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Retail Value Inc. Reports First Quarter 2019 Operating Results
BEACHWOOD, Ohio–(BUSINESS WIRE)–Retail Value Inc. (NYSE: RVI) today announced operating results for the
quarter ended March 31, 2019.
Results for the Quarter
-
First quarter net loss attributable to common shareholders was $10
thousand, or $0.00 per diluted share. First quarter operating funds
from operations attributable to common shareholders (“Operating FFO”
or “OFFO”) was $24.3 million, or $1.29 per diluted share. -
Sold three shopping centers and two outparcels for an aggregate sales
price of $110.0 million. -
Refinanced previous $1.35 billion mortgage loan with a new $900
million mortgage loan. The new loan facility provides a lower interest
rate, an extended maturity date, a lower allocation of loan principal
to the Company’s continental U.S. assets as a result of the mortgage
on one Puerto Rico property and a lower debt yield requirement with
respect to the Company’s ability to maintain control of excess cash
flow from its properties. RVI paid $1.8 million refinancing fee to
SITE Centers in connection with new loan. -
The Continental U.S. leased rate was 92.2% as compared to 92.9% at
December 31, 2018 with the decline driven by the impact of asset sales. -
The Puerto Rico leased rate was 85.3% as compared to 87.0% at December
31, 2018, the decline primarily was due to the expiration of a
JC Penney lease at Plaza Palma Real.
Key Quarterly Operating Results
The following metrics are as of March 31, 2019:
Continental U.S. | Puerto Rico | |||
Shopping Center Count | 23 | 12 | ||
Gross Leasable Area (thousands) | 8,717 | 4,428 | ||
Base Rent PSF | $13.55 | $20.59 | ||
Leased Rate | 92.2% | 85.3% | ||
Commenced Rate | 91.1% | 83.1% | ||
NOI (millions) | $24.7 | $15.9 | ||
Financial Statement Presentation Change
On January 1, 2019, the Company adopted the accounting framework for
leases, ASU No. 2016-02, Leases (“Topic 842”). The following is a
summary of the presentation changes within the 2019 Consolidated
Statement of Operations required by the adoption of the new standard:
-
All income related to tenant leases is reflected in a single “Rental
income” line item. -
The impact of bad debt is now a component of the single Rental income
line item and is no longer a component of Operating and Maintenance
expenses. This change is reflected in 2019 reporting periods but was
not made to 2018 historical results. -
Real estate taxes paid by certain major tenants directly to the taxing
authority are no longer reflected in Rental Income and Real estate tax
expense. This change is reflected in 2019 reporting periods but was
not made to 2018 historical results.
The Company’s Net income, Net operating income and Operating FFO were
not impacted by these presentation changes.
About RVI
RVI is an independent publicly traded company trading under the ticker
symbol “RVI” on the New York Stock Exchange. RVI holds assets in the
continental U.S. and Puerto Rico and is managed by one or more
subsidiaries of SITE Centers Corp. RVI focuses on realizing value in its
business through operations and sales of its assets. Additional
information about RVI is available at www.retailvalueinc.com.
Non-GAAP Measures
Funds from Operations (“FFO”) is a supplemental non-GAAP financial
measure used as a standard in the real estate industry and is a widely
accepted measure of real estate investment trust (“REIT”) performance.
Management believes that both FFO and Operating FFO provide additional
indicators of the financial performance of a REIT. The Company also
believes that FFO and Operating FFO more appropriately measure the core
operations of the Company and provide benchmarks to its peer group.
In December 2018, the National Association of Real Estate Investment
Trusts (“NAREIT”) issued NAREIT Funds From Operations White Paper –
2018 Restatement (“the 2018 FFO White Paper”). The purpose of the
2018 FFO White Paper was not to change the fundamental definition of FFO
but to clarify existing guidance and to consolidate into a single
document, alerts and policy bulletins issued by NAREIT since the last
FFO white paper was issued in 2002. The 2018 FFO White Paper was
effective starting with first quarter 2019 reporting. The Company did
not report any changes in the calculation of FFO in 2019 related to the
clarification in the 2018 FFO White Paper.
FFO is generally defined and calculated by the Company as net income
(loss) (computed in accordance with GAAP) adjusted to exclude (i) gains
and losses from disposition of real estate property and related
investments, which are presented net of taxes, if any, (ii) impairment
charges on real estate property and related investments and (iii)
certain non-cash items. These non-cash items principally include real
property depreciation and amortization of intangibles. The Company’s
calculation of FFO is consistent with the definition of FFO provided by
NAREIT. The Company calculates Operating FFO by excluding certain
non-operating charges and income. Operating FFO is useful to investors
as the Company removes non-comparable charges and income to analyze the
results of its operations and assess performance of the core operating
real estate portfolio. Other real estate companies may calculate FFO and
Operating FFO in a different manner.
The Company also uses net operating income (“NOI”), a non-GAAP financial
measure, as a supplemental performance measure. NOI is calculated as
property revenues less property-related expenses. The Company believes
NOI provides useful information to investors regarding the Company’s
financial condition and results of operations because it reflects only
those income and expense items that are incurred at the property level
and, when compared across periods, reflects the impact on operations
from trends in occupancy rates, rental rates, operating costs and
acquisition and disposition activity on an unleveraged basis.
FFO, Operating FFO and NOI do not represent cash generated from
operating activities in accordance with GAAP, are not necessarily
indicative of cash available to fund cash needs and should not be
considered as alternatives to net income computed in accordance with
GAAP as indicators of the Company’s operating performance or as
alternatives to cash flow as a measure of liquidity. Reconciliations of
these non-GAAP measures to their most directly comparable GAAP measures
are included in this release and the accompanying financial supplement.
Safe Harbor
RVI considers portions of the information in this press release to be
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934, both as amended, with respect to the Company’s expectation for
future periods. Although the Company believes that the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that its expectations will be
achieved. For this purpose, any statements contained herein that are not
historical fact may be deemed to be forward-looking statements. There
are a number of important factors that could cause our results to differ
materially from those indicated by such forward-looking statements,
including, among other factors, the ability to execute our strategy as
an independent, publicly traded company. Other risks and uncertainties
that could cause our results to differ materially from those indicated
by such forward-looking statements include our ability to sell assets on
commercially reasonable terms; our ability to complete dispositions of
assets under contract; the success of our asset sale strategy; property
damage, expenses related thereto and other business and economic
consequences (including the potential loss of rental revenues) resulting
from extreme weather conditions in locations where we own properties,
and the ability to estimate accurately the amounts thereof; sufficiency
and timing of any insurance recovery payments related to damages from
extreme weather conditions; local conditions such as supply of space or
a reduction in demand for real estate in the area; competition from
other available space; dependence on rental income from real property;
the loss of, significant downsizing of or bankruptcy of a major tenant
and the impact of any such event on rental income from other tenants at
our properties; our ability to secure equity or debt financing on
commercially acceptable terms or at all; our ability to enter into
definitive agreements with regard to our financing arrangements and our
ability to satisfy conditions to the completion of these arrangements;
unforeseen changes to the Puerto Rican economy and government; the
ability to secure and maintain management services provided to us,
including pursuant to our external management agreement with one or more
subsidiaries of SITE Centers; and our ability to maintain our REIT
status. For additional factors that could cause the results of the
Company to differ materially from those indicated in the forward-looking
statements, please refer to “Risk Factors” included in the Company’s
report on Form 10-K for the year ended December 31, 2018. The Company
undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date
hereof.
Retail Value Inc. | ||||||||
Income Statement |
||||||||
$ in thousands, except per share | ||||||||
1Q19 | 1Q19 | Total | ||||||
Continental U.S. | Puerto Rico | 1Q19 | ||||||
Revenues (1): | ||||||||
Rental income (2) | $36,970 | $24,600 | $61,570 | |||||
Other property revenues | 22 | 19 | 41 | |||||
Business interruption income | 0 | 0 | 0 | |||||
36,992 | 24,619 | 61,611 | ||||||
Expenses: | ||||||||
Operating and maintenance (3) | 5,950 | 7,548 | 13,498 | |||||
Real estate taxes | 6,312 | 1,198 | 7,510 | |||||
12,262 | 8,746 | 21,008 | ||||||
Net operating income (4) | 24,730 | 15,873 | 40,603 | |||||
Other income (expense): | ||||||||
Asset management fees | (2,820) | |||||||
Interest expense | (13,974) | |||||||
Depreciation and amortization | (19,355) | |||||||
General and administrative | (885) | |||||||
Impairment charges | (6,090) | |||||||
Hurricane property loss | (183) | |||||||
Debt extinguishment costs, net | (14,482) | |||||||
Transaction costs | (18) | |||||||
Other expense, net | (850) | |||||||
Gain on disposition of real estate, net (5) | 18,219 | |||||||
Income before other items | 165 | |||||||
Tax expense | (175) | |||||||
Net loss | ($10) | |||||||
Weighted average shares – Basic & Diluted – EPS | 18,882 | |||||||
Earnings per common share – Basic & Diluted | $0.00 | |||||||
Revenue items: | ||||||||
(1) | Lost revenue related to hurricane | ($1,625) | ||||||
(2) | Minimum rents | 25,301 | 14,070 | 39,371 | ||||
Ground lease minimum rents | 1,940 | 1,872 | 3,812 | |||||
Percentage rent | 263 | 1,157 | 1,420 | |||||
Recoveries | 9,342 | 5,607 | 14,949 | |||||
Lease termination fees | 0 | 0 | 0 | |||||
Ancillary rental income | 261 | 1,906 | 2,167 | |||||
Bad debt | (137) | (12) | (149) | |||||
(3) | Operating expenses: | |||||||
Property management fees | (1,409) | (1,587) | (2,996) | |||||
(4) | NOI from assets sold | 1,256 | 0 | 1,256 | ||||
(5) | SITE Centers disposition fees | (1,100) | ||||||
Retail Value Inc. | ||||
Reconciliation: Net Income to FFO and Operating FFO |
||||
and Other Financial Information |
||||
$ in thousands, except per share | ||||
|
1Q19 | |||
Net income attributable to Common Shareholders | ($10) | |||
Depreciation and amortization of real estate | 19,329 | |||
Impairment of real estate | 6,090 | |||
Gain on disposition of real estate, net | (18,219) | |||
FFO attributable to Common Shareholders | $7,190 | |||
Hurricane property loss, net (1) | 1,808 | |||
Debt extinguishment, transaction, other, net | 15,350 | |||
Total non-operating items, net | 17,158 | |||
Operating FFO attributable to Common Shareholders | $24,348 | |||
Weighted average shares and units – Basic & Diluted – FFO & OFFO | 18,882 | |||
FFO per share – Basic & Diluted | $0.38 | |||
Operating FFO per share – Basic & Diluted | $1.29 | |||
Common stock dividends declared, per share | N/A | |||
Certain non-cash items: | ||||
Straight-line rent | (211) | |||
Straight-line fixed CAM | 161 | |||
Loan cost amortization | (1,302) | |||
Non-real estate depreciation expense | (26) | |||
Capital expenditures: | ||||
Maintenance capital expenditures | 24 | |||
Tenant allowances and landlord work | 2,401 | |||
Leasing commissions (2) | 904 | |||
Hurricane restorations | 21,687 | |||
(1) | Hurricane property (income) loss: | |||
Lost tenant revenue | 1,625 | |||
Business interruption income | 0 | |||
Clean up costs and other expenses | 183 | |||
1,808 | ||||
(2) | SITE Centers lease commissions | 772 | ||
Retail Value Inc. |
||||||
Balance Sheet |
||||||
$ in thousands | ||||||
At Period End | ||||||
1Q19 | 4Q18 | |||||
Assets: | ||||||
Land | $588,801 | $622,827 | ||||
Buildings | 1,554,766 | 1,629,862 | ||||
Fixtures and tenant improvements | 172,192 | 172,679 | ||||
2,315,759 | 2,425,368 | |||||
Depreciation | (705,058) | (704,401) | ||||
1,610,701 | 1,720,967 | |||||
Construction in progress and land | 45,411 | 26,070 | ||||
Real estate, net | 1,656,112 | 1,747,037 | ||||
Cash | 37,560 | 44,565 | ||||
Restricted cash (1) | 71,556 | 66,634 | ||||
Receivables and straight-line (2) | 28,546 | 31,426 | ||||
Property insurance receivable | 15,953 | 29,422 | ||||
Intangible assets, net (3) | 24,339 | 31,882 | ||||
Other assets, net | 9,078 | 11,678 | ||||
Total Assets | 1,843,144 | 1,962,644 | ||||
Liabilities and Equity: | ||||||
Secured debt | 873,663 | 967,569 | ||||
Payable to SITE | 34,070 | 33,985 | ||||
Dividends payable | 0 | 24,005 | ||||
Other liabilities (4) | 65,252 | 84,832 | ||||
Total Liabilities | 972,985 | 1,110,391 | ||||
Redeemable preferred equity | 190,000 | 190,000 | ||||
Common shares | 1,904 | 1,846 | ||||
Paid-in capital | 692,771 | 675,566 | ||||
Distributions in excess of net income | (14,507) | (15,153) | ||||
Common shares in treasury at cost | (9) | (6) | ||||
Total Equity | 680,159 | 662,253 | ||||
Total Liabilities and Equity | $1,843,144 | $1,962,644 | ||||
(1) | Asset sale proceeds | 30,452 | 26,969 | |||
Other escrows | 41,104 | 39,665 | ||||
(2) | Straight-line rents receivable | 19,235 | 18,757 | |||
(3) |
Operating lease right of use assets (related to adoption of Topic 842) |
1,859 | 0 | |||
(4) | Operating lease liabilities (related to adoption of Topic 842) | 2,995 | 0 | |||
Below-market leases, net | 21,502 | 33,914 | ||||
Contacts
Matthew Ostrower, 216-755-5500
EVP and Chief Financial Officer
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Cannabis
Medical Cannabis Market Report 2024-2030: Asia-Pacific Set to Witness Robust Growth, Driven by R&D Discovery Initiatives
Cannabis
Rubicon Organics Reports Q1 2024 Financial Results
SCHWAZZE
Schwazze Announces First Quarter 2024 Financial Results
Schwazze Management to Host Conference Call Today at 5:00 p.m. Eastern Time
DENVER, May 15, 2024 /PRNewswire/ — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (Cboe CA: SHWZ) (“Schwazze” or the “Company”), today announced financial and operational results for the first quarter ended March 31, 2024.
“We delivered another period of revenue growth in Q1 as we further refined our retail strategy while contending with the prolonged competitive challenges in Colorado and New Mexico,” said Forrest Hoffmaster, Interim CEO of Schwazze. “Throughout the quarter, we continued to sharpen our pricing and promotional efforts while enhancing the in-store experience, widening assortment, improving in-stock position, and advancing our loyalty program to attract and retain new customers. We also strengthened our wholesale business with quarter-over-quarter growth, while surpassing 30% total door penetration across both states.”
“The Colorado market remains highly competitive with more than 680 active recreational licenses, underscoring the importance of delivering an exceptional customer experience and fully integrated retail support program. Although retail pricing has recently stabilized, Colorado sales in Q1 were down 10% year-over-year due to lower volumes. Nonetheless, we significantly outpaced the market as our sales were up 9%, demonstrating the effectiveness of our operating playbook to compete in challenging environments. We expect to continue driving improvements in customer acquisition, retention, and loyalty as we further increase market share in the state.”
“In New Mexico, the proliferation of new licenses continued to outpace state cannabis sales as store count in Q1 increased 31% year-over-year while the market grew only 13%. In addition to pricing and promotional efforts, we’ve focused on driving traffic into our stores by expanding assortment with high quality flower and delivering an elevated customer experience. The New Mexico regulatory body has also increased its license enforcement efforts in recent months, contributing to more than 70 store closures and a 33% sequential decrease in net new store openings in the first quarter. We will continue to support the New Mexico Cannabis Control Division as it develops its regulatory framework.”
“Over the past four years we have rapidly scaled our footprint through 13 acquisitions, building a leading retail presence in both Colorado and New Mexico. We are beginning to see positive momentum from our pricing and promotional strategy and will remain focused on driving operating efficiencies while further optimizing our assets as we consolidate cultivation facilities and eliminate underperforming stores that do not meet our high-margin thresholds. We believe these initiatives, coupled with our operating playbook and strict cost controls, will enable us to return to stronger levels of profitability moving forward.”
First Quarter 2024 Financial Summary
$ in Thousands USD |
Q1 2024 |
Q4 2023 |
Q1 2023 |
Total Revenue |
$41,601 |
$43,325 |
$40,001 |
Gross Profit |
$17,934 |
$7,034[1] |
$21,849 |
Operating Expenses |
$20,643 |
$23,276 |
$16,199 |
Income (Loss) from Operations |
$(2,709) |
$(16,242) |
$5,650 |
Adjusted EBITDA[2] |
$7,341 |
$10,953 |
$14,525 |
Operating Cash Flow |
$(3,700) |
$3,452 |
$(880) |
Recent Highlights
- Announced the grand opening of a medical and recreational dispensary in March under the Everest Apothecary banner in Las Cruces, New Mexico, increasing the Company’s retail footprint to 34 stores across the state.
- Increased wholesale penetration in the first quarter to more than 30% of total doors in Colorado and New Mexico.
- Lowell Herb Co. pre-roll sales increased more than 3x quarter-over-quarter in Colorado, where it continues to be the #1 pre-roll in the state.
- Wana gummy sales up more than 2x quarter-over-quarter in New Mexico.
First Quarter 2024 Financial Results
Total revenue in the first quarter of 2024 increased 4% to $41.6 million compared to $40.0 million for the same quarter last year. The increase was primarily due to growth from new stores compared to the prior year period, partially offset by continued pricing pressure and the proliferation of new licenses in New Mexico.
Gross profit for the first quarter of 2024 was $17.9 million or 43.1% of total revenue, compared to $21.8 million or 54.6% of total revenue for the same quarter last year. The decrease in gross margin was primarily driven by the aforementioned pricing pressure in New Mexico, as well as higher medical sales mix in Colorado.
____________________________ |
1 Q4 2023 Gross Profit includes one-time, non-cash inventory adjustments of approximately $13.1 million comprised of $3.1 million of product consolidation, obsolescence, and shrinkage expenses, $4.3 million of net realizable value adjustments, and $5.8 million of fair value adjustments on acquired inventory in New Mexico in 2023. |
Operating expenses for the first quarter of 2024 were $20.6 million compared to $16.2 million for the same quarter last year. The year-ago period benefitted from a payroll tax credit of $3.9M. The remaining increase was primarily driven by personnel expenses and four-wall SG&A costs associated with 21 additional stores in Colorado and New Mexico that are still ramping.
Loss from operations for the first quarter of 2024 was $2.7 million compared to income from operations of $5.6 million in the same quarter last year. Net loss was $16.1 million for the first quarter of 2024 compared to net income of $1.7 million for the same quarter last year.
Adjusted EBITDA for the first quarter of 2024 was $7.3 million compared to $14.5 million for the same quarter last year. The decrease in Adjusted EBITDA was primarily driven by lower gross margin and higher operating expenses associated with the 21 additional stores that are still ramping.
As of March 31, 2024, cash and cash equivalents were $13.2 million compared to $19.2 million on December 31, 2023. Total debt as of March 31, 2024, was $159.7 million compared to $156.8 million on December 31, 2023.
Conference Call
The Company will conduct a conference call today, May 15, 2024, at 5:00 p.m. Eastern time to discuss its results for the first quarter ended March 31, 2024.
Schwazze management will host the conference call, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call by emailing [email protected].
Date: Wednesday, May 15, 2024
Time: 5:00 p.m. Eastern time
Toll-free dial-in: (888) 664-6383
International dial-in: (416) 764-8650
Conference ID: 84167910
Webcast: SHWZ Q1 2024 Earnings Call
The conference call will also be broadcast live and available for replay on the investor relations section of the Company’s website at https://ir.schwazze.com.
Toll-free replay number: (888) 390-0541
International replay number: (416) 764-8677
Replay ID: 167910
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
About Schwazze
Schwazze (OTCQX: SHWZ) (Cboe CA: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to explore taking its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.
Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.
Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit https://schwazze.com/.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include financial outlooks; any projections of net sales, earnings, or other financial items; any statements of the strategies, plans and objectives of our management team for future operations; expectations in connection with the Company’s previously announced business plans; any statements regarding future economic conditions or performance; and statements regarding the intent, belief or current expectations of our management team. Such statements may be preceded by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intends,” “plans,” “strategy,” “prospects,” “anticipate,” “believe,” “approximately,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other words of similar meaning in connection with a discussion of future events or future operating or financial performance, although the absence of these words does not necessarily mean that a statement is not forward-looking. We have based our forward-looking statements on management’s current expectations and assumptions about future events and trends affecting our business and industry. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Therefore, forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services and the uncertainty in the application of federal, state, and local laws to our business, and any changes in such laws; (ii) our ability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (iii) our ability to identify, consummate, and integrate anticipated acquisitions; (iv) general industry and economic conditions; (v) our ability to access adequate capital upon terms and conditions that are acceptable to us; (vi) our ability to pay interest and principal on outstanding debt when due; (vii) volatility in credit and market conditions; (viii) the loss of one or more key executives or other key employees; and (ix) other risks and uncertainties related to the cannabis market and our business strategy. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.
Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
[email protected]
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
For the Periods Ended March 31, 2024 and December 31, 2023
Expressed in U.S. Dollars
March 31, |
December 31, |
||||
2024 |
2023 |
||||
ASSETS
|
|||||
Current Assets |
|||||
Cash & Cash Equivalents |
$ |
13,151,317 |
$ |
19,248,932 |
|
Accounts Receivable, net of Allowance for Doubtful Accounts |
3,356,032 |
4,261,159 |
|||
Inventory |
26,382,184 |
25,787,793 |
|||
Marketable Securities, net of Unrealized Loss of $347,516 and Loss of $1,816, respectively |
108,583 |
456,099 |
|||
Prepaid Expenses & Other Current Assets |
3,502,310 |
3,914,064 |
|||
Total Current Assets |
46,500,426 |
53,668,047 |
|||
Non-Current Assets |
|||||
Fixed Assets, net Accumulated Depreciation of $10,061,700 and $8,741,782, respectively |
31,326,000 |
31,113,630 |
|||
Investments |
2,000,000 |
2,000,000 |
|||
Investments Held for Sale |
– |
202,111 |
|||
Goodwill |
67,492,705 |
67,499,199 |
|||
Intangible Assets, net Accumulated Amortization of $36,483,160 and $32,706,765, respectively |
162,391,482 |
166,167,877 |
|||
Other Non-Current Assets |
1,328,187 |
1,263,837 |
|||
Operating Lease Right of Use Assets |
34,575,832 |
34,233,142 |
|||
Deferred Tax Assets, net |
992,144 |
1,996,489 |
|||
Total Non-Current Assets |
300,106,350 |
304,476,285 |
|||
Total Assets |
$ |
346,606,776 |
$ |
358,144,332 |
|
LIABILITIES & STOCKHOLDERS’ EQUITY
|
|||||
Current Liabilities |
|||||
Accounts Payable |
$ |
9,443,233 |
$ |
13,341,561 |
|
Accrued Expenses |
8,106,618 |
7,774,691 |
|||
Derivative Liabilities |
1,319,845 |
638,020 |
|||
Lease Liabilities – Current |
5,186,316 |
4,922,724 |
|||
Current Portion of Long Term Debt |
29,579,713 |
3,547,011 |
|||
Income Taxes Payable |
28,235,039 |
25,232,782 |
|||
Total Current Liabilities |
81,870,764 |
55,456,789 |
|||
Non-Current Liabilities |
|||||
Long Term Debt, net of Debt Discount & Issuance Costs |
130,120,753 |
153,262,203 |
|||
Lease Liabilities – Non-Current |
30,735,072 |
30,133,452 |
|||
Total Non-Current Liabilities |
160,855,825 |
183,395,655 |
|||
Total Liabilities |
$ |
242,726,589 |
$ |
238,852,444 |
|
Stockholders’ Equity |
|||||
Preferred Stock, $0.001 Par Value. 10,000,000 Shares Authorized; 82,185 Shares Issued and |
|||||
82,185 Outstanding as of March 31, 2024 and 85,534 Shares Issued and 85,534 Outstanding as of |
|||||
December 31, 2023. |
82 |
86 |
|||
Common Stock, $0.001 Par Value. 250,000,000 Shares Authorized; 79,168,539 Shares Issued |
|||||
and 78,248,389 Shares Outstanding as of March 31, 2024 and 74,888,392 Shares Issued |
|||||
and 73,968,242 Shares Outstanding as of December 31, 2023. |
79,169 |
74,888 |
|||
Additional Paid-In Capital |
202,677,665 |
202,040,968 |
|||
Accumulated Deficit |
(96,843,602) |
(80,790,927) |
|||
Common Stock Held in Treasury, at Cost, 920,150 Shares Held as of March 31, 2024 and |
|||||
920,150 Shares Held as of December 31, 2023. |
(2,033,127) |
(2,033,127) |
|||
Total Stockholders’ Equity |
103,880,187 |
119,291,888 |
|||
Total Liabilities & Stockholders’ Equity |
$ |
346,606,776 |
$ |
358,144,332 |
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND (LOSS)
For the Periods Ended March 31, 2024 and 2023
Expressed in U.S. Dollars
For the Three Months Ended |
|||||
March 31, |
|||||
2024 |
2023 |
||||
(Unaudited) |
(Unaudited) |
||||
Operating Revenues |
|||||
Retail |
$ |
37,633,252 |
$ |
35,820,111 |
|
Wholesale |
3,898,320 |
4,058,925 |
|||
Other |
69,421 |
121,900 |
|||
Total Revenue |
41,600,993 |
40,000,936 |
|||
Total Cost of Goods & Services |
23,667,319 |
18,152,163 |
|||
Gross Profit |
17,933,674 |
21,848,773 |
|||
Operating Expenses |
|||||
Selling, General and Administrative Expenses |
11,835,818 |
10,100,934 |
|||
Professional Services |
1,671,881 |
1,187,364 |
|||
Salaries |
6,880,988 |
4,695,971 |
|||
Stock Based Compensation |
253,916 |
214,544 |
|||
Total Operating Expenses |
20,642,603 |
16,198,813 |
|||
Income from Operations |
(2,708,929) |
5,649,960 |
|||
Other Income (Expense) |
|||||
Interest Expense, net |
(8,307,369) |
(7,745,854) |
|||
Unrealized Gain (Loss) on Derivative Liabilities |
(681,825) |
8,501,685 |
|||
Other Loss |
10,500 |
– |
|||
Loss on Investment |
(33,382) |
– |
|||
Unrealized Gain on Investment |
(347,516) |
1,816 |
|||
Total Other Income (Expense) |
(9,359,592) |
757,647 |
|||
Pre-Tax Net Income (Loss) |
(12,068,521) |
6,407,607 |
|||
Provision for Income Taxes |
3,984,154 |
4,662,178 |
|||
Net Income (Loss) |
$ |
(16,052,675) |
$ |
1,745,429 |
|
Less: Accumulated Preferred Stock Dividends for the Period |
(2,155,259) |
(2,029,394) |
|||
Net Income (Loss) Attributable to Common Stockholders |
$ |
(18,207,934) |
$ |
(283,965) |
|
Earnings (Loss) per Share Attributable to Common Stockholders |
|||||
Basic Earnings (Loss) per Share |
$ |
(0.24) |
$ |
(0.01) |
|
Diluted Earnings (Loss) per Share |
$ |
(0.24) |
$ |
(0.06) |
|
Weighted Average Number of Shares Outstanding – Basic |
76,006,932 |
55,835,501 |
|||
Weighted Average Number of Shares Outstanding – Diluted |
76,006,932 |
101,608,278 |
|||
Comprehensive Income (Loss) |
$ |
(16,052,675) |
$ |
1,745,429 |
MEDICINE MAN TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Periods Ended March 31, 2024 and 2023
Expressed in U.S. Dollars
For the Three Months Ended |
|||||
March 31, |
|||||
2024 |
2023 |
||||
(Unaudited) |
(Unaudited) |
||||
Cash Flows from Operating Activities: |
|||||
Net Income (Loss) for the Period |
$ |
(16,052,675) |
$ |
1,745,429 |
|
Adjustments to Reconcile Net Income (Loss) to Cash for Operating Activities |
|||||
Depreciation & Amortization |
5,096,314 |
6,151,395 |
|||
Non-Cash Interest Expense |
1,031,431 |
991,184 |
|||
Non-Cash Lease Expense |
2,871,226 |
2,251,459 |
|||
Deferred Taxes |
1,004,345 |
(637,225) |
|||
Loss on Investment |
202,111 |
– |
|||
Change in Derivative Liabilities |
681,825 |
(8,501,685) |
|||
Amortization of Debt Issuance Costs |
421,512 |
421,513 |
|||
Amortization of Debt Discount |
2,303,246 |
1,999,933 |
|||
(Gain) Loss on Investments, net |
347,516 |
(1,816) |
|||
Stock Based Compensation |
640,974 |
214,544 |
|||
Changes in Operating Assets & Liabilities (net of Acquired Amounts): |
|||||
Accounts Receivable |
905,127 |
(118,181) |
|||
Inventory |
(587,900) |
(3,023,251) |
|||
Prepaid Expenses & Other Current Assets |
411,754 |
(3,036,801) |
|||
Other Assets |
(64,350) |
360,674 |
|||
Change in Operating Lease Liabilities |
(2,348,703) |
(1,531,765) |
|||
Accounts Payable & Other Liabilities |
(3,566,401) |
(3,464,671) |
|||
Income Taxes Payable |
3,002,257 |
5,299,403 |
|||
Net Cash Provided by (Used in) Operating Activities |
(3,700,390) |
(879,861) |
|||
Cash Flows from Investing Activities: |
|||||
Collection of Notes Receivable |
– |
10,631 |
|||
Purchase of Fixed Assets |
(1,532,287) |
(2,913,394) |
|||
Net Cash Provided by (Used in) Investing Activities |
(1,532,287) |
(2,902,763) |
|||
Cash Flows from Financing Activities: |
|||||
Payment on Notes Payable |
(864,938) |
– |
|||
Net Cash Provided by (Used in) Financing Activities |
(864,938) |
– |
|||
Net (Decrease) in Cash & Cash Equivalents |
(6,097,615) |
(3,782,624) |
|||
Cash & Cash Equivalents at Beginning of Period |
19,248,932 |
38,949,253 |
|||
Cash & Cash Equivalents at End of Period |
$ |
13,151,317 |
$ |
35,166,628 |
|
Supplemental Disclosure of Cash Flow Information: |
|||||
Cash Paid for Interest |
$ |
4,515,205 |
$ |
6,540,748 |
MEDICINE MAN TECHNOLOGIES, INC.
ADJUSTED EBITDA RECONCILIATION (NON-GAAP)
For the Periods Ended March 31, 2024 and 2023
Expressed in U.S. Dollars
For the Three Months Ended |
|||||
March 31, |
|||||
2024 |
2023 |
||||
Net Income (Loss) |
$ |
(16,052,675) |
$ |
1,745,429 |
|
Interest Expense, net |
8,307,369 |
7,745,854 |
|||
Provision for Income Taxes |
3,984,154 |
4,662,178 |
|||
Other (Income) Expense, net of Interest Expense |
1,052,223 |
(8,503,501) |
|||
Depreciation & Amortization |
5,618,834 |
6,612,814 |
|||
Earnings Before Interest, Taxes, Depreciation and |
|||||
Amortization (EBITDA) (non-GAAP) |
$ |
2,909,905 |
$ |
12,262,774 |
|
Non-Cash Stock Compensation |
253,916 |
214,544 |
|||
Deal Related Expenses |
637,761 |
1,195,802 |
|||
Capital Raise Related Expenses |
20,760 |
35,068 |
|||
Severance |
484,561 |
118,436 |
|||
Retention Program Expenses |
807,500 |
280,632 |
|||
Pre-Operating & Dark Carry Expenses |
1,053,837 |
391,917 |
|||
One-Time Legal Settlements |
417,653 |
– |
|||
Other Non-Recurring Items |
754,751 |
25,707 |
|||
Adjusted EBITDA (non-GAAP) |
$ |
7,340,644 |
$ |
14,524,880 |
|
Revenue |
41,600,993 |
40,000,936 |
|||
Adjusted EBITDA Percent |
17.6 % |
36.3 % |
View original content:https://www.prnewswire.co.uk/news-releases/schwazze-announces-first-quarter-2024-financial-results-302146858.html
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