Curaleaf Reports Third Quarter 2024 Results
PR Newswire
STAMFORD, Conn., Nov. 6, 2024
Third quarter 2024 revenue of $331 million, representing a decrease of 1% year-over-year, and adjusted gross margin(1) of 49%
Third quarter International revenue increased 82% year-over-year
Year to date operating cash flow from continuing operations of $119 million and free cash flow from continuing operations of $53 million
Secured $40.0 million revolving credit facility at 7.99% interest rate
STAMFORD, Conn., Nov. 6, 2024 /PRNewswire/ -- Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf" or the "Company"), a leading international provider of consumer products in cannabis, today reported its financial and operating results for the third quarter ended September 30, 2024. All financial information is reported in accordance with U.S. generally accepted accounting principles (GAAP) and is provided in U.S. dollars unless otherwise indicated.
Boris Jordan, Chairman and CEO of Curaleaf, stated, "Third quarter revenue was $331 million, down 1% and adjusted gross margin of 49% was up 312 basis points compared to last year. Adjusted EBITDA was $75 million or 23%, consistent with last year. In the first few months in my expanded role as Chairman and CEO, my focus has been on delivering value to all shareholders through disciplined execution of fundamental operating principles. The industry has experienced the pressures of regulatory overhang, increased competition, unprecedented weather conditions, and irrational pricing strategies. This backdrop is one of the key drivers behind our shift towards focusing on sustainable, profitable organic growth by maintaining share in challenged markets and growing share where we see strategic opportunity. One example is in our international business, which was a highlight this quarter, as it grew 82% year-over-year and 17% quarter over quarter to $30 million dollars. By design, our global presence offers a diversification of revenue streams that mitigates concentration risk."
Third Quarter 2024 Financial Highlights
-- Net Revenue of $330.5 million, a year-over-year decrease of 1% compared
to Q3 2023 revenue of $333.2 million. Sequentially, net revenue decreased
3%
-- Gross profit of $160.5 million and gross margin of 49%
-- Adjusted gross profit(1) of $161.3 million and adjusted gross margin(1)
of 49%, an increase of 312 basis points year-over-year
-- Net loss attributable to Curaleaf Holdings, Inc. of $44 million from
continuing operations or net loss per share from continuing operations of
$0.07
-- Adjusted EBITDA(1) of $75.3 million and adjusted EBITDA margin([1]) of
23%, a 23 basis point increase year-over-year
-- Cash at quarter end totaled $90.0 million
-- Operating and free cash flow from continuing operations of $42.3 million
and $14.5 million, respectively
_________________________
1 Adjusted EBITDA, adjusted gross profit and free cash flow from continuing
operations are non-GAAP financial measures, and adjusted EBITDA margin and
adjusted gross margin are non-GAAP financial ratios, in each case without a
standardized definition under GAAP and which may not be comparable to
similar measures used by other issuers. See "Non-GAAP Financial Performance
Measures" below for definitions and more information regarding Curaleaf's
use of non-GAAP financial measures and non-GAAP financial ratios. See
"Reconciliation of Non-GAAP financial measures" below for a reconciliation
of each non-GAAP financial measure used in this press release from the most
directly comparable GAAP financial measure.
Nine Months Ended September 30, 2024 Financial Highlights
-- Net revenue of $1,011.7 million, a 1% increase year-over-year
-- Gross profit of $481.9 million and gross margin of 48%
-- Adjusted gross profit(1) of $485.8 million and adjusted gross margin(1)
of 48%
-- Operating cash flow from continuing operations of $118.6 million and free
cash flow from continuing operations of $53.0 million
-- Net loss attributable to Curaleaf Holdings, Inc. of $144 million from
continuing operations or net loss per share from continuing operations of
$0.20
-- Adjusted EBITDA(1) of $225.0 million and adjusted EBITDA margin of 22%
Third Quarter 2024 Operational Highlights
-- In New York, opened two new dispensaries in Rochester and Syracuse and
expanded adult-use sales in two existing stores.
-- Commenced adult-use sales in Ohio to wholesale customers and at our two
retail dispensaries in Newark and Cuyahoga Falls.
-- In Florida, opened two new dispensaries in Pensacola and Destin, bringing
the total to 150 U.S. retail stores at quarter end.
-- Launched JAMS Remix, a new line of flavor-forward jellies in New York,
Arizona, Illinois, Connecticut, and Massachusetts.
Post Third Quarter 2024 Operational Highlights
-- In Florida, opened two new dispensaries in Port St. Lucie and Miami,
bringing the state total to 66 retail stores and the U.S. total to 151
U.S. retail stores.
-- Successfully introduced Curaleaf flower into the German market.
-- Rebranded our three Nevada stores to Curaleaf stores.
-- Secured a $40 million revolving credit facility with a major commercial
regional bank at a 7.99% interest rate that matures December 15, 2026, a
milestone for a cannabis company.
Third Quarter 2024 Revenues, net by Segment
Domestic International Total
----------------------- ------------------------- -------------------------
Retail
revenue $ 243,253 $ 9,997 $ 253,250
Wholesale
revenue 57,199 18,484 $ 75,683
Other 504 1,093 $ 1,597
----------------------- ------------------------- -------------------------
Total
revenues,
net $ 300,956 $ 29,574 $ 330,530
======================= ========================= =========================
Balance Sheet and Cash Flow
As of September 30, 2024, the Company had $90.0 million of cash and $557.4 million of outstanding debt net of unamortized debt discounts.
During the nine months ended September 30, 2024, Curaleaf invested $65.6 million, net in capital expenditures, focused on cultivation, automation, and selective retail expansion in strategic markets.
Shares Outstanding
For the third quarter of 2024 and 2023, the Company's weighted average Subordinate Voting Shares plus Multiple Voting Shares outstanding amounted to 742,535,355 and 725,319,477 shares, respectively.
Conference Call Information
The Company will host a conference call and audio webcast for investors and analysts on Wednesday, November 6, 2024 at 5:00 P.M. ET to discuss Q3 2024 earnings results. The call can be accessed by dialing 1-844-512-2926 in the U.S., Canada 1-416-639-5883, or internationally from 1-412-317-6300. The conference pin # is 1873022.
A replay of the conference call can be accessed at 1-877-344-7529 in the U.S., Canada 1-855-669-9658, or internationally from 1-412-317-0088, using the replay pin # 4809848.
A webcast of the call can be accessed on the investor relations section of the Curaleaf website at ir.curaleaf.com. The teleconference will be available for replay starting at approximately 7:00 P.M. ET on November 6, 2024 and will end at 11:59 P.M. ET on November 13, 2024.
Non-GAAP Financial and Performance Measures
Curaleaf reports its financial results in accordance with GAAP and uses a number of financial measures and ratios when assessing its results and measuring overall performance. Some of these financial measures and ratios are not calculated in accordance with GAAP. Curaleaf refers to certain non-GAAP financial measures and ratios, such as "adjusted gross profit", "adjusted gross margin", "adjusted EBITDA", "adjusted EBITDA margin" and "Free cash flow from operations". These measures do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other issuers. The Company defines "adjusted gross profit" as gross profit net of cost of goods sold and related other add-backs. "Adjusted gross margin" is defined by Curaleaf as adjusted gross profit divided by total revenues. "Adjusted EBITDA" is defined by Curaleaf as earnings before interest, taxes, depreciation and amortization less share-based compensation expense and other add-backs related to business development, acquisition, financing and reorganization costs. "Adjusted EBITDA margin" is defined by Curaleaf as adjusted EBITDA divided by total revenue. "Free cash flow from operations" is defined by Curaleaf as Net cash provided by operating activities from continuing operations less the Purchases of property, plant and equipment (i.e. net capital expenditures). Curaleaf considers these measures to be an important indicator of the financial strength and performance of our business. We believe the adjusted results presented provide relevant and useful information for investors, because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, our reported GAAP financial results as indicators of our performance, and they may not be comparable to similarly named measures from other companies. The tables below provide reconciliations of Non-GAAP measures to the most directly comparable GAAP measures.
Reconciliation of Non-GAAP financial measures
(MORE TO FOLLOW) Dow Jones Newswires
November 06, 2024 16:08 ET (21:08 GMT)
Comments