Vireo Growth Inc. Announces Third Quarter 2024 Results
Vireo Growth reported Q3 2024 financial results with revenue of $22.4 million (excluding discontinued operations and NY), up 6.2% year-over-year. Operating income reached $3.9 million, though showing a 34.4% decline from Q3 2023. The company secured a $10.0 million convertible debt facility with a 12% interest rate and $0.625 conversion price. Core market performance showed improvements in productivity yields and flower quality, with total flower harvested increasing 32.7% to 4,626 lbs. Same-store sales grew 2.0%, with Maryland up 12.1% while Minnesota declined 3.4%. The company maintains $7.3 million in cash with total current assets of $144.0 million.
Vireo Growth ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato di 22,4 milioni di dollari (escludendo le operazioni discontinue e NY), in aumento del 6,2% rispetto all'anno precedente. L'utile operativo ha raggiunto i 3,9 milioni di dollari, mostrando però un calo del 34,4% rispetto al terzo trimestre 2023. L'azienda ha ottenuto una linea di credito convertibile di 10,0 milioni di dollari con un tasso di interesse del 12% e un prezzo di conversione di 0,625 dollari. Le performance del mercato principale hanno mostrato miglioramenti nella produttività e nella qualità dei fiori, con un aumento totale del raccolto di fiori del 32,7% a 4.626 libbre. Le vendite negli stessi punti vendita sono cresciute del 2,0%, con il Maryland in aumento del 12,1% mentre il Minnesota ha registrato un calo del 3,4%. L'azienda mantiene 7,3 milioni di dollari in contante con un totale di attivi correnti di 144,0 milioni di dollari.
Vireo Growth informó los resultados financieros del tercer trimestre de 2024 con ingresos de 22.4 millones de dólares (excluyendo operaciones descontinuadas y NY), un aumento del 6.2% interanual. El ingreso operativo alcanzó los 3.9 millones de dólares, aunque muestra una disminución del 34.4% en comparación con el tercer trimestre de 2023. La compañía aseguró una línea de deuda convertible de 10.0 millones de dólares con una tasa de interés del 12% y un precio de conversión de 0.625 dólares. El rendimiento del mercado principal mostró mejoras en los rendimientos de productividad y calidad de flores, con un aumento total de la cosecha de flores del 32.7% a 4,626 libras. Las ventas en la misma tienda crecieron un 2.0%, con Maryland en aumento del 12.1% mientras que Minnesota disminuyó un 3.4%. La compañía mantiene 7.3 millones de dólares en efectivo con un total de activos corrientes de 144.0 millones de dólares.
비레오 성장은 2024년 3분기 재무 결과를 보고하며 수익이 2240만 달러(중단된 운영 및 뉴욕 제외)로, 전년 대비 6.2% 증가했다고 밝혔습니다. 운영 소득은 390만 달러에 도달했지만 2023년 3분기와 비교할 때 34.4% 감소했습니다. 회사는 12%의 이자율과 0.625달러의 전환 가격으로 1000만 달러의 전환 가능한 부채 시설을 확보했습니다. 주요 시장 성과는 생산성과 꽃의 품질이 개선되었으며, 총 수확된 꽃이 32.7% 증가하여 4626파운드에 달했습니다. 동종 매장 매출은 2.0% 증가했으며, 메릴랜드는 12.1% 증가한 반면 미네소타는 3.4% 감소했습니다. 회사는 730만 달러의 현금을 보유하고 있으며 총 현재 자산은 1억 4400만 달러입니다.
Vireo Growth a rapporté les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires de 22,4 millions de dollars (hors opérations discontinuées et NY), en hausse de 6,2 % par rapport à l'année précédente. Le bénéfice d'exploitation a atteint 3,9 millions de dollars, bien qu'il montre une baisse de 34,4 % par rapport au troisième trimestre 2023. L'entreprise a sécurisé une facilité de dette convertible de 10,0 millions de dollars avec un taux d'intérêt de 12 % et un prix de conversion de 0,625 dollar. La performance du marché principal a montré des améliorations en termes de rendements de productivité et de qualité des fleurs, avec un total de fleurs récoltées augmentant de 32,7 % pour atteindre 4 626 livres. Les ventes comparables dans les mêmes magasins ont augmenté de 2,0 %, avec Maryland en hausse de 12,1 % tandis que le Minnesota a diminué de 3,4 %. L'entreprise dispose de 7,3 millions de dollars en liquidités avec un total d'actifs courants de 144,0 millions de dollars.
Vireo Growth berichtete über die finanziellen Ergebnisse des 3. Quartals 2024 mit einem Umsatz von 22,4 Millionen Dollar (ohne stillgelegte Betriebe und NY), was einem Anstieg von 6,2% im Vergleich zum Vorjahr entspricht. Der operative Gewinn erreichte 3,9 Millionen Dollar, was jedoch einem Rückgang von 34,4% im Vergleich zum 3. Quartal 2023 entspricht. Das Unternehmen sicherte sich eine umwandelbare Schuldenfazilität in Höhe von 10,0 Millionen Dollar mit einem Zinssatz von 12% und einem Umwandlungspreis von 0,625 Dollar. Die Kernmarkt-Performance zeigte Verbesserungen bei den Produktivitätsausbeuten und der Qualität der Blumen, wobei die insgesamt geernteten Blumen um 32,7% auf 4.626 Pfund anstiegen. Die Same-Store-Verkäufe wuchsen um 2,0%, wobei Maryland um 12,1% zulegte und Minnesota um 3,4% zurückging. Das Unternehmen hält 7,3 Millionen Dollar in bar bei insgesamt 144,0 Millionen Dollar an aktuellen Vermögenswerten.
- Revenue growth of 6.2% YoY to $22.4M in core operations
- 32.7% increase in total flower harvested to 4,626 lbs
- Secured $10M convertible debt facility for growth initiatives
- Maryland same-store sales growth of 12.1%
- Wholesale revenue increased 24.4% to $4.1M
- Operating income declined 34.4% YoY to $3.9M
- Gross profit margin decreased 450 bps to 49.0%
- EBITDA decreased 19.4% to $5.7M
- Minnesota same-store sales declined 3.4%
- New debt facility carries high 12% interest rate
– Q3 2024 revenue of
– Operating income of
– Recently-secured convertible loan supporting the continued execution of Vireo’s CREAM & Fire Strategy –
MINNEAPOLIS, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Vireo Growth Inc. (formerly Goodness Growth Holdings) ("Vireo" or the "Company") (CSE: VREO; OTCQX: VREOF), a cannabis company committed to providing safe access, quality products and great value to its customers, today reported financial results for its third quarter ended September 30, 2024. Key financial results are presented below in summary form with supporting commentary and discussion from management of certain key operating metrics which the Company uses to judge its performance. All currency figures referenced herein are denominated in U.S. dollars.
Summary of Key Financial Metrics | Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | ||||||||||
US $ in millions | 2024 | 2023 | Variance | 2024 | 2023 | Variance | |||||
GAAP Revenue | |||||||||||
Revenue (excluding discontinued operations & NY) | |||||||||||
GAAP Gross Profit | - | ||||||||||
Gross Profit Margin | -450 bps | 120 bps | |||||||||
SG&A Expenses | - | ||||||||||
SG&A Expenses (% of Sales) | -10 bps | 540 bps | |||||||||
Operating Income (Loss) | - | ||||||||||
Operating Income Margin | -850 bps | 1,120 bps | |||||||||
EBITDA | - | ||||||||||
EBITDA Margin | -600 bps | 1,000 bps | |||||||||
Management Commentary
Chief Executive Officer Amber Shimpa commented, “Our third quarter results reflect continued solid performance across our core markets, but as we discussed anticipating last quarter, year-over-year comparisons of financial performance are less significant now that we have passed the one-year anniversary of the launch of adult-use sales in Maryland. Our teams continue to focus on preparing for the launch of adult-use sales in Minnesota next year, and our recently announced
Ms. Shimpa continued, “Despite the softer year-over-year comparisons of financial performance, our core market key performance indicators continue to demonstrate strong improvements in productivity yields and flower quality, and we are continuing to build inventory ahead of the Minnesota adult-use launch which may impact velocity of inventory turns near-term. We’re also continuing to support our recently-launched hemp-derived beverages which are helping seed our adult-use brands in the Minnesota market, and have expanded our distribution network with both local and national distributors of hemp and alcohol products.”
Core Market KPIs1 | Three Months Ended | Nine Months Ended | |||||||||
US $ in millions | September 30, | September 30, | |||||||||
2024 | 2023 | Variance | 2024 | 2023 | Variance | ||||||
Total Flower Harvested (lbs) | 4,626 | 3,485 | 11,402 | 8,600 | |||||||
% "A" Flower2 | 540 bps | 0 bps | |||||||||
Total Retail Revenue | |||||||||||
Same Store Sales Growth | - | - | - | - | |||||||
Minnesota | - | - | - | - | - | ||||||
Maryland | - | - | - | - | |||||||
Total Wholesale Revenue | |||||||||||
1 Core Markets refer to the Company's operations in Maryland and Minnesota. | |||||||||||
2 "A Flower" refers to produced biomass that meet the Company's highest internal standards for flower quality, size, and appearance. | |||||||||||
Other Events
On November 4, 2024, the Company announced that it secured a new convertible debt facility which provides a financing commitment of up to U.S.
Balance Sheet and Liquidity
As of September 30, 2024, total current assets were
Conference Call and Webcast Information
Vireo management will host a conference call with research analysts today, November 13, 2024, at 4:30 p.m. ET (3:30 p.m. CT) to discuss its financial results for its third quarter ended September 30, 2024. Interested parties may attend the conference call by dialing 1-800-715-9871 (Toll-Free) (US and Canada) or 1-646-307-1963 (Toll) (International) and referencing conference ID number 3718174.
A live audio webcast of this event will also be available in the Events & Presentations section of the Company’s Investor Relations website and via the following link: https://events.q4inc.com/attendee/277609132.
About Vireo
Vireo was founded as a pioneer in medical cannabis in 2014 and sustained with an entrepreneurial drive that fuels our ongoing commitment to serve and delight our key stakeholders, most notably our customers, our employees, our shareholders, our industry collaborators, and the communities in which we live and operate. We work every day to get better and our team prioritizes 1) empowering and supporting strong local market leaders and 2) strategic, prudent capital and human resource allocation. For more information, please visit www.vireogrowth.com.
Additional Information
Additional information relating to the Company’s third quarter 2024 results will be available on EDGAR and SEDAR later today. Vireo refers to certain non-GAAP financial measures such as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in circumstances in which the Company believes that doing so provides additional perspective and insights when analyzing the core operating performance of the business. These measures do not have any standardized meaning and may not be comparable to similar measures presented by other issuers. Please see the Supplemental Information and Reconciliation of Non-GAAP Financial Measures at the end of this news release for more detailed information regarding non-GAAP financial measures.
Contact Information
Investor Inquiries:
Joe Duxbury
Interim Chief Financial Officer
investor@vireogrowth.com
(612) 314-8995
Media Inquiries:
Amanda Hutcheson
Senior Manager, Communications
amandahutcheson@vireogrowth.com
(919) 815-1476
Forward-Looking Statement Disclosure
This press release contains “forward-looking information” within the meaning of applicable United States and Canadian securities legislation. To the extent any forward-looking information in this press release constitutes “financial outlooks” within the meaning of applicable United States or Canadian securities laws, this information is being provided as preliminary financial results; the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking information contained in this press release may be identified by the use of words such as “should,” “believe,” “estimate,” “would,” “looking forward,” “may,” “continue,” “expect,” “expected,” “will,” “likely,” “subject to,” “transformation,” and “pending,” variations of such words and phrases, or any statements or clauses containing verbs in any future tense. These statements should not be read as guarantees of future performance or results. Forward-looking information includes both known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company or its subsidiaries to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements or information contained in this press release. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein and in our Annual Report on Form 10-K filed with the Securities Exchange Commission. Our actual financial position and results of operations may differ materially from management’s current expectations and, as a result, our revenue, EBITDA, and cash on hand may differ materially from the values provided in this press release. Forward-looking information is based upon a number of estimates and assumptions of management, believed but not certain to be reasonable, in light of management’s experience and perception of trends, current conditions, and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, the reader should not place undue reliance on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to: risks related to the timing and content of adult-use legislation in markets where the Company currently operates; current and future market conditions, including the market price of the subordinate voting shares of the Company; risks related to epidemics and pandemics; federal, state, local, and foreign government laws, rules, and regulations, including federal and state laws and regulations in the United States relating to cannabis operations in the United States and any changes to such laws or regulations; operational, regulatory and other risks; execution of business strategy; management of growth; difficulties inherent in forecasting future events; conflicts of interest; risks inherent in an agricultural business; risks inherent in a manufacturing business; liquidity and the ability of the Company to raise additional financing to continue as a going concern; the Company’s ability to meet the demand for flower in Minnesota; risk of failure in the lawsuit with Verano and the cost of that litigation; our ability to dispose of our assets held for sale at an acceptable price or at all; and risk factors set out in the Company's Form 10-K for the year ended December 31, 2023, which is available on EDGAR with the U.S. Securities and Exchange Commission and filed with the Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com.
The statements in this press release are made as of the date of this release. Except as required by law, we undertake no obligation to update any forward-looking statements or forward-looking information to reflect events or circumstances after the date of such statements.
Supplemental Information
The financial information reported in this news release is based on unaudited financial statements for the second fiscal quarter ended September 30, 2024, and September 30, 2023. All financial information contained in this news release is qualified in its entirety with reference to such financial statements. To the extent that the financial information contained in this news release is inconsistent with the information contained in the Company’s audited financial statements, the financial information contained in this news release shall be deemed to be modified or superseded by the Company’s audited financial statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws.
VIREO GROWTH INC. | |||||||
CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 | |||||||
(Amounts Expressed in United States Dollars, Unaudited and Condensed) | |||||||
September 30, | December 31, | ||||||
2024 | 2023 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash | $ | 7,279,864 | $ | 15,964,665 | |||
Accounts receivable, net of credit losses of | 2,848,625 | 3,086,640 | |||||
Income tax receivable | 11,916,964 | 12,278,119 | |||||
Inventory | 19,845,927 | 19,285,870 | |||||
Prepayments and other current assets | 1,832,991 | 1,336,234 | |||||
Notes receivable, current | — | 3,750,000 | |||||
Warrants held | 5,221,971 | 1,937,352 | |||||
Assets Held for Sale | 95,017,740 | 91,213,271 | |||||
Total current assets | 143,964,082 | 148,852,151 | |||||
Property and equipment, net | 30,509,180 | 23,291,183 | |||||
Operating lease, right-of-use asset | 10,757,904 | 2,018,163 | |||||
Intangible assets, net | 8,104,140 | 8,718,577 | |||||
Deposits | 533,745 | 383,645 | |||||
Deferred tax assets | — | — | |||||
Total assets | $ | 193,869,051 | $ | 183,263,719 | |||
Liabilities | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | $ | 9,168,748 | $ | 7,674,389 | |||
Long-Term debt, current portion | 1,144,000 | 60,220,535 | |||||
Right of use liability | 1,254,672 | 890,013 | |||||
Uncertain tax liability | 28,766,000 | 22,356,000 | |||||
Liabilities held for sale | 88,437,021 | 88,326,323 | |||||
Total current liabilities | 128,770,441 | 179,467,260 | |||||
Right-of-use liability | 19,051,693 | 10,543,934 | |||||
Other long-term liabilities | 216,938 | 155,917 | |||||
Convertible debt, net | — | 9,140,257 | |||||
Long-Term debt, net | 56,833,206 | — | |||||
Total liabilities | 204,872,278 | 199,307,368 | |||||
Stockholders’ deficiency | |||||||
Subordinate Voting Shares ($- par value, unlimited shares authorized; 200,464,196 shares issued and outstanding at September 30, 2024 and 110,007,030 at December 31, 2023) | — | — | |||||
Multiple Voting Shares ($- par value, unlimited shares authorized; 298,314 shares issued and outstanding at September 30, 2024 and 331,193 at December 31, 2023) | — | — | |||||
Super Voting Shares ($- par value; unlimited shares authorized; 0 shares issued and outstanding at September 30, 2024 and December 31, 2023) | — | — | |||||
Additional Paid in Capital | 204,731,053 | 187,384,403 | |||||
Accumulated deficit | (215,734,280 | ) | (203,428,052 | ) | |||
Total stockholders' deficiency | $ | (11,003,227 | ) | $ | (16,043,649 | ) | |
Total liabilities and stockholders' deficiency | $ | 193,869,051 | $ | 183,263,719 | |||
VIREO GROWTH INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 | |||||||||||||||
(Amounts Expressed in United States Dollars, Unaudited and Condensed) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ | 25,165,343 | $ | 24,675,145 | $ | 74,360,905 | $ | 63,960,125 | |||||||
Cost of sales | |||||||||||||||
Product costs | 12,448,373 | 10,493,561 | 36,111,865 | 30,347,357 | |||||||||||
Inventory valuation adjustments | 393,000 | 984,196 | 130,000 | 1,563,872 | |||||||||||
Gross profit | 12,323,970 | 13,197,388 | 38,119,040 | 32,048,896 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 6,911,278 | 6,749,314 | 21,527,122 | 21,965,576 | |||||||||||
Stock-based compensation expenses | 1,304,919 | 296,617 | 1,424,140 | 4,009,415 | |||||||||||
Depreciation | 76,292 | 99,929 | 222,763 | 377,121 | |||||||||||
Amortization | 180,034 | 180,034 | 540,101 | 498,828 | |||||||||||
Total operating expenses | 8,472,523 | 7,325,894 | 23,714,126 | 26,850,940 | |||||||||||
Gain (loss) from operations | 3,851,447 | 5,871,494 | 14,404,914 | 5,197,956 | |||||||||||
Other income (expense): | |||||||||||||||
Gain (loss) on disposal of assets | — | (50,686 | ) | (218,327 | ) | (2,798,567 | ) | ||||||||
Interest expenses, net | (7,363,655 | ) | (7,915,658 | ) | (23,604,746 | ) | (22,795,242 | ) | |||||||
Other income (expenses) | 970,850 | 345,824 | 3,881,931 | 6,166,472 | |||||||||||
Other income (expenses), net | (6,392,805 | ) | (7,620,520 | ) | (19,941,142 | ) | (19,427,337 | ) | |||||||
Loss before income taxes | (2,541,358 | ) | (1,749,026 | ) | (5,536,228 | ) | (14,229,381 | ) | |||||||
Current income tax expenses | (2,385,000 | ) | (3,980,000 | ) | (6,770,000 | ) | (7,357,871 | ) | |||||||
Deferred income tax recoveries | — | 500,000 | — | 623,000 | |||||||||||
Net loss and comprehensive loss | (4,926,358 | ) | (5,229,026 | ) | (12,306,228 | ) | (20,964,252 | ) | |||||||
Net loss per share - basic and diluted | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.16 | ) | |||
Weighted average shares used in computation of net loss per share - basic & diluted | 201,377,275 | 141,332,852 | 162,836,874 | 132,576,879 | |||||||||||
VIREO GROWTH INC. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 | |||||||
(Amounts Expressed in United States Dollars, Unaudited and Condensed) | |||||||
September 30, | |||||||
2024 | 2023 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net loss | $ | (12,306,228 | ) | $ | (20,964,252 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Inventory valuation adjustments | 130,000 | 1,563,872 | |||||
Depreciation | 222,763 | 377,121 | |||||
Depreciation capitalized into inventory | 1,678,434 | 1,846,418 | |||||
Non-cash operating lease expense | 323,309 | 423,821 | |||||
Amortization of intangible assets | 540,101 | 498,828 | |||||
Amortization of intangible assets capitalized into inventory | 74,336 | 24,779 | |||||
Stock-based payments | 1,424,140 | 4,009,415 | |||||
Warrants receivable | — | (1,566,445 | ) | ||||
Warrants held | (3,284,619 | ) | — | ||||
Interest Expense | 3,806,093 | 5,111,930 | |||||
Bad debt expense | 230,818 | — | |||||
Deferred income tax | — | (623,000 | ) | ||||
Accretion | 168,464 | 800,392 | |||||
Loss on disposal of Red Barn Growers | — | 2,909,757 | |||||
Loss (gain) on disposal of assets | 120,856 | (111,190 | ) | ||||
Change in operating assets and liabilities: | |||||||
Accounts Receivable | 173,047 | (902,709 | ) | ||||
Prepaid expenses | (496,757 | ) | 684,987 | ||||
Inventory | (482,192 | ) | (1,932,554 | ) | |||
Income taxes | 361,154 | 6,379,831 | |||||
Uncertain tax position liabilities | 6,410,000 | — | |||||
Accounts payable and accrued liabilities | 1,213,360 | 1,079,519 | |||||
Changes in operating lease liabilities | (404,556 | ) | — | ||||
Change in assets and liabilities held for sale | (3,693,771 | ) | (116,882 | ) | |||
Net cash provided by (used in) operating activities | (3,791,248 | ) | (506,362 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
PP&E Additions | (8,974,901 | ) | (2,630,724 | ) | |||
Proceeds from note receivable | 3,600,000 | ||||||
Intangible license additions | — | (1,090,919 | ) | ||||
Proceeds from sale of Red Barn Growers net of cash | — | 439,186 | |||||
Proceeds from sale of property, plant, and equipment | — | 242,088 | |||||
Deposits | (150,100 | ) | (263,545 | ) | |||
Net cash provided by (used in) investing activities | (5,525,001 | ) | (3,303,914 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from long-term debt, net of issuance costs | 1,131,400 | — | |||||
Proceeds from convertible debt, net of issuance costs | — | 5,348,140 | |||||
Proceeds from issuance of shares | 700,000 | — | |||||
Proceeds from warrant exercises | 43,953 | — | |||||
Proceeds from option exercises | 16,500 | — | |||||
Debt principal payments | (1,098,000 | ) | (1,976,362 | ) | |||
Lease principal payments | (162,405 | ) | (1,414,698 | ) | |||
Net cash provided by (used in) financing activities | 631,448 | 1,957,080 | |||||
Net change in cash | (8,684,801 | ) | (1,853,196 | ) | |||
Cash, beginning of period | 15,964,665 | 15,149,333 | |||||
Cash, end of period | $ | 7,279,864 | $ | 13,296,137 | |||
VIREO GROWTH INC. STATE-BY-STATE REVENUE PERFORMANCE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 | ||||||||||||||
Three Months Ended | | |||||||||||||
September 30, | | |||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||
Retail: | ||||||||||||||
MN | $ | 11,391,969 | $ | 11,791,001 | $ | (399,032 | ) | (3 | )% | |||||
NY | 1,428,827 | 2,185,701 | (756,874 | ) | (35 | )% | ||||||||
MD | 6,919,991 | 6,170,372 | 749,619 | 12 | % | |||||||||
Total Retail | $ | 19,740,787 | $ | 20,147,074 | $ | (406,287 | ) | (2 | )% | |||||
Wholesale: | ||||||||||||||
MD | 3,956,871 | 3,152,341 | 804,530 | 26 | % | |||||||||
NY | 1,321,224 | 1,375,730 | (54,506 | ) | (4) | % | ||||||||
MN | 146,461 | — | 146,461 | 100 | % | |||||||||
Total Wholesale | $ | 5,424,556 | $ | 4,528,071 | $ | 896,485 | 20 | % | ||||||
Total Revenue | $ | 25,165,343 | $ | 24,675,145 | $ | 490,198 | 2 | % | ||||||
NY Revenue | $ | (2,750,051 | ) | $ | (3,561,431 | ) | $ | 811,380 | (23 | )% | ||||
Total Revenue excluding NY | $ | 22,415,292 | $ | 21,113,714 | $ | 1,301,578 | 6 | % | ||||||
NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 | ||||||||||||||
Nine Months Ended | ||||||||||||||
September 30, | ||||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||
Retail: | ||||||||||||||
MN | $ | 34,608,015 | $ | 33,989,289 | $ | 618,726 | 2 | % | ||||||
NY | 4,854,423 | 6,827,278 | (1,972,855 | ) | (29 | )% | ||||||||
NM | — | 1,964,285 | (1,964,285 | ) | (100 | )% | ||||||||
MD | 20,696,808 | 10,981,121 | 9,715,687 | 88 | % | |||||||||
Total Retail | $ | 60,159,246 | $ | 53,761,973 | $ | 6,397,273 | 12 | % | ||||||
Wholesale: | ||||||||||||||
MD | 10,594,167 | 6,553,361 | 4,040,806 | 62 | % | |||||||||
NY | 3,454,162 | 3,605,064 | (150,902 | ) | (4 | )% | ||||||||
NM | — | 39,727 | (39,727 | ) | (100 | )% | ||||||||
MN | 153,330 | — | 153,330 | 100 | % | |||||||||
Total Wholesale | $ | 14,201,659 | $ | 10,198,152 | $ | 4,003,507 | 39 | % | ||||||
Total Revenue | $ | 74,360,905 | $ | 63,960,125 | $ | 10,400,780 | 16 | % | ||||||
NY and NM Revenue | $ | (8,308,585 | ) | $ | (12,396,627 | ) | $ | 4,088,042 | (33 | )% | ||||
Total Revenue excluding NY and NM | $ | 66,052,320 | $ | 51,563,498 | $ | 14,488,822 | 28 | % | ||||||
Reconciliation of Non-GAAP Financial Measures
Vireo management occasionally elects to provide certain non-GAAP financial measures such as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). EBITDA is a non-GAAP measure and does not have a standardized definition under GAAP. The following information provides reconciliations of the supplemental non-GAAP financial measures, presented herein to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented.
Reconciliation of Net Loss to EBITDA | |||||||||||||||
(Amounts Expressed in United States Dollars, Unaudited and Condensed) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income (loss) | $ | (4,926,358 | ) | $ | (5,229,026 | ) | $ | (12,306,228 | ) | $ | (20,964,252 | ) | |||
Interest expense, net | 7,363,655 | 7,915,658 | 23,604,746 | 22,795,242 | |||||||||||
Income taxes | 2,385,000 | 3,480,000 | 6,770,000 | 6,734,871 | |||||||||||
Depreciation & Amortization | 256,326 | 279,963 | 762,864 | 875,949 | |||||||||||
Depreciation included in cost of goods sold | 582,072 | 577,132 | 1,752,770 | 1,871,197 | |||||||||||
EBITDA (non-GAAP) | $ | 5,660,695 | $ | 7,023,727 | $ | 20,584,152 | $ | 11,313,007 |
FAQ
What was Vireo Growth's (VREOF) revenue in Q3 2024?
How much did Vireo Growth's (VREOF) operating income change in Q3 2024?
What was the size of the convertible loan facility secured by Vireo Growth (VREOF) in November 2024?