Harborside Tops Revenue Estimates For Fourth Quarter, Misses On Earnings - Grow Life 420

Harborside Tops Revenue Estimates For Fourth Quarter, Misses On Earnings

April 26, 2021

#KahliBuds #MMJ #CBD #THC

Harborside Inc.  (OTCQX: HBORF)reported its financial results for the fourth quarter and full-year ending December 31, 2020. In the fourth quarter, Harborside delivered total gross revenues of approximately $13.1 million, which was a 12% increase versus 2019’s fourth-quarter revenues of $11.7 million. The company beat the average analyst estimates from Yahoo Finance which was for revenues of $12.4 million. The net loss per share was $0.14 for the fourth quarter, which was worse than the analyst estimate for a loss of $0.09 per share for the quarter. 

The operating loss in the quarter was approximately $5.4 million versus $43.6 million in 2019 for the same time period.  The net loss was approximately $5.4 million versus $45.0 million in 2019, an approximately 87.8% improvement on a year-over-year basis.

For the full year, 2020 gross revenues increased 29.4% to $63.4 million from approximately $49.0 million in 2019.  The net loss for fiscal year 2020 was $11.9 million versus 2019’s net loss of $49.4 million.

“2020 marked a turning point year for Harborside. Despite experiencing a pandemic, we worked hard to better serve our customers, improve and scale our cultivation operations,  increase the availability of our branded products and create a strong foundation for future growth,”  said Matt Hawkins, Chairman of Harborside. “The impact of our efforts is evident in our impressive full-year financial results, where we drove solid top-line revenue growth of 29% while actively managing our expenses and driving operating leverage throughout our business to expand our total gross margins to 47% and generate $7.4 million in Adjusted EBITDA in 2020.”

Mr. Hawkins added, “We have also ensured that Harborside has a strong balance sheet, successfully raising C$35.1 million and securing a $12 million revolving credit facility subsequent to year-end.  In addition, we have also started taking definitive action towards settling our preexisting 280E liabilities, which includes the recent 9th Circuit affirmation of the prior lower court ruling with respect to our appeal. We have already accounted for and reserved for these liabilities, and the ruling does not change the company’s plans to negotiate with the IRS.  We have both the resources and focus to execute on our California first growth strategy.”

During the fourth quarter, Harborside recorded an income tax expense of approximately $1.5 million, compared to approximately $0.7 million in 2019, based on estimated federal income taxes payable at each period-end.

Looking Ahead

In January 2021, Harborside had said that it expects standalone gross revenues of between $68.0 to $72.0 million in 2021. The company said that the anticipated increase in revenues for 2021 is expected to be derived from improved retail pricing along with continued increases in both flower yields and processing efficiencies from the company’s wholesale operations. In addition, the company said it expects an Adjusted EBITDA in the range of 15% to 17% of net revenues for 2021. Harborside said it expects to attain this higher level of Adjusted EBITDA in 2021 through more efficient procurement of goods sold and stronger cost discipline on overhead spend.

Harborside said that it plans to accomplish the following over the next year:
 expand its retail footprint throughout California;
 continue to increase the sell-through of in-house brands at Company-controlled retail stores;
 improve its cannabis production efficiencies and yields/manufacturing capabilities;
 expand the wholesale distribution of its branded consumer packaged goods throughout California;
 shift more of its wholesale sales from bulk cannabis products to branded packaged goods;
 increase the number of branded cannabis product offerings, including non-flower cannabis products; and
 create or acquire new California centric consumer brands.

Mr. Hawkins concluded, “We’re thrilled with the progress we have made and excited for the year ahead. With the initial cultivation upgrades at our Salinas production campus now complete, a recently strengthened balance sheet and a refreshed team of operators with deep industry experience at the helm, Harborside is well-positioned to accelerate our growth and continue to extend our leading position in the California cannabis market.”

The post Harborside Tops Revenue Estimates For Fourth Quarter, Misses On Earnings appeared first on Green Market Report.



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via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife

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