Record Q2 Revenue up 33% YoY to $48.5 Million
Record Q2 Adjusted EBITDA up 2.7x to $6.5 Million
Reiterates 2021 Guidance of Revenue Between $205 - $210 Million and Adjusted EBITDA Between $30 -$32 Million
PHOENIX, Aug. 24, 2021 (GLOBE NEWSWIRE) -- TILT Holdings Inc. (“TILT" or the “Company”) (NEO:TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, is reporting its financial and operating results for the three-months and six-months ended June 30, 2021. All financial information is provided in U.S. dollars unless otherwise indicated.
“We generated another quarter of record results by continuing to execute our B2B strategy and driving synergies across our business segments,” said Gary Santo, CEO of TILT. “Our ability to cross-sell and deepen relationships with our 700+ customer base is materializing in the numbers. In fact, at the end of last year, 20% of our revenue was generated by our customers leveraging services across our cannabis inhalation and accessory businesses. By the end of Q2, that number increased to over 30%, which tells us that our strategy is working."
“Earlier today we announced a historic partnership with the Shinnecock Indian Nation to develop vertical cannabis operations in New York, marking our entrance into what is projected to be one of the largest cannabis markets in the country. I am incredibly excited for both our teams as well as the economic opportunity this will create for the Nation—this is truly what an equitable partnership should look like.”
“We remain committed to delivering shareholder value through growth and profitability. We are on track to deliver strong organic results in 2021, and given our recently awarded provisional licenses in Massachusetts, our expanded canopy, new and expanded brand partnerships, and our entry into New York, 2022 is positioned to be an even stronger year for TILT.”
Q2 2021 Financial Summary (vs. Q2 2020, where applicable)
- Revenue increased 33% to $48.5 million driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 31% to $10.0 million and inhalation and accessory revenue increased 34% to $38.5 million.
- Gross profit before fair value adjustments increased 25% to $13.1 million or 27% of revenue, compared to $10.5 million or 28.9% of revenue. Gross margins were impacted by supply chain expenses related to freight costs for the Company’s inhalation and accessory business.
- Adjusted EBITDA was up 2.7x to $6.5 million compared to $2.4 million. As a percentage of revenue, Adjusted EBITDA increased 680 basis points to 13.5% compared to 6.7%.
- At June 30, 2021, cash and cash equivalents increased 29% to $9.6 million compared to $7.4 million at December 31, 2020.
Q2 2021 Operational Highlights
- TILT’s inhalation and accessory business generated record monthly sales in April.
- Generated record quarterly flower sales in Pennsylvania.
- Launched exclusive partnership with Old Pal to bring select products to Massachusetts.
- Expanded exclusive partnership with Airo Brands to bring select products to Pennsylvania.
- Secured local approval by the City Council of Brockton for adult use cannabis sales at the Company’s Brockton dispensary.
- Appointed Gary Santo to CEO; Mark Scatterday continues serving as Chairman of the Board.
Operational Highlights Subsequent to Quarter End
- Announced partnership with the Shinnecock Indian Nation to enter New York’s cannabis market.
- Received four new provisional adult-use licenses in Massachusetts and final medical dispensary license for the Company’s Brockton location.
- Expanded partnership with Old Pal to bring select products to market in Pennsylvania.
- Announced partnership with 1906 to launch various products in three key markets: Massachusetts, Pennsylvania and Ohio.
- Commenced trading of TILT’s common shares on the more senior NEO Exchange in Canada.
- Entered into a new $10 million revolving credit facility that bears interest at Prime plus 3.5%.
- Deepened talent pool with several key new hires, including a new Chief Operating Officer, Head of Cannabis Operations and Head of Cultivation.
Earnings Call and Webcast
The Company will host a conference call today at 5:00 p.m. Eastern time to discuss its financial and operational results.
The live webcast may be accessed from the Events and Presentations menu in the Investor Relations section of the Company’s website as well as through this link. To access the conference call via telephone, please dial 1-877-705-6003. Please register at least 10 minutes prior to the scheduled start to download and install any necessary audio software.
A replay of the webcast will be available in the Past Events section of the Company’s Investor Relations website approximately 2 hours after the live event and will be archived for 30 days.
About TILT
TILT helps cannabis businesses build brands. Through a portfolio of companies providing technology, hardware, cultivation and production, TILT services brands and cannabis retailers across 36 states in the U.S., as well as Canada, Israel, Mexico, South America and the European Union. TILT’s core businesses include Jupiter Research LLC, a wholly owned subsidiary and leader in the vaporization segment focused on hardware design, research, development and manufacturing; and cannabis operations, Commonwealth Alternative Care, Inc. in Massachusetts, Standard Farms LLC in Pennsylvania and Standard Farms Ohio, LLC in Ohio, and its partnership with the Shinnecock Indian Nation in New York. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.