- Full Year Revenue was
$160.8 million , up 89% year-over-year - Q4 Revenue was
$40.4 million , exceeding guidance and up 35% year-over-year - Adjusted EBITDA1 was
$3.8 million in Q4, representing the 4th straight quarter of positive Adjusted EBITDA - Biomass production reached 103,500 pounds in Q4, ahead of guidance and up 37% year-over-year with no expansion in cultivation footprint
- Cost per Equivalent Dry Pound of Production2,3 was
$121 per pound, a 5% decrease versus Q4 2022 - Operating cash flow totaled
$23.2 million in 2023, up substantially versus$(40.8) million last year - Finished with a cash balance of
$32.5 million , up 130% versus$14.1 million at the end of 2022 - Greenhouse 5 at
SoCal Farm started cultivation at the end of January, expected to increase annual capacity by over 70% - Q1 2024 revenue guidance of
$28 million to$29 million - Conference Call to be held today
March 28th, 2024 at8:30 a.m. ET
(Unaudited results, unless otherwise stated, all results and dollar references are in U.S. dollars)
Net Sales of$40.4 million , an increase of 35% from$29.9 million in Q4 2022 and down 16% sequentially from$48.2 million in Q3 2023;- Gross Profit was
$18.0 million , compared to$9.2 million in Q4 2022 and$26.0 million in Q3 2023; - Gross Margin was 45%, compared to 31% in Q4 2022 and 54% in Q3 2023;
- Adjusted EBITDA was
$3.8 million , our fourth consecutive quarter of positive EBITDA, compared to$(3.4) million in Q4 2022 and$10.7 million in Q3 2023. - Fiscal year 2023 Adjusted EBITDA reached
$24.5 million , compared to$(22.3) million in the same period last year. - Operating Cash Flow was
$1.4 million , compared to negative$9.3 million in Q4 2022 and$9.1 million in Q3 2023. - Fiscal year 2023 Operating Cash Flow reached
$23.2 million , compared to$(40.8) million in the same period last year. - Cost per Equivalent Dry Pound of Production was
$121 a decrease of 5% compared to the same period last year and up 2% sequentially versus Q3 2023; - Equivalent Dry Pound Production2 was 103,500 pounds, up 37% year-over-year;
- Cash balance was
$32.5 million at year-end, up 130% versus$14.1 million at the end of last year.
In its press release dated
These preliminary and unaudited financial results for the fourth quarter and year ended
"2023 was a year of remarkable growth for
"In the fourth quarter, we grew revenue by 35% year on year to
"We wrapped up 2023 with a fourth quarter in which we produced 103,500 pounds of biomass. This was above the high end of guidance of 100,000 to 102,000 pounds and also 37% higher than the same quarter last year with no expansion in cultivation footprint. Strong demand for everything we grow continues and we ended the year with finished goods inventory relative to sales of less than two weeks. We need more inventory to meet this demand and are very excited that Greenhouse 5 is now online and fully planted after starting cultivation at the end of January."
Kazan concluded, "In summary, Glass House delivered another strong quarter and a great finish to the year. We could not have done so without the dedicated efforts of the entire team, which I believe is the best collection of agricultural and corporate talent in the industry. More important than that is how this team works together to achieve our common goals."
- Element 7,
APB and GH Group enter into a Settlement and General Mutual Release Agreement - Glass House Brands Announces Appointment of
Yelena Katchko to its Board of Directors - Glass House Brands Announces the Closing of
$15 million Series D Preferred Stock Offering
- Glass House Brands Named to 2024 OTCQX Best 50
- Glass House Brands Commences Cultivation in Greenhouse 5 at the
SoCal Farm - Glass House Brands Announces Resignation of Board Member
John Pérez Glass House Brands to Participate in Inaugural Benzinga Cannabis Market Spotlight Event- Glass House Brands Announces Intent to Restate Certain Historical Financial Statements
Glass House Brands to Participate in the 36th AnnualRoth Conference to be HeldMarch 17th-19th, 2024 - Final Judgment of
$2,865,000 Entered Against Element 7 in Favor ofGH Group
Net revenues for Q4 2023 were
Wholesale biomass revenue of
Retail revenue in Q4 2023 was
Wholesale CPG revenues were
Consolidated gross profit was
General and administrative expenses were
Sales and marketing expenses were
Professional fees of
Depreciation and amortization in Q4 2023 were
Adjusted EBITDA was
As of
Net revenues for 2023 were
Wholesale biomass revenue was
Retail revenue reached
Wholesale CPG revenues were
Gross margin dollars were
General and administrative expenses were
Sales and marketing expenses were
Depreciation and amortization for the full year 2023 was
For the full year, we generated
The Company is providing the following guidance for the first quarter of 2024 based on the strength of our fourth quarter and year end results and current trends in 2024.
We expect total revenue to be between
Average selling price for wholesale biomass is projected to be
Cost of production is projected to be
Retail and CPG revenue is expected to be down slightly from Q4 as we continue to plan for a highly promotional and price driven retail landscape.
We expect consolidated gross margin to fall sequentially to approximately 40%, down versus the Q4 2023 level of 45%. In addition, we expect Adjusted EBITDA to be negative
We expect to end the quarter with a cash balance of approximately
Given that Greenhouse 5 will have its first full quarter of production and sales in Q2 this year, we would like to provide some basic guidance for the quarter. We expect to set a new record high for single quarter revenue in Q2 of
We expect combined Q2 retail and CPG revenue to be roughly flat to Q1. As is our custom, we will provide additional guidance regarding Q2 2024 consolidated gross margin, Adjusted EBITDA and operating cash flow when we report our Q1 2024 results in May.
We are providing revenue guidance of
Greenhouse 5 will have its greatest impact on revenue, profits and cash flow in the second half of the year, and we expect wholesale biomass production to rise by about 47% versus 2023 at the mid-point of guidance to 520,000 to 530,000 pounds with a cost of
We expect pricing to largely follow last year's patterns, rising when production is low in the early months of the year, then falling as the summer harvest begins to hit the market in Q3. We typically get a higher mix of flower and smalls as a percent of volume production in the second half of the year which helps offset the lower pricing. We expect our average selling price in the second half of 2024 to be flat to up slightly vs. the second half of 2023 and we project an average selling price of between
We expect combined revenues from Retail and CPG to be basically flat compared to last year, as the difficult market conditions for both retail and brands are likely to continue in 2024. Our strategic pricing plan for the retail business should result in lower retail revenues in the beginning of the year, and if executed properly, higher foot traffic and a rebound in revenues as the year wears on. In addition, there is a strong probability of high-profile defaults by retailers and brands which could change market dynamics for those who survive.
Financial results and analyses will be available on the Company's website on the 'Investors' and 'News & Events' drop down menus (www.glasshousebrands.com) and SEDAR+ (www.sedarplus.ca).
Unaudited results, unless otherwise stated, all results are in
Net Income / (Loss) | |||
(000's) | FY21 | FY22 | FY23 |
Revenues, net | $ 63,193 | $ 84,874 | $ 160,836 |
Cost of goods sold | $ 47,393 | $ 64,162 | $ 79,867 |
Gross profit | $ 15,799 | $ 20,712 | $ 80,969 |
% of Net Sales | 25 % | 24 % | 50 % |
Expenses: | |||
General and administrative | $ 33,781 | $ 45,574 | $ 52,914 |
Sales and marketing | $ 3,531 | $ 3,427 | $ 2,838 |
Professional fees | $ 9,078 | $ 9,951 | $ 7,304 |
Depreciation and Amortization | $ 4,767 | $ 12,301 | $ 14,627 |
Impairment | $ 818 | $ 5,851 | $ 52,815 |
Total expenses | $ 51,975 | $ 77,105 | $ 130,498 |
Gain (Loss) from Operations | $ (36,176) | $ (56,393) | $ (49,529) |
Interest Expense | $ 2,737 | $ 7,608 | $ 9,819 |
Other expense | $ 2,375 | $ (26,652) | $ 28,770 |
Total other expense | $ 5,112 | $ (19,044) | $ 38,589 |
Provision for income taxes | $ 2,013 | $ (4,036) | $ 9,316 |
Net income (loss) | $ (43,301) | $ (33,314) | $ (97,433) |
Adjusted EBITDA | |||
(000's) | FY21 | FY22 | FY23 |
Net income (loss) | $ (43,301) | $ (33,314) | $ (97,433) |
Interest | $ 2,737 | $ 7,608 | $ 9,819 |
Depreciation and amortization | $ 4,767 | $ 12,301 | $ 14,627 |
Taxes | $ 2,013 | $ (4,036) | $ 9,316 |
EBITDA (non-GAAP) | $ (33,783) | $ (17,440) | $ (63,672) |
Share-based Compensation Expense | $ 8,710 | $ 12,756 | $ 7,637 |
Stock Appreciation Rights Expense | $ 35 | $ (35) | $ 219 |
Loss on Equity Method Investments | $ 1,089 | $ 2,007 | $ 2,102 |
(Gain) Loss on Change in Fair Value of Derivative Liabilities | $ (825) | $ 30 | $ 28 |
Loss on Impairment of Investments | $ 818 | $ 5,851 | $ 52,815 |
Loss on Extinguishment of Debt | $ - | $ - | $ - |
Loss on Disposition of Subsidiary | $ 6,090 | $ - | $ - |
Start Up Costs | $ 1,663 | $ 1,180 | $ - |
Loss (income) on change in fair value of contingent earnout liabilities | $ (4,032) | $ (28,869) | $ 24,399 |
Non-Operational Notes Receivable Bad Debt Reserve | $ 3,243 | $ - | $ - |
Loan Amendment Fee | $ - | $ - | $ 1,000 |
Non-Operational Related Professional Fees | $ 5,017 | $ 2,261 | $ - |
Adjusted EBITDA (non-GAAP) | $ (11,975) | $ (22,260) | $ 24,528 |
Select Cash Flow Information | |||
(000's) | FY21 | FY22 | FY23 |
Net Income (Loss) | $ (43,301) | $ (33,314) | $ (97,434) |
Share-based compensation | 8,710 | 12,756 | 7,637 |
Depreciation and amortization | 4,767 | 12,301 | 14,627 |
Other | 9,330 | (28,687) | 85,021 |
Cash From | (20,494) | (36,944) | 9,851 |
Accounts receivable | 2,612 | (1,579) | (172) |
Prepaid expenses and other current assets | (2,915) | (1,566) | 3,883 |
Inventory | 682 | (674) | 2,361 |
Other assets | (1,881) | (2,285) | 191 |
Accounts payable and accrued liabilities | 2,964 | 473 | 5,985 |
Income taxes payable | (1,140) | 2,153 | (208) |
Other | (113) | (363) | 1,332 |
Working Capital Impact | 208 | (3,841) | 13,373 |
Operating Cash Flow | $ (20,285) | $ (40,785) | $ 23,224 |
Purchases of property and equipment | (108,496) | (27,766) | (12,309) |
Other | (3,005) | (1,435) | (405) |
Net Investing Activities | $ (111,501) | $ (29,201) | $ (12,714) |
Distributions to Preferred Shareholders | (1,797) | (4,000) | (6,330) |
Other | 183,115 | 34,062 | 14,201 |
Net Financing Activities | $ 181,318 | $ 30,062 | $ 7,871 |
Cash Change | 49,532 | (39,923) | 18,381 |
Cash and cash equivalents, beginning of period | 4,535 | 54,067 | 14,144 |
Cash and Cash, Equivalents, End of Period | $ 54,067 | $ 14,144 | $ 32,524 |
Select Balance Sheet Information | ||||||||
(000's) | FY21 | FY22 | FY23 | |||||
Cash, Cash Equivalents and Restricted Cash | $ 54,067 | $ 14,144 | $ 32,524 | |||||
Accounts receivable, net | 2,465 | 4,789 | 3,979 | |||||
Prepaid expenses and other current assets | 5,563 | 7,756 | 3,873 | |||||
Inventory | 6,528 | 10,950 | 8,840 | |||||
Current portion of notes receivable | - | 1,256 | - | |||||
Total Current assets | $ 68,622 | $ 38,894 | $ 49,216 | |||||
Operating lease right-of-use assets, net | 3,078 | 11,134 | 10,860 | |||||
Investments | 7,196 | 4,246 | 2,327 | |||||
Property, plant and equipment, net | 195,799 | 216,431 | 215,686 | |||||
Intangible Assets, Net and Goodwill | 10,549 | 73,672 | 21,213 | |||||
Deferred Tax Asset | - | 1,371 | - | |||||
Other Assets | 2,340 | 4,692 | 4,472 | |||||
Total Assets | $ 287,583 | $ 350,439 | $ 303,775 | |||||
Accounts payable and accrued liabilities | $ 9,937 | $ 21,970 | $ 26,932 | |||||
Income taxes payable | 3,809 | 7,761 | 7,553 | |||||
Contingent earnout liability | 38,429 | 14,657 | 34,589 | |||||
Shares payable | 2,757 | 8,589 | 8,570 | |||||
Current portion of operating and finance lease liabilities | 269 | 1,145 | 1,839 | |||||
Current portion of notes payable | 38 | 40 | 7,550 | |||||
Total current liabilities | $ 55,239 | $ 54,161 | $ 87,033 | |||||
Operating and finance lease liabilities, net of current portion | 2,865 | 10,073 | 9,224 | |||||
Other non-current liabilities | 1,449 | 2,801 | 5,444 | |||||
Deferred tax liabilities | 1,275 | - | 48 | |||||
Notes payable, net of current portion | 44,817 | 62,619 | 56,513 | |||||
Total Liabilities | $ 105,646 | $ 129,654 | $ 158,261 | |||||
Preferred Equity Series B, C and D | - | 56,534 | 74,053 | |||||
APIC, Accumulated Deficit and Non-Controlling Int. | 181,937 | 164,251 | 67,361 | |||||
Total Shareholders' Equity | 181,937 | 220,785 | 145,514 | |||||
Total Liabilities and Shareholders' Equity | $ 287,583 | $ 350,439 | $ 303,775 |
Net Income / (Loss) | ||||
(000's) | Q422 | Q323 | Q423 | |
Revenues, net | $ 29,936 | $ 48,187 | $ 40,429 | |
Cost of goods sold | $ 20,708 | $ 22,176 | $ 22,417 | |
Gross profit | $ 9,228 | $ 26,011 | $ 18,012 | |
% of Net Sales | 31 % | 54 % | 45 % | |
Expenses: | ||||
General and administrative | $ 13,729 | $ 15,187 | $ 13,287 | |
Sales and marketing | $ 859 | $ 555 | $ 634 | |
Professional fees | $ 1,876 | $ 1,706 | $ 1,898 | |
Depreciation and amortization | $ 3,413 | $ 3,676 | $ 3,545 | |
Impairment | $ 5,851 | $ - | $ 31,816 | |
Total expenses | $ 25,728 | $ 21,124 | $ 51,180 | |
Gain (Loss) from Operations | $ (16,500) | $ 4,887 | $ (33,168) | |
Interest Expense | $ 2,168 | $ 2,159 | $ 3,033 | |
Other expense | $ 2,656 | $ (3,556) | $ 6,132 | |
Total other expense | $ 4,824 | $ (1,397) | $ 9,165 | |
Provision for income taxes | $ (6,907) | $ 6,495 | $ (4,846) | |
Net income (Loss) | $ (14,417) | $ (210) | $ (37,488) |
Adjusted EBITDA | ||||
(000's) | Q422 | Q323 | Q423 | |
Net income (loss) | $ (14,417) | $ (210) | $ (37,488) | |
Interest | $ 2,168 | $ 2,159 | $ 3,033 | |
Depreciation and amortization | $ 3,413 | $ 3,676 | $ 3,545 | |
Taxes | $ (6,907) | $ 6,495 | $ (4,846) | |
EBITDA (non-GAAP) | $ (15,743) | $ 12,119 | $ (35,755) | |
Share-based Compensation Expense | $ 3,770 | $ 2,565 | $ 1,909 | |
Stock Appreciation Rights Expense | $ - | $ 86 | $ 119 | |
Loss on Equity Method Investments | $ 359 | $ (91) | $ (35) | |
(Gain) Loss on Change in Fair Value of Derivative Liabilities | $ (48) | $ 93 | $ (195) | |
Impairment Expense | $ 5,851 | $ - | $ 31,816 | |
Loss on Extinguishment of Debt | $ - | $ - | $ - | |
Loss on Disposition of Subsidiary | $ - | $ - | $ - | |
Non-Operational Startup Costs | $ 319 | $ - | $ - | |
Change in Fair Value of Contingent Liabilities | $ 2,086 | $ (4,024) | $ 5,913 | |
Non-Operational Notes Receivable Bad Debt Reserve | $ - | $ - | $ - | |
Loan Amendment Fee | $ - | $ - | $ - | |
Acquisition Related Professional Fees | $ - | $ - | $ - | |
Adjusted EBITDA (non-GAAP) | $ (3,406) | $ 10,748 | $ 3,773 |
Select Cash Flow Information | ||||
(000's) | Q422 | Q323 | Q423 | |
Net Income (Loss) | $ (14,417) | $ (210) | $ (37,488) | |
Share-based compensation | $ 3,770 | $ 2,565 | $ 1,909 | |
Depreciation and amortization | $ 3,413 | $ 3,676 | $ 3,545 | |
Other | $ 846 | $ (3,217) | $ 40,067 | |
Cash From | $ (6,388) | $ 2,814 | $ 8,034 | |
Accounts receivable | $ 842 | $ (1,124) | $ 687 | |
Prepaid expenses and other current assets | $ 155 | $ (128) | $ 91 | |
Inventory | $ 922 | $ 3,571 | $ 3,121 | |
Other assets | $ (1,224) | $ (48) | $ 294 | |
Accounts payable and accrued liabilities | $ (214) | $ (2,447) | $ 1,903 | |
Income taxes payable | $ (2,978) | $ 5,904 | $ (13,298) | |
Other | $ (412) | $ 518 | $ 608 | |
Working Capital Impact | $ (2,909) | $ 6,246 | $ (6,593) | |
Operating Cash Flow | $ (9,297) | $ 9,060 | $ 1,441 | |
Purchases of property and equipment | $ (4,087) | $ (4,938) | $ (6,076) | |
Other | $ (768) | $ 55 | $ (183) | |
Net Investing Activities | $ (4,856) | $ (4,882) | $ (6,258) | |
Distributions to Preferred Shareholders | $ (1,135) | $ (1,647) | $ (1,940) | |
Other | $ 11,894 | $ 12,672 | $ 1,389 | |
Net Financing Activities | $ 10,759 | $ 11,025 | $ (551) | |
Cash Change | $ (3,393) | $ 15,203 | $ (5,369) | |
Cash and cash equivalents, beginning of period | $ 17,536 | $ 22,690 | $ 37,893 | |
Cash and Cash, Equivalents, End of Period | $ 14,144 | $ 37,893 | $ 32,524 |
Select Balance Sheet Information | ||||
(000's) | Q422 | Q323 | Q423 | |
Cash, Cash Equivalents and Restricted Cash | $ 14,144 | $ 37,893 | $ 32,524 | |
Accounts receivable, net | 4,789 | 4,199 | 3,979 | |
Prepaid expenses and other current assets | 7,756 | 3,965 | 3,873 | |
Inventory | 10,950 | 11,961 | 8,840 | |
Current portion of notes receivable | 1,256 | - | - | |
Total Current assets | $ 38,894 | $ 58,018 | $ 49,216 | |
Operating and finance lease right-of-use assets, net | 11,134 | 11,179 | 10,860 | |
Investments | 4,246 | 2,110 | 2,327 | |
Property, plant and equipment, net | 216,431 | 212,813 | 215,686 | |
Intangible Assets, Net and Goodwill | 73,672 | 53,268 | 21,213 | |
Deferred Tax Asset | 1,371 | 1,828 | - | |
Other assets | 4,692 | 4,572 | 4,472 | |
Total Assets | $ 350,439 | $ 343,787 | $ 303,775 | |
Accounts payable and accrued liabilities | $ 21,970 | $ 27,744 | $ 26,932 | |
Income taxes payable | 7,761 | 20,851 | 7,553 | |
Contingent earnout liability | 14,657 | 28,684 | 34,589 | |
Shares payable | 8,589 | 8,561 | 8,570 | |
Current portion of operating and finance lease liabilities | 1,145 | 1,875 | 1,839 | |
Current portion of notes payable | 40 | 50 | 7,550 | |
Total current liabilities | $ 54,161 | $ 87,765 | $ 87,033 | |
Operating and finance lease liabilities, net of current portion | 10,073 | 9,502 | 9,224 | |
Other non-current liabilities | 2,801 | 4,315 | 5,444 | |
Deferred tax liabilities | - | - | 48 | |
Notes payable, net of current portion | 62,619 | 63,872 | 56,513 | |
Total Liabilities | $ 129,654 | $ 165,454 | $ 158,261 | |
Preferred Equity Series B, C and D | 56,534 | 72,436 | 74,053 | |
APIC, Accumulated Deficit and Non-Controlling Int. | 164,251 | 105,897 | 67,361 | |
Total Shareholders' Equity | 220,785 | 178,333 | 145,514 | |
Total Liabilities and Shareholders' Equity | $ 350,439 | $ 343,787 | $ 303,775 |
Equity Table | ||||
(000's) | Q4 23 | Q3 23 | Change | Comments |
Total Equity and Exchangeable Shares | 70,941 | 70,184 | 757 | Exercise of RSU's and Convertible Notes |
Total Warrants | ||||
Series D | 3,000 | 2,180 | 820 | Exercise price of |
Series C | 1,000 | 1,000 | - | Exercise price of |
Series B | 10,000 | 10,000 | - | Exercise price of |
Series A | 2,654 | 2,654 | - | Exercise price of |
SPAC | 30,665 | 30,665 | - | Exercise price of |
Total Warrants | 47,319 | 46,499 | 820 | |
Stock Options | 1,436 | 1,436 | - | Exercise Price between |
RSU's | 2,534 | 3,209 | (676) | Up to 3-year vesting through 2026 |
Total | 3,969 | 4,645 | (676) | |
Share Price at Quarter End | $ 4.72 | $ 4.55 | $ 0.17 | |
Convertible Debentures | ||||
Series A | $ 11,895 | $ 11,895 | $ - | 8% semi annual interest, cash or shares, higher of 10 day VWAP 5 trading days prior to pay date or |
Series B | $ 4,111 | $ 4,111 | $ - | 8% semi annual interest, cash or shares, lower of 10 day VWAP 5 trading days prior to pay date or |
Total | $ 16,006 | $ 16,006 | $ - | |
# of Shares if converted assuming share price at quarter end | 3,391 | 3,518 | (127) |
Revenue | ||||||||||||
(000's $) | Q122 | Q222 | Q322 | Q422 | Q123 | Q223 | Q323 | Q423 | FY21 | FY22 | FY23 | |
Retail (B2C) | $ 4,858 | $ 4,839 | $ 6,440 | $ 10,593 | $ 9,373 | $ 10,073 | $ 10,058 | $ 9,574 | $ 21,734 | $ 26,731 | $ 39,078 | |
Wholesale CPG (B2B) | $ 2,190 | $ 3,957 | $ 6,887 | $ 3,736 | $ 3,715 | $ 3,954 | $ 4,290 | $ 4,103 | $ 19,289 | $ 16,770 | $ 16,062 | |
Wholesale (Biomass (B2B) | $ 5,122 | $ 6,689 | $ 13,954 | $ 15,607 | $ 14,467 | $ 30,639 | $ 33,839 | $ 26,752 | $ 22,169 | $ 41,373 | $ 105,696 | |
Total | $ 12,170 | $ 15,486 | $ 27,281 | $ 29,936 | $ 27,555 | $ 44,665 | $ 48,187 | $ 40,429 | $ 63,193 | $ 84,874 | $ 160,836 | |
Sequential % Change | ||||||||||||
Retail (B2C) | -5 % | 0 % | 33 % | 64 % | -12 % | 7 % | 0 % | -5 % | ||||
Wholesale CPG (B2B) | -59 % | 81 % | 74 % | -46 % | -1 % | 6 % | 9 % | -4 % | ||||
Wholesale (Biomass (B2B) | -21 % | 31 % | 109 % | 12 % | -7 % | 112 % | 10 % | -21 % | ||||
Total | -28 % | 27 % | 76 % | 10 % | -8 % | 62 % | 8 % | -16 % | ||||
% change to LY | ||||||||||||
Retail (B2C) | -3 % | -24 % | 23 % | 106 % | 93 % | 108 % | 56 % | -10 % | 23 % | 46 % | ||
Wholesale CPG (B2B) | -43 % | -20 % | 34 % | -30 % | 70 % | 0 % | -38 % | 10 % | -13 % | -4 % | ||
Wholesale (Biomass (B2B) | 14 % | 8 % | 180 % | 140 % | 182 % | 358 % | 142 % | 71 % | 87 % | 155 % | ||
Total | -9 % | -12 % | 78 % | 76 % | 126 % | 188 % | 77 % | 35 % | 34 % | 89 % | ||
Gross Profit | ||||||||||||
(000's $) | Q122 | Q222 | Q322 | Q422 | Q123 | Q223 | Q323 | Q423 | FY21 | FY22 | FY23 | |
Retail (B2C) | $ 2,156 | $ 2,060 | $ 2,672 | $ 4,609 | $ 5,281 | $ 5,487 | $ 5,594 | $ 5,190 | $ 9,839 | $ 11,498 | $ 21,552 | |
Wholesale CPG (B2B) | $ (51) | $ 302 | $ 1,619 | $ (1,793) | $ 1,128 | $ 239 | $ 241 | $ (385) | $ 4,534 | $ 76 | $ 1,223 | |
Wholesale (Biomass (B2B) | $ (400) | $ (1,872) | $ 4,998 | $ 6,412 | $ 6,165 | $ 18,646 | $ 20,176 | $ 13,207 | $ 1,427 | $ 9,138 | $ 58,194 | |
Total | $ 1,705 | $ 490 | $ 9,289 | $ 9,228 | $ 12,574 | $ 24,372 | $ 26,011 | $ 18,012 | $ 15,799 | $ 20,712 | $ 80,969 | |
% of Revenue | ||||||||||||
Retail (B2C) | 44 % | 43 % | 41 % | 44 % | 56 % | 54 % | 56 % | 54 % | 45 % | 43 % | 55 % | |
Wholesale CPG (B2B) | -2 % | 8 % | 24 % | -48 % | 30 % | 6 % | 6 % | -9 % | 24 % | 0 % | 8 % | |
Wholesale (Biomass (B2B) | -8 % | -28 % | 36 % | 41 % | 43 % | 61 % | 60 % | 49 % | 6 % | 22 % | 55 % | |
Total | 14 % | 3 % | 34 % | 31 % | 46 % | 55 % | 54 % | 45 % | 25 % | 24 % | 50 % | |
Wholesale Biomass Production and Cost per Pound | ||||||||||||
Q122 | Q222 | Q322 | Q422 | Q123 | Q223 | Q323 | Q423 | FY21 | FY22 | FY23 | ||
Equivalent Dry Pounds of Production | 16,729 | 27,025 | 74,624 | 75,344 | 48,099 | 103,336 | 101,825 | 103,462 | 96,785 | 193,723 | 356,722 | |
% change to LY | 7 % | 17 % | 164 % | 153 % | 188 % | 282 % | 36 % | 37 % | 79 % | 100 % | 84 % | |
Cost per Equivalent Dry Pounds | $ 238 | $ 159 | $ 134 | $ 127 | $ 196 | $ 139 | $ 118 | $ 121 | # | $ 189 | $ 144 | $ 136 |
of Production | ||||||||||||
% change to LY | -2 % | -18 % | -25 % | -24 % | -18 % | -12 % | -12 % | -5 % | -14 % | -24 % | -6 % | |
Ending Operational Canopy (000 sq. ft) | 332 | 332 | 959 | 959 | 959 | 959 | 959 | 959 | 332 | 959 | 959 | |
Wholesale Biomass Sold and Average Selling Price per Pound | ||||||||||||
Q122 | Q222 | Q322 | Q422 | Q123 | Q223 | Q323 | Q423 | FY21 | FY22 | FY23 | ||
Equivalent Dry Pounds Sold | 17,894 | 19,859 | 68,512 | 66,127 | 49,923 | 90,174 | 100,661 | 98,199 | # | 69,153 | 172,392 | 338,958 |
% change to LY | 41 % | 38 % | 265 % | 184 % | 179 % | 354 % | 47 % | 49 % | -11 % | 149 % | 97 % | |
Equivalent Dry Pounds Sold | $ 188 | $ 237 | $ 204 | $ 236 | $ 290 | $ 340 | $ 336 | $ 272 | # | $ 233 | $ 218 | $ 312 |
Average Selling price | ||||||||||||
% change to LY | -29 % | -30 % | 7 % | 29 % | 54 % | 43 % | 65 % | 15 % | -56 % | -6 % | 43 % | |
Equivalent Dry Pounds Average Selling Price excludes the impact of cultivation tax. | ||||||||||||
The Company will host a conference call to discuss the results today,
Webcast: Register Here
Dial-In Number: 1-888-664-6392
Replay: 1-888-390-0541
Replay Code: 368514#
(replay available until 12:00
In addition, content related to the earnings call including a transcript and audio recording of the call, as well as the Company's financial statements and MD&A for the period (upon completion), will be posted to the Company's website and can be found here. Content from previous reporting periods is also available.
Glass House defines EBITDA as Net Loss (GAAP) adjusted for interest and financing costs, income taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA excluding share-based compensation, stock appreciation rights expense, loss (income) on equity method investments, change in fair value of derivative liabilities, change in fair value of contingent liabilities, acquisition related professional fees, and non-operational start-up costs.
EBITDA and Adjusted EBITDA are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. Such supplemental non-GAAP financial measures are not standardized financial measures under
The Company has provided a table above that provides a reconciliation of the Company's net profit/loss to Adjusted EBITDA for the three months ended
Footnotes and Sources:
- EBITDA and Adjusted EBITDA are non-GAAP financial measures that are not defined by
U.S. GAAP and may not be comparable to similar measures presented by other companies. Please see "Non-GAAP Financial Measures" herein for further information and for a reconciliation of such non-GAAP measures to the closest GAAP measure. - Equivalent Dry Pound Production includes all dry production (flower, smalls and trim) plus equivalent dry weight for wet weight and fresh frozen not converted into dry weight by the Company.
- Cost per Equivalent Dry Pound of Production, is the application of a subset of Costs of Goods Sold for cannabis biomass production (including all expenses from nursery and cultivation to curing and trimming - the point at which product is ready for sales as wholesale cannabis or to be transferred to CPG) applied to the Company's metric of dry production which includes all dry production (flower, smalls and trim) plus equivalent dry weight for wet weight and fresh frozen that is not converted into dry goods by the Company.
Glass House is one of the fastest-growing, vertically integrated cannabis companies in the
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this news release include, without limitation, the Company's: expectation as to the timing of the filing of the Restated Documents; ability to further deliver strong operational and financial results; positioning as a very large, vertically-integrated
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including financial and operational results not proving to be as expected or on the timelines expected; the Company not completing certain proposed acquisition or financing transactions at all, or on the timelines expected; the Company not achieving the synergies expected; and other risks disclosed in the Company's Annual Information Form and other public filings on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements.
For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR+ at www.sedarplus.ca. The forward-looking statements and financial outlooks contained in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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