Cannabis Investing Newsletter

Learn To Pick The Best Cannabis Stocks

Cannabis Stocks Forum & Discussion

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

Notifications
Clear all

Fourth Qrt Report and Full year from Marimed


TheQueen
(@gtosali1967)
Estimable Member
Joined: 8 months ago
Posts: 105
Topic starter  
MariMed Doubles Full Year Revenue and Adjusted EBITDA As It Reports Fourth Quarter and Full Year 2021 Earnings
4:00 PM ET 3/16/22 | GlobeNewswire


MariMed Doubles Full Year Revenue and Adjusted EBITDA As It Reports Fourth Quarter and Full Year 2021 Earnings

MariMed Exceeds Guidance with Full Year Revenue of $121.5 Million and Adjusted EBITDA of $43.1 Million

NORWOOD, Mass., March 16, 2022 (GLOBE NEWSWIRE) -- MariMed, Inc. (OTCQX: MRMD) ("MariMed" or the "Company"), a leading multi-state cannabis operator focused on improving lives every day, today announced its financial and operating results for the fourth quarter and full year ended December 31, 2021.

FOURTH QUARTER AND FULL YEAR FINANCIAL HIGHLIGHTS

   -- Fourth quarter revenue of $31.0 million and full year revenue of $121.5 
      million, an increase of 52% and 139%, respectively, compared to the same 
      periods from the prior year. 
 
   -- Fourth quarter gross profit of $15.5 million and full year gross profit 
      of $66.3 million, an increase of 33% and 112%, respectively, compared to 
      the same periods from the prior year. 
 
   -- Fourth quarter Adjusted EBITDA* of $8.3 million and full year Adjusted 
      EBITDA of $43.1 million, a change of --7% and 144%, respectively, 
      compared to the same periods from the prior year. 
 
   -- Working capital at December 31, 2021 of $17.4 million compared to a 
      working capital deficit of $2.2 million at December 31, 2020. 
 
   -- Fourth quarter cash flow provided by operations of $7.9 million and full 
      year cash flow provided by operations of $35.9 million, an increase of 
      347% and 961%, respectively, compared to the same periods from the prior 
      year. 


"We are very pleased to deliver another strong year of financial performance for our shareholders, more than doubling our revenue and Adjusted EBITDA," said Bob Fireman, President and Chief Executive Officer of MariMed. "Our validated management team continued to grind it out, staying focused on the financial discipline and operational excellence that has defined our approach. We strengthened an already solid balance sheet through our operating cash flow generation and made great progress across all four pillars of our strategic growth plan."

* Adjusted EBITDA is a non-GAAP measure explained in the section below entitled Non-GAAP Financial Measure, which includes a table showing the adjustments to the Company's net income that results in Adjusted EBITDA.

FOURTH QUARTER AND FULL YEAR OPERATIONAL HIGHLIGHTS

The continued strong financial performance in the fourth quarter of 2021 was driven by:

   -- Revenue from retail dispensary operations grew 89% during the fourth 
      quarter, and 177% for the full year 2021, compared to the same periods 
      from the prior year. Revenue growth was driven by a new dispensary in 
      Metropolis, IL, and higher customer visits in both Illinois and 
      Massachusetts. 
 
   -- Revenue from wholesale sales of cannabis flower, concentrates, and 
      infused products grew 5% during the fourth quarter, and 151% for the full 
      year 2021, compared to the same periods from the prior year. This was a 
      result of both the increased production of MariMed's manufacturing 
      facility in Massachusetts and the increased number of licensed dispensary 
      clients in the state. 
 
   -- The Company launched Bubby's Baked, its new line of THC-infused baked 
      goods, in December 2021 in Massachusetts. The launch of Bubby's Baked was 
      supported by a robust sales and marketing plan which included baking the 
      world's largest THC-infused brownie. Weighing 850 pounds and infused with 
      20,000 milligrams of THC, the brownie garnered the Company and the 
      product line global attention, generating nearly five billion consumer 
      impressions. 


SUBSEQUENT EVENTS

Subsequent to the end of the 2021 fiscal year, the Company announced several significant business developments, including:

   -- A definitive agreement to acquire Kind Therapeutics USA, LLC("Kind") a 
      leading vertically integrated cannabis operation in Maryland that the 
      Company developed and has managed for several years. Kind leases and 
      operates its cultivation and production licensed businesses in a 180,000 
      square foot industrial building owned by the Company in Hagerstown and 
      will lease and operate its provisional dispensary license in a building 
      owned by the Company in Annapolis. 
 
   -- A definitive agreement to acquire a craft cannabis license in Illinois 
      that will enable MariMed to become fully vertical in that high-growth 
      state. The Company will soon begin construction of a new cultivation and 
      processing facility in Mount Vernon, Illinois. When completed, the 
      Company expects to sell its portfolio of award-winning brands in its four 
      Thrive dispensaries and into the Illinois wholesale cannabis marketplace. 
      The Company expects this will lead to higher revenue and gross margins 
      from operations in Illinois 
 
   -- A definitive agreement to acquire a provisional dispensary license for an 
      adult-use dispensary in a high-traffic location in Beverly, 
      Massachusetts. When opened, this will be the Company's second adult-use 
      dispensary in the state, further increasing Company revenue and margins 
      and brand recognition in Massachusetts. strengthening branded product 
      distribution and increasing margins over time. 
 
   -- The launch of its new Vibations: High + Energy drink mix, marking the 
      Company's entry into the fast-growing cannabis beverage category.   This 
      innovative, all-natural drink mix is made from full spectrum cannabis and 
      provides focus and energy for the mind and body. Vibations: High + Energy 
      is available at select dispensaries in Massachusetts, including MariMed's 
      Panacea Wellness in Middleborough. The brand will soon also be available 
      in Delaware and Maryland. 


STRATEGIC GROWTH PLAN

Going forward, the Company expects continued strong financial performance through the execution of the four key components of its strategic growth plan: (1) Completing the consolidation of the Company's state cannabis licensed operations it developed and currently manages; (2) Increasing revenues in current cannabis state businesses, by spending capital to increase the capacity at its cultivation and production facilities as well as adding more retail stores; (3) Expanding the Company's footprint into additional legal cannabis states through new license applications and M&A; and (4) Expanding the manufacturing and distribution of its portfolio of leading brands into additional states by licensing to qualified partners or acquiring production and distribution cannabis businesses.

2022 FINANCIAL TARGETS

Considering MariMed's strategic plan to drive long-term growth, recent acquisitions, license wins, and current industry dynamics, the Company has set the following financial targets for the full fiscal year 2022:

   -- Revenue of $145 to 150 million. 
 
   -- Adjusted EBITDA of $47 to $52 million. 
 
   -- CAPEX spend of approximately $25 million 


"After setting financial targets in 2021 for the first time, and subsequently raising and beating them, I am pleased to announce very strong financial growth targets for 2022," said Jon Levine, Chief Financial Officer of MariMed. "Our strict financial discipline combined with our outstanding operations give us confidence we will meet or beat our full year financial guidance once again in 2022."

CONFERENCE CALL

MariMed management will host a conference call on Thursday, March 17, 2022, to discuss these results at 8:00 a.m. Eastern time. The conference call may be accessed through MariMed's Investor Relations website by clicking the following link: MariMed Q421 Earnings Call.

 
Earnings Release Tables 
 
Financial Summary: Q421 
vs Q420 
($US thousands)            Q4 2021  Q4 2020   Y/Y Change (%) 
                           -------  --------  -------------- 
(Unaudited) 
Revenues                   $31,044  $ 20,357             52% 
Gross Profit               $15,490  $ 11,619             33% 
Operating Expenses         $14,286  $  3,580            299% 
Adj. EBITDA                $ 8,262  $  8,840             -7% 
  Adj. EBITDA Margin         26.6%     43.4% 
Cash Provided By 
 Operations                $ 7,930  $  1,774            347% 
Working Capital            $17,390  $(2,183)               - 
 

Quote
Ricky Perkins
(@sawyeryocumgmail-com)
Active Member
Joined: 4 months ago
Posts: 18
 

Anyone going to discuss the elephants in the room?


ReplyQuote



TheQueen
(@gtosali1967)
Estimable Member
Joined: 8 months ago
Posts: 105
Topic starter  

@sawyeryocumgmail-com    your comments please.


ReplyQuote
D. H. Taylor
(@dhtaylor)
Member Admin
Joined: 2 years ago
Posts: 703
 

Revenues were lower and, from that margins decreased showing higher costs in Cost of goods.  Then, SG&A went higher for the quarter (On lower revenue).  

But, the real kick was taxes that went up from about $1M last quarter to $7.5M this quarter.  This is the deferred taxation from COVID that we have been seeing companies print.  That drove profits lower (Which means profits previously were elevated somewhat over the past 2 years by about $1M in taxation benefits).  This would be a one-off for now.  

Still, need to see a continued increase in revenue and get back in line with Cost of Goods and SG&A.  


TheQueen liked
ReplyQuote



TheQueen
(@gtosali1967)
Estimable Member
Joined: 8 months ago
Posts: 105
Topic starter  

@dhtaylor  So are you still positive on this company and expectations for future value to increase or will you be adjusting?


ReplyQuote
Ricky Perkins
(@sawyeryocumgmail-com)
Active Member
Joined: 4 months ago
Posts: 18
 

I thought the hobos who used to ride the rails planted cannabis in the ditches along the railroad tracks when stopping and camping overnight.  Many of them did not know much about cannabis and smoked the male plants along with the female plants and did not understand the THC was mostly in the flowers of the female plants.  The hobos smoked all parts of the plant. 

The term "ditch weed" later became synonymous with low potency, i.e., low THC containing cannabis and is cheaper but lower quality cannabis and has nothing at all to do with being grown in a ditch.


ReplyQuote



Leave a reply

Author Name

Author Email

Title *

Maximum allowed file size is 10MB

 
Preview 0 Revisions Saved
Share:



Copyright Cannabis Investing Newsletter 2021 - 2022