Jushi Holdings Releases Mixed Preliminary Q3 Financials

 Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced certain preliminary financial results today for the quarter ended September 30, 2022 (“Q3 2022”). 

Financial Disclosure Advisory

Please note that Jushi issued a financial disclosure advisory in which it stated that:

  1. the Company had not yet completed its reporting process for Q3 2022 and, as such, the Q3 results provided were only preliminary
  2. the actual final results might materially vary from the preliminary results,
  3. and that its final results for Q3 2022 would not be finalized until after its interim asset impairment assessment was completed which was expected to record a non-cash, indefinite-lived asset impairment charge in the range of $35.0M to $49.0M (after-tax of $24.8M to $34.7M).

Given the above, the Company cautioned that:

  1. any statements regarding the Company’s estimated financial performance for Q3 2022 did not present all information necessary for an understanding of the Company’s financial condition and results of operations as of and for Q3 2022
  2. and that their preliminary financial results were not reviewed by their independent registered public accounting firm.

Q3 Financial Highlights

(The information below compares Q3 2022 with Q2 2022 and all figures are in U.S. dollars.)

  • Total Revenue: Remained unchanged at $72.8M
  • Gross Profit: UP 4% to $27.7M
  • Adj. Net Profit (Loss): $(28.1)M from $12.1M
  • Adj. EBITDA: Remained unchanged at $0.7M
  • Cash on Hand: $31.1M
  • Total Debt: $209M

Q3 Operational Highlights

  • Opened the 34th and 35th retail locations nationwide and third and fourth Beyond Hello™ dispensary locations in Virginia
  • Expanded overall canopy by 11,000 sq. ft. to a total of 80,000 sq. ft. and increased annual biomass capacity by 7,300 lbs. to a total of 45,500 lbs.
  • Added nearly 8,000 new patients in Virginia in Q3 2022, compared to approximately 1,950 patients in Q2 2022.

Management Commentary

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

  • “We remain focused on executing our strategic initiatives to strengthen and expand our operating platform [and in Q3] we:
    • bolstered our retail portfolio with the addition of two new stores in Virginia,
    • moved closer to full-scale production at our grower-processor facilities in Pennsylvania and Virginia,
    • and expanded our Jushi branded product portfolio across our operational vertically integrated markets.
  • As we approach the end of the year, we expect to begin realizing the benefits of our efforts as we:
    • transform the business from substantially retail only and selling mostly third-party product, to a company that is vertically integrated.
  • As we look out to 2023 and beyond, we anticipate that our sales growth and improved profitability will be driven by:
    • the growth of the Virginia market,
    • increased production and sell-through of high-quality products produced at our grower-processor facilities,
    • and...focused in markets that are well-positioned to take advantage of future state-level regulatory developments.
  • I am incredibly pleased with the significant progress we have made year-to-date and remain highly confident in our market position as we close out the year.”

Stock Performance

Jushi's stock price went DOWN 13.4% during the Q3 (July, August, September) period but has rallied by 34% as of mid-day on November 15th.

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