The Cannabist Company Reports Fourth Quarter and Full Year 2024 Results
NEW YORK--(BUSINESS WIRE)--March 13, 2025--
The Cannabist Company Holdings Inc. (Cboe CA: CBST) (OTCQX: CBSTF) (FSE: 3LP) ("The Cannabist Company" or the "Company"), one of the most experienced cultivators, manufacturers and retailers of cannabis products in the U.S., today reported its financial and operating results for the fourth quarter and full year ended December 31, 2024. All financial information presented in this release is in U.S. GAAP, unaudited, and in thousands of U.S. dollars, unless otherwise noted.
Fourth Quarter & Full Year 2024 Financial Highlights (in $ thousands, excl. margin items):
For the Three Months Ended For the Year Ended
December 31, September 30, December 31, December 31, December 31,
2024 2024 2023 2024 2023
-------------- -------------- ------------- ------------- -------------- --------------
Revenue $ 96,138 $114,783 $128,365 $ 458,722 $ 511,327
Gross Profit $ 33,898 $ 43,810 $ 43,623 $ 168,297 $ 179,968
Adj. Gross
Profit([1,2]) $ 33,898 $ 43,810 $ 43,724 $ 173,865 $ 193,853
Adj. Gross
Margin([1,2]) 35.3% 38.2% 34.1% 37.9% 37.9%
Income (Loss)
from
Operations $ (13,916) $ (5,626) $(77,690) $ (22,272) $(105,240)
Net Income
(Loss) $(155,823) $ (1,763) $(72,498) $(205,797) $(174,287)
Adj.
EBITDA([1,2]) $ 7,054 $ 14,815 $ 12,472 $ 54,711 $ 69,645
([1]) Denotes a Non-GAAP measure. See "Non-GAAP Financial Measures" in this
press release for more information regarding the Company's use of non-GAAP
financial measures, as well as Table 4 for reconciliation, where applicable.
([2]) Both Adj. Gross Profit and Adj. EBITDA exclude $101k in Q4 2023, $5.6
million for FY 2024 and $13.9 million in FY 2023; see the Company's Annual
Report on Form 10-K for the period ended December 31, 2024 for additional
disclosure.
"As we continued our Company's transformation throughout 2024, we implemented structural changes to the business and executed on key initiatives to optimize our retail and cultivation assets, divest non-strategic assets, root out supply chain inefficiencies, and capitalize on adult use adoption in Ohio. Employing a comprehensive approach to balance sheet management, on February 27, we announced an agreement to extend the maturities on our senior secured debt until December 2028, with options to extend through 2029. With currently 70% support from our noteholders, we are confident that this process will be completed. This transaction provides runway for us to focus on the continued optimization of our business, as we complete divestitures, continue to reduce operating and overhead costs, refine our inventory assortment, and improve the operational and financial performance of the company," said David Hart, CEO of The Cannabist Company.
He continued, "Our mandate in 2025 is to continue to simplify our business, maintain liquidity, improve margins, and drive cash flow generation, putting us in a position to succeed. We have meaningful catalysts in 2025, including the transition to adult use in Delaware and the addition of retail locations in top markets such as Virginia and Ohio."
Top 5 Markets by Revenue in Q4([3]) : Colorado, Maryland, New Jersey, Ohio, Virginia
Top 5 Markets by Adjusted EBITDA in Q4([3]) : Maryland, New Jersey, New York, Ohio, Virginia
([3]) Markets are listed alphabetically
Financial Highlights for Fourth Quarter and Full Year 2024
-- Fourth quarter revenue of $96.1 million, a decrease of 16% from the third
quarter, primarily as a result of the sale of Eastern Virginia and
Arizona businesses in August, as well as 14 stores in Florida during Q4.
-- Gross Margin in the fourth quarter was 35%, down sequentially, but up 120
basis points compared to Q4 2023. For the full year 2024, Adjusted Gross
Margin remained flat at 38%.
-- Adjusted EBITDA in Q4 of $7.0 million, as compared with $14.8 million in
Q3; sequential contraction largely driven by the sale of assets in
Virginia and Arizona, which closed during Q3, as well as pricing pressure
in several key markets.
-- For the 12 markets remaining following divestiture of Florida and
Washington, DC, Gross Margin for FY 2024 increased more than 200bps year
over year, and Adjusted EBITDA Margin for the full year was essentially
flat compared to 2023 for those 12 markets.
-- Q4 results were impacted by a $3.1 million provision for credit losses
and a $2.1 million intangible impairment.
-- On November 7, the Company closed on the sale of all 14 Cannabist
dispensaries and 2 cultivation facilities in Florida for consideration of
$5 million; transactions for the sale of remaining MMTC license and 1
cultivation facility are pending finalization.
-- Capital expenditures in the fourth quarter were $1.7 million; the Company
continues to expect capital expenditures to average $2 to $3 million per
quarter again in 2025.
-- In Q4 2024, the Company achieved positive operating cash flow of $4.3
million.
-- The Company ended the fourth quarter with $33.6 million in cash, up from
$31.5 million in cash at the end of Q3.
-- Through several rounds of corporate restructuring during 2024, Company
achieved $23 million in annualized cost savings, due to adjustments to
align with a simplified footprint.
-- Subsequent to quarter close, the Company announced an agreement with
noteholders to extend the maturities of senior secured notes to December
2028, with options to extend through 2029.
Operational Highlights for Fourth Quarter and Full Year 2024
-- For FY 2024, wholesale revenue increased 11% over 2023; wholesale
accounted for approximately 15% of total revenue in 2024, compared to 12%
of total revenue in 2023 and 14% in 2022.
-- Wholesale revenue decreased 20% sequentially in Q4, impacted in part by
asset sales in Eastern Virginia and Arizona; wholesale represented 16% of
total revenue in Q4.
-- New York demonstrated the largest increase in Adjusted EBITDA quarter
over quarter as the wholesale market improved; New York was a Top 5
market in Gross Margin and Adjusted EBITDA in Q4.
-- As a result of the sale of 14 retail locations in Florida, the closure of
1 location in Boston, the sale of 1 location in California, re-opening of
1 location in Colorado, and 1 new opening in New Jersey during Q4, the
quarter-end active retail count was 59, compared to 73 active retail
locations at the end of Q3 and 86 at year-end 2023.
-- In February 2025, the Company closed 3 underperforming locations in
Colorado, bringing total active retail count to 56 at present.
-- The Company has additional retail locations in development, including one
in Virginia and three in Ohio.
Conference Call and Webcast Details
The Company will host a conference call on Thursday, March 13, 2025 at 8:00 a.m. ET to discuss financial and operating results for the fourth quarter and full year 2024.
To access the live conference call via telephone, participants must pre-register at https://register.vevent.com/register/BIb332bf686ec14e6aa4a385187f8e977c. After registering, instructions will be shared on how to join the call for those who wish to dial in. A live audio webcast of the call will also be available in the Investor Relations section of the Company's website at https://investors.cannabistcompany.com/ or at https://edge.media-server.com/mmc/p/bfxf6hzs.
A replay of the audio webcast will be available in the Investor Relations section of the Company's website approximately 2 hours after completion of the call and will be archived for 30 days.
About The Cannabist Company (f/k/a Columbia Care)
The Cannabist Company, formerly known as Columbia Care, is one of the most experienced cultivators, manufacturers and providers of cannabis products and related services, with licenses in 14 U.S. jurisdictions. The Company operates 84 facilities including 67 dispensaries and 17 cultivation and manufacturing facilities, including those under development. Columbia Care, now The Cannabist Company, is one of the original multi-state providers of cannabis in the U.S. and now delivers industry-leading products and services to both the medical and adult-use markets. In 2021, the Company launched Cannabist, its retail brand, creating a national dispensary network that leverages proprietary technology platforms. The company offers products spanning flower, edibles, oils and tablets, and manufactures popular brands including Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber. For more information, please visit www.cannabistcompany.com.
Non-GAAP Financial Measures
In this press release, the Company refers to certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin. The Company considers certain non-GAAP measures to be meaningful indicators of the performance of its business. These measures are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP and may not be comparable to (and may be calculated differently by) other companies that present similar measures. Accordingly, these measures should not be considered in isolation from nor as a substitute for our financial information reported under GAAP. These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on GAAP measures. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented. We also recognize that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of companies within our industry.
With respect to non-GAAP financial measures, the Company defines EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization. Adjusted EBITDA is defined as EBITDA before (i) share-based compensation expense; (ii) goodwill and intangible impairment, (iii) adjustments for acquisition and other non-core costs; (iv) gain on remeasurement of contingent consideration, net, (v) fair value changes on derivative liabilities; and (vi) fair value mark-up for acquired inventory. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenue. Adjusted Gross Profit is defined as gross profit before the fair mark-up for acquired inventory. Adjusted Gross Margin is defined as gross margin before the fair mark-up for acquired inventory.
The Company views these non-GAAP financial measures as a means to facilitate management's financial and operational decision-making, including evaluation of the Company's historical operating results and comparison to competitors' operating results. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to the corresponding GAAP financial measure, may provide a more complete understanding of factors and trends affecting the Company's business. The determination of the amounts that are excluded from these non-GAAP financial measures are a matter of management judgment and depend upon, among other factors, the nature of the underlying expense or income amounts. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety.
Reconciliations of non-GAAP financial measures to their nearest comparable GAAP measures are included in this press release and a further discussion of some of these items are contained in our annual report on Form 10-K.
Caution Concerning Forward-Looking Statements
This press release contains certain statements that constitute forward-looking information or forward looking statements within the meaning of applicable securities laws and reflect the Company's current expectations regarding future events. Statements concerning the Company's objectives, goals, strategies, priorities, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of the Company are forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would", "could", "should", "continue", "plan", "goal", "objective", and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements in this press release include, among others, statements related to: the Company's recently announced debt restructuring transaction; the Company's corporate restructuring and related expected savings; the divestiture of the Company's Arizona and Eastern Virginia assets and expected impacts thereof; the expected adult use sales in Ohio and Delaware; expectations related to growth, cost management and financial numbers including free cash flow and capital expenditures; our ability to continue to reduce corporate SG&A, reduce leverage, enhance cash flow from operations; the planned opening of additional Cannabist locations; the Company's ability to reduce debt; our ability to execute on divestiture transactions; and ongoing business expectations.
The Company has made assumptions with regard to its ability to execute on initiatives, which although considered reasonable by the Company, may prove to be incorrect and are subject to known and unknown risks and uncertainties that may cause actual results, performance or achievements of the Company to be materially different from those expressed or implied by any forward-looking information. Forward-looking information involves numerous assumptions, including the fact that cannabis remains illegal under federal law; the application of anti-money laundering laws and regulations to the Company; legal, regulatory or political change to the cannabis industry; access to the services of banks; access to public and private capital for the Company; unfavorable publicity or consumer perception of the cannabis industry; expansion into the adult-use markets; the impact of laws, regulations and guidelines; the impact of Section 280E of the Internal Revenue Code; the impact of state laws pertaining to the cannabis industry; the Company's reliance on key inputs, suppliers and skilled labor; the difficulty of forecasting the Company's sales; constraints on marketing products; potential cyber-attacks and security breaches; net operating loss and other tax attribute limitations; the impact of changes in tax laws; the volatility of the market price of the common shares of the Company; reliance on management; litigation including existing claims and those which may surface from time to time; future results and financial projections; the impact of global financial conditions and disease outbreaks; projected revenue and expected gross margins, capital allocation, EBITDA break even targets and other financial results; growth of the Company's operations via expansion; statements relating to the business and future activities of, and developments related to, the Company after the date of this press release, including such things as future business strategy, competitive strengths, goals, expansion and growth of the Company's business, operations and plans; expectations that planned transactions will be completed as previously announced; expectations regarding cultivation and manufacturing capacity; expectations regarding receipt of regulatory approvals; expectations that licenses applied for will be obtained; potential future legalization of adult-use and/or medical cannabis under U.S. federal law; expectations of market size and growth in the U.S. and the states in which the Company operates; expectations for other economic, business, regulatory and/or competitive factors related to the Company or the cannabis industry generally; the impact of the Company's plans to reduce debt; and other events or conditions that may occur in the future.
Forward-looking statements may relate to future financial conditions, results of operations, plans, objectives, performance or business developments. These statements speak only as at the date they are made and are based on information currently available and on the then current expectations. Holders of securities of the Company are cautioned that forward-looking statements are not based on historical facts but instead are based on reasonable assumptions and estimates of management of the Company at the time they were provided or made and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Securityholders should review the risk factors discussed under "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2024, as filed with the applicable securities regulatory authorities and as also described from time to time in other documents filed by the Company with U.S. and Canadian securities regulatory authorities.
The purpose of forward-looking statements is to provide the reader with a description of management's expectations, and such forward-looking statements may not be appropriate for any other purpose. In particular, but without limiting the foregoing, disclosure in this press release as well as statements regarding the Company's objectives, plans and goals, including future operating results and economic performance may make reference to or involve forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. No undue reliance should be placed on forward-looking statements contained in this press release. Such forward-looking statements are made as of the date of this press release.
The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
TABLE 1 - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in US $ thousands, except share and per share figures, unaudited)
Three Months Ended Full Year Ended
---------------------------- ------------------------------
December 31, December 31, December 31, December 31,
2024 2023 2024 2023
Revenue $ 96,138 $ 128,365 $ 458,722 $ 511,327
Cost of sales (62,240) (84,742) (290,425) (331,359)
Cost of sales
related to
business
combination fair
value
adjustments to
inventory - - - -
----------- ----------- ----------- -----------
Gross profit 33,898 43,623 168,297 179,968
Selling, general
and
administrative
expenses (47,814) (121,313) (190,569) (285,208)
----------- ----------- ----------- -----------
Loss from
operations (13,916) (77,690) (22,272) (105,240)
Other income
(expense), net (138,948) (8,710) (140,218) (63,658)
Income tax
benefit
(expense) (2,959) 13,902 (43,307) (5,389)
----------- ----------- ----------- -----------
Net income
(loss) (155,823) (72,498) (205,797) (174,287)
Net income
(loss)
attributable to
non-controlling
interests $(540.SI)$ 286 760 1,425
----------- ----------- ----------- -----------
Net income
(loss)
attributable to
Columbia Care
shareholders $ (155,283) $ (72,784) $ (206,557) $ (175,712)
Weighted average
common shares
outstanding -
basic and
diluted 460,742,673 408,462,038 462,496,369 411,451,127
Earnings per
common share
attributable to
Columbia Care
shareholders -
basic and
diluted $ (0.34) $ (0.18) $ (0.45) $ (0.43)
TABLE 2 - CONDENSED CONSOLIDATED BALANCE SHEET (SELECT ITEMS)
(in US $ thousands, unaudited)
Three Months Ended Full Year Ended
---------------------- --------------------------------
December
December 31, 31, December 31,
2024 2023 2024 December 31, 2023
Cash $ 33,607 $ 35,764 $ 33,607 $ 35,764
Total
current
assets 194,997 187,527 194,997 187,527
Property and
equipment,
net 228,396 298,498 228,396 298,498
Right of use
assets 150,254 218,273 150,254 218,273
------- ------- ------- --------------
Total assets 696,173 823,111 696,173 823,111
Total
current
liabilities 228,710 160,044 228,710 160,044
Total
liabilities 726,232 757,759 726,232 757,759
Total equity (30,059) 65,352 (30,059) 65,352
------- ------- ------- --------------
Total
liabilities
and equity $ 696,173 $823,111 $ 696,173 $ 823,111
TABLE 3 - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in US $ thousands, unaudited)
Three Months Ended Full Year Ended
----------------------------- ----------------------------
December 31, December 31, December 31, December 31,
2024 2023 2024 2023
Net cash
provided
by (used
in)
operating
activities $ 4,295 $ 9,380 $ (23,379) $ 7,471
Net cash
provided
by (used
in)
investing
activities 690 (25,437) 30,975 (3,499)
Net cash
provided
by (used
in)
financing
activities $ (2,125) $ (8,197) $ (9,003) $ (14,124)
TABLE 4 - RECONCILIATION OF US GAAP TO NON-GAAP MEASURES
(in US $ thousands, unaudited)
Three Months Ended Full Year Ended
--------------------- ------------------------
December December December December 31,
31, 2024 31, 2023 31, 2024 2023
Net income
(loss) $(155,823) $(72,498) $(205,797) $(174,287)
Income tax
(benefit)
expense 2,959 (13,902) 43,307 5,389
Depreciation
and
amortization 9,664 15,122 48,978 62,729
Net interest
and debt
amortization 13,103 12,909 51,831 54,865
-------- ------- -------- --------
EBITDA
(Non-GAAP) $(130,097) $(58,369) $ (61,681) $ (51,304)
Share-based
compensation $ 1,579 $(12,839) $ (1,009) $ 5,465
Goodwill and
intangible
impairment 2,100 65,522 2,100 65,522
Adjustments
for other
acquisition
and non-core
costs 114,088 18,329 89,393 50,078
Gain on
remeasurement
of contingent
consideration,
net - - - -
Fair value
changes on
investments
and
derivative
liabilities 19,384 (171) 25,908 (116)
Fair value
mark-up for
acquired
inventory - - - -
-------- ------- -------- --------
Adjusted
EBITDA
(Non-GAAP) $ 7,054 $ 12,472 $ 54,711 $ 69,645
View source version on businesswire.com: https://www.businesswire.com/news/home/20250313078072/en/
CONTACT: Investor Contact
Lee Ann Evans
SVP, Capital Markets
investor@cannabistcompany.com
Media Contact
media@cannabistcompany.com
(END) Dow Jones Newswires
March 13, 2025 07:00 ET (11:00 GMT)
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。