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Renesas Electronics Reports First Quarter 2019 Financial Results
Reading Time: 8 minutes
Due to Weakening Market and Channel Inventory Adjustments, First
Quarter Revenue Decreased Year-on-Year
Second Quarter Revenue to See Significant Increase from IDT
Integration and Seasonality
Renesas to Pursue Continued Thorough Cost and Cash Management in
Preparation Against Continuing Weak End Demands
-
Q1 2019: Non-GAAP(1) revenue from semiconductors of 146.7
billion yen, down 19.4% year-on-year. Non-GAAP gross margin of 39.3%,
down 8.2 points year-on-year and Non-GAAP operating profits (margin)
of 7.2 billion yen (4.8%), down 22.9 billion yen (11.4 points)
year-on-year. -
Outlook for Q2 2019: Non-GAAP revenue from semiconductors within the
range of 181.5 billion and 189.5 billion yen with the IDT integration(2).
Non-GAAP gross margin of 43.5%, based on the midpoint of forecasted
revenue.
TOKYO–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/earnings?src=hash” target=”_blank”gt;#earningslt;/agt;–Renesas Electronics Corporation (TSE:6723, “Renesas”), a premier
supplier of advanced semiconductor solutions, today reported the
financial results for the first quarter ended March 31, 2019 (January 1,
2019 to March 31, 2019).
“In our first quarter, our non-GAAP revenue from semiconductors
decreased by 19.4% year-on-year, and the non-GAAP gross margin decreased
by 8.2 points on a year-on-year basis. Impacts from the weak market
conditions as well as our continued efforts to achieve optimal inventory
levels at our channels led to these decreases,” said Bunsei Kure,
Representative Director, President and CEO, Renesas Electronics
Corporation. “For the second quarter ending June 30, 2019, although
revenue from semiconductors is expected to increase significantly on a
sequential basis from to the IDT integration and seasonality, we expect
sales to decrease in light of the continued weak markets surrounding
industrial applications on a year-on-year basis. We also expect a
year-on-year decrease in our Non-GAAP gross margin. With uncertainties
for sales in the short term, we will thoroughly control cash and improve
operational efficiency and reduce costs through selective concentration
of R&D.”
|
Quarterly Financial Summary (Billion yen) |
|||||||||||||||
| Non-GAAP Basis |
Q1 FY2019
(Jan-Mar 2019) |
Q4 FY2018(3)
(Oct-Dec 2018) |
Q1 FY2018
(Jan-Mar 2018) |
QoQ | YoY | ||||||||||
| Revenue | 150.3 | 187.7 | 185.6 | -20.0% | -19.0% | ||||||||||
| Revenue from Semi. | 146.7 | 183.7 | 182.0 | -20.1% | -19.4% | ||||||||||
| Gross Margin | 39.3% | 40.5% | 47.5% | -1.2pts | -8.2pts | ||||||||||
| Operating Income | 7.2 | 19.4 | 30.1 | -12.3 | -22.9 | ||||||||||
| Operating Margin | 4.8% | 10.4% | 16.2% | -5.6pts | -11.4pts | ||||||||||
| EBITDA(3) | 32.3 | 43.4 | 53.7 | -11.0 | -21.4 | ||||||||||
|
GAAP Basis
(IFRS) |
Q1 FY2019
(Jan-Mar 2019) |
Q4 FY2018
(Oct-Dec 2018) |
Q1 FY2018
(Jan-Mar 2018) |
QoQ | YoY | ||||||||||
| Revenue | 150.3 | 187.7 | 185.6 | -20.0% | -19.0% | ||||||||||
| Revenue from Semi. | 146.7 | 183.7 | 182.0 | -20.1% | -19.4% | ||||||||||
| Gross Margin | 38.1% | 40.5% | 46.7% | -2.4pts | -8.7pts | ||||||||||
| Operating Income | -1.3 | -1.1 | 23.4 | -0.2 | -24.6 | ||||||||||
| Operating Margin | -0.8% | -0.6% | 12.6% | -0.3pt | -13.4pts | ||||||||||
| EBITDA(4) | 28.0 | 27.1 | 51.5 | +0.9 | -23.5 | ||||||||||
|
(1) |
Non-GAAP Basis: Non-GAAP figures are calculated by removing |
|
|
(2) |
IDT integration: The acquisition of Integrated Device |
|
|
(3) |
As of the first quarter ended March 31, 2019, there has been |
|
|
(4) |
EBITDA: Sum of operating income, depreciation and amortization |
|
Quarterly Revenue from Semiconductors by Application (Billion yen)
(5)
Following the completion of the Intersil acquisition in February 2017,
Renesas integrated Intersil into its operations and reformed its
business organization into three business units. To align with this
change, Renesas redefined its semiconductor sales breakdown to:
“Automotive,” “Industrial” and “Broad-based,” the three application
categories that constitute the main business of the Group, and “Other
semiconductors,” that constitute the businesses that do not belong to
the above three application categories.
|
Non-GAAP Basis |
Q1 FY2019
(Jan-Mar 2019) |
Q4 FY2018
(Oct-Dec 2018) |
Q1 FY2018
(Jan-Mar 2018) |
QoQ | YoY | ||||||||||
| Automotive (6) | 83.4 | 104.5 | 92.4 | -20.2% | -9.7% | ||||||||||
| Industrial (7) | 31.8 | 43.1 | 50.9 | -26.2% | -37.5% | ||||||||||
| Broad-Based (8) | 30.1 | 35.1 | 38.1 | -14.3% | -21.0% | ||||||||||
| Other Semiconductors | 1.4 | 1.0 | 0.6 | 36.4% | 121.3% | ||||||||||
| Total | 146.7 | 183.7 | 182.0 | -20.1% | -19.4% | ||||||||||
|
(5) |
Revenue from Semiconductors by application: From the fiscal |
|
|
(6) |
Automotive: Renesas mainly supplies microcontrollers (MCUs), |
|
|
(7) |
Industrial: Renesas mainly supplies MCUs and SoCs for “Smart |
|
|
(8) |
Broad-based: Renesas mainly supplies “General-purpose MCUs” |
|
Summary of First Quarter 2019 Results (Non-GAAP
Basis)
First quarter consolidated revenue was 150.3 billion yen, down 20.0%
quarter-on-quarter and down 19.0% year-on-year. First quarter revenue
from semiconductors was 146.7 billion yen, down 20.1% from the previous
quarter and down 19.4% from the previous year. Automotive revenue
decreased by 20.2% quarter-on-quarter and decreased by 9.7%
year-on-year, mainly due to a decrease in vehicle production mainly in
China and adjustments in channel inventory. Industrial revenue decreased
by 26.2% quarter-on-quarter and decreased by 37.5% year-on-year, mainly
owing to decreases in demand for both factory automation (FA) equipment
and air conditioners for China. Broad-based revenue decreased by 14.3%
quarter-on-quarter and by 21.0% year-on-year.
Non-GAAP gross margin in the first quarter was 39.3%, decreased by 1.2
points quarter-on-quarter and decreased by 8.2 points on a year-on-year
basis.
Non-GAAP R&D (9) expenses in the first quarter were 27.8
billion yen, compared to 30.5 billion yen and 32.4 billion yen in the
sequential and year-ago quarter. First quarter R&D ratio to revenue was
18.5%.
Non-GAAP SG&A (10) and Other expenses in the first
quarter were 24.1 billion yen, compared to 26.0 billion yen and 25.7
billion yen in the sequential and year-ago quarter. First quarter SG&A
and Other ratio to revenue was 16.0%.
While Renesas focuses its OPEX (operating expenses such as R&D and SG&A
costs) on R&D expenses for future growth, the Group is continuing its
control of disciplinary SG&A, and aims to sustain long-term financial
targets at around 30% which is the sum of the ratios of R&D- and
SG&A-to-revenue.
Non-GAAP operating income was 7.2 billion yen, equivalent to 4.8% of
operating margin in the first quarter, showing a decrease of 12.3
billion yen from the 19.4 billion yen on a sequential basis. Non-GAAP
operating margin decreased by 5.6 points from 10.4% in the previous
quarter. On a year-on-year basis, non-GAAP operating income decreased by
22.9 billion yen (11.4 points) from 30.1 billion yen (16.2%) due to a
decrease in sales revenue and production control leading to a decrease
in gross profit, despite of controlling SG&A.
Non-GAAP net income in the first quarter was 6.6 billion yen, and
Non-GAAP basic earnings per share was 4.0 yen.
Inventories at the end of the first quarter was 129.8 billion yen, a
14.4 billion yen increase from the 115.4 billion yen in the previous
quarter. However, following the acquisition of IDT as of March 30, 2019,
IDT’s inventory of 20.4 billion yen has been added. In addition, 13.0
billion yen out of 20.4 billion yen for IDT’s inventory is the amount
increased by the market valuation based on the PPA (Purchase Price
Allocation) effects following the acquisition. Excluding IDT inventory,
inventories at the end of the first quarter reduced by 6.0 billion yen
sequentially.
Net cash provided by operating activities in the first quarter was 20.0
billion yen and net cash used in investing activities was 702.1 billion
yen. These resulted in negative free cash flows of 682.1 billion yen.
Also, IDT acquisition related payments were 685.8 billion yen and the
free cash flows excluding the impact from the acquisition was a positive
of 3.8 billion yen.
Capital expenditures for property, plant, equipment (manufacturing
equipment) and intangible assets, were 1.9 billion yen in the first
quarter. These expenditures are based on the amount of investment
decisions made and does not refer to the cash outlays in the cash flow
statement.
Equity ratio was 34.3% as of March 31, 2019, against 56.7% as of
December 31, 2018. Debt/equity ratio (gross) was 1.53 as of March 31,
2019.
|
(9) |
R&D: Research & Development |
|
|
(10) |
SG&A: Selling, General and Administrative expenses |
|
Outlook for Second Quarter 2019
In the second quarter of 2019, Renesas expects revenue from
semiconductors within the range of 181.5 billion yen and 189.5 billion
yen (an increase of 23.7% to 29.1% sequentially, and a decrease of 4.8%
to 8.8% year-on-year). For the first half of 2019, revenue from
semiconductors is expected to be within the range of 328.2 billion yen
to 336.2 billion yen (a decrease of 11.8% to 13.9% year-on-year).
Based on the midpoint of the revenue outlook, Non-GAAP gross margin and
operating margin for the second quarter of 2019 is expected to be 43.5%
and 9.5%, respectively, and for the first half of 2019, 41.6% and 7.4%
respectively.
The forecasts for the second quarter of the 2019 are calculated at the
rate of 110 yen per USD and 124 yen per Euro. The forecasts for the
first half of 2019 are calculated at the rate of 110 yen per US and 125
yen per Euro.
Capital expenditure for fixed assets (production facilities) and
intangible assets (investment decision basis within the period) for the
first half of 2019 is expected to be 7.0 billion yen.
Reference: IDT’s Financial Results for the Full
Year Ended March 31, 2019
IDT’s sales revenue for the full year ended March 31, 2019 (April 1,
2018 to March 31, 2019) was 948 million USD, an increase of 12.5% year
on year. Non-GAAP gross margin for the full year was 64.1%, an increase
of 2.0 points from the year on year. Non-GAAP operating income was 291
million USD (an increase of 58 million USD year on year), and Non-GAAP
operating margin was 30.7% (3.1 points increase year on year). Further,
IDT’s profit and loss will be consolidated into the financial statements
of the Renesas Group from the second quarter of 2019 (April 1, 2019 to
June 30, 2019).
Other References
Refer to Renesas Electronics’ earnings report “Renesas Electronics
Reports Financial Results for the Three Months Ended March 31, 2019” for
the consolidated balance sheets, the consolidated statements of income
and the consolidated statements of cash flows.
Refer to the separate sheet for IFRS – non-GAAP reconciliation.
Forward-Looking Statements
The statements in this press release with respect to the plans,
strategies and financial outlook of Renesas Electronics and its
consolidated subsidiaries (collectively “we”) are forward-looking
statements involving risks and uncertainties. We caution you in advance
that actual results may differ materially from such forward-looking
statements due to several important factors including, but not limited
to, general economic conditions in our markets, which are primarily
Japan, North America, Asia, and Europe; demand for, and competitive
pricing pressure on, products and services in the marketplace; ability
to continue to win acceptance of products and services in these highly
competitive markets; and fluctuations in currency exchange rates,
particularly between the yen and the U.S. dollar. Among other factors,
downturn of the world economy; deteriorating financial conditions in
world markets, or deterioration in domestic and overseas stock markets,
may cause actual results to differ from the projected results forecast.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE:
6723) delivers trusted embedded design innovation with complete
semiconductor solutions that enable billions of connected, intelligent
devices to enhance the way people work and live. A global
leader in microcontrollers, analog, power, and SoC products, Renesas
provides comprehensive solutions for a broad range of automotive,
industrial, home electronics, office automation, and information
communication technology applications that help shape a limitless
future. Learn more at renesas.com.
Contacts
Media Contacts
Kyoko Okamoto
Renesas Electronics
Corporation
+81 3-6773-3001
[email protected]
Investor Contacts
Hirokazu Kato
Renesas Electronics
Corporation
+81 3-6773-3002
[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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