Columbia Care, Inc. (CCHWF) reported its financial and operating results for the fourth quarter ended December 31, 2020, showing improvements across the board with management reaffirming its 2021 guidance.

Q4 Financial Highlights* 

(All financial information is provided in U.S. dollars and compared to the previous quarter.)

• Revenue: increased 51% to $81.8M
• Gross Profit: increased 61% to $34M
• Gross Margin: increased to 42% from 39%
• Adj. EBITDA: improved 124% to $9.5M
• Cash on Hand: increased 45% to $61M

*includes the contribution from The Green Solution in Colorado, which the Company acquired on September 1, 2020, as well as partial contribution from Project Cannabis, which the Company acquired on December 2, 2020.

Management Commentary

Nicholas Vita, the CEO, had the following comments regarding the company's Q4 results:

• “...We have outperformed our 2020 outlook, solidifying our position as an industry-leading MSO [with] corporate profitability continuing to expand as we further leverage our national scale...
  • we expanded our footprint in the top two global cannabis markets with accretive acquisitions in California and Colorado
  • we generated strong organic growth in our existing markets and
  • we plan to capitalize on favorable regulatory tailwinds in medical markets that are converting to adult use across the country.
• With our footprint in 17 U.S. markets, three of which will become operational in 2021, we are well-positioned to take advantage of the tremendous opportunity for growth as cannabis adoption progresses:
  • our acquisition of Green Leaf Medical remains on track to close in 3Q 2021 and is expected to expand our scale and vertically integrated footprint in four key, limited license markets - Maryland, Ohio, Virginia, and Pennsylvania, where we will become one of the largest fully-integrated operators in each state.
  • we are also on track to open the first co-located medical and adult-use dispensary in Boston in 2Q 2021
  • we recently launched adult-use sales in Arizona.
• In 2021, we will leverage our vertically integrated national platform for key branding initiatives, both at the product level and in our stores, and will be rolling out several of our nationally-recognized, trusted brands across our markets and introducing a more approachable, more curated retail experience at our dispensaries to redefine the customer journey...”

2021 Outlook

• Combined Revenue: $500M to $530M
• Combined Adj. Gross Margin: 47%+
• Combined Adj. EBITDA: $95M to $105M

Stock Performance

Columbia's stock performance (+75%) lagged that of munKNEE's Pure-Play MSO Pot Stock Sub- Index of 21 constituents (+98%) during the 3-month period ending December 31st. Since then it has appreciated a further 5.8% but that pales in comparison with the 55.6% gain for the Index itself. For more information on Columbia Care, please visit www.col-care.com.