Columbia Care Releases Preliminary Results for First Quarter 2019 and Full Year 2018
Organic growth continues to drive revenue increases of 45% for Q1 2019 and 35% for FY 2018 on year-over-year basis
Closing of go-public transaction to accelerate strategy execution and long-term growth prospects
NEW YORK--(BUSINESS WIRE)-- Columbia Care Inc. (“Columbia Care”, or the “Company”) (NEO: CCHW), today announced preliminary revenue and gross profit results for the quarter ended March 31, 2019, as well as the year ended December 29, 2018.
The Company will report complete financial results for the first quarter 2019 and fourth quarter and full year 2018 on Tuesday, May 14th, 2019 at 8:00 a.m. EDT.
Total revenue for the first quarter of 2019 was $12.9 million, representing an increase of 45% over the first quarter of 2018. Total revenue for 2018 was US$39.3 million, or a 35% increase over 2017.
Gross profit, excluding change in fair value of biological assets and inventory sold, for the first quarter of 2019 and full year 2018 increased 29% and 20% respectively from prior year periods.
| All amounts in US$’000 | Three months ended | |||||||
|
March 31, |
March 31, |
% |
||||||
| Total Revenue | $ | 12,870 | $ | 8,849 | 45% | |||
| Production Costs | $ |
(8,469) |
$ | (5,436) | 56% | |||
| Gross Profit excluding change in fair value
of biological assets and inventory sold1 |
$ | 4,401 | $ | 3,413 | 29% | |||
| Gross Profit % | 34% | 39% | ||||||
| Twelve months ended | ||||||||
|
December 29, |
December 30, |
% |
||||||
| Total Revenue | $ | 39,328 | $ | 29,183 | 35% | |||
| Production Costs | $ | (22,874) | $ | (15,513) | 47% | |||
| Gross Profit excluding change in fair value
of biological assets and inventory sold2 |
$ | 16,454 | $ | 13,670 | 20% | |||
| Gross Profit % | 42% | 47% | ||||||
| 1 | Gross profit including change in fair value of biological assets and inventory sold was ($2,203) for the first quarter of 2019 and $1,217 for the first quarter of 2018 | |
| 2 | Gross profit including change in fair value of biological assets and inventory sold was $17,127 for 2018 and $53,716 for 2017 | |
|
Note: A comprehensive description of fair value adjustments related to biological assets is included in Columbia Care’s financial statements filed under the Company’s profile on www.sedar.com. |
The increase in revenue for the first quarter of 2019 and full year 2018 was driven exclusively by organic growth and consumer demand of Columbia Care’s wide array of proprietary medical cannabis products, curated third party products and through wholesale of manufacturing inputs and to third party medical cannabis retail dispensaries.
Since the end of the first quarter 2019, Columbia Care has launched a new line of industrial hemp-based CBD products in conjunction with the opening of its newest dispensaries in Brooklyn, NY and San Diego, CA. Additionally, since the beginning of the year, Columbia Care has entered into lease agreements for dispensaries in Delaware, the District of Columbia and 13 new facilities in targeted markets in Florida.
“Our strong performance in 2018 has carried over into 2019 with the launch of our state-of-the-art dispensary in Brooklyn as well as our entry into two of the largest medical cannabis markets in the United States, California and Florida,” said Nicholas Vita, Chief Executive Officer of Columbia Care. “Our access to the public markets will allow us to accelerate our growth trajectory as we expand operations in 12 of the 14 jurisdictions we serve and enables us to introduce our hemp-based CBD brands into traditional consumer retail channels. By leveraging our extensive patient data and institutional know-how, we are committed to delivering products, services and brands designed to meet the needs of consumers in markets where we believe we can have the largest impact.”
Conference Call and Webcast Details
To access the live conference call on May 14 at 8:00 a.m. EDT via telephone, please dial 1-877-407-8914 (U.S. Callers) or 1-201-493-6795 (international callers), no passcode is required. A live audio webcast of the call will also be available in the Investor Relations section of the Company's website at https://ir.col-care.com/.
A replay of the audio webcast will be available in the Investor Relations section of the Company’s website approximately 2 hours after completion of the call and will be archived for 30 days.
Non-IFRS Financial Measures
In this press release, Columbia Care refers to certain non-IFRS financial measures, such as gross profit excluding changes in fair value of biological assets. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Columbia Care considers certain non-IFRS measures to be meaningful indicators of the performance of its business. A reconciliation of such non-IFRS financial measures to their nearest comparable IFRS measure will be included in the Company’s management’s discussion and analysis for the three months ended March 31, 2019 which will be made available on March 14, 2019 under the Company’s profile at www.sedar.com.
About Columbia Care Inc.
Columbia Care is one of the United States’ largest and most experienced cultivators, manufacturers and providers of medical cannabis products and services, with 35 licenses in 15 jurisdictions across the U.S. and E.U. Having completed more than 750,000 sales transactions since its inception, Columbia Care is a patient-centered health and wellness company setting the standard for compassion, professionalism, quality, caring and innovation, working in collaboration with some of the most renowned and innovative teaching hospitals and medical centers in the world. The Company is committed to providing the type of education and transparency patients deserve and quality of product that clinicians expect. For more information on Columbia Care, please visit www.col-care.com.
Forward Looking Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation which are based upon Columbia Care’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will" happen, or by discussions of strategy. Forward-looking information include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Columbia Care does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Columbia Care to predict all such factors. When considering these forward-looking statements, readers should keep in mind the risk factors and other cautionary statements in Columbia Care’s final prospectus dated March 21, 2019 and filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in Columbia Care’s Annual Information Form could cause actual events or results to differ materially from those described in any forward-looking information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190508005442/en/
Investor Contact:
Investor Relations
+1.212.271.0915
ir@col-care.com
Media Contact:
Josephine Belluardo, Ph.D.
LifeSci Public Relations
+1.646.751.4361
jo@lifescipublicrelations.com
Source: Columbia Care Inc.
Released May 8, 2019