Curaleaf Holdings, Inc. (CURLF), a constituent in the munKNEE Pure-Play MSO Pot Stock Sub-Index, reported its financial results for Q4 ended December 31, 2020 yesterday.

Q4 Financial Highlights (All financial information is provided in U.S. dollars unless otherwise indicated.)

• Total Revenue: increased 26% to $230M
  • Retail Revenue: increased 22% to $165M
  • Whlse. Revenue: increased 42% to $64M
  • Mgmt. Fees: decreased 52% to $1M
• Gross Profit: increased 22% to $110M
• Gross Margin: declined to 48% from 50%
• Adj. EBITDA: increased 27% to $54M
• Net Income/Loss: increased 280% to $(35)M
• Net Loss/Share: increased to $(0.05) from $(0.01)

Management Commentary

Joe Bayern, Chief Executive Officer stated:

• "Curaleaf's record fourth quarter results reflected the benefit of our acquisition of Grassroots, which expanded our presence into 6 new states...as well as the continued ramp up of Select, which is now in 17 states.
  • In 2021, we expect to see the positive benefits of the transformative legalization of adult-use cannabis in Arizona and New Jersey. As we have stated, we believe New Jersey will accelerate the potential of future adult-use in key states such as New York, Pennsylvania and Connecticut. Each of these markets present an enormous growth opportunity for us, as Curaleaf is the only MSO with a leading presence in every one of these states."

Boris Jordan, Executive Chairman of Curaleaf commented:

• "... Curaleaf...[has entered] the European cannabis market with the acquisition of EMMAC Life Sciences Limited, Europe's largest vertically integrated  independent cannabis company...[which] will give Curaleaf access to the European market of 748 million people representing another transformational growth driver for Curaleaf for years to come."

Mike Carlotti, Chief Financial Officer of Curaleaf, added:

• "...With our successful integration of Alternative Therapies Group in October 2020, starting next quarter, we will no longer report Managed Revenue thus simplifying our financial reporting. 
• Our recent capital raises further strengthen the Company's balance sheet providing it with ample capital to pursue planned organic growth initiatives, potential investments in states that may go adult-use sooner than later and for strategic acquisition opportunities. 
• We believe that 2021 will be yet another record year for Curaleaf as we continue to:
  • expand our cultivation in key markets,
  • open additional stores,
  • expand our product and brand platforms,
  • invest in future growth opportunities
  • as well as see the benefit from Arizona's recently approved adult use market and potentially New Jersey's in late 2021."

Stock Performance

Curaleaf appreciated by 29% over the 3-month Q4 period and has appreciated another 37% since then.