Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF), a multi-state cannabis and hemp operator, today announced its financial results for the first quarter ended March 31, 2020, and they were impressive across the board.

Q1 Financial Highlights (All financial information is provided in U.S. dollars unless otherwise indicated and in comparison to the previous quarter.)

• Total Revenue: increased 43%
  • driven by acquisition of two medical marijuana dispensaries in Illinois and strong revenue growth at the Company’s BEYOND/HELLO stores in Pennsylvania. 
• Gross Profit: increased 55% to $4.2M primarily due to:
  • higher margin adult-use sales,
  • improved product mix,
  • the implementation of strategic purchasing practices
  • and more disciplined promotional offers.
• Gross Margin: increased to 48% from 44%
• Net Profit (Loss): loss decreased 7% to $15.9M primarily due to:
  • an $8.2 million loss on investments due to market conditions.
• Adjusted EBITDA: Loss decreased 17.8% to $6.0M primarily due to:
  •  higher gross margins,
  • reduced operating expenses
  • and improved store revenue performance.
• Cash/Cash Equiv./Securities on Hand: $49.3M
• Net Working Capital on Hand: $29.1 million.

Q1 Operational Highlights

• Announced a definitive binding agreement to purchase the equity of a grower-processor in Pennsylvania and a concurrent debt financing of approximately $16.2 million led by insiders and current shareholders.
• Announced the closing of the acquisition of Agape Total Health Care Inc, a Pennsylvania medical marijuana dispensary permit holder.
• Acquired two medical dispensaries in Illinois.
• Launched adult-use sales and rebranded stores as BEYOND/HELLO.
• Relaunched Beyond-Hello.com, providing “live” menus and real-time access to store inventory.
• Remained operational during COVID-19 after implementing safety protocols, including curbside pick-up in PA and IL.
• Closed two PA dispensaries temporarily in June for repairs due to break-ins.
• Announced passing of VA Senate Bill 976 in April permitting up to five additional medical dispensaries per health service area, for a total of six dispensaries per license.
• Opened 7 dispensaries in PA.

Forward Guidance

• Jushi remains on track to further expand its retail footprint this year through the planned opening of:
  • 3 new stores in Pennsylvania (for approximately 1 by year-end plus an additional 5 in 2021)
  • 2 new stores in Illinois (for a total of 4 by year-end)
  • its first store in California and 
  • up to six BEYOND/HELLO branded medical dispensaries in Virginia.
• Jushi expects fourth quarter 2020:
  • Revenue of approximately $25 to $30 million and
  • Adjusted EBITDA to be positive.
• Jushi also has reaffirmed its 2021 revenue guidance of $200 to $250 million.

Jushi's stock price (see chart here) has remained relatively stable YTD (-5%) and, as a pure-play non-penny pot stock, it is reviewed daily in exclusive Cannabis Central posts on TalkMarkets.