CRESCO LABS ANNOUNCES FIRST QUARTER 2021 FINANCIAL RESULTS UNDER U.S. GAAP
Cresco Labs Inc. has released its financial results for the first quarter ended March 31, 2021. All financial information presented in this release is in U.S. GAAP and U.S. dollars, unless otherwise noted, and all comparisons to prior quarter and prior year are made on an as-converted basis under U.S. GAAP.
First Quarter 2021 Financial Highlights
Revenue of $178.4 million, an increase of 9.9% quarter-over-quarter and 168.8% year-over-year
Gross profit of $87.0 million, or 48.8% of revenue, an increase of 16.8% quarter-over-quarter and 268.9% year-over-year
Adjusted EBITDA1 of $35.0 million, an increase of 16.5% quarter-over-quarter and 507.2% year-over-year
Record net wholesale revenue of $95.6 million, an increase of 5.7% quarter-over-quarter and 150.8% year-over-year
Record retail revenue of $82.8 million from 24 stores, an increase of 15.2% quarter-over-quarter and 193.2% year-over-year
Financial Outlook
The Company is providing the following guidance:
Annualized revenue run-rate of more than $1 billion by the end of 2021
Gross profit margins in excess of 50% in the remaining three quarters of 2021
Adjusted EBITDA1 margin run-rate of at least 30% by the end of 2021
Management Commentary
"In Q1, we delivered sequential growth from existing assets, demonstrated our ability to reach and sustain #1 market share positions in two of this industry's top-five states, and we're gearing up to repeat that success in more markets this year. We're accelerating growth through a diverse set of initiatives including several organic expansions and M&A that will benefit the Company in subsequent quarters. In order to execute all of our pending growth initiatives, we invested in the operating platform to support the growth. We laid the groundwork in Q4 and Q1 and now our expertise with integrating new assets and producing operating leverage will kick in," said Charles Bachtell, Co-Founder and CEO of Cresco Labs. "We're also pleased to take this opportunity at the outset of the year to make the transition to U.S. GAAP, remove the break-out of certain one-time items, and provide investors with clarity on the transition. This represents another step to prepare Cresco Labs for the future opportunities that await in the U.S. capital markets. On a U.S. GAAP basis, we're pleased with the growth in Q1 and excited about the steps we've taken so far this year to put Cresco Labs on the path to accelerate revenue, profitability, and shareholder value in 2021 and beyond."
Balance Sheet and Liquidity
As of March 31, 2021, current assets were $381.7 million, including cash and cash equivalents of $255.5 million. The Company had working capital of $105.1 million and term loan debt, net of issuance costs, of $187.9 million.
Total shares outstanding on a fully converted basis were 399,018,710 as of March 31, 2021.