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Jushi Holdings Inc.(CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, and constituent in the munKNEE Pure-play MSO Pot Stock Index, announce its Q1 financial results for the period ended March 31, 2022. All financial information is provided in U.S. dollars unless otherwise indicated and compared to the previous quarter.
 

Q1 Financial Highlights

• Total Revenue: decreased 6.1% to $61.9M
• Adj. Gross Profit: decreased 3.1% to $25.5M
  • as a % of revenue: increased to 41.2% from 40.1%
• Net Income (Loss): declined to $(14.3)M from $7.5M
  • Loss/Share: declined to $(0.08) from $0.04
• Adj. EBITDA*: declined 26.7% to 1.1M
  • *Earnings Before Interest Taxes Depreciation and Amortization
• Cash on Hand: $76.2M
   

Q1 Operational Highlights

• Acquired an operating adult-use and medical retail dispensary (The Apothecarium) in Las Vegas, Nevada, 
• Debuted a series of cannabis brands and product launches in Massachusetts
• Closed a non-brokered private placement for total proceeds of approximately $13.7M
• Announced that Jim Cacioppo, CEO, Chairman, and Founder, purchased $220,000 worth of shares of the Company in the open market
   

Management Commentary

Jim Cacioppo, Chief Executive Officer, Chairman, and Founder, said:

• “We remain focused on investing in our businesses, including:
  • building out our store base,
  • significantly expanding our cultivation and processing facilities in both Pennsylvania and Virginia,
  • scaling our wholesale channel in Massachusetts, Pennsylvania, and Virginia,
  • integrating our two recently acquired businesses in Nevada and
  • steps to manage our costs across all operating units
• ! am encouraged by the initial results and confident that our investments into the business and the cost savings measures we have recently implemented position us to achieve accelerated growth and profitability through the balance of the year.”
   

Outlook

The Company: 

• expects to open an additional four dispensaries and continue to build out the grow rooms in our Pennsylvania and Virginia grower-processor facilities, which will increase our margins and substantially grow our wholesale sales in 2022 and beyond according to Mr. Cacioppo.
• has revised:
  • its 2022 annualized revenue to be between $340M to $380M,
  • its 2022 annualized Adjusted EBITDA to be between $60M and $80M million
  • are targeting 50 retail licenses across seven markets, including 36 operating retail locations and approximately 330,000 sq. ft. of cultivation and processing capacity.
     

Stock Performance

The stock price is relatively unchanged today and remains DOWN 35% from the end of Q1 (March 31st) and is now DOWN 42% YTD and DOWN 78% from its peak in February 2021.