITDA Margin” section of this press release.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast for the second quarter ended June 30, 2024 at 4:30 p.m. ET today, Wednesday, August 7, 2024.
| Event: | Second Quarter 2024 Financial Results Conference Call |
| Date: | Wednesday, August 7, 2024 |
| Time: | 4:30 p.m. Eastern Time |
| Live Call: | 1-877-407-0792 (U.S. & Canada Toll-Free) |
| Conference ID: | 13747162 |
| Webcast: | Register |
For interested individuals unable to join the conference call, a webcast of the call will be available for one month following the conference call and can be accessed via webcast on Jushi’s Investor Relations website.
About Jushi Holdings Inc.
We are a vertically integrated cannabis company led by an industry-leading management team. Jushi is focused on building a multi-state portfolio of branded cannabis assets through opportunistic acquisitions, distressed workouts, and competitive applications. Jushi strives to maximize shareholder value while delivering high-quality products across all levels of the cannabis ecosystem. For more information, visit jushico.com or our social media channels, Instagram, Facebook, X, and LinkedIn.
Forward-Looking Information and Statements
This press release may contain “forward-looking statements” and “forward‐looking information” within the meaning of applicable securities laws, including Canadian securities legislation and United States (“U.S.”) securities legislation (collectively, “forward-looking information”) which are based upon the Company’s current internal expectations, estimates, projections, assumptions and beliefs. All information, other than statements of historical facts, included in this report that address activities, events or developments that Jushi expects or anticipates will or may occur in the future constitutes forward‐looking information. Forward‐looking information is often identified by the words, “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes, among others, information regarding: future business strategy; competitive strengths, goals, expansion and growth of Jushi’s business, operations and plans, including new revenue streams; roll out of new operations; the implementation by Jushi of certain product lines; implementation of certain research and development; the application for additional licenses and the grant of licenses that will be or have been applied for; the expansion or construction of certain facilities; the reduction in the number of our employees; the expansion into additional U.S. markets; any potential future legalization of adult use and/or medical marijuana under U.S. federal law; expectations of market size and growth in the U.S. and the states in which Jushi operates; expectations for other economic, business, regulatory and/or competitive factors related to Jushi or the cannabis industry generally; and other events or conditions that may occur in the future.
Readers are cautioned that forward‐looking information is not based on historical facts but instead is based on reasonable assumptions and estimates of the management of the Company at the time they were provided or made and such information involves known and unknown risks, uncertainties, including our ability to continue as a going concern, and other factors that may cause the actual results, level of activity, 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 information. Such factors include, among others: risks relating to U.S. regulatory landscape and enforcement related to cannabis, including political risks; risks relating to anti‐money laundering laws and regulation; other governmental and environmental regulation; public opinion and perception of the cannabis industry; risks related to the economy generally; risks related to inflation, the rising cost of capital, and stock market instability; risks relating to pandemics and forces of nature; risks related to contracts with third party service providers; risks related to the enforceability of contracts; the limited operating history of Jushi; Jushi’s history of operating losses and negative operating cash flows; reliance on the expertise and judgment of senior management of Jushi; risks inherent in an agricultural business; risks related to co‐investment with parties with different interests to the Company; risks related to proprietary intellectual property and potential infringement by third parties; risks relating to the management of growth; costs associated with Jushi being a publicly-traded company and a U.S. and Canadian filer; increasing competition in the industry; risks associated with cannabis products manufactured for human consumption including potential product recalls; reliance on key inputs, suppliers and skilled labor; reliance on manufacturers and contractors; risks of supply shortages or supply chain disruptions; cybersecurity risks; constraints on marketing products; fraudulent activity by employees, contractors and consultants; tax and insurance related risks; risk of litigation; conflicts of interest; risks relating to certain remedies being limited and the difficulty of enforcing judgments and effecting service outside of Canada; risks related to completed, pending or future acquisitions or dispositions, including potential future impairment of goodwill or intangibles acquired and/or post-closing disputes; sales of a significant amount of shares by existing shareholders; the limited market for securities of the Company; risks related to the continued performance of existing operations in California, Illinois, Massachusetts, Nevada, Ohio, Pennsylvania, and Virginia; risks related to the anticipated openings of additional dispensaries or relocation of existing dispensaries; risks relating to the expansion and optimization of the cultivation and/or processing facilities in Massachusetts, Nevada, Ohio, Pennsylvania and Virginia; risks related to opening new facilities, which is subject to licensing approval; limited research and data relating to cannabis; risks related to challenges from governmental authorities with respect to the Company's tax credits; potential changes in federal policy and at regulatory agencies as a result of the upcoming United States 2024 presidential election; and risks related to the Company’s critical accounting policies and estimates. Refer to Part I - Item 1A. Risk Factors in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on April 1, 2024 for more information.
Although Jushi has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward‐looking information will prove to be accurate as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on the forward‐looking information contained in this press release or other forward-looking statements made by Jushi. Forward‐looking information is provided and made as of the date of this press release and Jushi does not undertake any obligation to revise or update any forward‐looking information or statements other than as required by applicable law.
Unless the context requires otherwise, references in this press release to “Jushi,” “Company,” “we,” “us” and “our” refer to Jushi Holdings Inc. and our subsidiaries.
For further information, please contact:
Investor Relations
561-617-9100
investors@jushico.com
| JUSHI HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In thousands of U.S. dollars, except share and per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| REVENUE, NET | $ | 64,595 | $ | 66,425 | $ | 130,054 | $ | 136,298 | |||||||
| COST OF GOODS SOLD | (32,029 | ) | (35,871 | ) | (65,158 | ) | (75,803 | ) | |||||||
| GROSS PROFIT | 32,566 | 30,554 | 64,896 | 60,495 | |||||||||||
| OPERATING EXPENSES | 24,162 | 27,154 | 52,373 | 59,606 | |||||||||||
| INCOME FROM OPERATIONS | 8,404 | 3,400 | 12,523 | 889 | |||||||||||
| OTHER INCOME (EXPENSE): | |||||||||||||||
| Interest expense, net | (9,071 | ) | (9,790 | ) | (18,615 | ) | (18,310 | ) | |||||||
| Fair value gain on derivatives | 5,312 | 1,090 | 212 | 9,120 | |||||||||||
| Other, net | 2,746 | (190 | ) | 4,663 | 519 | ||||||||||
| Total other income (expense), net | (1,013 | ) | (8,890 | ) | (13,740 | ) | (8,671 | ) | |||||||
| INCOME (LOSS) BEFORE INCOME TAX | 7,391 | (5,490 | ) | (1,217 | ) | (7,782 | ) | ||||||||
| Income tax expense | (9,329 | ) | (8,546 | ) | (19,076 | ) | (18,694 | ) | |||||||
| NET LOSS AND COMPREHENSIVE LOSS | $ | (1,938 | ) | $ | (14,036 | ) | $ | (20,293 | ) | $ | (26,476 | ) | |||
| LOSS PER SHARE - BASIC | $ | (0.01 | ) | $ | (0.07 | ) | $ | (0.10 | ) | $ | (0.14 | ) | |||
| Weighted average shares outstanding - basic | 195,138,473 | 194,756,391 | 195,135,057 | 194,405,562 | |||||||||||
| LOSS PER SHARE - DILUTED | $ | (0.01 | ) | $ | (0.07 | ) | $ | (0.10 | ) | $ | (0.14 | ) | |||
| Weighted average shares outstanding - diluted | 195,138,473 | 194,756,391 | 195,135,057 | 194,405,562 | |||||||||||
| JUSHI HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share amounts) | |||||||
| June 30, 2024 (unaudited) | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 32,880 | $ | 26,027 | |||
| Restricted cash - current | — | 3,128 | |||||
| Accounts receivable, net | 2,227 | 3,380 | |||||
| Inventory, net | 39,446 | 33,586 | |||||
| Prepaid expenses and other current assets | 14,229 | 15,514 | |||||
| Total current assets | 88,782 | 81,635 | |||||
| NON-CURRENT ASSETS: | |||||||
| Property, plant and equipment, net | 149,305 | 159,268 | |||||
| Right-of-use assets - finance leases | 61,091 | 63,107 | |||||
| Other intangible assets, net | 94,019 | 95,967 | |||||
| Goodwill | 30,910 | 30,910 | |||||
| Other non-current assets | 28,977 | 30,358 | |||||
| Restricted cash - non-current | 2,150 | 2,150 | |||||
| Total non-current assets | 366,452 | 381,760 | |||||
| Total assets | $ | 455,234 | $ | 463,395 | |||
| LIABILITIES AND EQUITY (DEFICIT) | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 16,035 | $ | 15,383 | |||
| Accrued expenses and other current liabilities | 35,883 | 44,070 | |||||
| Income tax payable | 814 | 5,190 | |||||
| Debt, net - current portion (including related party principal amounts of | 9,954 | 86,514 | |||||
| Finance lease obligations - current | 8,958 | 8,885 | |||||
| Derivative liabilities - current | 2,082 | 2,418 | |||||
| Total current liabilities | 73,726 | 162,460 | |||||
| NON-CURRENT LIABILITIES: | |||||||
| Debt, net - non-current (including related party principal amounts of | 192,481 | 126,041 | |||||
| Finance lease obligations - non-current | 52,145 | 52,839 | |||||
| Derivative liabilities - non-current | 344 | 220 | |||||
| Unrecognized tax benefits | 127,139 | 100,343 | |||||
| Other liabilities - non-current | 33,183 | 29,111 | |||||
| Total non-current liabilities | 405,292 | 308,554 | |||||
| Total liabilities | 479,018 | 471,014 | |||||
| COMMITMENTS AND CONTINGENCIES | |||||||
| EQUITY (DEFICIT): | |||||||
| Common stock, no par value: authorized shares - unlimited; issued and outstanding shares - 196,643,264 and 196,631,598 Subordinate Voting Shares as of June 30, 2024 and December 31, 2023, respectively | — | — | |||||
| Paid-in capital | 506,353 | 503,612 | |||||
| Accumulated deficit | (530,137 | ) | (509,844 | ) | |||
| Total Jushi shareholders' deficit | (23,784 | ) | (6,232 | ) | |||
| Non-controlling interests | — | (1,387 | ) | ||||
| Total deficit | (23,784 | ) | (7,619 | ) | |||
| Total liabilities and equity (deficit) | $ | 455,234 | $ | 463,395 | |||
| JUSHI HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) | |||||||
| Six Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| Net cash flows provided by (used in) operating activities | $ | 12,041 | $ | (10,285 | ) | ||
| Net cash flows provided by (used in) investing activities | 959 | (5,228 | ) | ||||
| Net cash flows (used in) provided by financing activities | (9,275 | ) | 20,429 | ||||
| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ | 3,725 | $ | 4,916 | |||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | $ | 31,305 | $ | 27,146 | |||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | 35,030 | $ | 32,062 | |||
| JUSHI HOLDINGS INC. UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA and CALCULATION OF ADJUSTED EBITDA MARGIN |
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
In addition to providing financial measurements based on GAAP, we provide additional financial metrics that are not prepared in accordance with GAAP. We use non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate our financial performance. These non-GAAP financial measures are EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin (each as defined below). We believe that these non-GAAP financial measures reflect our ongoing business by excluding the effects of expenses that are not reflective of our operating business performance and allow for meaningful comparisons and analysis of trends in our business. These non-GAAP financial measures also facilitate comparing financial results across accounting periods and to those of peer companies. As there are no standardized methods of calculating these non-GAAP measures, our methods may differ from those used by others, and accordingly, the use of these measures may not be directly comparable to similar measures used by others, thus limiting their usefulness. Accordingly, these non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are financial measures that are not defined under GAAP. We define EBITDA as net income (loss), or “earnings”, before interest, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before: (i) non-cash share-based compensation expense; (ii) inventory-related adjustments; (iii) fair value changes in derivatives; (iv) other (income)/expense items; (v) transaction costs; (vi) asset impairment; (vii) gain/loss on debt extinguishment; and (viii) start-up costs. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. These financial measures are metrics that have been adjusted from the GAAP net income (loss) measure in an effort to provide readers with a normalized metric in making comparisons more meaningful across the cannabis industry, as well as to remove non-recurring, irregular and one-time items that may otherwise distort the GAAP net income measure. Other companies in our industry may calculate this measure differently, limiting their usefulness as comparative measures.
Unaudited Reconciliation of Net Loss to Adjusted EBITDA
(In thousands of U.S. Dollars)
| Three Months Ended June 30, 2024 | Three Months Ended March 31, 2024 | Three Months Ended June 30, 2023 | |||||||||
| NET LOSS | $ | (1,938 | ) | $ | (18,355 | ) | $ | (14,036 | ) | ||
| Income tax expense | 9,329 | 9,747 | 8,546 | ||||||||
| Interest expense, net | 9,071 | 9,544 | 9,790 | ||||||||
| Depreciation and amortization (1) | 7,377 | 6,836 | 6,629 | ||||||||
| EBITDA (Non-GAAP) | 23,839 | 7,772 | 10,929 | ||||||||
| Non-cash share-based compensation | 347 | 1,524 | 2,363 | ||||||||
| Fair value changes in derivatives | (5,312 | ) | 5,100 | (1,090 | ) | ||||||
| Gain on deconsolidation of Jushi Europe | (1,896 | ) | — | — | |||||||
| Tangible long-lived asset impairment | 157 | — | — | ||||||||
| Other (income) expense, net (2) | (2,657 | ) | (648 | ) | 418 | ||||||
| Gain on debt extinguishment | — | (399 | ) | — | |||||||
| Adjusted EBITDA (Non-GAAP) | $ | 14,478 | $ | 13,349 | $ | 12,620 | |||||
| (1) | Includes amounts that are included in cost of goods sold and in operating expenses. |
| (2) | Includes: (i) remeasurement of contingent consideration related to acquisitions; (ii) losses (gains) on legal settlements; (iii) losses (gains) on lease terminations; (iv) losses (gains) on asset disposals; and (v) severance costs. |
Calculation of Adjusted EBITDA Margin
(In thousands of U.S. Dollars, unless otherwise stated)
| Three Months Ended June 30, 2024 | Three Months Ended March 31, 2024 | Three Months Ended June 30, 2023 | ||||||||||||
| Total revenue, net | $ | 64,595 | $ | 65,459 | $ | 66,425 | ||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 14,478 | $ | 13,349 | $ | 12,620 | ||||||||
| Adjusted EBITDA Margin (Non-GAAP) | 22.4 | % | 20.4 | % | 19.0 | % | ||||||||
FAQ
What was Jushi Holdings' (JUSHF) revenue in Q2 2024?
How did Jushi's (JUSHF) net loss change in Q2 2024 compared to Q2 2023?
What was Jushi Holdings' (JUSHF) Adjusted EBITDA for Q2 2024?
How many new SKUs did Jushi (JUSHF) launch in Q2 2024?
What percentage of Jushi's (JUSHF) total retail revenue came from Jushi-branded products in Q2 2024?
