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Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF), a multi-state cannabis and hemp operator, today announced its financial results for the second quarter ended June 30, 2021, and they were very impressive.

Q2 Financial Highlights

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

• Total Revenue: increased 14.6% to $47.7M
• Gross Profit: increased 9.2% to $21.9M
• Net Profit (Loss): increased to $4.8M from $(26.8)M
• Net Profit/share: increased to $0.03 from $(0.18)
• Adjusted EBITDA: increased 2.2% to $4.6M
• Adj. EBITDA as % of Tot. Revenue: increased to 9.6% from 7.2%
• Cash/Cash Equiv./Securities on Hand: declined 24.5% to $126.8M

Q2 Operational Highlights

• Opened its 19th and 20th BEYOND/HELLO ^TM retail locations nationwide with its 12th and 13th store in Pennsylvania
• Completed the acquisition of 100% of the equity of Organic Solutions of the Desert, LLC, an operational retail dispensary in Palm Springs, California
• Completed the acquisition of the 93,000 sq. ft. facility and surrounding nine acres of land operated by its wholly-owned subsidiary and Virginia based pharmaceutical processor, Dalitso LLC
• Signed a definitive agreement to acquire Nature’s Remedy of Massachusetts, Inc., a vertically integrated, single-state operator in Massachusetts, operating two retail dispensaries and a 50,000 sq. ft. cultivation and production facility
• Announced the appointment of Leonardo Garcia-Berg as Chief Operations Officer
• Announced the appointment of Marina Hahn to the Board of Directors
• Commenced the first phase of the expansion project at the Pennsylvania grower-processor facility
• Completed the previously announced acquisition of an established Nevada operator

Management Commentary

Mr. Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi commented as follows:

• “With our strong balance sheet we are well positioned to execute on our plans, which includes expanding our national retail footprint as well as building out our cultivation and processing assets to support increased demand from both patients and consumers for our high-quality products.
• Our performance has been driven:
  • by our commitment to delivering a differentiated customer shopping experience both in-store and online,
  • by bringing to market innovative and exciting new brands and products, and
  • by leveraging cutting edge technologies and data analytics to improve customer engagement.
• As we look out to the second half the of the year, we plan on building on our recent successes and driving continuous improvement across all of our operating assets."

Balance of 2021 Outlook

[Regarding the balance of  2021, Mr Cacioppo said:]

• "We expect to:
  • open an additional 7 BEYOND/HELLO dispensaries, add 2 dispensaries and a grower-processor facility in Massachusetts through the acquisition of Nature's Remedy of Massachusetts
  • continue to build-out our Pennsylvania and Virginia grower-processor facilities, which will fuel our business as we head into 2022.
• Assuming our Massachusetts acquisition closes late in the third quarter, we are revising our full year 2021 guidance, as follows:
  • revenue range of from $205 to $255 million to from $220 to $230 million and our
  • Adjusted EBITDA range from approximately $40 to $50 million down to from $32 to $37 million due to the fact that:
    1. new store openings being have been delayed in the Virginia market as a result of:
       • the Company pivoting to a larger store format and
       • the timing and regulations associated with the adult use program;
    2. a greater reduction than originally anticipated in the flower room capacity at the Pennsylvania grower-processor facility to accommodate post-harvest expansion related to expanding to a much larger facility; and
    3. greater growth in corporate overhead than originally planned that reflects the opportunity and challenges of the very significant growth associated with the larger than planned grower-processor expansion and the upcoming adult use markets in VA and PA, both of which may happen by 2023.”

Full Year 2022 Guidance

"[Regarding] our full year 2022 guidance we expect:

• revenues to be between $375 to $425 million and
• Adjusted EBITDA to be between $110 to $130 million on an IFRS basis..."

Stock Performance.

Jushi's stock price has declined by 45% since it peaked on February 4th, 2021 and, despite excellent Q1 and Q2 financial reports, shows no sign of improvement.