Harvest Health and Recreation Q1 Revenue Doubles to $89 Million

Harvest Health & Recreation Inc. Reports First Quarter 2021 Financial Results
  • First quarter revenue was $88.8 million, up 101% from the first quarter 2020 and 27% sequentially
  • First quarter net loss before non-controlling interest was $23.0 million, compared to $7.4 million in the fourth quarter 2020 
  • Adjusted EBITDA was $26.9 million in the first quarter, up 196% compared to $9.1 million in the fourth quarter 2020
  • 2021 revenue target increased to at least $400 million

PHOENIX, May 10, 2021 /PRNewswire/ — Harvest Health & Recreation Inc. (“Harvest” or the “Company”) (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., today reported its financial and operating results for the first quarter 2021. All financial information is provided in U.S. dollars unless otherwise indicated.

First Quarter 2021 Financial Results

  • Total revenue in the first quarter was $88.8 million, an increase of 101% from $44.2 million in the first quarter of 2020, and up 27% compared to $69.9 million in the fourth quarter of 2020.
  • Gross profit in the first quarter was $47.9 million, compared to $18.1 million in the first quarter of 2020, and $31.3 million in the fourth quarter of 2020.
  • Gross profit margin in the first quarter was 53.9%, compared to 41.0% in the first quarter of 2020 and 44.8% in the fourth quarter of 2020.
  • Net loss before non-controlling interest was $23.0 million for the first quarter, compared to $7.4 million in the fourth quarter of 2020.
  • Adjusted EBITDA in the first quarter was $26.9 million, compared to $9.1 million in the fourth quarter of 2020.

Please see the supplemental information regarding the use of Non-GAAP Financial Measures, and a reconciliation of Non-GAAP Financial Measures.

First Quarter 2021 Business Highlights

  • On January 22, 2021, Harvest recorded the first recreational cannabis sale in the state of Arizona at its Scottsdale location. Harvest began serving adult use customers in addition to medical patients at all 15 of its dispensaries on January 22.
  • On January 25, 2021, Harvest announced the closing of a sale leaseback transaction with Innovative Industrial Properties, Inc. Harvest sold a 292,000 square foot facility for $23.8 million. Harvest will operate the cultivation and processing facility and expects to receive up to $10.8 million in tenant improvements.
  • On February 22, 2021, Harvest announced the divestiture of two medical marijuana dispensaries in Bismarck and Williston, North Dakota for an immaterial amount of cash.
  • On March 11, 2021, Harvest opened one new dispensary in Whitehall, Pennsylvania.
  • On March 15, 2021, Harvest announced the settlement of its dispute with Falcon International, Inc. In accordance with the settlement terms, Harvest now owns a 10% equity stake in Falcon and received a ten year warrant to purchase up to 20% of the company’s shares at an exercise price of $1.91 per share.
  • As of March 31, 2021, Harvest owned, operated, or managed 37 retail locations in six states, including 15 open dispensaries in Arizona.

Recent Developments

  • Harvest opened two new medical retail dispensaries in Florida on May 5th and May 6th in Olympia Heights and West Palm Beach.
  • On May 7, 2021, Harvest announced that a settlement was reached regarding the grower/processor permittee AGRiMED Industries of PA, LLC.
  • On May 10, 2021, Trulieve announced its planned acquisition of Harvest. Each Harvest shareholder is expected to receive 0.117 shares of Trulieve for each Harvest share, representing total consideration of approximately $2.1 billion. The implied price per Harvest share is equal to $4.79, representing a 34% premium to the May 7, 2021 closing price of the Harvest shares.


Harvest is raising its full year 2021 revenue target to at least $400 million. Reported gross margins are expected to be at or above 50% and will likely continue to fluctuate from quarter to quarter.

Management Commentary

Our first quarter results show the benefits of reaching impactful milestones such as the launch of recreational sales in Arizona.

Chief Executive Officer Steve White

We are focused on our key operational and financial priorities in 2021 as we continue to build on this positive momentum.

Conference Call & Webcast

Harvest Health and Recreation Inc. will host a conference call and audio webcast with Chief Executive Officer Steve White, Monday May 10, 2021 at 8:00 AM Eastern Time.

Registration for this event is required. Please use this link to register: http://www.directeventreg.com/registration/event/4832288

Following registration, an email confirmation will be sent including dial in details and unique conference call codes. Registration will remain open during the call however we recommend advance registration to access the event.

First quarter results will be available at: https://investor.harvesthoc.com/financials/default.aspx

The live conference call webcast and replay will be available at: https://investor.harvesthoc.com/financials/default.aspx

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures as defined by the SEC. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included below. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP. Our management uses adjusted EBITDA to evaluate our operating performance and trends and make planning decisions. Our management believes adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude. Accordingly, we believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making.

Reconciliation of Non-GAAP Financial Measures

The table below reconciles Net income (loss) to Adjusted EBITDA for the periods indicated.

About Harvest Health & Recreation Inc.

Headquartered in Tempe, Arizona, Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest’s mission is to improve lives through the goodness of cannabis. We hope you’ll join us on our journey: https://harvesthoc.com

Facebook: @HarvestHOC
Instagram: @HarvestHOC
Twitter: @HarvestHOC

Original Press Release

Published by NCV Newswire
NCV Newswire
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