CHICAGO–(BUSINESS WIRE)– Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (“Cresco Labs” or the “Company”), one of the biggest vertically built-in multi-state hashish operators within the United States, in the present day launched its unaudited monetary outcomes for the third quarter ended September 30, 2020. All monetary data introduced on this launch is in U.S. {dollars}, except in any other case famous.

Management Commentary

“Cresco Labs entered the third quarter firing on all cylinders achieving record levels of revenue, profitability, and cash flow. We remain the number one operator in the industry focused on, and delivering results in, the wholesale distribution of branded products. Our retail is outperforming, and we are generating substantial operating leverage,” stated Charles Bachtell, Co-founder and CEO of Cresco Labs. “Comparing Q1 to Q3, we increased revenue by $87 million while keeping SG&A flat. The investments we made to support growth are paying off, and as a result our profitability has grown dollar for dollar with gross profit. Because of the decisions we’ve made, the changes we’ve managed through and the hard work devoted by our team over the last 12 months, Cresco Labs has substantiated itself within the very top tier of the industry and confirmed the value that is driven by our differentiated strategy. This is a unique story of strategic breadth, depth and execution. As we look toward our next phase of growth, it’s rinse and repeat – the playbook will be applied to more states and, again, we will achieve meaningful, material market positions.”

Third Quarter 2020 Financial Highlights

Operating Results

  • Revenue for the third quarter of 2020 was $153.Three million, an absolute improve of over $ million or a 63% improve over Q2’20 income. Wholesale development was pushed by a rise in harvests from expanded capability in Illinois and Pennsylvania with sturdy development in California. Retail development was pushed by sturdy sequential similar-retailer development and two new retailer openings in Illinois.
  • Operational Gross Profit1 as a Percentage of Revenue was 53% within the quarter as in comparison with 47% within the prior quarter pushed by elevated effectivity in our expanded Illinois and Pennsylvania services.
  • Adjusted EBITDA1was $46.4 million, a rise of 182% sequentially pushed primarily from increased income, elevated operational gross revenue throughout our largest markets and sturdy SG&A management which dropped dramatically as a share of income.
  • Net Income2was $4.9 million, which consists of unrealized features and losses on mark-to-market devices that fluctuate till obligations are settled, adjustments in truthful worth of organic belongings, curiosity expense and tax expense.
  • Net Cash Provided by Operating Activities was $17.Eight million, in comparison with $9.9 million utilized in Q2. The improve in money supplied by working actions was pushed by elevated working leverage throughout the enterprise because the Company scales.

Shares Outstanding

Total shares on a completely transformed foundation have been 380,035,735 as of September 30, 2020.

Conference Call and Webcast

The Company will host a convention name and webcast to debate its monetary outcomes and present buyers with key enterprise highlights on Wednesday, November 18, 2020, at 8:30am Eastern Time (7:30am Central Time). The convention name could also be accessed by way of webcast or by dialing 866-688-4235 (409-216-0711 for worldwide callers) and offering convention ID 9237505. Archived entry to the webcast might be obtainable for one 12 months on the Cresco Labs’investor relations website.

Consolidated Financial Statements

The monetary data reported on this press launch relies on unaudited administration ready monetary statements for the three months ended September 30, 2020. The Company expects to file its unaudited interim consolidated monetary statements on SEDAR by November 18, 2020. All monetary data contained on this press launch is certified in its entirety with regards to such monetary statements. While the Company doesn’t anticipate there to be any materials adjustments between the data contained on this press launch and the unaudited interim consolidated monetary statements it information on SEDAR, to the extent that the monetary data contained on this press launch is inconsistent with the data contained within the Company’s monetary statements, the monetary data contained on this press launch shall be deemed to be modified or outmoded by the Company’s filed monetary statements. The making of a modifying or superseding assertion shall not be deemed an admission for any functions that the modified or outmoded assertion, when made, constituted a misrepresentation for functions of relevant securities legal guidelines. Further, the reader ought to check with the extra disclosures within the Company’s audited monetary statements for the 12 months ended December 31, 2019, beforehand filed on SEDAR.

Cresco Labs references sure non-IFRS monetary measures all through this press launch, which will not be akin to related measures introduced by different issuers. Please see the “Non-IFRS Financial Measures” part on the finish of this press launch for extra detailed data.

About Cresco Labs Inc.

Cresco Labs is one of the biggest vertically-built-in multi-state hashish operators within the United States. Cresco Labs is constructed to turn out to be an important firm within the hashish trade by combining essentially the most strategic geographic footprint with one of the main distribution platforms in North America. Employing a shopper-packaged items (“CPG”) strategy to hashish, Cresco Labs’ home of manufacturers is designed to satisfy the wants of all shopper segments and consists of some of essentially the most acknowledged and trusted nationwide manufacturers together with Cresco, Remedi and Mindy’s, a line of edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside*, Cresco Labs’ nationwide dispensary model, is a wellness-targeted retailer designed to construct belief, schooling and comfort for each present and new hashish shoppers. Recognizing that the hashish trade is poised to turn out to be one of the main job creators within the nation, Cresco Labs has launched the trade’s first nationwide complete Social Equity and Educational Development (SEED) initiative designed to make sure that all members of society have the abilities, data and alternative to work in and personal companies within the hashish trade. Learn extra about Cresco Labs at

Non-IFRS Financial Measures

Operational gross revenue, EBITDA and Adjusted EBITDA, web of influence of organic belongings, are non-IFRS measures and do not need standardized definitions below IFRS. The Company has supplied these non-IFRS monetary measures, which aren’t calculated or introduced in accordance with IFRS, as supplemental data and along with the monetary measures which can be calculated and introduced in accordance with IFRS. These supplemental non-IFRS monetary measures are introduced as a result of administration has evaluated the monetary outcomes each together with and excluding the adjusted objects and believes that the supplemental non-IFRS monetary measures introduced present extra perspective and insights when analyzing the core working efficiency of the enterprise. These supplemental non-IFRS monetary measures shouldn’t be thought-about superior to, as an alternative to or as a substitute for, and ought to solely be thought-about along with, the IFRS monetary measures introduced herein. Accordingly, the Company has included beneath reconciliations of the supplemental non-IFRS monetary measures to essentially the most instantly comparable monetary measures calculated and introduced in accordance with IFRS.

Forward Looking Statements

This press launch comprises “forward-looking information” throughout the which means of relevant Canadian securities laws and may comprise statements that will represent “forward-looking statements” throughout the which means of the secure harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such ahead-trying data and ahead-trying statements should not consultant of historic info or data or present situation, however as a substitute symbolize solely the Company’s beliefs concerning future occasions, plans or goals, many of which, by their nature, are inherently unsure and exterior of the Company’s management. Generally, such ahead-trying data or ahead-trying statements could be recognized by the use of ahead-trying terminology akin to, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the damaging of these types or different comparable phrases. The Company’s ahead-trying statements contain recognized and unknown dangers, uncertainties and different components which can trigger the Company’s precise outcomes, efficiency or achievements to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by the ahead-trying statements, together with however not restricted to these dangers mentioned below “Risk Factors” within the Company’s Annual Information Form dated April 28, 2020, and different paperwork filed by the Company with Canadian securities regulatory authorities; and different components, many of that are past the management of the Company. Readers are cautioned that the foregoing checklist of components will not be exhaustive. Because of these uncertainties, you shouldn’t place undue reliance on the Company’s ahead-trying statements. No assurances are given as to the longer term buying and selling value or buying and selling volumes of Cresco Labs’ shares, nor as to the Company’s monetary efficiency in future monetary intervals. The Company doesn’t intend to replace any of these components or to publicly announce the end result of any revisions to any of the Company’s ahead-trying statements contained herein, whether or not in consequence of new data, any future occasion or in any other case. Except as in any other case indicated, this press launch speaks as of the date hereof. The distribution of this press launch doesn’t indicate that there was no change within the affairs of the Company after the date hereof or create any responsibility or dedication to replace or complement any data supplied on this press launch or in any other case.

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