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Trex Company Reports First Quarter 2019 Results
Reading Time: 7 minutes
– Strong Demand for Trex Decking and Railing Continues –
– Product Mix in Line with Expectations –
– Consolidated and Residential Gross Margins Reflect New Product
Start-up Costs; Progressive Gross Margin Improvement Expected Throughout
2019 –
First Quarter Highlights
- Consolidated net sales increased 5% to $180 million
-
New product start-up costs and related manufacturing inefficiencies of
approximately $10 million in the quarter -
Consolidated gross margin of 38.6%, inclusive of new product start-up
impact of approximately 560 bps - Consolidated earnings per share of $0.54
WINCHESTER, Va.–(BUSINESS WIRE)–Trex Company, Inc. (NYSE: TREX), the world’s number-one brand of decking
and railing and leader in high-performance, low-maintenance outdoor
living products, and a leading national provider of custom-engineered
railing systems, today reported financial results for the first quarter
ended March 31, 2019.
First Quarter 2019 Results
Consolidated net sales for the first quarter of 2019 were $180 million,
reflecting a 5% year-over-year increase. Trex Residential Products net
sales increased 7% to $165 million. Trex Commercial Products contributed
an additional $14 million, compared to $16 million in the year
ago-quarter. Consolidated gross margin was 38.6%, representing gross
margins of 40.2% and 20.5%, respectively, from Trex Residential and Trex
Commercial. SG&A was $30 million, or 16.8% of sales.
Net income for the first quarter of 2019 was $32 million, or $0.54 per
diluted share, compared to $37 million, or $0.63 per diluted share
reported for last year’s first quarter.
“First quarter revenue growth was supported by strong demand for both
our legacy and new residential decking and railing products, resulting
in a product mix that was in line with our expectations. Startup costs
and related manufacturing inefficiencies associated with production of
our new Enhance Naturals and Basics decking unfavorably impacted
residential gross profit by approximately $10 million and significantly
reduced our throughput during the quarter. In March, we made a profile
change to our Trex Enhance decking board to increase throughput and
began to see substantially improved production rates at the end of the
quarter. Our capacity was also constrained by two equipment failures at
our Nevada facility during the first quarter which resulted in the loss
of two production lines for over thirty days each. We will experience
reduced throughput in Nevada during the second quarter as well, but we
expect the reduced throughput and related expenses to be behind us by
the end of June.
“Trex Commercial revenue was consistent with plan, and gross margin
showed year-over-year and sequential expansion of 280 and 210 basis
points, respectively, thanks to operational and organizational changes
that increased efficiencies, and the continued run-off of older
contracts,” noted James E. Cline, President and Chief Executive Officer.
Recent Recognitions
-
For the 12th consecutive year, Trex was named number one in “brand
familiarity,” “brand used most” and “brand used most in the past two
years” for the composite/PVC decking category in the 2019 Builder
magazine’s annual Brand Use Study. -
Trex Company was honored with Green Builder Media’s 2019 Readers’
Choice Award for manufacturing “greenest” decking. -
According to the recent PRODUCTS Brand Use Survey, Trex®
has been named the most preferred decking product among trade
professionals, outranking the traditional pressure-treated lumber.
Summary and Outlook
“Market conditions continue to be favorable, demand for Trex decking and
railing products remains very strong, and early data indicate that
interest in our new Enhance products is robust and broad-based. This
supports our expectation that the re-engineered and expanded line of
Trex Enhance composite decking has significantly increased the size of
our addressable market and will accelerate the conversion from wood. We
are focused on increasing production capabilities as we move through
2019, but as we have said previously, Trex Residential margin
performance for the first half of 2019 will continue to reflect start-up
costs associated with the new product production. We expect gross margin
to progressively increase throughout this year, although due to our
first quarter results and continued startup costs in the second quarter,
we are revising our incremental margin guidance to approximately 40% for
full year 2019. Second quarter consolidated gross margin is expected to
improve sequentially by approximately 300 basis points.
“Trex continued to execute on its long-term capital allocation
priorities in the first quarter and repurchased 125,000 shares for $8.7
million as part of the share buyback program approved by the Board of
Directors in February 2018.
“For the second quarter of 2019, we expect consolidated net sales in the
range of $195 million to $205 million, as we work toward meeting strong
market demand,” Mr. Cline concluded.
First Quarter 2019 Conference Call and Webcast Information
Trex will hold a conference call to discuss its first quarter 2019
results and other corporate matters on Monday, April 29, 2019 at 5:00
p.m. EDT. To participate on the day of the call, dial 1-877-270-2148, or
internationally 1-412-902-6510, approximately ten minutes before the
call and tell the operator you wish to join the Trex Company Conference
Call. A live webcast of the conference call will be available in the
Investor Relations section of the Trex Company website at 1Q19
Earnings Webcast. For those who cannot listen to the live broadcast,
an audio replay of the conference call will be available on the Trex
website for 30 days.
Forward-Looking Statements
The statements in this press release regarding the Company’s expected
future performance and condition constitute “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. These statements are
subject to risks and uncertainties that could cause the Company’s actual
operating results to differ materially. Such risks and uncertainties
include, but are not limited to, the extent of market acceptance of the
Company’s products; the costs associated with the development and launch
of new products and the market acceptance of such new products; the
sensitivity of the Company’s business to general economic conditions;
the impact of seasonal and weather-related demand fluctuations on
inventory levels in the distribution channel and sales of the Company’s
products; the availability and cost of third-party transportation
services for the Company’s products; the Company’s ability to obtain raw
materials at acceptable prices; the Company’s ability to maintain
product quality and product performance at an acceptable cost; the level
of expenses associated with product replacement and consumer relations
expenses related to product quality; the highly competitive markets in
which the Company operates; cyber-attacks, security breaches, or other
security vulnerabilities; and the impact of upcoming data privacy laws
and the EU General Data Protection Regulation and the related actual or
potential costs and consequences. Documents filed with the Securities
and Exchange Commission by the Company, including in particular its
latest annual report on Form 10-K and quarterly reports on Form 10-Q,
discuss some of the important factors that could cause the Company’s
actual results to differ materially from those expressed or implied in
these forward-looking statements. The Company expressly disclaims any
obligation to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise.
About Trex Company
Trex Company is the world’s largest manufacturer of high performance
wood-alternative decking and railing, with more than 25 years of product
experience. Stocked in more than 6,700 retail locations worldwide, Trex
outdoor living products offer a wide range of style options with fewer
ongoing maintenance requirements than wood, as well as a truly
environmentally responsible choice. Also, Trex is a leading national
provider of custom-engineered railing and staging systems for the
commercial and multi-family market, including performing arts venues and
sports stadiums. For more information, visit trex.com.
| TREX COMPANY, INC. | |||||||||
| Condensed Consolidated Statements of Comprehensive Income | |||||||||
| (In thousands, except share and per share data) | |||||||||
|
Three Months Ended
March 31, |
|||||||||
| 2019 | 2018 | ||||||||
| (Unaudited) | |||||||||
| Net sales | $ | 179,571 | $ | 171,207 | |||||
| Cost of sales | 110,206 | 94,494 | |||||||
| Gross profit | 69,365 | 76,713 | |||||||
| Selling, general and administrative expenses | 30,166 | 28,959 | |||||||
| Income from operations | 39,199 | 47,754 | |||||||
| Interest (income) expense, net | (56 | ) | 229 | ||||||
| Income before income taxes | 39,255 | 47,525 | |||||||
| Provision for income taxes | 7,700 | 10,415 | |||||||
| Net income | $ | 31,555 | $ | 37,110 | |||||
| Basic earnings per common share | $ | 0.54 | $ | 0.63 | |||||
| Basic weighted average common shares outstanding | 58,543,478 | 58,855,156 | |||||||
| Diluted earnings per common share | $ | 0.54 | $ | 0.63 | |||||
| Diluted weighted average common shares outstanding | 58,829,177 | 59,199,622 | |||||||
| Comprehensive income | $ | 31,555 | $ | 37,110 | |||||
| TREX COMPANY, INC. | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (In thousands, except share data) | ||||||||||
|
March 31, |
December 31, | |||||||||
| 2019 | 2018 | |||||||||
| ASSETS | (Unaudited) | |||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 7,907 | $ | 105,699 | ||||||
| Accounts receivable, net | 219,345 | 91,163 | ||||||||
| Inventories | 50,156 | 57,801 | ||||||||
| Prepaid expenses and other assets | 13,877 | 15,562 | ||||||||
| Total current assets | 291,285 | 270,225 | ||||||||
| Property, plant and equipment, net | 122,492 | 117,144 | ||||||||
| Goodwill and other intangibles | 74,399 | 74,503 | ||||||||
| Operating lease assets | 44,251 | — | ||||||||
| Other assets | 3,218 | 3,250 | ||||||||
| Total assets | $ | 535,645 | $ | 465,122 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 23,528 | $ | 31,084 | ||||||
| Accrued expenses and other liabilities | 42,647 | 56,291 | ||||||||
| Accrued warranty | 5,400 | 5,400 | ||||||||
| Line of credit | 35,000 | — | ||||||||
| Total current liabilities | 106,575 | 92,775 | ||||||||
| Operating lease liabilities | 38,764 | — | ||||||||
| Deferred income taxes | 2,125 | 2,125 | ||||||||
| Non-current accrued warranty | 24,934 | 25,354 | ||||||||
| Other long-term liabilities | 90 | 1,905 | ||||||||
| Total liabilities | 172,488 | 122,159 | ||||||||
|
Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding |
— | — | ||||||||
|
Common stock, $0.01 par value, 120,000,000 shares authorized; 70,109,157 and 69,998,336 shares issued and 58,537,485 and 58,551,653 shares outstanding at March 31, 2019 and December 31, 2018, respectively |
701 | 700 | ||||||||
| Additional paid-in capital | 121,592 | 124,224 | ||||||||
| Retained earnings | 448,497 | 416,942 | ||||||||
|
Treasury stock, at cost, 11,571,672 and 11,446,683 shares at March 31, 2019 and December 31, 2018, respectively |
(207,633 | ) | (198,903 | ) | ||||||
| Total stockholders’ equity | 363,157 | 342,963 | ||||||||
| Total liabilities and stockholders’ equity | $ | 535,645 | $ | 465,122 | ||||||
| TREX COMPANY, INC. | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
|
Three Months Ended
March 31, |
||||||||||
| 2019 | 2018 | |||||||||
| (unaudited) | ||||||||||
| Operating Activities | ||||||||||
| Net income | $ | 31,555 | $ | 37,110 | ||||||
|
Adjustments to reconcile net income to net cash used in operating |
||||||||||
| Depreciation and amortization | 3,425 | 4,765 | ||||||||
| Stock-based compensation | 2,793 | 2,295 | ||||||||
| Loss (gain) on disposal of property, plant and equipment | 10 | (22 | ) | |||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable | (128,182 | ) | (139,643 | ) | ||||||
| Inventories | 7,645 | (7,928 | ) | |||||||
| Prepaid expenses and other assets | 1,214 | 118 | ||||||||
| Accounts payable | (7,556 | ) | 13,770 | |||||||
| Accrued expenses and other liabilities | (27,332 | ) | (18,972 | ) | ||||||
| Income taxes receivable/payable | 6,438 | 10,399 | ||||||||
| Net cash used in operating activities | (109,990 | ) | (98,108 | ) | ||||||
| Investing Activities | ||||||||||
| Expenditures for property, plant and equipment | (8,647 | ) | (5,435 | ) | ||||||
| Proceeds from sales of property, plant and equipment | – | 24 | ||||||||
| Net cash used in investing activities | (8,647 | ) | (5,411 | ) | ||||||
| Financing Activities | ||||||||||
| Borrowings under line of credit | 35,000 | 92,500 | ||||||||
| Principal payments under line of credit | – | (8,000 | ) | |||||||
| Repurchases of common stock | (14,457 | ) | (8,993 | ) | ||||||
| Proceeds from employee stock purchase and option plans | 302 | 197 | ||||||||
| Net cash provided by financing activities | 20,845 | 75,704 | ||||||||
| Net decrease in cash and cash equivalents | (97,792 | ) | (27,815 | ) | ||||||
| Cash and cash equivalents at beginning of period | 105,699 | 30,514 | ||||||||
| Cash and cash equivalents at end of period | $ | 7,907 | $ | 2,699 | ||||||
Contacts
Bryan Fairbanks
Exec. Vice President and CFO
540-542-6300
Lynn Morgen/Viktoriia Nakhla
ADVISIRY PARTNERS
212-750-5800
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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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