Curaleaf Posts Managed Revenue of $73.2 Million, Up 201%
Adjusted EBITDA for the Third Quarter Came in at $9 Million
Curaleaf Holdings (CSE: CURA) (OTCQX: CURLF) announced record third-quarter 2019 earnings today after the closing bell. The company reported its pro forma revenue for the quarter amounted to $129 million. Q3 managed revenue increased 201% year over year and 33% over Q2 2019 coming in at $73.2 million.
Building off its strong revenue figures, Curaleaf was able to post Q3 adjusted EBITDA of $9 million, up 169% sequentially. The company cited the inflection point reached in several key states as the main driver behind its EBITDA growth.
Gross profit and gross margin on cannabis sales came in at $23.6 million and 47% respectively. Curaleaf’s net loss for the third quarter was $6.8 million or $0.01 per share. Gross profit on cannabis sales increased 55% over Q2 and 159% year over year.
Additional in Q3, Curaleaf announced the $875 million acquisition of the largest private U.S. multi-state operator (MSO) Grassroots. Once closed, the acquisition of Chicago-based Grassroots would make Curaleaf the largest cannabis company in the world and expand its operating footprint to 19 U.S. states.
During the third-quarter, Curaleaf also secured the approval of 3 final and 2 provisional recreational cannabis licenses in Massachusetts, closed the Glendale and Phyto acquisitions in Arizona and signed a sale-leaseback deal with Freehold Properties. The Freehold deal included 6 properties which generated the company net cash proceeds of over $24 million.
“Our increasing scale along with the incredible efforts of our team around the country who ensure our patients and customers have a superior experience helped drive the strong financial results we posted this quarter. We look forward to the closing and integration of the Select and Grassroots acquisitions which are expected to bring significant operational capacity to Curaleaf in key markets. We are focused on operating with excellence to meet the growing demand for our products and positioning the Company to create substantial shareholder value,” stated Curaleaf CEO Joseph Lusardi.
Additional Post Q3 2019 Highlights
- Closed its acquisition of Nevada-based Acres cultivation and processing facilities.
- Launched its Massachusetts-based adult-use cannabis operation.
- Reported that the HSR waiting period and amended deal terms for the Select acquisition had expired.
- Announced an amended and extended lock-up agreement with its core shareholders representing 75% of the issued and outstanding Curaleaf shares.
“The third quarter demonstrated the power of our increased scale as we reported record total and managed revenue, record adjusted EBITDA and expanded operating margins as we benefited from increased scale and strong demand in key markets. Our main focus continues to be prudent capital allocation, operational improvement and integration of our pending and closed acquisitions to drive continued strong overall growth and operating leverage,” added Curaleaf CFO Neil Davidson.
Shares of CURA stock closed trading today at $7.30 per share, down 5.81% on the day.
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