Fourth Qtr & Full Yr 2021 Results with Record Revenue
Fiscal Year 2021 Financial Highlights
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Record revenue of $822 million, an increase of 73% year-over-year
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Gross profit excluding fair value mark-up for acquired inventory of $430 million, or 52% of revenue, and up 104% year-over-year
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Record adjusted EBITDA1 of $194 million, an increase of 219% year-over-year
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Ended the year with over $224 million of cash on hand
Fourth Quarter 2021 Financial Highlights
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Record fourth quarter revenue of $218 million, up 34% year-over-year
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Record fourth quarter adjusted EBITDA1 of $57 million, or 26% of revenue, an increase of 90% year-over-year
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Wholesale revenue of $101 million, maintained position as #1 seller of branded cannabis products in U.S. with leading share in the flower, concentrates, and vape categories
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Retail revenue increased 10% sequentially, to $117 million, an average of $2.8 million per store
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Same-store-sales increased 28% year-over-year, 1% sequentially
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Excluding California, revenue grew 6% sequentially
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Record cash flow from operations of $38 million
1 See "Non-GAAP Financial Measures" at the end of this press release for more information regarding the Company’s use of non-GAAP financial measures.
Management Commentary
"This has been an incredible year of growth and margin expansion for Cresco Labs. We generated $822 million in annual revenue, representing 73% annual growth. Adjusted EBITDA1 more than tripled as the investments we’ve made in the business start to bear fruit. We ended the year with 46 retail stores, more than double where we were at the end of last year. The Cresco Labs family expanded from approximately 2,300 employees to approximately 3,500, as we grew both organically and integrated five acquisitions," said Charles Bachtell, Co-Founder and CEO of Cresco Labs.
"As we all saw, there was a slowing of market growth in the fourth quarter and we were not immune to this. The good news is our plan is working – consumers love our brands, we maintained our leadership as the #1 wholesaler of branded cannabis, and we were the most productive retailer in the industry. We competed very well, gaining or maintaining share in seven of our 10 states. We remain focused on driving growth for our shareholders through optimizing operations to drive margins and market share and by opening up new markets in which to sell our leading brands. With many more growth initiatives ahead, 2022 is set to be another record year as we continue to drive strategic breadth, depth and execute on our plan."
Balance Sheet, Liquidity, and Other Financial Information
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As of December 31, 2021, current assets were $422 million, including cash and cash equivalents of $224 million. The Company had working capital of $133 million and senior secured term loan debt, net of discount and issuance costs, of $377 million.
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Total shares on a fully converted basis were 435,123,721 as of December 31, 2021.