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MRMD Q3 Earnings

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Ricky Perkins
(@gr8day4alemonadegmail-com)
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2021-11-15_MariMed_Reports_Third_Quarter_2021_162.pdf (equisolve.net)

Rev 33.2M, Profit Margin 54.8%, OP Eff 34.8% (big increase here), EBITDA 12.9M, EBITDA/Rev 38.9%, Net Earnings 2.1 M (big decrease here).

Was the the Op costs increase and Net Earnings decrease from the $22.65M executive money paid out to the CEO, CFO and COO this quarter?  I am just curious why all the numbers are similar to Q2 except Op Costs and Net Earnings.  

I may not hear the earnings call tomorrow since it conflicts with the Verono earnings call.


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Ricky Perkins
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Actually after further review I believe that 22.65 million dollars given to the 3 MRMD officers were in shares that added to dilution.  I don't think it would effect the  expenses in this report. 

Can anyone explain why MRMD Op Efficiencies went from 15-25% the past three quarters to 35% in one quarter?  The other numbers look similar to Q2 so I assume this is the reason Net Earnings dropped from $7.6M to $2.1M.

Thanks in advance for any feedback


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D. H. Taylor
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@gr8day4alemonadegmail-com If there is a stock option given, the company has to pay for that.  This would be set aside during the SG&A portion.  So, it actually does account inside that portion of the revenue statement.  I've not broken down the numbers just yet.  I'm either going to look at them today or Verano and, I'm leaning towards Verano.  Otherwise, I'll review MRMD stock next week.  


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I imagine cost for wages has probably gone up due to nation wide shortage of workers. I see signs at fast food Joints offering pay about that much more than they did pre covid, or even more.

Disclosure:I own shares of Marimed and I have never shorted stocks ever. My account doesn't allow it.

I use a website called simply wallst.com to get a lot of information about companies I am looking at and/or own shares of.

If they have enough info on a stock to determine value they post it,and it pops up automatically on a watch list if a person has one.

simply wall ST website doesn't seem to update correctly after mergers, because they had TCNNF and HRVSF way under valued I think over 70% undervalued pre merger and now it has TCNNF overvalued.

However, they seem to line up most the time with D.H.'s opinion on valuation of stocks.

Simply Wall ST has MRMD at 78.9% undervalued when it was at .94

This earnings release if anything, makes it even more of a value in my opinion, not less.

I see this as a buying opportunity for myself as a long term value investment, and probably will make for a good near term trade, on any news of federal legalization of Cannabis. Thats my opinion. Not advice to anyone to buy or sell any shares of any stock.

 

 

 


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b17jayhawker
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@cannabis-investing Wages across the whole country are insanity. and not to mention the wages don't fill the jobs. I've been in quite a few dispensary over the past few months from CA to MA to MI, I will say this.....I've not been to one understaffed dispensary. Any restaurant I go to is visibility understaff. I'm a retail real estate broker, so a few of my clients are actual restaurant owners and corporate admins and they tell me it's hell in the kitchen trying to find help...and people just keep quitting.....with that said......I'd think Cannabis would have one of the easier times finding help. Let alone the Cookies I went to in Melrose (W. Hollywood-CA) first thing in the morning on a Saturday....fully staffed....

 

Also, where do you get your short interest numbers? Usually I try to go through a good family member with access to a Bloomberg Terminal. 


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Ricky Perkins
(@gr8day4alemonadegmail-com)
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@cannabisinvestingnewsletter   Actually I looked at MRMD's numbers a little closer and I am happy.  I started looking because the share price was down around 68 cents, so I loaded up!  

I noted that MRMD's cash position went from $10.8 M in Q2 to $26 M in Q3.  If they had decided to add that to Net Earnings, I assume it would have been taxed but reflect a much bigger Net Earnings number than $2.1 M.  They did a smarter thing with that money. 

That's why they are running the company and not me ha ha. 


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b17jayhawker
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@gr8day4alemonadegmail-com That's a strong cash position to have on hand. The next big expansion push in the industry is about to begin throughout 2022-2023. Plenty of states are making moves....(Lots of the East Coast, general South and Southeast and Southwest, and Midwest).....


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