Columbia Care Reports Second Quarter 2019 Results
- Second quarter 2019 revenue of $19.3 million, an increase of 102% over prior year period
- Expansion of US footprint with launches in California, Florida, Ohio and Puerto Rico, reinforcing organic growth strategy in key markets
- Launch of the CNC Card, the nation’s first credit card for the cannabis industry
NEW YORK, August 06, 2019–(BUSINESS WIRE)–Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”), one of the largest fully integrated operators in the global medical cannabis industry with licenses across the US and EU, today reported financial and operating results for its second quarter ended June 30, 2019. All financial information is provided in US dollars unless otherwise indicated.
Second Quarter 2019 Financial Highlights
- Revenue of $19.3 million, an increase of 102% from the prior year period, and an increase of 50% from the first quarter of 2019
- Adjusted EBITDA of ($11.4) million compared to ($1.7) million for the prior year period, reflecting new market expansion, facility expenses, organizational growth and expenses related to the Company’s go-public transaction¹
- Net loss of $33.7 million compared to $4.2 million for the prior year period, reflecting increase in non-cash expenses as well as the Company’s investment in its growth initiatives
- $125.3 million cash on hand as of June 30, 2019, and no debt
Subsequent to the end of the second quarter 2019, Columbia Care launched operations in Florida, Ohio and Puerto Rico. The Company now has ongoing expansion activities in 12 of its 15 licensed jurisdictions.
We are pleased to deliver revenue growth of over 100% year-over-year and over 50% sequentially. With the majority of our facilities and markets in development, as well as several important product and service launches anticipated in the third and fourth quarters, we look forward to the future.
Nicholas Vita, chief executive officer of Columbia Care
The capital we raised through our going public transaction has enabled us to leverage our scale, innovation, differentiated strategy and diversified growth initiatives across all of our jurisdictions, including our four most recent market launches in Florida, California, Ohio and Puerto Rico. This quarter affirms Columbia Care’s strong foundation, commitment to disciplined growth and reinforces our hard-earned reputation for being intensely execution focused.
Discussion of Second Quarter 2019 and First Half 2019 Results
Revenue for the second quarter of 2019 totaled $19.3 million, compared to $9.6 million for the second quarter of 2018, representing an increase of 102%. Revenue for the six-month period ending June 30, 2019 was $32.2 million, an increase of 75%, compared to $18.4 million for the prior year period.
Revenue increased exclusively due to the Company’s organic growth in its licensed jurisdictions coupled with higher consumer demand for Columbia Care’s wide array of proprietary medical cannabis products and wholesale operations.
Excluding the impact of fair value adjustments for biological assets, gross profit in the second quarter of 2019 was $5.4 million, relatively unchanged from the second quarter of 2018. For the six-month period ending June 30, 2019, gross profit, excluding the impact of fair value adjustments for biological assets was $9.8 million, an increase of 12% compared to the prior year period.
The Company’s gross profit for the second quarter of 2019 was $5.2 million, relatively unchanged from the second quarter of 2018. For the six-month period ended June 30, 2019, gross profit was $3.0 million, a decrease of $3.4 million compared to the prior year period. The overall decrease reflects fair value adjustments related to decreased volume of unharvested plants.
Net loss for the second quarter of 2019 was $33.7 million, compared to $4.2 million, an increase of $29.5 million compared to the prior year period, primarily due to recognition of listing fee and share-based compensation expense, as well as higher operating expenses related to the Company’s expansion in both new and existing markets. Net loss for the six-month period ending June 30, 2019 was $58.9 million, compared to $13.9 million for the prior year period, primarily due to the recognition of non-cash charges related to listing fee expense and share-based compensation, as well as the Company’s ongoing investment in its growth initiatives.
Adjusted EBITDA for the second quarter of 2019 was ($11.4) million, compared to ($1.7) million, a decrease of $9.7 million compared to the prior year period. Adjusted EBITDA for the six-month period ending June 30, 2019 was ($21.8) million, compared to Adjusted EBITDA of ($4.0) million for the prior year period. Changes in Adjusted EBITDA were primarily driven by higher operating expenses related to the Company’s expansion in both new and existing markets. See “Non-IFRS Financial Measures.”
As of June 30, 2019, the Company had $125.3 million cash on hand and carried no debt.
Conference Call and Webcast Details
The Company will report complete financial results for the second quarter 2019 on Tuesday, August 6, 2019 at 4:30 p.m. EDT. To access the live conference call via telephone, please dial 1-877-407-8914 (U.S. callers) or 1-201-493-6795 (international callers), no passcode is required. 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/.
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.
Non-IFRS Financial Measures
In this press release, Columbia Care refers to certain non-IFRS financial measures, such as Adjusted EBITDA and gross profit excluding changes in fair value of biological assets. 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 included in this press release.
About Columbia Care Inc.
Columbia Care Inc. is one of the largest and most experienced multi-state operators in the medical cannabis industry, with licenses in 15 jurisdictions in the US and the EU. With over 1.2 million sales transactions since its inception, Columbia Care is a patient-centered organization setting the standard for compassion, professionalism, quality, caring and innovation, working in collaboration with some of the most renowned and innovative teaching hospitals and medical centers in the world. The Company is committed to providing the type of education and transparency patients deserve and quality of product that clinicians expect. For more information on Columbia Care, please visit www.col-care.com.
¹See “Non-IFRS Financial Measures”
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