Verano Beats On Earnings, Misses On Revenue Estimates - Grow Life 420

Verano Beats On Earnings, Misses On Revenue Estimates

November 16, 2021

#KahliBuds #MMJ #CBD #THC

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.

The post Verano Beats On Earnings, Misses On Revenue Estimates appeared first on Green Market Report.



Debra Borchardt, KahliBuds, 420GrowLife

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