Fire & Flower Holdings Corp FFLWF

Fire & Flower Announces Third Quarter 2020 Financial Results

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Fire & Flower Announces Third Quarter 2020 Financial Results and Achieves Positive Adjusted EBITDA

142% increase in quarterly revenue to $33.1 million year-over-year and a 147% increase in annual revenue to $84.8 million
Toronto, Ontario (December 15, 2020) – Fire & Flower Holdings Corp. (“Fire & Flower” or the “Company”) (TSX: FAF OTCQX: FFLWF), today announced its financial and operational results for the thirteen-weeks ended October 31, 2020.
 

Financial and Operational Highlights for the Thirteen Weeks Ended October 31, 2020.

Milestone achievement of positive Adjusted EBITDA of $1.2 million
Total revenue of $33.1 million at a gross profit of 34.7%


Significant sequential revenue growth in the wholesale distribution business, Open Fields, contributing $1.0 million of gross profit
Meaningful sequential growth of 55.8% in the Hifyre™ digital retail and analytics platform
Continued to refine the Company’s business practices in response to the COVID-19 public health crisis

Subsequent Financial and Operational Highlights post October 31, 2020

Established the Company’s market leadership with the largest cannabis retail footprint in Canada with licences to 71 cannabis retail stores including 67 open and operating cannabis retail stores and 4 accessory stores which are temporarily closed due to COVID-19 restrictions in the province of Ontario.

• Became a multi-brand cannabis retail operator through the acquisition of Friendly Stranger Holdings Corp. including the Friendly Stranger™, Happy Dayz™ and Hotbox™ brands with 21 operating cannabis retail locations in the province of Ontario.
• Initiated an at-the-market equity program (“ATM Program”) to raise up to $15 million in equity financing to further support growth opportunities.
• Completed acquisitions for 3 additional retail store locations in the key urban market of Toronto.
• As the Toronto and Peel regions moved towards home delivery and curbside pickup, the Company rapidly responded and immediately deployed e-commerce capabilities through the Hifyreplatform.
• Hifyre’s Spark Perks™ member program achieved an increase of more than 38,000 members since the beginning of Q3 2020 and now has more than 183,000 members in the program that typically visit more frequently and transact with higher basket sizes, compared to non-members.
• Launched industry-leading digital products including Hifyre Reach and Hifyre Spark which deliver compliant marketing solutions and tailor recommendations to individual consumer preferences.
• Continued to realize positive financial and operational results as a result of optimization of the retail store network with a focus on maximizing the number of retail stores delivering positive margin contribution.

“The achievement of positive Adjusted EBITDA is a significant milestone and demonstrates our continued track record of delivering on our corporate objectives,” shared Trevor Fencott, Chief Executive Officer of Fire & Flower. “Despite the challenges presented by the COVID-19 public health crisis, Fire & Flower has continued to grow and demonstrate leadership as the largest cannabis retailer in Canada. We continue to work at maintaining positive Adjusted EBITDA and aggressively pursue growth opportunities for the Company.”