Columbia Care first-quarter revenue declines 12% sequentially to $123.1 million – Cannabis Business News
- Quarterly revenue of $123 million, up 43% year-over-year
- Gross profit of $57 million, a 68% year-over-year increase
- Gross margin of 46%, an increase of 676 basis points year-over-year, 149 basis points quarter-on-quarter compared to the previous adjusted gross margin1
- Adjusted EBITDA of $17 million, a 355% year-over-year increase and Adjusted EBITDA margin1 by 14%, an increase of 930 bp over one year
- Reiterates 2022 guidance of $625m to $675m revenue, $120m to $135m adjusted EBITDA
NEW YORK-May 16, 2022-(BUSINESS WIRE)–Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”) today announced today’s financial and operating results for the first quarter ended March 31, 2022. All financial information presented in this release is in US GAAP, unaudited and in thousands of US dollars, unless otherwise indicated, and comparisons with the quarter prior year and prior year are on a converted US GAAP basis, unless otherwise noted.
The first quarter 2022 results show how Columbia Care overcame a number of macroeconomic headwinds by exercising strong operational discipline. We have significantly increased our gross margins and EBITDA, while continuing to leverage the scale we have built on our strategic national platform.
Nicholas Vita, CEO of Columbia Care
He added, “During the first quarter, we grew our revenue by 43% over the prior year, achieved nearly 700 basis points of adjusted gross margin improvement and more than 930 basis points of the adjusted EBITDA margin. As our recent capital investments drive efficiencies across the value chain, this will not only enable us to capitalize on our growth opportunities across the country, but also continue to further improve profitability.
“As 2022 continues to unfold, our priority is to drive profitability. We expect specific market cyclicality to be overtaken by exceptional growth in several key markets across our diverse portfolio. strong growth, starting in the 2nd quarter, will provide a solid counterbalance, as several maturing markets show the impact of inflationary and competitive pressures.
Vita continued, “We are thrilled with recent accomplishments and progress made so far in 2022, including our fourth dispensary in the growing Virginia market, the opening of four outlets, and the launch of the main wholesale operation in West Virginia, and the launch of adult use in New Jersey in mid-April. As we look ahead to the rest of the year, we are looking at markets that will drive growth such as New Jersey, Virginia, West Virginia and New York, making continuous operational improvements to increase efficiencies across new and mature markets, and focus on generating free cash flow to fund our growth strategy. We also remain committed to delivering the best outcome for our stakeholders as we move towards a successful closing of the transaction with Cresco Labs, with the shared vision of creating the definitive market leader in the cannabis industry.
1 See “Non-GAAP Financial Measures” in this press release for further information regarding the Company’s use of non-GAAP financial measures.
Top 5 Markets by Q1 Revenue: California, Colorado, Massachusetts, Pennsylvania, Virginia
Top 5 markets by adjusted EBITDA in Q1: Colorado, Maryland, Massachusetts, Pennsylvania, Virginia
 Markets are listed in alphabetical order
First Quarter 2021 Operational Highlights
Building scale with continued retail expansion:
- Opening of 5 additional stores in the first quarter: 4 in West Virginia and 1 in Virginia Beach, Virginia, to bring the active total to 84
- Other dispensaries in development include 8 in Virginia, 1 in West Virginia and 1 in New Jersey
- Virginia is now a top 5 market for revenue and adjusted EBITDA with 4 active outlets, with significant medical program expansion starting July 1
Proven Culture and Execution Expertise:
- In the first quarter, operationalization of the largest wholesale operation in West Virginia
- Marketed flower harvests from Riverhead, New York’s greenhouse for the medical market, helping to increase finished flower grams by 1 million grams QoQ
- Continued to drive operational improvements and adherence to national cultivation SOPs, resulting in increased potency and efficiency across the cultivation portfolio
Sustained momentum of brand initiatives at retail and product level:
- Private labels achieved a record percentage of total sales, supporting gross margin expansion; own brands accounted for 69% of flower sales at Columbia Care locations
- Post quarter end, launch of Seed & Strain and Classix in the Colorado market; Classix is now available in 13 markets and Seed & Strain is now available in 12 markets
- Growth of internal brands supports ability to exercise price discipline and gross margin
- Converted Brooklyn, New York location to cannabis retail experience; 31 cannabis locations nationwide across 84 active outlets
Capital Markets and Liquidity Highlights
- On February 3, 2022, the Company completed a private placement in an aggregate principal amount of $185 million of 9.50% Senior Secured Notes due 2026
- The company ended the first quarter of 2022 with $168.4 million in cash, up $86.2 million from the fourth quarter of 2021
At this time, Columbia Care’s outlook for 2022 does not include any contribution from future acquisitions, nor does it assume additional changes in the regulatory environment in the markets in which Columbia Care currently operates or the anticipated impact of the transaction. in progress with Cresco Labs. It also excludes potential future market changes where a conversion from medical-only use to adult use is considered by a Governor and/or Legislature. See “Caution Regarding Forward-Looking Statements” below for further discussion.
Conference call and webcast details
The Company will host a conference call on Monday, May 16, 2022 at 8:00 a.m. ET to discuss first quarter financial and operating results.
To access the live conference call by phone, please dial 1-844-283-2900 (US callers) or 1-213-217-9431 (international callers). A live audio webcast of the call will also be available on the Investor Relations section of the Company’s website at https://ir.col-care.com/ or at https://ir.col-care.com/ /edge.media-server.com/mmc/p/xsdeznnb.
A replay of the audio webcast will be available on the Investor Relations section of the Company’s website approximately 2 hours after the call ends and will be archived for 30 days.
About Columbia Care
Columbia Care is one of the largest and most experienced cultivators, manufacturers and suppliers of cannabis products and related services, with licenses in 18 US jurisdictions and the EU. Columbia Care operates 131 facilities, including 99 dispensaries and 32 cultivation and manufacturing facilities, including those under development. Columbia Care is one of the first multi-state providers of medical cannabis in the United States and now offers industry-leading products and services to the medical and adult markets. In 2021, the company launched Cannabist, its new retail brand, creating a nationwide network of dispensaries that relies on proprietary technology platforms. The company offers products spanning flowers, edibles, oils, and tablets, and manufactures popular brands such as Seed & Strain, Triple Seven, gLeaf, Classix, Press, Amber, and Platinum Label CBD. For more information about Columbia Care, please visit www.col-care.com.
original press release
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