MariMed Q1 2021 results reflect the highest sales and profitability of cannabis
- Core cannabis revenue increased 230% to $ 24.6 million and EBITDA increased 764% to $ 7.6 million in the first quarter of 2021 compared to the first quarter of 2020
- Significantly strengthened balance sheet and improved liquidity to support future growth
- Conference call on May 18 at 9:00 a.m. EDT
NORWOOD, Mass., May 17, 2021 / CNW / – MariMed, Inc. (OTCQX: MRMD) (“MariMed” or the “Company”), a leading multi-state cannabis operator focused on health and wellness, today announced its financial condition and operating results for the quarter ended March 31, 2021.
Q1 2021 financial highlights
- Achieved the highest quarterly cannabis core revenue and profitability quarter ever, and followed guidance for full year 2021.
- Realized core sales of $ 24.6 million in cannabis, up 230% from $ 7.5 million in Q1 2020.
- Realized EBITDA of $ 7.6 million, up 764% from $ 0.9 million in the first quarter of 2020.
- Realized gross income from core cannabis sales of $ 13.2 million, up 171% from $ 4.9 million in the first quarter of 2020.
- Realized net income of $ 4.3 million, or $ 0.01 per share, compared to a net loss of $ 2.3 million, or $ 0.01 per share, for the first quarter of 2020.
- Working capital increased to $ 17.1 million, an increase of $ 19.3 million from negative working capital of $ 2.2 million year over year.
- Cash flow from operating activities was $ 6.8 million, an increase of $ 7.2 million from operating cash flow of $ 0.4 million in the first quarter of 2020.
- $ 16.6 million in retired debt, essentially all non-mortgage debt.
Q1 2021 operational highlights and current events
- The continued improvements in revenue and EBITDA in the first quarter of 2021 reflect the groundwork benefits from activities in 2020, including:
- The continued ramp-up of production at the New Bedford, MA grow and manufacturing facility resulted in an increase in wholesale sales in the robust Massachusetts market.
- The increase in the production and sales of branded products in Massachusetts resulted from increased production and improved efficiency and equipment at the New Bedford facility.
- The company’s award-winning cannabis flower and product mix and great customer experience have helped increase the number of patients and customers in all pharmacies.
- Expansion of recreational sales at MariMed’s Paniea Wellness Pharmacy in Middleboro, MA, which began operations in September 2020.
- The continued growth in recreational sales at MariMed’s Thrive pharmacies in Illinois, the Anna and Harrisburg stores and Mt. in Q1 2020. The Vernon store, which opened in late September 2020, serves not only the recreational market, but the medical market as well .
- A 108% increase in management fee income in the first quarter of 2021 versus the first quarter of 2020 due to the continued success of the company’s licensed cannabis customers in Delaware and Maryland.
- Completed an equity loan of $ 46 million from the Hadron Healthcare Master Fund. Funds to date ($ 23 million) have been used to bolster the company’s balance sheet by paying off substantially all of its unsecured debt and improving liquidity. This equity also financed investments to expand the production of flowers and products. The remainder of the committed funds (up to US $ 23 million) will be available to complete the acquisition of further government-licensed cannabis-licensed businesses.
- The company’s fourth recreational pharmacy, Thrive Metropolis, recently opened in Illinois. This is the only pharmacy in Metropolis that houses the Superman Museum and a regional tourist area on the Ohio River and on the Illinois-Kentucky border.
- Expansion of the company’s award-winning product portfolio to include the new “Smashin Passion” SKU for the vegan chew brand Betty’s Edibles ™ and other new SKUs for the company’s Kalm FusionR and Nature’s HeritageR brands. MariMed brands are now available in five states and Puerto Rico.
We are delighted with our performance in the first quarter. We have given our shareholders significant sales growth and improved earnings. Our previously announced consolidation plan is working – we’re building a strong, consolidated platform of great assets and brands that consumers love, led by expert management at the corporate and local state levels.
Bob Fireman, CEO of MariMed
We have a new financial partner to support the company and enable management to meet their growth goals. These key components as well as the positive and profitable cash flow allow us to further expand and consolidate on the way to becoming a world class MSO.
“MariMed continues to follow our previously announced revenue and EBITDA projections for 2021 of $ 100 million and $ 30 million, respectively,” said Jon Levine, CFO of MariMed. “As our balance sheet continues to strengthen and sales continue to grow as our manufacturing facility ramping up production and the number of customers and patients in our pharmacies increases due to the robust recreational markets in Illinois and Massachusetts, we remain very confident in our forecast.”
For more information, please see the company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2021 at www.SEC.gov.
MariMed will host a conference call on May 18, 2021 to discuss these findings. Bob Fireman, chief executive officer, and Jon Levine, chief financial officer, will answer the call starting at 9:00 a.m. Eastern time. A question-and-answer session follows the management presentation.
Tuesday, May 18, 2021
9:00 a.m. Eastern Time
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MariMed Inc., a multi-state cannabis operator, is committed to improving the health and wellbeing of people who use cannabinoids and cannabis products. The company develops, owns, and manages seeds to sell government-licensed cannabis facilities, which are models of excellence in horticultural principles, cannabis cultivation, cannabis-infused products, and pharmacy operations. MariMed has an experienced management team who have achieved constant growth and success for the company and its managed businesses, keeping it at the forefront of cannabis science and innovation. Proprietary formulations developed by the company’s engineers are embedded in industry-leading products and brands, including Betty’s Eddies®, Nature’s Heritage ™, Bourne Baking Co. and Kalm Fusion®. Please visit marimedinc.com for more information.
Original press release
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