- RWB’s Fourth-Quarter 2020 Adjusted Sales Were CDN $28.6 Million, Up 290% Over the Previous Quarter
- Q4 2020 Revenue Came in at CDN $15.7 Million, Up 158% Over Q3
- The Company’s Full-Year 2020 Adjusted Sales Amounted to $37.8 Million, With Revenue Coming in at $23.3 Million
- Full-Year 2020 Gross Profit Was 57% of Revenue at $13.35 Million, Compared to Nil in 2019
Red White & Bloom (CSE: RWB) (OTCQX: RWBYF) released its fourth-quarter and full-year 2020 earnings after the market close on Thursday providing investors with certain FY 2020 financial results and select subsequent events. RWB’s 2020 audited financial statements and MD&A are expected to be released today and can be accessed via the company’s SEDAR profile.
Commentary From RWB Chairman & CEO Brad Rogers
Commenting on the release of RWB’s Q4 & FY 2020 financial report, Rogers commented:
2020 Highlights Subsequent to Year-End:
- Adjusted sales for the company which excludes RWB Michigan, RWB Florida and RWB Illinois, for the full year 2020 was approximately $37.8 million driven primarily by the Platinum Vape (PV) acquisition (the Company recognizes revenue from California and MAG in its entirety and only packaging revenue from Michigan);
- RWB closed on the acquisition of PV, which is licensed in the State of California and has products being sold in Michigan and Oklahoma with agreements in place to expand to Arizona through a partnership with an MSO;
- RWB closed on the acquisition of Mid-American Growers, owners of 3.6 million square foot glass greenhouse in the State of Illinois. The company has since entered into a definitive agreement to purchase one of only 21 cannabis licenses and operations in Illinois, for consideration of approximately US$45 million;
- RWB has funded US$75 million to PharmaCo, a Michigan-based licensed operator that has acquired 18 provisioning centers (dispensaries) and multiple cultivation centers. PharmaCo sales in 2020 were approximately CDN $70 million with 8 stores operating as of the end of 2020;
- RWB has raised in excess of US$110 million, in both debt and equity since January 1, 2020, and has cash on hand of approximately CDN$41 million as of July 2, 2021;
- The company has completed, or has definitive agreements for, the acquisition of THC licensed entities in Michigan, Illinois, Florida, California, and Massachusetts;
- Total consideration for completed and pending mergers and acquisitions exceeds USD $250 million;
- Once all acquisitions are closed, RWB and the company’s brands will be available in 6 of the top 10 states in the U.S., measured by cannabis revenue, with 2020 sales exceeding $8.8 billion.
Fourth Quarter & Full Year 2020 Financial Results:
- Adjusted sales for the full year 2020 were $37.8 million. Adjusted sales is not an IFRS measure and includes PV branded product sales in both Michigan and California and revenue from MAG.
- Revenue in the fourth quarter of 2020 increased by 158% to $15.7 million, compared to $6.1 million in the third quarter of 2020. For the full year 2020, revenue increased to $23.3 million, compared to nil in 2019. For the fourth quarter of 2020, the increase in revenue was primarily driven by the reporting of the first full quarter post-closing of the PV acquisition.
- Gross profit for the full year 2020 was $13.35 million, or 57% of revenue compared to Nil in 2019.
- During the year ended December 31, 2020, RWB incurred a net loss of $18.6 million vs $12.5 million in 2019. The increase in net loss of $6.1 million was mainly attributable to the net effect of a number of non-cash items, including an increase of $15.3 million in depreciation and amortization, a one-time listing expense of $31.7 million, a $9.8 million provision in G&A for a possible contingent earn-out payable and an offset in part by a gain of $53.6 million on the revaluation of the company’s put/call agreement with PharmaCo.
- Adjusted sales is a financial measure that is not determined or defined in accordance with the International Financial Reporting Standards, as issued by the International Accounting Standards Board (IFRS). Adjusted sales include PV actual wholesale sales currently done through a third party in Michigan under license.
RWB Earnings Conference Call & Webcast Details
- Date: Tuesday, July 27th, 2021 at 4:30 PM ET
- Dial-in Numbers: +1 (877)-705-6006 (toll-free) and +1(201)-689-8557 (international)
- Webcast Link: Click Here
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