Kaitlin Domangue
It’s time for your Daily Hit of cannabis financial news for August 27th, 2020.
On the Site
Jushi Reports Increasing Revenue, Losses Trimme
Jushi Holdings Inc. (OTCQB: JUSHF) reported that its total revenue increased 73% sequentially to $14.9 million for the second quarter of 2020. The company said in a statement that its annualized revenue run-rate for July 2020 was approximately $89 million, an approximate 80% increase over the March annualized run rate.
Jushi reported a net loss of $9.3 million, or $0.10 per diluted share, compared to a net loss of $15.9 million, or $0.17 per diluted share, in the first quarter. The $6.6 million drop in the net loss in the second quarter was attributed to both higher revenue and gross profits.
COVID Hurts Slang Revenue, But Sales Look to Be Recovering
SLANG Worldwide Inc. (OTC: SLGWF) reported that in Canadian dollars that its revenue decreased by 3% sequentially to $4.6 million in the second quarter from $4.6 million in the first quarter 2020. The drop was attributed to stores that were impacted by COVID lockdowns. Slang said in a statement, “The stay-at-home orders associated with the COVID-19 response also adversely affected certain retail locations that sell the company’s branded products.”
In Other News
AYR Strategies Reports Earnings from Q2 2020
Vertically-integrated, multi-state operating cannabis company AYR Strategies reported their second quarter earnings this morning at about 8:30 eastern time. The call was introduced by CEO and corporate secretary, Jonathan Sandelman. Sandelman said “our business is stronger than ever reflected by significant month over month improvements across our markets since the lows of the pandemic in April.”
The company’s CFO, Brad Asher, then took over the conversation to report a revenue growth from 50% below pre-COVID levels to 10% above pre-COVID levels all within the same quarter. “Our ability to adjust our business plan was a key driver including revenue of $28.3 million for the quarter which represents a decrease of 15% from the prior quarter due to COVID related closures,” said Asher. “Despite the sequential decrease in quarterly revenue, our adjusted EBITDA for the second quarter was $9.1 million which represents an 8% increase from Q1 and an EBITDA margin of over 32%. The increase in adjusted EBITDA was primarily driven by our increasing gross margins before fair value adjustments which improved dramatically to 60% compared to 50% in Q1.”
