iAnthus Reports Fiscal Third Quarter 2019 Financial Results
iAnthus Reports Fiscal Third Quarter 2019 Financial Results |
[20-November-2019] |
Pro-Forma Revenues of $30.9 million1, 23% Growth over Second Quarter
NEW YORK and TORONTO, Nov. 20, 2019 /PRNewswire/ - iAnthus Capital Holdings, Inc. ("iAnthus" or the "Company") (CSE: IAN, OTCQX: ITHUF), which owns, operates, and partners with best-in-class regulated cannabis operations across the United States, is pleased to report its financial results for the fiscal third quarter ended September 30, 2019. Amounts are in U.S. Dollars, unless stated otherwise.
Hadley Ford, CEO of iAnthus, provided the following statement on the Company's third quarter results and outlook: "The iAnthus team made significant progress in the third quarter. In three of our greenfield states we are now generating well over a million dollars of revenue per month, our MPX brand is commanding a #1 market share position in several states and we are executing on our operating efficiency and lean initiative plans. We expect that we have arranged the necessary financing to continue our growth with a proposed $100 million financing plan and our business now generates adequate cash for operating expenses and maintenance capex in our more established markets. Access to the expected capital from Gotham Green will be used for additional high return investments such as our continued expansion in Florida, New Jersey and New York. I am very proud of the leadership of our operating teams who have worked tirelessly to develop lean initiative programs and internal controls for operating our business, which is reflected in our 48% adjusted EBITDA improvement quarter over quarter. I am confident that we are well on our way to positive EBITDA in 2020 and in our ability to generate operating cash flow and grow enterprise value." Financial Highlights Revenue & Gross Profit
See Tables 1 and 2 below for further detail EBITDA and Net Income
See Table 3 below for further detail Balance Sheet and Cash Flow
Expansion and Capacity Highlights
Customer and Market Share Highlights
Key Initiative Highlights
Sierra Well Acquisition
Conference Call Details The Company will hold a conference call for financial analysts and investors at 8:30a.m. ET on November 21, 2019 to discuss the Company's third quarter financial results. The call will be archived and available on iAnthus' website for replay. Please visit https://www.ianthus.com/investors to access the archived conference call. Dial-In Number: (888) 231-8191 or international: (647) 427-7450 A replay of the call will be available for 7 days by dialing: (855) 859-2056 and entering password 3981617 The Unaudited Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis for the three and nine months ended September 30, 2019 and 2018 may be accessed on the Company's website at www.ianthus.com and under the Company's SEDAR profile at www.sedar.com Non-IFRS Financial Measures Footnotes 1 Pro forma Adjustments: refers to full three months ended September 30, 2019 results, regardless of when an acquisition or management contract commenced. This also includes Managed Revenues, which are sales of cannabis products from entities for which management arrangements are in place but iAnthus cannot consolidate due to regulatory restrictions, or from equity investments in which results cannot be consolidated. Managed entities include iAnthus' involvement in certain Arizona operations, Colorado, and New Mexico. 2 Adjustment related to the fair value adjustments on inventory from acquisitions that are being released into cost of goods sold (COGS) for sales recognized during the period. 3 Adjustment for one-time acquisition costs include all advisory, professional, legal, consulting, and accounting fees incurred as part of the acquisitions incurred in the quarter. These costs alongside other one-time costs are added back to the total adjusted EBITDA (see footnote 5 below) as these expenses are non-recurring and are not part of ongoing operational activities of the Company. Adjustment to add back the fair value adjustments from the sale of inventory and growth of biological assets during the period. 4 Adjustment to add back the fair value adjustments from the sale of inventory and growth of biological assets during the period. 5 Adjusted EBITDA: One of the measures the Company uses to evaluate its objectives is adjusted EBITDA. Adjusted EBITDA is a non IFRS financial measure that does not have a standard meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. The Company calculates Adjusted EBITDA as net income (loss) before interest, taxes and depreciation and amortization, plus fair value adjustments on sale of inventory and on growth of biological assets, share-based compensation and payments, loss (gain) on equity investments, loss (gain) on foreign exchange, loss (gain) on short-term investments, transaction costs, listing fees and certain one-time non-operating expenses, as determined by management. Management believes this measure provides useful information as it is a commonly used measure in the capital markets and as it is a close proxy for repeatable cash generated by (used for) operations. The Company believes the pro forma results presented provide relevant and useful information for investors because they clarify the Company's actual operating performance, make it easier to compare the Company's results with those of other companies and allow investors to review performance in the same way as the Company's management. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported results as indicators of the Company's performance, and they may not be comparable to similarly named measures from other companies. About iAnthus iAnthus. owns and operates best-in-class licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law and health care services, iAnthus provides a unique combination of capital and hands-on operating and management expertise. iAnthus currently has operations in 11 states, and operates 27 dispensaries (AZ-4, MA-1, MD-3, FL-9, NY-2, CO-1, VT-1 and NM-6 where iAnthus has minority ownership). For more information, visit www.iAnthus.com. Forward Looking Statements Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in iAnthus' periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should, our vision" and similar expressions, are forward-looking statements. Forward-looking statements may include, without limitation, statements relating to the Company's future financial performance; business development; results of operations; the proposed additional senior secured convertible notes with Gotham Green Partners; the proposed opening of additional dispensaries in Florida, including, but not limited to a dispensary in Deerfield Beach and the proposed dispensaries in Stuart and Ocala; the construction of the Company's Brooklyn Be. Store; and the proposed acquisition of Sierra Well. Readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. iAnthus disclaims any intention or obligation to update or revise such information, except as required by applicable law, and iAnthus does not assume any liability for disclosure relating to any other company mentioned herein. The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. View original content to download multimedia:http://www.prnewswire.com/news-releases/ianthus-reports-fiscal-third-quarter-2019-financial-results-300962578.html SOURCE iAnthus Capital Holdings, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: OTC-QX:ITHUF, CNSX:IAN |
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