Welcome to the Cannabis Investing Newsletter Forum. This is for the cannabis stocks forum & discussion. Feel free to find your favorite cannabis stocks and contribute content as you please; content that continues the discussion of, and analysis of, cannabis stocks. – D. H. Taylor
Curaleaf Posts Financials
- Record fiscal year 2021 revenue and Adjusted EBITDA(1) of $1.2 billion and $298 million, representing an increase of 93% and 107%, respectively
- Fourth quarter 2021 Revenue and Adjusted EBITDA of $320 million and $80 million, representing an increase of 39% and 48% year-over-year, respectively
WAKEFIELD, Mass., March 3, 2022 /PRNewswire/ -- Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) ("Curaleaf" or the "Company"), a leading international provider of consumer products in cannabis, today reported its financial and operating results for the fourth quarter and year ended December 31, 2021. All financial information is provided in U.S. dollars unless otherwise indicated.
Fourth Quarter and FY 2021 Financial Highlights (Unaudited) ($ thousands, except per share Q4 2020 (As % yoy FY 2020 (As % yoy amounts) Q4 2021 Restated) Change FY 2021 Restated) Change Total Revenue $320,011 $230,253 39% $1,209,661 $626,637 93% Gross profit before impact of biological assets 159,437 110,595 44% 588,051 315,489 86% Gross profit on cannabis sales(1)(2) 158,809 109,625 45% 585,734 275,071 113% Gross margin on cannabis sales(1)(2) 49.7% 47.8% 48.5% 46.9% Adjusted EBITDA(1)(2) 79,675 53,784 48% 298,037 144,080 107% Net loss attributable to Curaleaf Holdings Inc. (27,543) (37,067) (101,731) (57,161) Net loss per share -- basic and diluted ($0.04) ($0.06) ($0.15) ($0.10) (1) Represents a Non-IFRS financial measure or Non-IFRS ratio without a standardized definition under IFRS, which may not be comparable to similar measures used by other issuers. (2) See "Non-IFRS Financial and Performance Measures" below for definitions and more information regarding Curaleaf's use of Non-IFRS financial measures and Non-IFRS ratios. See the sections entitled "Gross Profit on Cannabis Sales" and "Adjusted EBITDA" below (pgs. 3-7) for reconciliations of Non-IFRS measures to the most directly comparable IFRS measures. (3) Cannabis sales excludes Management Fee Income. Gross profit and gross margin on cannabis sales both exclude the impact of biological assets.
Earnings Call: Thursday, March 3, 2022, at 5:00 P.M. ET
Conference ID # is 1618049
Replay ID # is 4919700
U.S. Live Call: +1-888-317-6003
International Live Call (Toll): +1-412-317-6061
Canada Live Call: +1-866-284-3684
U.S. Replay: +1-877-344-7529
International Replay (Toll): +1-412-317-0088
Canada Replay: +1-855-669-9658
A webcast of the call can be accessed on the investor relations section of the Curaleaf website at ir.curaleaf.com
The teleconference will be available for replay starting at approximately 7:00 P.M. ET on March 3, 2022, and will end at 7:00 P.M. ET on March 10, 2022
Boris Jordan, Executive Chairman of Curaleaf, commented, "2021 was another exceptional year for Curaleaf. We reached a significant milestone by generating over 90% revenue growth and exceeding $1.2 billion of total revenue for the first time. We continued to deliver gross and Adjusted EBITDA margin expansion and ended the year with one of the strongest balance sheets in the industry to support our ongoing growth strategies. In addition, we announced strategic acquisitions that have strengthened our ability to continue gaining share in key U.S. markets as well as internationally. Looking to 2022, we remain focused on executing our plan for strong, above market revenue growth and margin accretion, and believe we are incredibly well positioned to benefit from significant near-term catalysts such as the anticipated launch of New Jersey's adult use market."
Joe Bayern, Chief Executive Officer of Curaleaf, stated, "In 2021, we made significant progress strengthening all areas of our business including growing our retail and wholesale distribution, introducing new products, expanding our cultivation and production capacity, and entering new markets such as Europe. I believe our focus and strong execution in 2021 set us up extraordinarily well for the significant growth opportunities that lie ahead in 2022 and beyond. I am incredibly proud of the hard work and dedication of all our team members who have made our continued success possible. I believe Curaleaf is better positioned than ever to capitalize on the massive and growing cannabis opportunity."
Fourth Quarter 2021 Operating Highlights
-- Added eight new retail dispensaries including five in Florida, two in Colorado, and one in Arizona. -- Entered into a definitive agreement to acquire Tryke Companies, a vertically integrated MSO in Nevada, Arizona, and Utah. -- Entered into a definitive agreement to acquire Natural Remedy Patient Center, LLC, a Safford, Arizona dispensary. -- Entered into a definitive agreement to acquire Bloom Dispensaries, a single state operator in Arizona. -- Completed the offering of $475 million aggregate principal amount of 8.0% Senior Secured Notes due 2026 and retired all prior indebtedness, increasing liquidity and materially reducing the average interest rate on the Company's outstanding debt. -- Signed a national distribution agreement with Southern Glazer's Wine & Spirits to bring Curaleaf's Hemp and Select CBD product lines into Southern Glazer's distribution network.
Full Year 2021 Operating Highlights
-- Significantly expanded retail, wholesale, and cultivation operations through organic growth and strategic acquisitions. -- Increased retail locations from 96 to 117 as of December 31, 2021. -- Reached approximately 2,300 active wholesale accounts as of December 31, 2021, an increase of over 90% from year end 2020. -- Grew cultivation sites from 23 to 25. -- Expanded total cultivation and production capacity by over 2.5 million square feet to approximately 4.4 million square feet. -- Significant focus on R&D activities drove the introduction of 147 new products in our markets, with approximately 11% of full year 2021 revenue generated by new products launched in the last 12 months. -- Entered the European market through the successful acquisition of EMMAC Life Sciences Group and subsequently rebranded to Curaleaf International. -- Completed the acquisition of Los SueÃ±os Farms, the largest outdoor grow in Colorado.
Post Fourth Quarter 2021 Highlights
-- Completed the acquisition of Bloom Dispensaries adding four retail locations and two cultivation and processing facilities totaling 63,500 square feet in Arizona. -- Continued to organically expand our retail footprint, opening two additional dispensaries in Florida and three in Pennsylvania. As of March 3, 2022, Curaleaf retail operations totaled 126 nationwide. Financial Results for the Fourth Quarter Ended December 31, 2021 Revenue (Unaudited) ($ thousands) Q4 2021 Q3 2021 Q4 2020 Retail revenue $225,592 $224,543 $164,932 Wholesale revenue 93,791 92,041 64,351 Management fee income 628 541 970 Total Revenue $320,011 $317,125 $230,253
Total revenue was a record $320 million for the fourth quarter of 2021, an increase of 1% from $317 million in the third quarter of 2021 and 39% from $230 million in the fourth quarter of 2020. The Company's year-over-year revenue growth primarily reflects continued organic growth driven by new retail store openings, the addition of new wholesale partner accounts, product launches, and the expansion of cultivation and production facilities.
Retail revenue was $226 million, compared with $225 million in the third quarter of 2021, and up 37% from $165 million in the fourth quarter of 2020. Retail revenue represented 71% of total revenue. Curaleaf's year-over-year retail revenue growth was supported by 21 new stores added in 2021.
Wholesale revenue was $94 million, an increase of 2% from the third quarter of 2021 and 46% year-over-year and represented 29% of total revenue. Wholesale revenue growth was supported by the addition of new wholesale partner accounts, which increased by more than 90% from year-end 2020 to approximately 2,300 total accounts.
Gross Profit on Cannabis Sales (Unaudited) ($ thousands) Q4 2021 Q3 2021 Q4 2020 Retail and wholesale revenue $319,383 $316,584 $229,283 Cost of goods sold 160,574 172,216 119,658 Gross profit on cannabis sales (1) 158,809 144,368 109,625 Gross margin on cannabis sales (1) 49.7% 45.6% 47.8% Management fee income(2) 628 541 970 Gross profit before impact of biological assets $159,437 $144,909 $110,595 (1) Represents a non-IFRS measure or Non-IFRS ratio. See "Non-IFRS Financial and Performance Measures" below for definitions and more information regarding Curaleaf's use of Non-IFRS financial measures and Non-IFRS ratios. (2) Management fee income is added to Gross Profit on Cannabis Sales to obtain Gross profit before impact of biological assets, the most comparable IFRS measure.
Thanks for posting this @gtosali1967. Do you know if they provided any forward guidance on the call?
@awesame I have reached out to D.H. for his interpretation on Curaleaf. Theres so much uncertainty due to his Russian/Ukaranian heritage that is causing a lot of untruth and fear. Lets see what D.H. says. Im trying to just go by what the numbers say.
Here is D.H.'s input, there should be more coming tomorrow or the next day.:
I read the report. There was a surprise jump upward in margins. That shows Curaleaf is getting better at being efficient. That is good. The increase in revenue was smallish. But, we never care about q4. When the end of year hits, we usually know what to expect. It’s next year revenue that we care mostly about.The people who are grumbling usually are only happy when reports are so good that at the end of the day they can buy a new Porsche & mansion with their pathetic 10 share position they have. You are correct to ignore them.As for Ukraine, this will calm down and the markets will start to go back up again very soon; probably next week.