August 11, 2020 PHOENIX, Aug. 11, 2020 /PRNewsw
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Posted On: 08/11/2020 4:17:37 PM
August 11, 2020
PHOENIX, Aug. 11, 2020 /PRNewswire/ --
Harvest Health & Recreation, Inc. Logo (PRNewsfoto/Harvest Health & Recreation...)
Second quarter revenue was $55.7 million, up 109% from the second quarter 2019 and 26% sequentially
Second quarter adjusted EBITDA was $4.1 million compared to ($3.6) million in the first quarter of 2020
2020 Revenue target increased to $215-220 million, up from $200 million
Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., today reported its financial and operating results for the second quarter 2020. All financial information is provided in U.S. dollars unless otherwise indicated.
Second Quarter 2020 Financial Results
Total revenue in the second quarter was $55.7 million, an increase of 109% from $26.6 million in the second quarter of 2019 and up 26% compared to $44.2 million in the first quarter of 2020.
Gross profit excluding biological adjustments in the second quarter was $23.4 million, compared to $6.7 million in the second quarter of 2019 and $18.1 million in the first quarter of 2020.
Gross profit margin excluding biological adjustments in the second quarter was 42.1% compared to 25.1% in the second quarter of 2019 and 41.0% in the first quarter of 2020.
Net loss was $18.3 million for the second quarter compared to net loss of $25.5 million in the second quarter of 2019 and $20.0 million for the first quarter 2020.
Adjusted EBITDA excluding biological adjustments in the second quarter was $4.1 million compared to ($12.4) million in the second quarter of 2019 and ($3.6) million in the first quarter of 2020.
Please see the supplemental information regarding unaudited results and Non-IFRS Financial Measures at the end of this press release.
Second Quarter 2020 Business Highlights
Harvest announced the appointment of Deborah Keeley as Chief Financial Officer on June 22, 2020.
Harvest completed the initial closing of the divestment of eight retail assets in California to Hightimes Holding Corp. for consideration of $61.5 million, consisting of $1.5 million in cash and $60.0 million in Series A Preferred Stock.
As of June 30, 2020, Harvest owned, operated, or managed 35 retail locations in seven states, including 14 open dispensaries in Arizona. Harvest owned and operated dispensaries exclude retail locations serviced through Interurban.
As of June 30, 2020, Harvest no longer meets the definition of "foreign private issuer" under United States securities laws as more than 50% of Harvest's issued and outstanding shares were directly or indirectly owned by shareholders of record domiciled in the United States. As a result, Harvest will be deemed a U.S. domestic issuer under United States securities laws and will be subject to SEC reporting requirements applicable to U.S. domestic companies no later than January 1, 2021. These U.S. reporting requirements will require Harvest's financial statements and financial data to be presented under U.S. Generally Acceptable Accounting Principles.
Outlook
Harvest is increasing its full year 2020 revenue target to $215-220 million, up from the prior target of approximately $200 million. Harvest achieved positive adjusted EBITDA during the second quarter, ahead of the prior guidance of achievement during the second half of 2020. Forecasts assume no meaningful impacts or disruptions to our operations as a result of the COVID-19 pandemic.
Management Commentary
"Our improved financial results during the second quarter demonstrate continued progress toward our primary goal of returning to profitability through revenue growth, cost reduction measures and investments in core markets Arizona, Florida, Maryland, and Pennsylvania," said Chief Executive Officer Steve White. "We are continuing to build on this positive momentum as we execute on our plan."
Conference Call & Webcast
Harvest Health and Recreation Inc. will host a conference call and audio webcast with Chief Executive Officer Steve White and Chief Financial Officer Deborah Keeley, Tuesday August 11, 2020 at 5:00 PM Eastern Time.
Registration for this event is required. Please use this link to register:
http://www.directeventreg.com/registration/event/6799406
Following registration, an email confirmation will be sent including dial in details and unique conference call codes. Registration will remain open during the call however we recommend advance registration to access the event.
Second quarter results will be available at:
https://investor.harvesthoc.com/financials/default.aspx
The live conference call webcast and replay will be available at:
https://investor.harvesthoc.com/financials/default.aspx
PHOENIX, Aug. 11, 2020 /PRNewswire/ --
Harvest Health & Recreation, Inc. Logo (PRNewsfoto/Harvest Health & Recreation...)
Second quarter revenue was $55.7 million, up 109% from the second quarter 2019 and 26% sequentially
Second quarter adjusted EBITDA was $4.1 million compared to ($3.6) million in the first quarter of 2020
2020 Revenue target increased to $215-220 million, up from $200 million
Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., today reported its financial and operating results for the second quarter 2020. All financial information is provided in U.S. dollars unless otherwise indicated.
Second Quarter 2020 Financial Results
Total revenue in the second quarter was $55.7 million, an increase of 109% from $26.6 million in the second quarter of 2019 and up 26% compared to $44.2 million in the first quarter of 2020.
Gross profit excluding biological adjustments in the second quarter was $23.4 million, compared to $6.7 million in the second quarter of 2019 and $18.1 million in the first quarter of 2020.
Gross profit margin excluding biological adjustments in the second quarter was 42.1% compared to 25.1% in the second quarter of 2019 and 41.0% in the first quarter of 2020.
Net loss was $18.3 million for the second quarter compared to net loss of $25.5 million in the second quarter of 2019 and $20.0 million for the first quarter 2020.
Adjusted EBITDA excluding biological adjustments in the second quarter was $4.1 million compared to ($12.4) million in the second quarter of 2019 and ($3.6) million in the first quarter of 2020.
Please see the supplemental information regarding unaudited results and Non-IFRS Financial Measures at the end of this press release.
Second Quarter 2020 Business Highlights
Harvest announced the appointment of Deborah Keeley as Chief Financial Officer on June 22, 2020.
Harvest completed the initial closing of the divestment of eight retail assets in California to Hightimes Holding Corp. for consideration of $61.5 million, consisting of $1.5 million in cash and $60.0 million in Series A Preferred Stock.
As of June 30, 2020, Harvest owned, operated, or managed 35 retail locations in seven states, including 14 open dispensaries in Arizona. Harvest owned and operated dispensaries exclude retail locations serviced through Interurban.
As of June 30, 2020, Harvest no longer meets the definition of "foreign private issuer" under United States securities laws as more than 50% of Harvest's issued and outstanding shares were directly or indirectly owned by shareholders of record domiciled in the United States. As a result, Harvest will be deemed a U.S. domestic issuer under United States securities laws and will be subject to SEC reporting requirements applicable to U.S. domestic companies no later than January 1, 2021. These U.S. reporting requirements will require Harvest's financial statements and financial data to be presented under U.S. Generally Acceptable Accounting Principles.
Outlook
Harvest is increasing its full year 2020 revenue target to $215-220 million, up from the prior target of approximately $200 million. Harvest achieved positive adjusted EBITDA during the second quarter, ahead of the prior guidance of achievement during the second half of 2020. Forecasts assume no meaningful impacts or disruptions to our operations as a result of the COVID-19 pandemic.
Management Commentary
"Our improved financial results during the second quarter demonstrate continued progress toward our primary goal of returning to profitability through revenue growth, cost reduction measures and investments in core markets Arizona, Florida, Maryland, and Pennsylvania," said Chief Executive Officer Steve White. "We are continuing to build on this positive momentum as we execute on our plan."
Conference Call & Webcast
Harvest Health and Recreation Inc. will host a conference call and audio webcast with Chief Executive Officer Steve White and Chief Financial Officer Deborah Keeley, Tuesday August 11, 2020 at 5:00 PM Eastern Time.
Registration for this event is required. Please use this link to register:
http://www.directeventreg.com/registration/event/6799406
Following registration, an email confirmation will be sent including dial in details and unique conference call codes. Registration will remain open during the call however we recommend advance registration to access the event.
Second quarter results will be available at:
https://investor.harvesthoc.com/financials/default.aspx
The live conference call webcast and replay will be available at:
https://investor.harvesthoc.com/financials/default.aspx
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