Columbia Care Reports Record Preliminary Fourth Quarter and Full Year 2020 Results; Issues 2021 Guidance
- Q4 & Full Year 2020 Preliminary Results Exceed Consensus Estimates and Reflect Continued Growth and Improvement Across Key Financial Metrics
- Delivers on 2020 Outlook with Outperformance in Multiple Markets Across the Country
- Strong Balance Sheet with More Than C$179 Million Raised Subsequent to Year-End; Well-Positioned for Additional Accretive Acquisitions and Targeted Growth CapEx in Markets Converting from Medical Only to Adult Use
NEW YORK-March 03, 2021-(BUSINESS WIRE)–Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”) is providing preliminary results for the fourth quarter and full year ended December 31, 2020. The Company is also issuing 2021 guidance.
Our record breaking fourth quarter and full year performance was driven by continued revenue growth and margin expansion. We generated robust sequential and year-over-year increases in Combined Revenue, Gross Profit and Adjusted EBITDA. We effectively navigated the challenges of the COVID-19 pandemic and, in spite of those headwinds, delivered an exceptional year as we exceeded every milestone target set forth in our 2020 outlook.
Nicholas Vita, CEO of Columbia Care
Highlighting our position as an industry consolidator, we closed key acquisitions with The Green Solution and Project Cannabis and announced the transformational acquisition of Green Leaf Medical, which remains on target to close in the 3rd quarter of this year. Most notably, corporate profitability continued to expand as we further leverage our national scale. Including the full fourth quarter’s financial contribution of Project Cannabis, Columbia Care generated approximately $87M in Combined Revenue and $12M in Adjusted EBITDA.
He also added, “We have continued to see sequential revenue growth and margin improvements in the first quarter 2021, affirming Columbia Care’s position as the fastest growing top-tier multi-state operator.1 I am extremely proud of our team’s dedication to executing our growth strategy and delivering the highest-quality cannabis to our loyal patients and customers in the communities we serve.”
Columbia Care’s pro forma 2021 outlook assumes the Company’s pending acquisition of Green Leaf Medical closes in the 3rd quarter but does not include any contribution from future acquisitions nor does it assume any changes in the regulatory environment in markets where Columbia Care currently operates, such as the pending adult-use program in New Jersey. This also excludes markets where a conversion from medical only to adult use is under consideration by the Governor and/or legislature, such as New York and Virginia. See “Caution Concerning Forward-Looking Statements” below for further discussion.
Conference Call and Webcast Details
The Company will host a conference call on Tuesday, March 16, 2021 at 8:00 a.m. ET to discuss its full financial and operating results for the fourth quarter and full year 2020.
To access the live conference call via telephone, please dial 1-877-407-8914 (US Callers) or 1-201-493-6795 (international callers). A live audio webcast of the call will also be available in the Investor Relations section of the Company’s website at https://ir.col-care.com/ or at https://78449.themediaframe.com/dataconf/productusers/colc/mediaframe/43954/indexl.html.
A replay of the audio webcast will be available in the Investor Relations section of the Company’s website approximately 2 hours after completion of the call and will be archived for 30 days.
About Columbia Care
Columbia Care is one of the largest and most experienced cultivators, manufacturers and providers of medical and adult use cannabis products and related services with licenses in 18 US jurisdictions and the EU. Columbia Care currently operates 108 facilities4 including 81 dispensaries and 27 cultivation and manufacturing facilities. Columbia Care is one of the original providers of medical cannabis in the United States, and continues to deliver an industry-leading, patient-centered medicinal cannabis operation that has quickly expanded into the adult use market as a premier operator. The company currently offers products spanning flower, edibles, oils, and tablets, and manufactures popular brands including Seed & Strain, Amber and Platinum Label CBD. With more than four million sales transactions since its inception in 2012, Columbia Care is known for setting the standard for compassion, professionalism, quality, care, and innovation in the rapidly expanding cannabis industry. For more information on Columbia Care, please visit www.col-care.com.
Non-IFRS Financial Measures
In this press release, Columbia Care refers to certain non-IFRS financial measures, Combined Revenue, Combined Adj. Gross Profits Combined Adj. EBITDA. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Columbia Care considers certain non-IFRS measures to be meaningful indicators of the performance of its business. A reconciliation of such non-IFRS financial measures to their nearest comparable IFRS measure is contained in the Company’s Management, Discussion and Analysis for the three and nine months ended September 30, 2020 dated November 11, 2020 and additional details will be included in the Company’s upcoming results.
1 Per analyst consensus estimates among multi-state operator peers with a market capitalization over $2 billion.
2 All preliminary results in this release are based on unaudited information. Combined Results include dispensary and manufacturing operations in Ohio. Consolidation of these businesses will follow closing of executed purchase option agreements which are subject to regulatory review. Pro Forma financial results include impact of Project Cannabis for the full fourth quarter of 2020, and impact of Project Cannabis and The Green Solution for the full year of 2020.
3 Excludes changes in fair value of biological assets and inventory sold for all periods presented, as well as $1.8 million in Q3 2020 and $1.4 million in Q4 2020 related to the write-up of inventory acquired in The Green Solution and Project Cannabis acquisitions, respectively.
4 Pro forma facilities either open or under development.