NEW YORK–(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,” said 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…