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JUSHI second qrt

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TheQueen
(@gtosali1967)
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Jushi Holdings Inc. Reports Second Quarter 2022 Financial Results and Announces Non-Reliance on Previously Issued First Quarter 2022 Financial Statements
7:30 AM ET 8/29/22 | GlobeNewswire


Jushi Holdings Inc. Reports Second Quarter 2022 Financial Results and Announces Non-Reliance on Previously Issued First Quarter 2022 Financial Statements

Second Quarter 2022 Revenue Growth of 52.4% YoY and 17.6% QoQ to $72.8 million

Completed NuLeaf Acquisition and Expanded Vertically Integrated Footprint in Nevada

Established Fifth Vertically Integrated State-Level Operation in Ohio with Medical Dispensary License Win

BOCA RATON, Fla., Aug. 29, 2022 (GLOBE NEWSWIRE) -- Jushi Holdings Inc. ("Jushi" or the "Company") (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, announced its financial results for the second quarter 2022 ("Q2 2022") ended June 30, 2022. The Company became a U.S. reporting company effective August 12, 2022. All financial information is provided in U.S. dollars unless otherwise indicated and are prepared under U.S. Generally Accepted Accounting Principles ("GAAP").

Second Quarter 2022 Highlights

   -- Total revenue of $72.8 million, an increase of 52.4% year-over-year and 
      17.6% as compared to the quarter ended March 31, 2022 ("Q1 2022") 
 
   -- Retail revenue increased 16.1% to $67.3 million and wholesale revenue 
      increased 42.1% to $5.5 million, as compared to Q1 2022 
 
   -- Gross profit of $26.7 million, an increase of 17.2% year-over-year and 
      39.5% as compared to Q1 2022 
 
   -- Adjusted gross profit of $27.8 million, an increase of 19.1% 
      year-over-year and 12.3% as compared to Q1 2022 
 
   -- Net Income of $12.1 million 
 
   -- Adjusted EBITDA of $0.5 million 
 
   -- Cash and cash equivalents were $43.2 million as of the quarter end 


Second Quarter 2022 Operational Highlights

   -- Expanded the Company's vertically integrated footprint in Nevada with the 
      completion of the NuLeaf, Inc. ("NuLeaf") acquisition, adding a 27,000 
      sq. ft. cultivation facility, a 13,000 sq. ft. processing facility, and 
      three adult-use and medical retail dispensaries in the state 
 
   -- Opened the 32nd and 33rd retail locations nationwide, marking the 
      Company's third Beyond Hello(TM) location in California and fourth 
      dispensary in Nevada 
 
   -- Awarded a provisional medical marijuana dispensary license in the 
      Cincinnati Tri-State Area of Ohio, establishing the Company's fifth 
      vertically integrated state-level operation 
 
   -- Debuted two new product lines in Pennsylvania under the Company's brand 
      The Lab(TM), including a line of solventless live rosin extracts and a 
      line of hydrocarbon extracts, comprised of high-quality vapes and 
      concentrates 


Recent Developments

   -- Transitioned from IFRS to U.S. GAAP reporting as a result of becoming a 
      U.S. reporting issuer as of August 12, 2022 
 
   -- Opened the 34th retail location nationwide and third Beyond Hello(TM) 
      dispensary in Alexandria, Virginia 
 
   -- Opening the 35th retail location nationwide and fourth Beyond Hello(TM) 
      dispensary in Fairfax, Virginia on August 31, 2022 


Management Commentary

"We are pleased to report solid second quarter top-line growth and improved sequential profitability, a strong indication that our strategy, capital investments and cost savings initiatives are building a strong foundation on which we can continue to execute, despite the challenging macroeconomic environment," said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi Holdings Inc. "The development of our footprint in Nevada, including the addition of NuLeaf's high-quality assets, were meaningful contributors to our retail performance in the second quarter."

Mr. Cacioppo continued, "In the second quarter, we completed the first phase of construction of the cultivation portion of our grower-processor facilities in Pennsylvania and Virginia. In these two very important markets for Jushi, we are focused on expanding production, improving the sell-through rate of our own-branded products at our Beyond Hello(TM) stores and building-out our wholesale business. We are also focused on diversifying our product portfolio, including the introduction of many new strains, along with hydro-carbon products and Live Rosin vapes and concentrates that will allow us to differentiate our product offering, while continuing to meet consumer demand."

"Our team has done a commendable job navigating through these challenging market conditions. I am confident that our strong foundation and cost discipline will ensure we maintain our momentum into the second half of the year. We are excited about what lies ahead for Jushi and believe we are well-positioned to capitalize on the industry opportunity and drive long-term value for our shareholders," concluded Mr. Cacioppo.

Use of Non-GAAP Financial Information

We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below, as well as the "Reconciliation of Non-GAAP Financial Measures" section of this press release.

Financial Results for the Second Quarter 2022

The following is a tabular summary and commentary of revenue, gross profit, adjusted gross profit, net income (loss), and net income (loss) per share for the three month periods ended June 30, 2022, March 31, 2022, and June 30, 2021.

($ in millions, except per share amounts)

 
           Quarter  Quarter            Quarter  Quarter 
            Ended    Ended              Ended    Ended 
            June     March              June     June 
             30,      31,       %        30,      30,       % 
            2022     2022     Change    2022     2021     Change 
---------  -------  -------  --------  -------  -------  -------- 
Revenue    $ 72.8   $ 61.9   17.6%     $ 72.8   $ 47.7   52.4% 
Gross 
 profit      26.7     19.1   39.5%       26.7     22.8   17.2% 
Adjusted 
 gross 
 profit      27.8     24.8   12.3%       27.8     23.4   19.1% 
Net 
 income 
 (loss)      12.1    (19.8)              12.1      3.6 
Net 
 income 
 (loss) 
 per 
 share - 
 basic     $ 0.06   $(0.11)            $ 0.06   $ 0.02 
Net loss 
 per 
 share - 
 diluted   $(0.15)  $(0.16)            $(0.15)  $(0.09) 
 


Revenue in Q2 2022 increased 52.4% to $72.8 million as compared to $47.7 million in the second quarter of 2021 ("Q2 2021"), driven by the Company's acquisitions in Nevada and Massachusetts, and new Beyond Hello(TM) store openings in Pennsylvania and Virginia. Revenue increased 17.6% to $72.8 million from $61.9 million in Q1 2022. The 17.6% increase in revenue was primarily driven by the acquisitions in Nevada in the first half of 2022, including contributions from four new state dispensaries, increased retail and wholesale activity in Massachusetts, and growth in retail sales in Illinois and Virginia.

Gross profit in Q2 2022 was $26.7 million, or 36.7% of revenue, compared to $19.1 million, or 30.9% of revenue in Q1 2022. Adjusted gross profit in Q2 2022 was $27.8 million, or 38.3% of revenue, compared to $24.8 million, or 40.0% of revenue in Q1 2022. Adjusted gross margin was negatively impacted by the under absorption of fixed costs at the Company's grower-processor facilities as the wholesale business scales and increased promotional activity of Jushi branded products in Pennsylvania.

Operating expenses in Q2 2002 were $38.7 million, or 53.3% of revenue, compared to $37.3 million, or 60.3% of revenue in Q1 2022. The 703 basis point improvement in operating expenses as a percentage of revenue was primarily driven by managing labor and staffing expenses across the organization and lower share based compensation.

Q2 2022 net income was $12.1 million, or $0.06 per basic share and net loss of $0.15 per diluted share, compared to net income of $3.6 million, or $0.02 per basic share and net loss of $0.09 per diluted share, in Q2 2021. The net loss of $0.15 per diluted share in Q2 2022 was primarily due to the dilutive impact of the outstanding warrant derivative liability.

Adjusted EBITDA in Q2 2022 was $0.5 million, an increase of $1.4 million as compared to $(0.9) million in Q1 2022 and a decrease of $4.1 million compared to $4.6 million in Q2 2021. Adjusted EBITDA expansion was slowed by infrastructure and headcount investments at our grower processors that continue to have a transitional impact as the Company scales and slower-than-expected growth of wholesale operations.

Balance Sheet and Liquidity

As of June 30, 2022, the Company had approximately $43.2 million of cash and cash equivalents. The Company paid approximately $14 million in capital expenditures during Q2 2022. For the balance of the year, we expect capital expenditures to be in the range of $15 to 25 million, prior to any potential tenant improvement reimbursements or financings, for a total of $55 to $65 million for the full year 2022, subject to market conditions and regulatory changes. As of June 30, 2022, the Company had approximately $200 million in principal amount of total debt, excluding leases and property, plant, and equipment financing obligations. As of August 29, 2022, the Company's Acquisition Facility had $60 million of available capacity, including the $25 million accordion feature. As of August 29, 2022, the Company's issued and outstanding shares were 195,989,084 and its fully diluted shares outstanding were 290,921,762.


   
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D. H. Taylor
(@dhtaylor)
Noble Member Admin
Joined: 2 years ago
Posts: 1086
 

Just skimming through these, Jushi printed some pretty solid numbers.  I think Jushi continues to execute and are going to build up a solid business.  And, the stock is starting to get a bit perky the past few sessions.  Looks like this is going to be a solid move going through to the end of the year.  


   
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Jeff Spahn
(@jeffspahn2011gmail-com)
Estimable Member
Joined: 1 year ago
Posts: 107
 

@dhtaylor 

Jushi Holdings Inc. Strengthens Board of Directors and Senior Leadership Team

 

Bill Wafford, Seasoned Finance Executive and Former JCPenney CFO, to Serve as Independent Director and Chair of the Audit Committee

Tobi Lebowitz Promoted to Chief Legal Officer and Corporate Secretary

BOCA RATON, Fla., Oct. 04, 2022 (GLOBE NEWSWIRE) -- Jushi Holdings Inc. (JUSHF) (“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, today announced that it has appointed Bill Wafford to its Board of Directors, effective immediately. In addition to his appointment as Independent Director, Mr. Wafford will serve as Chair of the Audit Committee.

Mr. Wafford is a highly skilled leader with over 25 years of finance and management consulting experience. Over the course of his career, he has led all aspects of finance, strategy, and execution within several Fortune 500 public and private companies in the retail industry. His deep breadth of experience spans various functions, including accounting, corporate venture capital, M&A, and real estate, in addition to corporate strategy, investor relations, internal audit functions, and procurement and supply chain management.

“We are thrilled to welcome Bill and advance our commitment to robust governance through the expansion of our Board,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi (JUSHF). “Bill’s impressive background and strong financial acumen will provide valuable perspectives as we enhance board oversight and strengthen the Company’s financial reporting, particularly with our new status as a U.S. reporting issuer. We look forward to Bill’s contributions as we look to achieve accelerated profitability through the remainder of the year.”

Mr. Wafford added, “I would like to thank Jim and the Board for welcoming me at such an exciting period in the evolution of Jushi (JUSHF). I look forward to working with the Company’s highly skilled Directors and contributing both my expertise and insights to drive sustained growth and value for our shareholders as this dynamic industry rapidly matures.”

Mr. Wafford currently serves as Chief Financial Officer of Everlane, a digitally native apparel, footwear and accessories brand that is leading the fashion industry toward a more environmentally conscious sustainable future. Prior to Everlane, he served as Chief Financial Officer of JCPenney, one of the largest retail department chains in the U.S., The Vitamin Shoppe, a specialty retailer of nutritional products, and Thrasio, a global consumer goods company. Mr. Wafford also previously served as Partner of the advisory practice group at KPMG, after holding various executive finance roles with Walgreens Boots Alliance, Target, Archstone Consulting, and Bank of America.

Management Update
The Company also announced that it has bolstered its senior leadership team with the promotion of Tobi Lebowitz to Chief Legal Officer and Corporate Secretary. Ms. Lebowitz joined the Company in 2019 and was part of the core team which brought Jushi (JUSHF) public shortly thereafter. Since then, she has played an instrumental role in the execution of various initiatives across the business, including strategic M&A, business development, and high-stakes litigation. Ms. Lebowitz previously held the role of Executive Vice President and Co-Head of Legal Affairs.

Mr. Cacioppo added, “Tobi has contributed greatly to our success and growth over the years, and I could not be more delighted to welcome her to the Executive team as Chief Legal Officer. Her recent involvement in the successful filing of our S-1 and SEC registration is just one of her many notable achievements, and we look forward to seeing all that Tobi will continue to accomplish as a valued member of Jushi.”

About Jushi Holdings Inc. (JUSHF)
We are a vertically integrated cannabis company led by an industry-leading management team. In the United States, Jushi (JUSHF) is focused on building a multi-state portfolio of branded cannabis assets through opportunistic acquisitions, distressed workouts, and competitive applications. Jushi (JUSHF) strives to maximize shareholder value while delivering high-quality products across all levels of the cannabis ecosystem. For more information, visit jushico.com or our social media channels, Instagram, Facebook, Twitter and LinkedIn.

Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation as well as statements that may constitute "forward-looking statements" within the meaning of within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release, including statements regarding our strategy, future operations, intended expansion of our retail operations and production capacity, intended expansion of our cultivation facilities, future financial position, projected costs, prospects, plans and objectives of management, including without limitation Q4 2022 annualized guidance, as well as expected filings, materiality or significance and effects of errors on current or prior period financial statements, and any anticipated conclusions of the Company, the Audit Committee or the Company’s management related thereto, are forward-looking statements. These forward-looking statements are based on Jushi’s current expectations and beliefs concerning future developments and their potential effects. As a result, actual results could differ materially from those expressed by such forward-looking statements and such statements should not be relied upon. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or may contain statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “will continue,” “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include but are not limited to, information concerning the expectations regarding Jushi (JUSHF), or the ability of Jushi (JUSHF) to successfully achieve business objectives, and expectations for other economic, business, and/or competitive factors. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including risks related to the ability of Jushi (JUSHF) to successfully and/or timely achieve business objectives, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation, the risk that additional information may arise prior to the completion of restated condensed consolidated interim financial statements or other subsequent events that would require us to make additional adjustments, as well as other risks, uncertainties and other cautionary statements in the Company’s public filings with the applicable securities regulatory authorities on the SEC’s website at http://www.sec.gov and on SEDAR at http://www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected.

Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

For further information, please contact:

Investor Relations Contact:
Michael Perlman
Executive Vice President of Investor Relations
561-281-0247
investors@jushico.com

Media Contact:
Ellen Mellody
570-209-2947


   
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