Press Release: Charlotte's Web Reports 2024 Second Quarter Financial Results

periods on a consistent basis, as well as comparing our results against the results of other companies, by excluding items that we do not believe are indicative of our core operating performance. Specifically, we use these non-GAAP measures as measures of operating performance; to prepare our annual operating budget; to allocate resources to enhance the financial performance of our business; to evaluate the effectiveness of our business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of our results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communications with our board of directors concerning our financial performance. Investors should be aware, however, that not all companies define these non-GAAP measures consistently.

 
(1)  Adjusted Gross Profit, EBITDA and Adjusted EBITDA 
      are non-GAAP financial measures with reconciliations 
      provided in the tables below. 
 

Adjusted Gross Profit for the three and six months ended June 30, 2024, and 2023 is as follows:

 
Charlotte's Web Holdings, Inc. 
Statement of Adjusted Gross Profit 
(In Millions) 
 
                                  Three Months Ended    Six Months Ended 
                                  June 30,              June 30, 
                                  (unaudited)           (unaudited) 
U.S. $ millions                   2024       2023       2024      2023 
 
Total revenue                       $12,289    $16,006  $ 24,413  $ 33,016 
Cost of goods sold                    9,707     $7,008    14,920    14,181 
Gross profit before inventory 
 provision                            2,582     $8,918     9,493    18,835 
Inventory provision, net              3,830       $127     3,926       320 
Adjusted gross profit                $6,412     $9,045   $13,419   $19,155 
Adjusted gross margin %              52.2 %     56.5 %    55.0 %    58.0 % 
 

Adjusted EBITDA for the three and six months ended June 30, 2024, and 2023 is as follows:

 
Charlotte's Web Holdings, Inc. 
Statement of Adjusted EBITDA 
(In Thousands) 
 
                                 Three Months Ended    Six Months Ended 
                                 June 30,              June 30, 
                                 (unaudited)           (unaudited) 
U.S. $ Thousands                 2024         2023     2024        2023 
 
Net income (loss)                 $ (11,057)  $ 2,844  $ (20,691)   $ (67) 
 
Depreciation of property and 
 equipment and amortization of 
 intangibles                           2,489    3,977       4,982    7,769 
Interest expense                         493      348         980    1,147 
Income tax expense                      (46)        -        (62)        - 
EBITDA                               (8,121)    7,169    (14,791)    8,849 
 
Stock Comp                               237      624       1,079      999 
Mark-to-market financial 
 instruments                         (1,140)  (4,229)         720  (9,612) 
Inventory Provision                    3,830      127       3,926      320 
 
Adjusted EBITDA                    $ (5,194)  $ 3,691   $ (9,066)    $ 556 
 
 

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SOURCE Charlotte's Web Holdings, Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2024/08/c9697.html

/CONTACT:

For further information contact: Erika Lind, Chief Financial Officer, (720) 388-6505, Erika.Lind@CharlottesWeb.com; Cory Pala, Director of Investor Relations, (720) 484-8930, Cory.Pala@CharlottesWeb.com

Copyright CNW Group 2024 
 

(END) Dow Jones Newswires

August 08, 2024 07:07 ET (11:07 GMT)