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j2 Global Reports First Quarter 2019 Results
Reading Time: 13 minutes
Achieves Record First Quarter Revenues & Raises Full Year 2019
Estimates
Announces Adjustment to Dividend Policy to
Accelerate Growth
LOS ANGELES–(BUSINESS WIRE)–j2 Global, Inc. (NASDAQ: JCOM) today reported financial results for the
first quarter ended March 31, 2019; increased its revenue, Adjusted
EBITDA and Adjusted Non-GAAP earnings per diluted share estimates for
the year. j2 also announced that its Board of Directors has approved a
dividend to be paid on June 4, 2019, and, based on the Board’s view of
the strength and prospects of investment opportunities across the
Company, has decided to suspend dividend payments following the June 4,
2019 dividend to retain and redirect that cash flow to enhance the
growth of our various businesses.
“Our portfolio of businesses – and the leadership managing it – has
never been stronger or deeper,” said Vivek Shah, CEO of j2 Global. “It’s
reflected in our first quarter results, our improved outlook for the
remainder of the year and the breadth of promising investment
opportunities in front of us. It’s why we are confident that by
suspending our dividend, we can prudently direct the increasing cash
flow to opportunities within our businesses to create greater
shareholder returns over the near, medium and long term.”
FIRST QUARTER 2019 RESULTS
Q1 2019 quarterly revenues increased 6.9% to a first quarter record of
$299.9 million compared to $280.6 million for Q1 2018.
Net cash provided by operating activities increased to $116.9 million
compared to $103.9 million for Q1 2018. Q1 2019 free cash flow(1) increased
15.0% to $104.3 million compared to $90.7 million for Q1 2018.
GAAP earnings per diluted share(2) increased 73.7% to $0.66
in Q1 2019 compared to $0.38 for Q1 2018.
Adjusted non-GAAP earnings per diluted share(2)(3) for the
quarter increased 14.8% to $1.40 compared to $1.22 for Q1 2018.
GAAP net income increased by 71.4% to $32.4 million compared to $18.9
million for Q1 2018.
Quarterly Adjusted EBITDA(4) increased 10.9% to $113.9
million compared to $102.7 million for Q1 2018.
j2 ended the quarter with approximately $320 million in cash and
investments after deploying approximately $82 million during the quarter
for acquisitions and j2’s regular quarterly dividend.
Key financial results for Q1 2019 versus Q1 2018 are set forth in the
following table (in millions, except per share amounts). Reconciliations
of Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and
free cash flow to their nearest comparable GAAP financial measures are
attached to this Press Release.
| Q1 2019 | Q1 2018 | % Change | ||||||||||
| Revenues | ||||||||||||
| Cloud Services | $152.2 million | $149.5 million | 1.8% | |||||||||
| Digital Media | $147.6 million | $131.1 million | 12.6% | |||||||||
|
Total Revenue: |
$299.9 million | $280.6 million | 6.9% | |||||||||
| Operating Income | $50.9 million | $46.2 million | 10.2% | |||||||||
| Net Cash Provided by Operating Activities | $116.9 million | $103.9 million | 12.5% | |||||||||
| Free Cash Flow (1) | $104.3 million | $90.7 million | 15.0% | |||||||||
| GAAP Earnings per Diluted Share (2) | $0.66 | $0.38 | 73.7% | |||||||||
| Adjusted Non-GAAP Earnings per Diluted Share (2) (3) | $1.40 | $1.22 | 14.8% | |||||||||
| GAAP Net Income | $32.4 million | $18.9 million | 71.4% | |||||||||
| Adjusted Non-GAAP Net Income | $68.4 million | $59.8 million | 14.4% | |||||||||
| Adjusted EBITDA (4) | $113.9 million | $102.7 million | 10.9% | |||||||||
| Adjusted EBITDA Margin (4) | 38.0% | 36.6% | 1.4% | |||||||||
BUSINESS OUTLOOK
For fiscal 2019, the Company is increasing its estimates that it will
achieve revenues between $1.33 billion and $1.37 billion from between
$1.29 billion and $1.33 billion, Adjusted EBITDA between $540 million
and $556 million from between $520 million and $540 million, and
Adjusted non-GAAP earnings per diluted share of between $6.95 and $7.15
from between $6.65 and $6.95.
Adjusted non-GAAP earnings per diluted share for 2019 excludes
share-based compensation of between $23 million and $27 million,
amortization of acquired intangibles and the impact of any currently
unanticipated items, in each case net of tax.
It is anticipated that the non-GAAP effective tax rate for 2019
(exclusive of the release of reserves for uncertain tax positions) will
be between 20.5% and 22.5%.
The Company has not reconciled the Adjusted non-GAAP earnings per
diluted share and tax rate guidance included in this release to the most
directly comparable GAAP measure because this cannot be done without
unreasonable effort due to the variability with respect to costs related
to acquisitions and taxation, which are potential adjustments to future
earnings. We expect the variability of these items to have a potentially
unpredictable and significant impact on our future GAAP financial
results.
DIVIDEND
j2’s Board of Directors approved a quarterly cash dividend of $0.4550
per common share, a $0.01, or 2.2% increase versus last quarter’s
dividend, to be paid on June 4, 2019 to all shareholders of record as of
the close of business on May 20, 2019. Based on the significant number
of current investment opportunities within j2’s portfolio of businesses
and the historic returns from prior investments, the Board has decided
to suspend dividend payments for the foreseeable future after the June
4, 2019 payment to retain and redirect that cash flow to enhance the
growth of our various businesses.
Notes:
| (1) |
Free cash flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus contingent consideration. Free cash flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes. |
|||||||
| (2) |
The estimated GAAP effective tax rates were approximately (0.9)% for Q1 2019 and 27.1% for Q1 2018. The estimated Adjusted non-GAAP effective tax rates were approximately 20.9% for Q1 2019 and 23.7% for Q1 2018. |
|||||||
| (3) |
Adjusted non-GAAP earnings per diluted share excludes certain non-GAAP items, as defined in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures, for the three months ended March 31, 2019 and 2018 totaled $0.74 and $0.84 per diluted share, respectively. |
|||||||
| (4) |
Adjusted EBITDA is defined as earnings before interest and other expense, net; income tax expense; depreciation and amortization; and the items used to reconcile EPS to Adjusted non-GAAP EPS, as defined in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures. Adjusted EBITDA amounts are not meant as a substitute for GAAP, but are solely for informational purposes. |
|||||||
About j2 Global
j2 Global, Inc. (NASDAQ: JCOM) is a leading internet information and
services company consisting of a portfolio of brands including IGN,
Mashable, Humble Bundle, Speedtest, PCMag, Offers.com, Everyday Health
and What To Expect in its Digital Media business and eFax, eVoice,
Campaigner, Vipre, KeepItSafe and Livedrive in its Cloud Services
business. j2 reaches over 180 million people per month across its
brands. As of December 31, 2018, j2 had achieved 23 consecutive fiscal
years of revenue growth. For more information about j2, please visit www.j2global.com.
“Safe Harbor” Statement Under the Private Securities Litigation
Reform Act of 1995: Certain statements in this Press Release are
“forward-looking statements” within the meaning of The Private
Securities Litigation Reform Act of 1995, including those contained in
Vivek Shah’s quote and the “Business Outlook” portion regarding the
Company’s expected fiscal 2019 financial performance. These
forward-looking statements are based on management’s current
expectations or beliefs and are subject to numerous assumptions, risks
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. These factors
and uncertainties include, among other items: the Company’s ability to
grow non-fax revenues, profitability and cash flows; the Company’s
ability to identify, close and successfully transition acquisitions;
subscriber growth and retention; variability of the Company’s revenue
based on changing conditions in particular industries and the economy
generally; protection of the Company’s proprietary technology or
infringement by the Company of intellectual property of others; the risk
of adverse changes in the U.S. or international regulatory environments,
including but not limited to the imposition or increase of taxes or
regulatory-related fees; and the numerous other factors set forth in j2
Global’s filings with the Securities and Exchange Commission (“SEC”).
For a more detailed description of the risk factors and uncertainties
affecting j2 Global, refer to the 2018 Annual Report on Form 10-K filed
by j2 Global on March 1, 2019, and the other reports filed by j2 Global
from time-to-time with the SEC, each of which is available at www.sec.gov.
The forward-looking statements provided in this press release, including
those contained in Vivek Shah’s quote and in the “Business Outlook”
portion regarding the Company’s expected fiscal 2019 financial
performance are based on limited information available to the Company at
this time, which is subject to change. Although management’s
expectations may change after the date of this press release, the
Company undertakes no obligation to revise or update these statements.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared
and presented in accordance with GAAP, we use the following Adjusted
non-GAAP financial measures: Adjusted non-GAAP net income, Adjusted
non-GAAP earnings per diluted share, Adjusted EBITDA and free cash flow.
The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP.
We use these Adjusted non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate period-to-period
comparisons. Our management believes that these Adjusted non-GAAP
financial measures provide meaningful supplemental information regarding
our performance and liquidity by excluding certain expenses and
expenditures that may not be indicative of our recurring core business
operating results. We believe that both management and investors benefit
from referring to these Adjusted non-GAAP financial measures in
assessing our performance and when planning, forecasting, and analyzing
future periods. These Adjusted non-GAAP financial measures also
facilitate management’s internal comparisons to our historical
performance and liquidity. We believe these Adjusted non-GAAP financial
measures are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision-making and (2) they are used by our
institutional investors and the analyst community to help them analyze
the health of our business.
For more information on these Adjusted non-GAAP financial measures,
please see the appropriate GAAP to Adjusted non-GAAP reconciliation
tables included within the attached Exhibit to this release.
|
j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS) |
||||||||||||||||||
| March 31, 2019 | December 31, 2018 | |||||||||||||||||
| ASSETS | ||||||||||||||||||
| Cash and cash equivalents | $ | 226,612 | $ | 209,474 | ||||||||||||||
|
Accounts receivable, net of allowances of $11,152 and $10,422, respectively |
176,741 | 221,615 | ||||||||||||||||
| Prepaid expenses and other current assets | 32,208 | 29,242 | ||||||||||||||||
| Total current assets | 435,561 | 460,331 | ||||||||||||||||
| Long-term investments | 93,731 | 83,828 | ||||||||||||||||
| Property and equipment, net | 104,635 | 98,813 | ||||||||||||||||
| Operating lease right-of-use assets | 69,289 | — | ||||||||||||||||
| Goodwill | 1,415,635 | 1,380,376 | ||||||||||||||||
| Other purchased intangibles, net | 513,454 | 526,468 | ||||||||||||||||
| Other assets | 10,608 | 11,014 | ||||||||||||||||
| TOTAL ASSETS | $ | 2,642,913 | $ | 2,560,830 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||
| Accounts payable and accrued expenses | $ | 186,964 | $ | 166,521 | ||||||||||||||
| Income taxes payable, current | 10,641 | 12,915 | ||||||||||||||||
| Deferred revenue, current | 129,964 | 127,568 | ||||||||||||||||
| Operating lease liabilities, current | 5,378 | — | ||||||||||||||||
| Other current liabilities | 2,013 | 318 | ||||||||||||||||
| Total current liabilities | 334,960 | 307,322 | ||||||||||||||||
| Long-term debt | 1,015,967 | 1,013,129 | ||||||||||||||||
| Deferred revenue, noncurrent | 11,839 | 13,200 | ||||||||||||||||
| Operating lease liabilities, noncurrent | 68,189 | — | ||||||||||||||||
| Income taxes payable, noncurrent | 11,675 | 11,675 | ||||||||||||||||
| Liability for uncertain tax positions | 54,096 | 59,644 | ||||||||||||||||
| Deferred income taxes, noncurrent | 68,103 | 69,048 | ||||||||||||||||
| Other long-term liabilities | 21,430 | 51,068 | ||||||||||||||||
| TOTAL LIABILITIES | 1,586,259 | 1,525,086 | ||||||||||||||||
| Commitments and contingencies | — | — | ||||||||||||||||
| Preferred stock | — | — | ||||||||||||||||
| Common stock | 477 | 481 | ||||||||||||||||
| Additional paid-in capital | 358,932 | 354,210 | ||||||||||||||||
| Treasury stock | — | (42,543 | ) | |||||||||||||||
| Retained earnings | 742,173 | 769,575 | ||||||||||||||||
| Accumulated other comprehensive loss | (44,928 | ) | (45,979 | ) | ||||||||||||||
| TOTAL STOCKHOLDERS’ EQUITY | 1,056,654 | 1,035,744 | ||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,642,913 | $ | 2,560,830 | ||||||||||||||
|
j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) |
|||||||||||||||||
|
Three Months Ended March 31, |
|||||||||||||||||
| 2019 | 2018 | ||||||||||||||||
| Total revenues | $ | 299,893 | $ | 280,623 | |||||||||||||
| Cost of revenues (1) | 51,013 | 48,145 | |||||||||||||||
| Gross profit | 248,880 | 232,478 | |||||||||||||||
| Operating expenses: | |||||||||||||||||
| Sales and marketing (1) | 86,880 | 86,311 | |||||||||||||||
| Research, development and engineering (1) | 12,984 | 12,210 | |||||||||||||||
| General and administrative (1) | 98,154 | 87,799 | |||||||||||||||
| Total operating expenses | 198,018 | 186,320 | |||||||||||||||
| Income from operations | 50,862 | 46,158 | |||||||||||||||
| Interest expense, net | 16,019 | 15,751 | |||||||||||||||
| Other expense, net | 2,215 | 4,519 | |||||||||||||||
|
Income before income taxes and net loss in earnings of equity method investment |
32,628 | 25,888 | |||||||||||||||
| Income tax (benefit) expense | (295 | ) | 7,017 | ||||||||||||||
| Net loss in earnings of equity method investment | 474 | — | |||||||||||||||
| Net income | $ | 32,449 | $ | 18,871 | |||||||||||||
| Basic net income per common share: | |||||||||||||||||
| Net income attributable to j2 Global, Inc. common shareholders | $ | 0.67 | $ | 0.39 | |||||||||||||
| Diluted net income per common share: | |||||||||||||||||
| Net income attributable to j2 Global, Inc. common shareholders | $ | 0.66 | $ | 0.38 | |||||||||||||
| Basic weighted average shares outstanding | 47,560,749 | 47,873,007 | |||||||||||||||
| Diluted weighted average shares outstanding | 48,509,181 | 48,706,717 | |||||||||||||||
| (1) Includes share-based compensation expense as follows: | |||||||||||||||||
| Cost of revenues | $ | 132 | $ | 121 | |||||||||||||
| Sales and marketing | 404 | 365 | |||||||||||||||
| Research, development and engineering | 358 | 432 | |||||||||||||||
| General and administrative | 4,192 | 5,502 | |||||||||||||||
| Total | $ | 5,086 | $ | 6,420 | |||||||||||||
|
j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS) |
|||||||||||||||||
|
Three Months Ended March 31, |
|||||||||||||||||
| 2019 | 2018 | ||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 32,449 | $ | 18,871 | |||||||||||||
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|||||||||||||||||
| Depreciation and amortization | 49,209 | 42,618 | |||||||||||||||
| Amortization of financing costs and discounts | 2,965 | 2,852 | |||||||||||||||
| Amortization of operating lease assets | 4,796 | — | |||||||||||||||
| Share-based compensation | 5,086 | 6,420 | |||||||||||||||
| Provision for doubtful accounts | 2,888 | 4,134 | |||||||||||||||
| Deferred income taxes, net | 548 | 354 | |||||||||||||||
| Changes in fair value of contingent consideration | 5,003 | 4,100 | |||||||||||||||
| Loss on equity investments | 628 | 3,678 | |||||||||||||||
| Decrease (increase) in: | |||||||||||||||||
| Accounts receivable | 41,926 | 59,647 | |||||||||||||||
| Prepaid expenses and other current assets | (2,143 | ) | 2,574 | ||||||||||||||
| Other assets | (144 | ) | 2,132 | ||||||||||||||
| Increase (decrease) in: | |||||||||||||||||
| Accounts payable and accrued expenses | (11,550 | ) | (45,144 | ) | |||||||||||||
| Income taxes payable | (2,333 | ) | (1,721 | ) | |||||||||||||
| Deferred revenue | (2,352 | ) | 3,210 | ||||||||||||||
| Operating lease liabilities | (518 | ) | — | ||||||||||||||
| Liability for uncertain tax positions | (5,464 | ) | 933 | ||||||||||||||
| Other long-term liabilities | (4,140 | ) | (748 | ) | |||||||||||||
| Net cash provided by operating activities | 116,854 | 103,910 | |||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of equity method investment | (9,794 | ) | (13,403 | ) | |||||||||||||
| Purchases of property and equipment | (12,531 | ) | (13,165 | ) | |||||||||||||
| Acquisition of businesses, net of cash received | (59,339 | ) | (80,223 | ) | |||||||||||||
| Purchases of intangible assets | — | (175 | ) | ||||||||||||||
| Net cash used in investing activities | (81,664 | ) | (106,966 | ) | |||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Repurchase of common stock | (1,177 | ) | (611 | ) | |||||||||||||
| Issuance of stock, net of costs | 5,259 | 658 | |||||||||||||||
| Dividends paid | (21,483 | ) | (19,884 | ) | |||||||||||||
| Deferred payments for acquisitions | (1,395 | ) | (189 | ) | |||||||||||||
| Other | (480 | ) | (54 | ) | |||||||||||||
| Net cash used in financing activities | (19,276 | ) | (20,080 | ) | |||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1,224 | 3,960 | |||||||||||||||
| Net change in cash and cash equivalents | 17,138 | (19,176 | ) | ||||||||||||||
| Cash and cash equivalents at beginning of period | 209,474 | 350,945 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 226,612 | $ | 331,769 | |||||||||||||
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES |
|
THREE MONTHS ENDED MARCH 31, 2019 AND 2018 |
|
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
|
Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation and the associated payroll tax expense; (2) elimination of certain acquisition related integration costs; (3) elimination of interest costs in excess of the coupon rate associated with the convertible notes; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; and (7) elimination of dilutive effect of the convertible debt. |
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2019 |
Per Diluted Share * |
2018 |
Per Diluted Share * |
||||||||||||||||||||
| Net income | $ | 32,449 | $ | 0.66 | $ | 18,871 | $ | 0.38 | |||||||||||||||
| Plus: | |||||||||||||||||||||||
| Share based compensation (1) | 3,287 | 0.07 | 4,935 | 0.10 | |||||||||||||||||||
| Acquisition related integration costs (2) | 4,377 | 0.09 | 5,878 | 0.12 | |||||||||||||||||||
| Interest costs (3) | 1,296 | 0.03 | 1,610 | 0.03 | |||||||||||||||||||
| Amortization (4) | 25,504 | 0.54 | 26,370 | 0.55 | |||||||||||||||||||
| Investments (5) | 474 | — | 2,120 | 0.04 | |||||||||||||||||||
| Tax expense from prior years (6) | 1,009 | 0.02 | — | — | |||||||||||||||||||
| Convertible debt dilution (7) | — | 0.01 | — | 0.01 | |||||||||||||||||||
| Adjusted non-GAAP net income | $ | 68,396 | $ | 1.40 | $ | 59,784 | $ | 1.22 | |||||||||||||||
* The reconciliation of net income per share from GAAP to
Adjusted non-GAAP may not foot since each is calculated independently.
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES |
|
THREE MONTHS ENDED MARCH 31, 2019 AND 2018 |
|
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
|
Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation and the associated payroll tax expense; (2) elimination of certain acquisition related integration costs; (3) elimination of interest costs in excess of the coupon rate associated with the convertible notes; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; and (7) elimination of dilutive effect of the convertible debt. |
| Three Months Ended March 31, | ||||||||||||||||||
| 2019 | 2018 | |||||||||||||||||
| Cost of revenues | $ | 51,013 | $ | 48,145 | ||||||||||||||
| Plus: | ||||||||||||||||||
| Share based compensation (1) | (132 | ) | (121 | ) | ||||||||||||||
| Amortization (4) | (523 | ) | (594 | ) | ||||||||||||||
| Adjusted non-GAAP cost of revenues | $ | 50,358 | $ | 47,430 | ||||||||||||||
| Sales and marketing | $ | 86,880 | $ | 86,311 | ||||||||||||||
| Plus: | ||||||||||||||||||
| Share based compensation (1) | (404 | ) | (365 | ) | ||||||||||||||
| Acquisition related integration costs (2) | 122 | (440 | ) | |||||||||||||||
| Adjusted non-GAAP sales and marketing | $ | 86,598 | $ | 85,506 | ||||||||||||||
| Research, development and engineering | $ | 12,984 | $ | 12,210 | ||||||||||||||
| Plus: | ||||||||||||||||||
| Share based compensation (1) | (358 | ) | (432 | ) | ||||||||||||||
| Acquisition related integration costs (2) | — | (97 | ) | |||||||||||||||
| Adjusted non-GAAP research, development and engineering | $ | 12,626 | $ | 11,681 | ||||||||||||||
| General and administrative | $ | 98,154 | $ | 87,799 | ||||||||||||||
| Plus: | ||||||||||||||||||
| Share based compensation (1) | (4,192 | ) | (5,502 | ) | ||||||||||||||
| Acquisition related integration costs (2) | (5,487 | ) | (6,936 | ) | ||||||||||||||
| Amortization (4) | (37,320 | ) | (33,151 | ) | ||||||||||||||
| Tax expense from prior years (6) | (3,373 | ) | — | |||||||||||||||
| Adjusted non-GAAP general and administrative | $ | 47,782 | $ | 42,210 | ||||||||||||||
| Interest expense, net | $ | 16,019 | $ | 15,751 | ||||||||||||||
| Plus: | ||||||||||||||||||
| Acquisition related integration costs (2) | 27 | (23 | ) | |||||||||||||||
| Interest costs (3) | (2,242 | ) | (2,116 | ) | ||||||||||||||
| Adjusted non-GAAP interest expense, net | $ | 13,804 | $ | 13,612 | ||||||||||||||
| Other expense, net | $ | 2,215 | $ | 4,519 | ||||||||||||||
| Plus: | ||||||||||||||||||
| Investments (5) | — | (2,702 | ) | |||||||||||||||
| Adjusted non-GAAP other expense, net | $ | 2,215 | $ | 1,817 | ||||||||||||||
| Income tax provision | $ | (295 | ) | $ | 7,017 | |||||||||||||
| Plus: | ||||||||||||||||||
| Share based compensation (1) | 1,799 | 1,485 | ||||||||||||||||
| Acquisition related integration costs (2) | 961 | 1,618 | ||||||||||||||||
| Interest costs (3) | 946 | 506 | ||||||||||||||||
| Amortization (4) | 12,339 | 7,375 | ||||||||||||||||
| Investments (5) | — | 582 | ||||||||||||||||
| Tax expense from prior years (6) | 2,364 | — | ||||||||||||||||
| Adjusted non-GAAP income tax provision | $ | 18,114 | $ | 18,583 | ||||||||||||||
| Net loss in earnings of equity method investment | $ | 474 | $ | — | ||||||||||||||
| Plus: | ||||||||||||||||||
| Investments (5) | (474 | ) | — | |||||||||||||||
| Adjusted non-GAAP net loss in earnings of equity method investment | $ | — | $ | — | ||||||||||||||
| Total adjustments | $ | (35,947 | ) | $ | (40,913 | ) | ||||||||||||
| GAAP earnings per diluted share | $ | 0.66 | $ | 0.38 | ||||||||||||||
| Adjustments * | $ | 0.74 | $ | 0.84 | ||||||||||||||
| Adjusted non-GAAP earnings per diluted share | $ | 1.40 | $ | 1.22 | ||||||||||||||
* The reconciliation of net income per share from GAAP to
Adjusted non-GAAP may not foot since each is calculated independently.
The Company discloses Adjusted non-GAAP Earnings Per Share (“EPS”) as a
supplemental Non-GAAP financial performance measure, as it believes it
is a useful metric by which to compare the performance of its business
from period to period. The Company also understands that this Adjusted
non-GAAP measure is broadly used by analysts, rating agencies and
investors in assessing the Company’s performance. Accordingly, the
Company believes that the presentation of this Adjusted non-GAAP
financial measure provides useful information to investors.
Adjusted non-GAAP EPS is not in accordance with, or an alternative to,
net income per share and may be different from Non-GAAP measures with
similar or even identical names used by other companies. In addition,
this Adjusted non-GAAP measure is not based on any comprehensive set of
accounting rules or principles. This Adjusted non-GAAP measure has
limitations in that it does not reflect all of the amounts associated
with the Company’s results of operations determined in accordance with
GAAP.
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are
prepared and presented in accordance with US GAAP, the Company uses the
following Non-GAAP financial measures: Adjusted EBITDA, Adjusted
non-GAAP Net Income, and Adjusted non-GAAP Diluted EPS (collectively the
“Non-GAAP financial measures”). The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared and
presented in accordance with U.S. GAAP. The Company uses these Non-GAAP
financial measures for financial and operational decision making and as
a means to evaluate period-to-period comparisons. The Company believes
that they provide useful information about core operating results,
enhance the overall understanding of past financial performance and
future prospects, and allow for greater transparency with respect to key
metrics used by management in its financial and operational decision
making.
(1) Share Based Compensation. The Company excludes stock-based
compensation because it is non-cash in nature and because the Company
believes that the Non-GAAP financial measures excluding this item
provide meaningful supplemental information regarding operational
performance. The Company further believes this measure is useful to
investors in that it allows for greater transparency to certain line
items in its financial statements. In addition, excluding this item from
the Non-GAAP measures facilitates comparisons to historical operating
results and comparisons to peers, many of which similarly exclude this
item.
(2) Acquisition Related Integration Costs. The Company excludes
certain acquisition and related integration costs such as adjustments to
contingent consideration, severance, lease terminations, retention
bonuses and other acquisition-specific items. The Company believes that
the Non-GAAP financial measures excluding this item provide meaningful
supplemental information regarding operational performance.
Contacts
Scott Turicchi
j2 Global, Inc.
800-577-1790
[email protected]
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Cannabis
Medical Cannabis Market Report 2024-2030: Asia-Pacific Set to Witness Robust Growth, Driven by R&D Discovery Initiatives
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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