Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its results for the third quarter ended September 30, 2021, with revenues of $207 million, which increased over the second quarter’s revenue of $199 million. Unfortunately, this missed the average analyst estimates by Yahoo Finance for revenue of $299 million. Still, this was almost double over last year’s $101 million for the same time period. The revenues are calculated on a pro forma, consolidated basis accounting for the AltMed acquisition as if completed on January 1, 2021. The average estimate for earnings was $0.24, which Verano easily beat by reporting earnings of $0.33 per share.

Verano’s net income, including the impact of biological assets, was $103.7 million. The company said that excluding the impact of biological assets, net income was $15 million in the third quarter of 2021 versus $32 million reported in the second quarter of 2021. Cash flow from operations was $68 million and free cash flow was $35 million. The third quarter adjusted EBITDA was $111 million or 54% of revenue compared to $81 million or 41% of revenues in the prior quarter. Third quarter EBITDA on an unadjusted basis was $107 million or 52% of revenues.

“Our third-quarter results demonstrated the company’s fundamental strengths, highlighted by our industry-leading bottom-line performance that included $111 million in adjusted EBITDA, or 54% of revenue, and 33% sequential growth in gross profit,” said George Archos, Verano CEO and Founder. “We’ve expanded the Verano platform considerably, adding vertically integrated operations in Connecticut ahead of the adult-use transition and adding depth in Pennsylvania, Nevada, and Florida. We believe that we’re positioning the Company well for long-term topline growth while targeting a low-40s EBITDA margin profile heading into 2022 and beyond.”

Since the quarter ended, Verano secured additional, non-dilutive liquidity to support further inorganic growth, upsizing its credit facility by $120 million while lowering its cost of capital. The restated credit agreement also provides the option for an additional $100 million term loan at the same non-dilutive rate. In November, Verano announced three accretive acquisitions in Connecticut, including two active dispensaries and one 217,000 square foot cultivation and a production facility. The company is comfortable with its current assets on a consolidated basis at $629 million, including cash and cash equivalents of $57 million.

As of the date of this earnings report, Verano has 89 operating dispensaries and 12 cultivation and production facilities.