Curaleaf Q3 Revenue Grows 189% to $61.8 Million

Curaleaf Reports Third Quarter 2019 Financial and Operational Results
  • Reported Record Pro Forma Revenue(¹)(²) of $129.0 million and Managed Revenue(¹) of $73.2 Million
  • Generated $9.0 million of Adjusted EBITDA(¹) as Inflection Point Reached in Several Key States
  • Announced Amended Deal Terms for Select and Expiration of Hart-Scott-Rodino Act (HSR) Waiting Period

WAKEFIELD, Mass., Nov. 19, 2019 /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 third quarter ended September 30, 2019. All financial information is provided in U.S. dollars unless otherwise indicated.

Third Quarter Highlights

  • Reported record quarterly Pro Forma Revenue of $129.0 million, Managed Revenue of $73.2 million, which grew 33% sequentially and Adjusted EBITDA of $9.0 million, which grew 169% sequentially
  • Announced acquisition of Chicago, Illinois-based Grassroots, the largest private U.S. MSO for approximately $875 million creating world’s largest cannabis company which will expand presence to 19 states
  • Received approval for three final and two provisional adult-use licenses by the Massachusetts Cannabis Control Commission
  • Closed on acquisitions of Glendale and Phyto in Arizona
  • Signed sale-leaseback agreement with Freehold Properties, Inc. for six properties generating net cash proceeds of approximately $24.8 million

Post Third Quarter Highlights

  • Launched adult-use operation in Oxford, Massachusetts
  • Closed on acquisition of Acres cultivation and processing facilities in Amargosa Valley, Nevada
  • Announced expiration of HSR waiting period and amended deal terms for Select acquisition
  • Announced core shareholders, representing 75% of the issued and outstanding shares of the Company, entered into an amended and extended lock-up agreement

“Our increasing scale along with the incredible efforts of our team around the country who ensure our patients and customers have a superior experience, helped drive the strong financial results we posted this quarter,” said Joseph Lusardi, Chief Executive Officer of Curaleaf. “We look forward to the closing and integration of the Select and Grassroots acquisitions which are expected to bring significant operational capacity to Curaleaf in key markets. We are focused on operating with excellence to meet the growing demand for our products and positioning the Company to create substantial shareholder value.”

The third quarter demonstrated the power of our increased scale as we reported record total and managed revenue, record adjusted EBITDA and expanded operating margins as we benefited from increased scale and strong demand in key markets.

Neil Davidson, Chief Financial Officer of Curaleaf

Our main focus continues to be prudent capital allocation, operational improvement and integration of our pending and closed acquisitions to drive continued strong overall growth and operating leverage.

Financial Results for the Third Quarter Ended September 30, 2019

Managed Revenue for the third quarter was $73.2 million, an increase of 201% over the prior year and 33% over the prior quarter. Pro Forma Revenue for the third quarter was $129.0 million.

Total Revenue for the third quarter of 2019 increased 189% year-over-year to $61.8 million, compared to $21.4 million in the third quarter of 2018. Total Revenue for the third quarter of 2019 increased 27% over the prior quarter.

Retail and wholesale revenue increased more than three-fold to $50.7 million during the quarter, compared to $16.6 million in the third quarter of 2018. The increase in retail and wholesale revenue was primarily due to organic growth in Florida, New York and acquisitions in Arizona and Maryland. Additionally, wholesale revenue increased in Massachusetts as a result of the number of newly opened adult-use dispensaries.

Gross profit before impact of biological assets for the third quarter of 2019 was $34.7 million, compared to $13.9 million for the third quarter of 2018. The increase was due to continued improvement in the operating capacity of the Company’s cultivation and processing facilities.

Gross profit on cannabis sales was $23.6 million in the third quarter of 2019, resulting in a 47% margin, compared to $9.1 million in the third quarter of 2018. The increase was due to the mix in retail revenue over wholesale revenue and continued improvement in the operating capacity of the Company’s cultivation and processing facilities.

Adjusted EBITDA was $9.0 million for the third quarter of 2019, compared to a loss of $3.2 million for the third quarter of 2018.

Net loss for the third quarter of 2019 was $7.4 million, compared to a net loss of $35.6 million in the third quarter of 2018. The decrease was primarily driven by a decrease in other expense related to a loss on the change in fair value of convertible notes in 2018, partially offset by an increase of $7.7 million in depreciation and amortization and an increase of $4.7 million in share-based compensation, both of which are non-cash, an increase of $5.2 million in one-time charges, primarily business development, acquisition and financing related, an increase of $3.2 million in net interest expense and an increase of $2.6 million in the provision for income tax.

Balance Sheet and Liquidity

As of September 30, 2019, we had $91.2 million of cash, $106.0 million of outstanding debt and approximately 464.1 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 +1-877-407-9039 (U.S. Toll-Free) or +1-201-689-8470 (International). 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 December 3, 2019 at 11:59 pm ET and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 13695783. 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 and financing related 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 the leading vertically integrated multi-state cannabis operator in the United States. It is a high-growth cannabis company with a national brand known for quality, trust and reliability. The company is positioned in highly populated, limited license states, and currently operates in 12 states with 50 dispensaries, 14 cultivation sites and 13 processing sites. Curaleaf has the executive expertise and research and development capabilities to provide leading service, selection, and accessibility across the medical and adult-use markets, as well as in the CBD category through its Curaleaf Hemp brand.

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

Media Contact:
Megan Bishop, SVP

Original press release

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

Get Our Sunday Newsletter