- Q1 Revenue up 12% YoY to $22.1 Million -
- Q1 Adjusted EBITDA up 56% YoY to $9.7 Million, with Cash from Operations up 20% YoY to $5.1 Million -
MIAMI, May 31, 2023 /PRNewswire/ - Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF) ("Cansortium" or the "Company"), a vertically-integrated, multi-state cannabis company operating under the FLUENT™ brand, today announced financial and operating results for the first quarter ended March 31, 2023. Unless otherwise indicated, all monetary results are presented in U.S. dollars.
"We are pleased to once again report double-digit revenue growth and adjusted EBITDA margin expansion, coupled with another period of strong cash flow generation in the face of broader industry challenges," said CEO Robert Beasley. "Our new store openings in Florida, continually improving our cultivation and increasing the mix of high-THC products are all contributing to our growth and profitability improvements in the state."
"In Pennsylvania, we have worked to optimize our inventory management while adding new products to shelves, which has led to increased sales in the state without any new store openings. And in Texas, although we are disappointed with the outcome of the proposed decriminalization and medical program expansion bills, we continue to believe the growth opportunity in Texas is exceptional, similar to the Florida market seven years ago. We are gaining ground in Texas and capturing market share, even without regulatory reform."
"Looking ahead, we plan to continue driving growth and profitability through new store openings, improved cultivation, operating efficiencies and inventory optimization as we execute our strategy and trend toward another year of strong growth and cash flow generation."
Q1 2023 Financial Highlights (vs. Q1 2022)
- Revenue increased 12% to $22.1 million compared to $19.7 million.
- Florida revenue increased 9.7% to $18.2 million compared to $16.6 million.
- Adjusted gross profit1 increased 22% to $14.1 million or 63.9% of revenue, compared to $11.5 million or 58.6% of revenue.
- Adjusted EBITDA increased 56% to $9.7 million compared to $6.2 million.
- Cash flow from operations improved 20% to $5.1 million compared to $4.3 million.
- At March 31, 2023 the Company had approximately $9.5 million of cash and cash equivalents and $57.9 million of total debt, with approximately 296 million shares outstanding.
Recent Operational Highlights
- In Florida, Cansortium currently operates 31 stores and anticipates opening an additional 3-5 new stores by the end of 2023. Three of these are under contract and in the construction phase.
- In Florida, Cansortium launched its new Dark Chocolate Bar, made with FLUENT's high quality cannabis extract and Caraïbe 66% chocolate from Valrhona, the legendary French chocolatier.
- Entered into an agreement, subject to financing, to acquire a Florida property that will become a new 70k square foot cultivation facility and 2.5-acre greenhouse.
- The Company announced that it plans to move its headquarters from Miami to Tampa, Florida, and will create more than 30 new jobs in administration, finance, human resources, marketing, sales, operations and other key roles.
- In Pennsylvania, the Company has implemented a more targeted inventory management strategy, which has led to organic sales growth in the state.
- In Texas, the Company continued to make progress building out its operational footprint and is working to expand its delivery capabilities to support patient populations in Houston and Austin.
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______________________
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1 Adjusted gross profit is a non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. The Company calculates adjusted gross profit from gross profit plus (minus) the changes in fair value of biological assets, as presented in the consolidated statement of operations.
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Conference Call
The Company will host a conference call and live audio webcast today at 4:30 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call by emailing investors@cansortiuminc.com.
Date: Wednesday, May 31, 2023
Time: 4:30 p.m. Eastern time
Toll-free dial-in number: (800) 319-4610
International dial-in number: (604) 638-5340
Conference ID: 10021974
Link: Cansortium Conference Call
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Elevate IR at (720) 330-2829.
The conference call will also be available for replay via the News & Events section of the Company's investor relations website at https://investors.getFLUENT.com/.
About Cansortium Inc.
Cansortium is a vertically-integrated cannabis company with licenses and operations in Florida, Pennsylvania and Texas. The Company operates under the FLUENT™ brand and is dedicated to being one of the highest quality cannabis companies for the communities it serves. This is driven by Cansortium's unrelenting commitment to operational excellence in cultivation, production, distribution and retail. The Company is headquartered in Miami, Florida.
Cansortium Inc.'s common shares trade on the CSE under the symbol "TIUM.U" and on the OTCQX Best Market under the symbol "CNTMF". For more information about the Company, please visit www.getFLUENT.com.
Forward-Looking Information
Certain information in this news release may constitute forward-looking information within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent the Company's expectations, estimates, and projections regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control.
Forward-looking information is necessarily based on many opinions, assumptions, and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
For further information: www.getFLUENT.com.
Company Contact
Robert Beasley, CEO
(850) 972-8077
investors.getFLUENT.com
Investor Relations Contact
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
investors@cansortiuminc.com
Media Contact
Patrick Maddox
(501) 680-5220
FLUENT@mattio.com
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CANSORTIUM INC.
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
|
|
|
As of March 31, 2023 and December 31, 2022
|
|
|
|
|
|
|
(USD '000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash
|
|
|
$ 9,468
|
|
$ 8,359
|
|
Trade receivable
|
|
|
33
|
|
28
|
|
Inventory, net
|
|
|
7,738
|
|
8,973
|
|
Biological assets
|
|
|
158
|
|
996
|
|
Investment held for sale
|
|
|
-
|
|
-
|
|
Prepaid expenses and other current assets
|
|
|
525
|
|
883
|
|
Total current assets
|
|
|
17,922
|
|
19,239
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
32,145
|
|
31,743
|
|
Intangible assets, net
|
|
|
93,908
|
|
94,291
|
|
Right-of-use assets, net
|
|
|
30,075
|
|
30,464
|
|
Deposit
|
|
|
-
|
|
-
|
|
Goodwill
|
|
|
1,526
|
|
1,526
|
|
Other assets
|
|
|
808
|
|
768
|
|
Total assets
|
|
|
$ 176,384
|
|
$ 178,031
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Trade payable
|
|
|
7,529
|
|
6,931
|
|
Accrued liabilities
|
|
|
4,572
|
|
5,534
|
|
Income taxes payable
|
|
|
17,063
|
|
13,952
|
|
Derivative liabilities
|
|
|
8,954
|
|
8,676
|
|
Current portion of notes payable
|
|
|
531
|
|
741
|
|
Current portion of lease obligations
|
|
|
2,486
|
|
2,123
|
|
Total current liabilities
|
|
|
41,134
|
|
37,957
|
|
|
|
|
|
|
|
Liabilities held for sale
|
|
|
-
|
|
-
|
|
|
|
-
|
|
-
|
|
Notes payable
|
|
|
57,912
|
|
56,969
|
|
Lease obligations
|
|
|
33,587
|
|
33,922
|
|
Deferred tax liability
|
|
|
19,092
|
|
20,290
|
|
Other long-term liabilities
|
|
|
1,250
|
|
1,333
|
|
Total liabilities
|
|
|
$ 152,975
|
|
$ 150,471
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
Share capital
|
|
|
183,414
|
|
180,954
|
|
Share-based compensation reserve
|
|
|
6,471
|
|
6,395
|
|
Equity conversion feature
|
|
|
6,677
|
|
6,677
|
|
Warrants
|
|
|
29,634
|
|
28,939
|
|
Accumulated deficit
|
|
|
(202,454)
|
|
(195,071)
|
|
Foreign currency translation reserve
|
|
|
(334)
|
|
(334)
|
|
Total shareholders' equity attributable to Cansortium Inc. shareholders
|
38,313
|
|
38,313
|
|
Total shareholders' equity
|
|
|
23,409
|
|
27,560
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$ 176,384
|
|
$ 178,031
|
|
|
|
|
|
|
|
CANSORTIUM INC.
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|
|
|
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|
STATEMENT OF OPERATIONS
|
|
|
|
|
|
FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
March 31,
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
Revenue, net of discounts
|
|
$ 22,056
|
|
$ 19,712
|
|
Cost of goods sold
|
|
7,966
|
|
8,166
|
|
Gross profit before fair value adjustments
|
|
14,090
|
|
11,546
|
|
|
|
|
|
|
Fair value adjustments on inventory sold
|
|
(1,520)
|
|
(6,824)
|
|
Unrealized (loss) gain on changes in fair value of biological assets
|
|
(5,057)
|
|
1,198
|
|
Gross profit
|
|
7,513
|
|
5,920
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
General and administrative
|
|
2,312
|
|
2,841
|
|
Share-based compensation
|
|
238
|
|
100
|
|
Sales and marketing
|
|
3,998
|
|
4,087
|
|
Depreciation and amortization
|
|
1,848
|
|
1,664
|
|
Total expenses
|
|
8,396
|
|
8,692
|
|
|
|
|
|
|
Income (loss) from operations
|
|
(883)
|
|
(2,772)
|
|
|
|
|
|
|
Other expense (income)
|
|
|
|
|
|
Finance costs, net
|
|
4,249
|
|
3,657
|
|
Loss (gain) on change in fair value of derivative liability
|
|
278
|
|
1,702
|
|
Private Placement issuance expense
|
|
-
|
|
-
|
|
Loss on debt settlement
|
|
-
|
|
-
|
|
Loss on disposal of assets
|
|
70
|
|
-
|
|
Loss from termination of a contract
|
|
(78)
|
|
-
|
|
Other expense (income)
|
|
67
|
|
(2)
|
|
Total other expense
|
|
4,586
|
|
5,357
|
|
|
|
|
|
|
Loss before income taxes
|
|
(5,469)
|
|
(8,129)
|
|
|
|
|
|
|
Income tax expense
|
|
1,914
|
|
2,013
|
|
|
|
|
|
|
Net loss from continuing operations
|
|
(7,383)
|
|
(10,142)
|
|
|
|
|
|
|
Net loss from discontinued operations
|
|
-
|
|
2
|
|
|
|
|
|
|
Net loss
|
|
$ (7,383)
|
|
$ (10,144)
|
|
|
|
|
|
|
Other comprehensive gain (loss) that may be reclassified
|
|
|
|
|
|
to profit or loss in subsequent years
|
|
|
|
|
|
Exchange differences on translation of foreign operations and reporting currency
|
|
-
|
|
24
|
|
|
|
|
|
|
Comprehensive loss
|
|
$ (7,383)
|
|
$ (10,120)
|
|
|
|
|
|
|
Net loss per share
|
|
|
|
|
|
Basic and diluted - continuing operations
|
|
$ (0.03)
|
|
$ (0.04)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
|
Basic number of shares
|
|
276,556,965
|
|
252,276,742
|
|
Diluted number of shares
|
|
325,942,276
|
|
307,365,805
|
|
|
|
|
|
|
CANSORTIUM INC.
|
|
|
|
STATEMENTS OF CASH FLOWS
|
|
|
|
(USD '000)
|
|
|
|
|
|
|
For the thee months ended March 31,
|
|
2023
|
2022
|
|
Operating activities
|
|
|
|
Net loss from continuing operations
|
$ (7,383)
|
$ (10,142)
|
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
|
|
|
Unrealized gain (loss) on changes in fair value of biological assets
|
5,057
|
(1,198)
|
|
Realized (loss) gain on changes in fair value of biological assets
|
1,520
|
6,824
|
|
Share-based compensation
|
238
|
100
|
|
Depreciation and amortization
|
3,717
|
2,986
|
|
Accretion and interest of convertible debentures
|
132
|
3,057
|
|
Accretion and interest of term loan
|
3,086
|
-
|
|
Interest income on notes receivable
|
-
|
(71)
|
|
Interest of equipment loan
|
8
|
-
|
|
Loss on disposal of assets
|
70
|
-
|
|
Change in fair market value of derivative
|
278
|
1,702
|
|
Interest on lease liabilities
|
1,021
|
655
|
|
Deferred tax expense
|
(1,198)
|
(714)
|
|
Changes in operating assets and liabilities:
|
|
|
|
Trade receivable
|
(5)
|
1
|
|
Inventory
|
119
|
(309)
|
|
Biological assets
|
(4,566)
|
(4,271)
|
|
Prepaid expenses and other current assets
|
358
|
930
|
|
Right of Use Assets/Liabilities
|
67
|
-
|
|
Other assets
|
(39)
|
83
|
|
Trade payable
|
598
|
415
|
|
Accrued liabilities
|
(963)
|
1,513
|
|
Other long-term liabilities
|
(83)
|
-
|
|
Income taxes payable
|
3,111
|
2,726
|
|
Net cash provided by continuing operating activities
|
5,144
|
4,287
|
|
Net cash used in dicontinuing operating activities
|
-
|
2
|
|
Net cash provided by operating activities
|
5,144
|
4,289
|
|
|
|
|
Investing activities
|
|
|
|
Purchases of property and equipment
|
(2,949)
|
(2,353)
|
|
Purchase of intangible assets
|
-
|
-
|
|
Payment of notes receivable
|
-
|
92
|
|
Advances for notes receivable
|
-
|
(30)
|
|
Net cash used in continuing investing activities
|
(2,949)
|
(2,291)
|
|
Net cash provided by discontinued investing activities
|
|
|
|
Net cash used in investing activities
|
(2,949)
|
(2,291)
|
|
|
|
|
Financing activities
|
|
|
|
Net proceeds from issuance of shares and warrants
|
2,993
|
-
|
|
Payment of lease obligations
|
(1,585)
|
(1,254)
|
|
Exercise of Options
|
-
|
135
|
|
Issuance of shares for note payable extension
|
|
-
|
|
Principal repayments of notes payable
|
(2,494)
|
(2,224)
|
|
Net cash (used in) provided by continuing financing activities
|
(1,086)
|
(3,343)
|
|
Net cash provided by discountinued financing activities
|
-
|
—
|
|
Net cash provided by (used in) financing activities
|
(1,086)
|
(3,343)
|
|
Effect of foreign exchange on cash and cash equivalents
|
-
|
24
|
|
Net (decrease) increase in cash
|
1,109
|
(1,323)
|
|
Cash, beginning of period
|
8,359
|
9,024
|
|
Cash, end of period
|
9,468
|
7,701
|
|
|
|
|
Cansortium Inc.
|
|
|
|
|
Adjusted EBITDA Calculation
|
|
|
|
|
(USD '000)
|
|
|
|
|
Three months ended
|
|
March 31,
|
March 31,
|
Variance
|
|
2023
|
2022
|
|
Net loss
|
$ (7,383)
|
$ (10,144)
|
$ 2,761
|
|
Finance costs, net
|
4,249
|
3,657
|
592
|
|
Income taxes
|
1,914
|
2,013
|
(99)
|
|
Depreciation and amortization
|
3,774
|
3,259
|
515
|
|
EBITDA
|
$ 2,554
|
$ (1,215)
|
$ 3,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
March 31,
2023
|
March 31,
2022
|
Variance
|
|
EBITDA
|
$ 2,554
|
$ (1,215)
|
$ 3,769
|
|
Change in fair value of biological assets
|
6,577
|
5,626
|
951
|
|
Change in fair market value of derivative
|
278
|
1,702
|
(1,424)
|
|
Gain on termination of a contract
|
(78)
|
-
|
(78)
|
|
Share-based compensation
|
238
|
100
|
138
|
|
Discontinued operations
|
-
|
2
|
(2)
|
|
Loss on disposal of assets
|
70
|
-
|
70
|
|
Other non-recurring expense/(income)
|
67
|
-
|
67
|
|
Adjusted EBITDA
|
$ 9,706
|
$ 6,215
|
$ 3,491
|
|
|
|
|
View original content to download multimedia:https://www.prnewswire.com/news-releases/cansortium-reports-first-quarter-2023-results-301838525.html
SOURCE Cansortium Inc
