PRESS RELEASE

 

  • Third quarter income was $61.6 million, up 86% from the third quarter 2019 and 11% sequentially
  • Third quarter adjusted EBITDA was $10.5 million, in comparison with $4.1 million within the second quarter of 2020
  • 2020 income goal elevated to higher than $225 million, up from $215- 220 million

PHOENIX, November 10, 2020 — Harvest Health & Recreation Inc. (“Harvest” or the “Company”) (CSE: HARV, OTCQX: HRVSF), a vertically built-in hashish firm and multi-state operator within the U.S., at this time reported its monetary and working outcomes for the third quarter 2020. All monetary info is supplied in U.S. {dollars} except in any other case indicated.

Third Quarter 2020 Financial Results

  • Total income within the third quarter was $61.6 million, a rise of 86% from $33.2 million within the third quarter of 2019, and up 11% in comparison with $55.7 million within the second quarter of 2020.
  •  Gross revenue excluding organic changes within the third quarter was $28.7 million, in comparison with $11.6 million within the third quarter of 2019, and $23.Four million within the second quarter of 2020.
  • Gross revenue margin excluding organic changes within the third quarter was 46.6%, in comparison with 35.0% within the third quarter of 2019, and 42.1% within the second quarter of 2020.
  • Net loss was $2.1 million for the third quarter, in comparison with a web lack of $39.1 million within the third quarter of 2019 and $18.Three million for the second quarter 2020.
  • Adjusted EBITDA excluding organic changes within the third quarter was $10.5 million, in comparison with ($10.9) million within the third quarter of 2019 and $4.1 million within the second quarter of 2020.

    Please see the supplemental info concerning unaudited outcomes and Non-IFRS Financial Measures on the finish of this press launch.

    Third Quarter 2020 Business Highlights

  • During the third quarter of 2020, Harvest opened one new dispensary in Phoenix, Arizona and one new dispensary in Cranberry Township, Pennsylvania.
  • As of September 30, 2020, Harvest owned, operated, or managed 37 retail places in seven states, together with 15 open dispensaries in Arizona. Harvest owned and operated dispensaries exclude retail places serviced via Interurban.

Subsequent Events

Subsequent to September 30, 2020, Harvest opened two retail places in Camp Hill and King of Prussia, Pennsylvania.

On October 2, 2020, Harvest terminated the settlement to promote two California retail property to Hightimes Holdings for $6 million in most popular inventory.

On October 28, 2020, Harvest accomplished a purchased deal financing elevating gross proceeds of roughly $32.Four million together with the overallotment choice. Units bought within the providing have been priced at Cd$2.26 per unit and included one subordinate voting share and one-half warrant. Each warrant has an train value of Cd$3.05 and period of 30 months.

On October 30, 2020, Harvest accomplished the acquisition and license switch of THChocolate, LLC, together with hashish manufacturing licenses in Colorado. The consideration paid was immaterial.

On November 2, 2020, Harvest introduced a settlement settlement with Devine Holdings. Under the phrases of the settlement, Harvest will purchase three vertical medical hashish licenses in Arizona alternate for the compensation by Devine Holdings of an excellent $10.45 million receivable owed to Harvest concurrently with the license acquisition.

On November 3, 2020, Arizona voters authorized Prop 207, a poll initiative to permit leisure hashish consumption in Arizona.

Outlook/Management Commentary

“Our third quarter results demonstrate further progress toward our primary goal of returning to profitability through revenue growth, cost controls, and investments in our core markets of Arizona, Florida, Maryland, and Pennsylvania” stated Chief Executive Officer Steve White. “We are focused on preparing for recreational cannabis in Arizona in 2021 and continuing to build on this positive momentum as we execute on our plan.”

Conference Call & Webcast

Harvest Health and Recreation Inc. will host a convention name and audio webcast with Chief Executive Officer Steve White and Chief Financial Officer Deborah Keeley, Tuesday November 10, 2020 at 5:00 PM Eastern Time.

Harvest is rising its full 12 months 2020 income goal to higher than $225 million, up from the prior goal of $215-220 million. We stay targeted on enhancing the profitability of our enterprise and we anticipate our gross margins will proceed to pattern upwards general, with some quarterly fluctuations as a result of combine and market modifications. This forecast assumes no significant impacts or disruptions to our operations on account of the COVID-19 pandemic.

Registration for this occasion is required. Please use this hyperlink to register:http://www.directeventreg.com/registration/event/3878799

Following registration, an electronic mail affirmation will likely be despatched together with dial in particulars and distinctive convention name codes. Registration will stay open in the course of the name nonetheless we suggest advance registration to entry the occasion.

page2image25360



Source link