Schwazze Announces Preliminary Third Quarter 2024 Financial Results
Schwazze announced preliminary Q3 2024 financial results, showing significant improvements in profitability and positive cash flow from operations. The company expects revenue of approximately $42 million, adjusted EBITDA of around $11 million, and cash flow from operations at $0.2 million. At quarter-end, Schwazze held $11 million in cash and equivalents, with a debt of $196 million.
The company attributes these gains to enhanced pricing strategies, improved in-store experiences, and better product quality, leading to increased store traffic in Colorado and New Mexico. However, due to a re-review process with new auditor Baker Tilly, there will be a delay in filing the Form 10-Q for Q3 2024. This delay is necessitated by the need to re-audit prior financial statements impacted by the SEC's order against previous auditor BF Borgers.
Schwazze ha annunciato i risultati finanziari preliminari per il terzo trimestre del 2024, mostrando significativi miglioramenti nella redditività e un flusso di cassa positivo dalle operazioni. L'azienda prevede ricavi di circa 42 milioni di dollari, un EBITDA rettificato di circa 11 milioni di dollari e un flusso di cassa dalle operazioni di 0,2 milioni di dollari. Alla fine del trimestre, Schwazze deteneva 11 milioni di dollari in contante e equivalenti, con un debito di 196 milioni di dollari.
L'azienda attribuisce questi guadagni a strategie di prezzo migliorate, esperienze in negozio più soddisfacenti e una qualità del prodotto migliore, che hanno portato a un aumento del traffico nei negozi in Colorado e Nuovo Messico. Tuttavia, a causa di un processo di nuova revisione con il nuovo revisore Baker Tilly, ci sarà un ritardo nella presentazione del Modulo 10-Q per il terzo trimestre del 2024. Questo ritardo è necessario per ri-audire i precedenti bilanci finanziari influenzati dall'ordine della SEC contro il precedente revisore BF Borgers.
Schwazze anunció resultados financieros preliminares para el tercer trimestre de 2024, mostrando mejoras significativas en la rentabilidad y un flujo de caja positivo de las operaciones. La empresa espera ingresos de aproximadamente 42 millones de dólares, un EBITDA ajustado de alrededor de 11 millones de dólares, y un flujo de caja de las operaciones de 0,2 millones de dólares. Al final del trimestre, Schwazze tenía 11 millones de dólares en efectivo y equivalentes, con una deuda de 196 millones de dólares.
La empresa atribuye estas ganancias a estrategias de precios mejoradas, mejores experiencias en la tienda y una mejor calidad del producto, lo que ha llevado a un aumento del tráfico en las tiendas de Colorado y Nuevo México. Sin embargo, debido a un proceso de nueva revisión con el nuevo auditor Baker Tilly, habrá un retraso en la presentación del Formulario 10-Q para el tercer trimestre de 2024. Este retraso es necesario para reauditar los estados financieros anteriores afectados por la orden de la SEC contra el auditor anterior BF Borgers.
Schwazze는 2024년 3분기 예비 재무 결과를 발표하며 수익성의 상당한 개선과 운영에서의 긍정적인 현금 흐름을 보였습니다. 회사는 약 4,200만 달러의 수익, 약 1,100만 달러의 조정 EBITDA, 20만 달러의 운영 현금 흐름을 예상하고 있습니다. 분기 말에 Schwazze는 현금 및 비현금으로 1,100만 달러를 보유하고 있으며, 1억 9,600만 달러의 부채를 가지고 있습니다.
회사는 이러한 성과를 가격 전략 개선, 매장 경험 개선 및 제품 품질 향상 덕분으로 보고하며, 이는 콜로라도와 뉴 멕시코의 매장 방문 증가로 이어졌습니다. 그러나 새로운 감사인 Baker Tilly와의 재검토 과정으로 인해 2024년 3분기 10-Q 양식 제출이 지연될 것입니다. 이 지연은 SEC의 이전 감사인 BF Borgers에 대한 명령의 영향을 받은 이전 재무제표를 다시 감사해야 하기 때문입니다.
Schwazze a annoncé les résultats financiers préliminaires pour le troisième trimestre 2024, montrant des améliorations significatives de la rentabilité et un flux de trésorerie positif provenant des opérations. La société prévoit des revenus d'environ 42 millions de dollars, un EBITDA ajusté d'environ 11 millions de dollars et un flux de trésorerie d'exploitation de 0,2 million de dollars. À la fin du trimestre, Schwazze détenait 11 millions de dollars en liquidités et équivalents, avec une dette de 196 millions de dollars.
La société attribue ces gains à des stratégies de tarification améliorées, des expériences en magasin optimisées et une meilleure qualité de produit, entraînant une augmentation du trafic dans les magasins du Colorado et du Nouveau-Mexique. Cependant, en raison d'un processus de nouvelle révision avec le nouvel auditeur Baker Tilly, le dépôt du formulaire 10-Q pour le troisième trimestre 2024 sera retardé. Ce retard est nécessaire pour réauditer les états financiers antérieurs affectés par l'ordre de la SEC contre l'ancien auditeur BF Borgers.
Schwazze hat vorläufige Finanzzahlen für das dritte Quartal 2024 veröffentlicht, die signifikante Verbesserungen der Rentabilität und einen positiven Cashflow aus der operativen Tätigkeit zeigen. Das Unternehmen erwartet einen Umsatz von etwa 42 Millionen Dollar, ein bereinigtes EBITDA von rund 11 Millionen Dollar und einen Cashflow aus den operativen Tätigkeiten von 0,2 Millionen Dollar. Am Ende des Quartals hielt Schwazze 11 Millionen Dollar in Bargeld und Äquivalenten, mit einer Schuldenlast von 196 Millionen Dollar.
Das Unternehmen führt diese Gewinne auf verbesserte Preisstrategien, bessere Einkaufserlebnisse und eine höhere Produktqualität zurück, was zu einem Anstieg des Kundenverkehrs in Colorado und New Mexico geführt hat. Aufgrund eines Revisionsprozesses mit dem neuen Wirtschaftsprüfer Baker Tilly wird es jedoch zu Verzögerungen bei der Einreichung des Formulars 10-Q für das dritte Quartal 2024 kommen. Diese Verzögerung ist notwendig, um die früheren Finanzberichte, die von der SEC-Anordnung gegen den vorherigen Prüfer BF Borgers betroffen sind, erneut zu prüfen.
- Revenue of approximately $42 million.
- Adjusted EBITDA of approximately $11 million.
- Positive cash flow from operations of $0.2 million.
- Increased store traffic in both Colorado and New Mexico.
- Delay in filing Form 10-Q for Q3 2024.
- Outstanding debt of $196 million.
- Ongoing re-audit process causing delays.
Optimization Initiatives Lead to Quarter-over-Quarter Improvements in Profitability and Positive Cash Flow from Operations
DENVER, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Medicine Man Technologies, Inc., operating as Schwazze, (OTC: SHWZ) (Cboe CA: SHWZ) ("Schwazze" or the "Company"), today announced preliminary financial and operational results for the third quarter ended September 30, 2024.
“We continued to generate momentum from our retail growth and optimization initiatives in Q3, reflected by our ability to outpace two highly competitive markets while generating sequential improvements in profitability and positive cash flow from operations,” said Forrest Hoffmaster, Interim CEO of Schwazze. “Our efforts to sharpen our pricing and promotional strategy, elevate the in-store experience, and improve product quality, assortment and in-stock positions are yielding positive results. I’m proud of our team’s hard work and dedication to drive these improvements in the overall customer experience, which has led to increased store traffic in both Colorado and New Mexico. Over the past year, our focused efforts to optimize our operations have built a solid foundation, setting the stage for sustained growth and enhanced levels of profitability in the year ahead.
“Due to our ongoing re-review process with our new auditor, Baker Tilly, we expect a delay in filing our Form 10-Q for the quarter ended September 30, 2024. Our team, in close collaboration with Baker Tilly, is making every effort to complete this re-review promptly. We expect to release our unaudited third quarter results and host a conference call in the coming weeks to discuss our financial and operational performance in greater detail.”
Q3 2024 Preliminary Financial Results
Based on preliminary and unaudited results, the Company expects to report the following for the third quarter ended September 30, 2024:
- Revenue of approximately
$42 million - Adjusted EBITDA of approximately
$11 million - Cash flow from operations of approximately
$0.2 million
At quarter end, the Company held cash and cash equivalents of approximately
Update on Delayed Filing
As previously announced on April 8, 2024, Schwazze dismissed BF Borgers CPA PC (“BF Borgers”) as its independent registered public accountant and engaged Baker Tilly US, LLP (“Baker Tilly”) as its new independent accountant. Subsequent to the transition, on May 3, 2024, the SEC issued an Order against BF Borgers for systemic failures in meeting PCAOB standards, which impacted over 1,500 SEC filings and affected at least 75 percent of BF Borgers’ 369 clients.
As a result of the SEC Order, Schwazze’s new auditor needs additional time to complete its prior period review, which includes re-auditing the Company’s fiscal year 2023 financial statements and re-reviewing the closing of its 2022 balance sheet prior to filing its 2024 Annual Report. Baker Tilly is actively working to re-audit the Company’s financial statements for the associated periods.
Due to the ongoing re-review process, Schwazze anticipates a delay in filing its Quarterly Report on Form 10-Q for the three- and nine-months ending September 30, 2024. Moreover, the Company expects to simultaneously file its Quarterly Report on Form 10-Q for the three months ending March 31, 2024, and June 30, 2024.
About Schwazze
Schwazze (OTC: SHWZ) (Cboe CA: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to explore taking its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.
Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company's leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.
Medicine Man Technologies, Inc. was Schwazze's former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit https://schwazze.com/.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include financial outlooks; any projections of net sales, earnings, or other financial items; any statements of the strategies, plans and objectives of our management team for future operations; expectations in connection with the Company's previously announced business plans; any statements regarding future economic conditions or performance; and statements regarding the intent, belief or current expectations of our management team. Such statements may be preceded by the words "may," "will," "could," "would," "should," "expect," "intends," "plans," "strategy," "prospects," "anticipate," "believe," "approximately," "estimate," "predict," "project," "potential," "continue," "ongoing," or the negative of these terms or other words of similar meaning in connection with a discussion of future events or future operating or financial performance, although the absence of these words does not necessarily mean that a statement is not forward-looking. We have based our forward-looking statements on management's current expectations and assumptions about future events and trends affecting our business and industry. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Therefore, forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services and the uncertainty in the application of federal, state, and local laws to our business, and any changes in such laws; (ii) our ability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (iii) our ability to identify, consummate, and integrate anticipated acquisitions; (iv) general industry and economic conditions; (v) our ability to access adequate capital upon terms and conditions that are acceptable to us; (vi) our ability to pay interest and principal on outstanding debt when due; (vii) volatility in credit and market conditions; (viii) the loss of one or more key executives or other key employees; and (ix) other risks and uncertainties related to the cannabis market and our business strategy. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.
Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
ir@schwazze.com
FAQ
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