Curaleaf Generates $96.5 Million Revenue in Q1

Curaleaf Reports Record First Quarter 2020 Financial and Operational Results
  • Reported Record Pro Forma Revenue(1)(2) of $147.4 Million and Managed Revenue(1) of $105.0 Million;
  • Generated $20.0 Million of Record Adjusted EBITDA(1) as Operations Across 17 States Continue to Scale;
  • Completed Acquisitions of Select and Arrow in Connecticut Securing Vertical Integration;
  • Completed Negotiations to Finalize the Closing of the Grassroots Acquisition Which is Expected to Close by the End of the Second Quarter

WAKEFIELD, Mass., May 18, 2020 /PRNewswire/ — Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading vertically integrated cannabis operator in the U.S., today reported its financial and operating results for the first quarter ended March 31, 2020. All financial information is provided in U.S. dollars unless otherwise indicated.

First Quarter Highlights

  • Reported record managed revenue of $105.0 million, which grew 29% sequentially
  • Reported record total revenue of $96.5 million, which grew 28% sequentially
  • Record Adjusted EBITDA of $20.0 million, which grew 45% sequentially
  • Closed $300 million senior secured term loan facility
  • Opened Company’s second adult-use dispensary and the first adult-use dispensary on Cape Cod in Provincetown, MA and the Company’s third adult-use dispensary in Ware, MA
  • Completed acquisition of Select and enhanced management team with key leadership appointments
  • Won retail and processing licenses in Utah and received Clinical Registrant Designation by the Pennsylvania Department of Heath permitting Curaleaf to open a cultivation and processing facility and up to six dispensaries under the Commonwealth’s medical marijuana research program

Post First Quarter Highlights

  • Closed the acquisition of Arrow in Connecticut with retail locations in Hartford, Milford and Stamford allowing Curaleaf to become vertically integrated in the state

Joseph Lusardi, Chief Executive Officer of Curaleaf stated, “Curaleaf delivered record first quarter results, highlighted by managed revenues exceeding our outlook as well as a 45% sequential improvement in Adjusted EBITDA. We achieved these results while remaining fully committed to protecting the health and wellness of customers and team members, all as we operate as an essential service across our markets.”

Our ability to adapt and innovate Curaleaf’s operations as well as the customer experience within the current environment has allowed us to continue to expand through these extraordinary times. Overall, Curaleaf remains well positioned for improving top and bottom-line performance in 2020 driven by our organic growth initiatives as well as strategic acquisitions.

Joseph Lusardi, Chief Executive Officer of Curaleaf

We expect the pending completion of our purchase of Grassroots, the largest private vertically integrated multi-state cannabis operator, to affirm our position as the world’s largest cannabis company by both revenue and operating presence.

Mike Carlotti, Chief Financial Officer of Curaleaf, added, “The strength of our financial performance in the first quarter also drove improved operating cash flow. Combined with the strength of our balance sheet, which was improved by the $300 million senior secured credit facility that closed in January 2020, this has allowed us to remain opportunistic in terms of investing in the business, as well as, pursuing strategic acquisitions. Most notably, in early February, we successfully completed the acquisition of Select. In early April, we completed the acquisition of Arrow, achieving a key objective of vertically integrating our operations in Connecticut and providing us new dispensaries in three of Connecticut’s largest metro-areas. Looking forward, we currently anticipate the continued rise in managed and pro forma revenue, with sequential growth in the second quarter of 2020 despite temporary COVID-19 related restrictions that occurred in Massachusetts and Nevada.”

Financial Results for the First Quarter Ended March 31, 2020

Managed Revenue for the first quarter was a record $105.0 million, an increase of 158% compared to $40.7 million in the first quarter of 2019. Managed Revenue for the first quarter increased 29% sequentially.

Total Revenue for the first quarter of 2020 was a record $96.5 million, an increase of 174% compared to $35.3 million in the first quarter of 2019. Total Revenue for the first quarter of 2020 increased 28% sequentially.

Retail revenue increased by 197% to $56.6 million during the quarter, compared to $19.0 million in the first quarter of 2019. Growth in retail revenue was primarily due to organic growth and new store openings in Florida, Massachusetts and New York, along with the acquisitions of three dispensaries in Arizona, two dispensaries in Nevada and from Maryland due to the addition of the HMS/MI businesses and Elevate Takoma.

Wholesale revenue increased by 134% to $20.4 million during the quarter, compared to $8.7 million in the first quarter of 2019. Growth in wholesale revenue was due primarily to the addition of Select and as a result of the increased number of adult-use dispensaries in Massachusetts.

Management fee income increased by 160% to $19.4 million during the quarter, compared to $7.5 million in the first quarter of 2019. Growth in management fee income was due primarily to growth in New Jersey and management fees generated from Alternative Therapies Group (“ATG”) in Massachusetts.

Gross profit before impact of biological assets for the first quarter of 2020 was $52.5 million, compared to $18.1 million for the first quarter of 2019. The increase was due to higher operating capacity of the Company’s cultivation and processing facilities.

Gross profit on cannabis sales was $33.0 million in the first quarter of 2020, resulting in a 43% margin, compared to $10.6 million in the first quarter of 2019. The increase in margin was primarily due to the continued improvement in the operating capacity of the Company’s cultivation and processing facilities.

Adjusted EBITDA was a record $20.0 million for the first quarter of 2020, compared to a loss of $2.8 million for the first quarter of 2019.

Net loss for the first quarter of 2020 was $15.5 million, compared to a net loss of $10.8 million in the first quarter of 2019. The increase was primarily driven by a $14.7 million increase in income tax expense largely resulting from deferred taxes associated with biological assets, a $9.1 million increase in depreciation and amortization, a $2.7 million increase in share-based compensation, both of which are non-cash, a $9.7 million increase in one-time charges, primarily business development, acquisition and financing related, and a $7.2 million increase in interest expense offset by a $13.3 million change in the fair value of biological assets.

Balance Sheet and Liquidity

As of March 31, 2020, we had $176.4 million of cash, $281.5 million of outstanding debt net of unamortized debt discounts and 507.7 million fully diluted shares outstanding.

Conference Call and Webcast Information

Curaleaf will host a conference call and audio webcast today at 5:00 pm ET to answer questions about the Company’s operational and financial highlights. The dial-in numbers for the conference call are +1-888-317-6003 (U.S.), +1-866-284-3684 (Canada) or +1-412-317-6061 (Int’l) Passcode: 7021619. Please dial-in 10 to 15 minutes prior to the start time of the conference call and an operator will register your name and organization.

The conference call will also be available via webcast, which can be accessed through the Investor Relations section of Curaleaf’s website,

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until May 25, 2020 at 11:59 pm ET and can be accessed by dialing +1-877-344-7529 (U.S.), +1-855-669-9658 (Canada) or +1-412-317-0088 (International) and entering replay pin number: 10143246. The online archive of the webcast will be available on for 90 days following the call.

Non-IFRS Financial and Performance Measures

In this press release Curaleaf refers to certain non-IFRS financial measures such as “Pro Forma Revenue”, “Managed Revenue”, “Gross Profit on Cannabis Sales” and “Adjusted EBITDA”. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. Curaleaf defines “Managed Revenue” as total revenue plus revenue from entities for which the Company has a management contract but does not consolidate the financial results based on IFRS 10 – Consolidated Financial Statements. Curaleaf defines “Pro Forma Revenue” as “Managed Revenue” plus revenue from operations of pending and closed acquisitions as if such acquisitions occurred on January 1, 2019. The Company defines “Gross Profit on Cannabis Sales” as retail and wholesale revenues less cost of goods sold. “Adjusted EBITDA” is defined by Curaleaf as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and one-time charges related to business development, acquisition, financing and reorganization costs. Curaleaf considers these measures to be an important indicator of the financial strength and performance of our business. We believe the adjusted results presented provide relevant and useful information for investors because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported results as indicators of our performance, and they may not be comparable to similarly named measures from other companies. The following tables provide a reconciliation of each of the non-IFRS measures to its closest IFRS measure.

About Curaleaf Holdings

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf”) is a leading vertically integrated multi-state cannabis operator with a dominant presence on both the East and West coasts of the United States, the largest cannabis market in the world. As a high-growth cannabis company known for quality, expertise and reliability, the company and its brands, Curaleaf and Select, provide industry-leading service, product selection and accessibility across the medical and adult-use markets. Strategically positioned in highly populated, limited-license states, the company currently operates in 17 states with 57 dispensaries, 15 cultivation sites, and 24 processing sites. Curaleaf employs over 2,200 people across the United States. For more information please visit

Investor Contact:
Curaleaf Holdings, Inc.
Daniel Foley, VP, Corporate Finance & Investor Relations

Media Contact:
Curaleaf Holdings, Inc. Tracy Brady, VP of Corporate Communications

Original press release

Published by NCV Newswire
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