Visit the Greenlane Holdings Investor Dashboard and stay up to date with data-driven, fact based due diligence for active traders and investors.
Greenlane Reports Q2 2021 Revenue of $34.7 million and Record Core Revenue of $34.5 Million
BOCA RATON, Fla., Aug. 17, 2021 (GLOBE NEWSWIRE) — Greenlane Holdings, Inc. (“Greenlane” or “the Company”) (Nasdaq: GNLN), a global house of brands and one of the largest sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today reported financial results for the second quarter ended June 30, 2021 (“Q2 2021”).
Q2 2021 Highlights
- Total revenue increased 7.1% to $34.7 million for Q2 2021, compared to $32.4 million for Q2 2020;
- Q2 2021 core revenue (defined as non-nicotine revenue) grew 14.9% to $34.5 million, compared to $30.0 million in Q2 2020;
- Achieved third consecutive quarterly sales record for Greenlane Brands, which grew to $9.0 million in Q2 2021, up 62.5% compared to $5.5 million in sales for Q2 2020;
- Greenlane Brands accounted for 25.9% of Q2 2021 total revenue compared with 17.1% of total revenue for Q2 2020;
- Successfully transitioned to core business lines. Core revenue accounted for 99.3% of total revenue for Q2 2021;
- Gross profit and gross margin grew by $1.0 million and 1.3%, respectively, to $7.8 million and 22.4%, compared to $6.8 million and 21.0% in Q2 2020;
- Subsequent to quarter end, the Company completed a $32.0 million registered direct offering priced at-the-market.
Our second quarter 2021 results reflect the success of our efforts to drive growth in our core business lines and higher margin Greenlane brands.
Aaron LoCascio, Greenlane’s Chairman and Chief Executive Officer
I am proud of our accomplishments and want to thank our entire team for their ongoing dedication as we execute on the opportunity ahead. During the quarter, we drove solid Greenlane Brands revenue growth, up 62% year over year and representing 26% of our total Q2 revenue, supported by strong organic growth.
Mr. LoCascio added, “Our focus on growing our portfolio of owned brands and driving strong performance from our existing brand portfolio, combined with our pending merger with KushCo, has positioned our business to be the leader in the ancillary cannabis space and to build strong, long-term value for both our customers, partners, employees, and shareholders.”
Net sales were $34.7 million in Q2 2021, compared to $32.4 million in Q2 2020, an increase of $2.3 million, or 7.1%. As the Company continues to focus on core (non-nicotine) sales and higher-margin products, including Greenlane Brands, Q2 2021 net sales included negligible nicotine revenue compared to the prior year period.
Gross profit was $7.8 million, or 22.4% of net sales in Q2 2021, compared to $6.8 million, or 21.0% of net sales in Q2 2020. While merchandise margin increased by 2.3% and resulted in a $0.8 million or 7.4% increase in merchandise gross profit, the improvements were slightly offset by a $0.9 million increase in inventory adjustments and a $0.5 million increase in customs duties and fees.
Cash totaled $11.6 million as of June 30, 2021. As of June 30, 2021, working capital was $36.4 million, compared to working capital of $54.2 million, as of December 31, 2020.
Net sales for our United States reporting segment increased $4.3 million, or 16.4%, to $30.7 million in Q2 2021, compared to approximately $26.4 million in the same period in 2020. Net Sales for our Canadian reporting segment decreased to approximately $1.4 million for Q2 2021 compared to approximately $3.5 million in the same period in 2020, primarily due to a decrease of $1.1 million in non-core revenue sales as a result of the Company’s strategic shift away from low-margin nicotine sales. Net sales for our European reporting segment remained flat at $2.6 million for Q2 2021, primarily due to the third-party website sales, which resulted in $0.4 million of additional net sales and a $0.2 million growth in B2B net sales, which offset a $0.6 million decrease in E-Commerce sales.
Conference Call Information
Greenlane will host a conference call Tuesday, August 17th, 2021, to discuss these results. Aaron LoCascio, Chief Executive Officer, will host the call starting at 8:30 a.m. Eastern Time.
Date: Tuesday, August 17th, 2021
Time: 8:30 a.m. Eastern Time
Dial-In Number: (833) 519-1285
Conference ID: 2317189
Webcast: Click here to access
Replay: (855) 859-2056 or (404) 537-3406
Available until 11:30 PM Eastern Time on August 31st, 2021
About Greenlane Holdings, Inc.
Greenlane Holdings, Inc. (NASDAQ: GNLN) is a global house of brands and one of the largest sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products to smoke shops, dispensaries, and specialty retail stores, as well as direct to consumer through its online e-commerce platforms, Vapor.com, Higherstandards.com, Aerospaced.com, Harringglass.com, Eycemolds.com, Canada.Vapor.com, Azarius.net, Vaposhop.com, and recently-acquired Puffitup.com. Founded in 2005, Greenlane serves more than 7,000 retail locations and has over 250 employees with operations in United States, Canada, and Europe. With a strong global footprint, Greenlane has been the partner of choice for many of the industry’s leading brands, who chose to leverage its strong distribution platform, unparalleled customer service, and highly efficient operations and logistics to accelerate their growth. Greenlane’s curated portfolio of owned brands includes EYCE, packaging innovator Pollen Gear™, VIBES™ rolling papers, Marley Natural™ Accessories; K.Haring Glass Collection, Aerospaced grinders, and Higher Standards which offers both an upscale product line as well as an innovative retail experiences with flagship stores located in Chelsea Market, New York and Malibu, California.
For additional information, please visit: https://gnln.com/.
Use of Non-GAAP Financial Measures
Greenlane discloses Adjusted Net Loss and Adjusted EBITDA, which are non-GAAP performance measures, because management believes these metrics assist investors and analysts in assessing our overall operating performance and evaluating how well we are executing our business strategies. You should not consider Adjusted Net Loss or Adjusted EBITDA as alternatives to net loss, as determined in accordance with U.S. GAAP, as indicators of our operating performance. Adjusted Net Loss and Adjusted EBITDA have limitations as an analytical tool. Some of these limitations are:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and adjusted EBITDA does not reflect capital expenditure requirements for such replacements or for new capital expenditures;
- Adjusted EBITDA does not include interest expense, which has been a necessary element of our costs, and income tax payments we may be required to make;
- Adjusted EBITDA and Adjusted Net Loss do not reflect equity-based compensation;
- Adjusted EBITDA and Adjusted Net Loss do not reflect transaction and other costs which are generally incremental costs that result from contemplated or completed transaction;
- Adjusted EBITDA and Adjusted Net Loss do not reflect other one-time expenses and income, including consulting costs related to the implementation of our ERP system and the reversal of an allowance against indemnification receivables associated with the EU VAT liability;
- Other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Because Adjusted Net Loss and Adjusted EBITDA do not account for these items, these measures have material limitations as indicators of operating performance. Accordingly, management does not view Adjusted Net Loss or
Adjusted EBITDA in isolation or as substitutes for measures calculated in accordance with U.S. GAAP.
For more information on Greenlane’s non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial measures, please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” table in this press release.
For fact-based information on Greenlane Holdings, view the company’s sponsored Investor Dashboard.
Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.