Q2 Revenue up 24% YoY to $16.5 Million; Adjusted EBITDA up ~2x to $5.2 Million

Management to Host Conference Call Tomorrow at 8:30 A.M. Eastern Time

MIAMI, Aug. 24, 2021 /CNW/ - Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF) ("Cansortium" or the "Company"), a vertically-integrated cannabis company operating under the Fluent™ brand, today announced financial results for the second quarter ended June 30, 2021, as well as recent operational highlights. Unless otherwise indicated, all results are presented in U.S. dollars.

"We continued to drive growth and profitability in our key markets during the second quarter, as reflected by another month of record sales in May," said CEO Robert Beasley. "Our continued focus on providing differentiated, high-quality flower and wellness products has been well received by our patients. Additionally, we are now offering several boutique strains that have never been sold in the Florida market."

Cansortium significantly improved its balance sheet during the quarter with debt and equity financings of nearly $90 million, which enabled the Company to cancel legacy debt and extend maturities to 2025, as well as redeem all outstanding convertible notes. Cansortium now has both the capital and flexibility needed to execute its expansion plans.

Mr. Beasley continued, "Our core operations in Florida are performing well and our expansion plans are fully-funded. There have been minor supply chain and construction delays for several projects in Florida, which will delay the expected timing of our production ramp and push our schedule back by approximately two months. In addition, we have experienced delays in the Michigan market which, albeit a small market for us, will also impact our guidance for 2021 as we continue to hold product for sale to hedge against volatile pricing.

"Overall, we continue to expect significant growth in 2021.  Our revised outlook for 2021 calls for $70-80 million of revenue with $18-26 million of adjusted EBITDA¹, reflecting year-over-year growth of approximately 43% and 114%, respectively. We see upside to these numbers if the construction market opens up earlier than our current projections.

"Other progress on various initiatives includes last week's opening of a new dispensary in Mechanicsburg, Pennsylvania, and securing our third Pennsylvania location in Annville, which we expect to open by the end of the year. In addition, we expect to open our 27^th dispensary in Florida by the end of the third quarter and have identified four additional sites for continued growth in the first half of 2022."

Q2 2021 Financial Highlights (vs. Q2 2020)

• Revenue increased 24% to $16.5 million compared to $13.2 million.
• Florida revenue increased 22% to $14.6 million compared to $12.0 million.
• Adjusted gross profit² increased 24% to $10.7 million or 65.1% of revenue, compared to $8.7 million or 65.5% of revenue.
• Adjusted EBITDA approximately doubled to $5.2 million or 31.8% of revenue, compared to $2.6 million or 19.7% of revenue.
• At June 30, 2021, the Company had approximately $26 million of cash and cash equivalents and $71 million of total debt, with approximately 264 million fully diluted shares outstanding (based on treasury stock method and share price on June 30, 2021).

Recent Operational Highlights

• Launched Sweetwater, a new line of premium cannabis whole flower.
• Hired a new Head of Cultivation.
• Appointed multiple new board members, including Mark Eckenrode, Alex Spiro, and the Company's new Executive Chairman of the Board, William Smith.
• In July, the Company opened its 26^th Florida dispensary in Deerfield Beach.
• All convertible notes from the Company's capital structure were converted to shares during the second quarter. A total of approximately $18.0 million of debt was converted into common shares of the Company.
• The Company sold approximately 2,600 lbs. of biomass from Michigan inventory in July.

2021 Outlook
The Company is revising its 2021 outlook for revenue to range between $70-$80 million, with adjusted EBITDA ranging between $18-$26 million. This compares to approximately $52 million of revenue and $10 million of adjusted EBITDA in 2020.

In Florida, Cansortium continues to expect a total of 27 dispensaries to be operational by the end of 2021 and has identified four additional locations to be opened in 2022. In Michigan, the Company is holding 900 lbs. of flower prepared for sale. However, due to the pricing volatility, the Company is timing the sales cycle to realize optimal value.

The Company's unaudited consolidated financial statements and accompanying notes, along with the Management Discussion and Analysis (MD&A), will be available under the Company's profile on SEDAR at www.sedar.com and are also accessible through the Investor Relations section of the Company's website at www.getfluent.com.

Conference Call
The Company will host a conference call and live audio webcast tomorrow at 8:30 a.m. Eastern time to discuss its financial results and operational highlights.

Toll-free dial-in number: (800) 319-4610
International dial-in number: (604) 638-5340
Conference ID: 10016120
Link: Cansortium Q2 2021 Earnings Call

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Elevate IR at (949) 200-4603.

The conference call will also be available for replay via the News & Events section of the Company's investor relations website at https://investors.getfluent.com/.

About Cansortium Inc.
Cansortium is a vertically-integrated cannabis company with licenses and operations in Florida, Pennsylvania, Michigan and Texas. The Company operates under the Fluent™ brand and is dedicated to being one of the highest quality cannabis companies for the communities it serves. This is driven by Cansortium's unrelenting commitment to operational excellence in cultivation, production, distribution and retail. The Company is headquartered in Miami, Florida.

Cansortium Inc.'s common shares trade on the CSE under the symbol "TIUM.U" and on the OTCQX Best Market under the symbol "CNTMF." For more information about the Company, please visit www.getfluent.com.

Forward-Looking Information
Certain information in this news release may constitute forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates, and projections regarding future events.

Forward-looking information is necessarily based on many opinions, assumptions, and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

For further information: www.getfluent.com

 

 

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/cansortium-reports-second-quarter-2021-financial-results-301361999.html

SOURCE Cansortium Inc