Financial Overview
The Company achieved a significant increase in year-over-year quarterly net income and revenue, with both being records for the Company for the quarter ending
The increase in financial performance is attributable to greater revenue received from products produced and manufactured at Building 1, the Company's initial building at its Massachusetts Cannabis Center development in
Building 1 is a 30,000-square-foot cultivation greenhouse and processing facility that utilizes AmeriCann’s proprietary “Cannopy” cultivation system. Building 1 is fully occupied by
A summary of operational highlights included the following:
- AmeriCann’s Operating Revenue from Building 1 increased over 36% from the quarter ended
June 30, 2021 , to the quarter endingJune 30, 2022 . Net Income increased by$261,689 to$162,734 . - The Company achieved positive Adjusted EBITDA for the quarter of
$438,890 , an increase of 84% over the quarter endingJune 2021 . Adjusted Operating EBITDA margins for the quarter were 55.0%. - The manufacturing of cannabis-infused products, including the 1906 branded “Drops,” Howl’s Tincture, and Harpoon Extracts, has increased dramatically at the Massachusetts Cannabis Center. Sales of manufactured infused products are expected to be even stronger as continual increases in production and sales for 1906 “Drops” are realized.
- The 1906 branded “Drops” has been the top-selling edible product in the
Massachusetts market. Howl’s Tincture was the top-selling brand in the tincture category. - For the first five months of 2022, the total cannabis sales revenue for the
Massachusetts market was$708 million , which was 16% greater than the first five months of 2021. The annualized revenue estimate based on the first five months of 2022 is approximately$1.7 billion . Experts believe the market will exceed$1.8 billion annually. - The total
Massachusetts market has sold$3.2 billion since the inception of the Commonwealth’s regulated cannabis program.
See definitions of non-GAAP measures later in this release.
Management Commentary
“The
About
To learn more about the Massachusetts Cannabis Center click HERE to watch a short video.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.
About Non-GAAP Financial Measures
The Company uses "adjusted EBITDA," as a non-GAAP financial measure to evaluate financial performance such as period-to-period comparisons. This non-GAAP measure is not defined under
Reconciliation of Non-GAAP Financial Measures
The Company defines adjusted EBITDA as net income adjusted to exclude the impact of interest expense, interest income, income taxes, depreciation, depletion and amortization, stock-based compensation, impairment, and the plus or minus change in fair value of derivative assets or liabilities. The Company believes adjusted EBITDA is relevant because it is a measure of cash flow available to fund capital expenditures and service debt and is a metric used by some industry analysts to provide a comparison of its results with its peers. The following table presents a reconciliation of the Company's non-GAAP financial measures to the nearest GAAP measure.
Quarter Ending | ||||||||||||||
Quarters ended | ||||||||||||||
$ Change | % Change | |||||||||||||
Rental income - related party | $ | 797,734 | $ | 584,546 | $ | 213,188 | 36% | |||||||
Net income (loss) | $ | 162,734 | $ | (98,955 | ) | $ | 261,689 | 264% | ||||||
Interest income | (1,822 | ) | (4,392 | ) | 2,570 | 59% | ||||||||
Interest expense | 152,445 | 215,667 | (63,222 | ) | -29 | |||||||||
Interest expense - related party | 13,052 | 13,051 | 1 | 0% | ||||||||||
Depreciation and amortization | 112,481 | 112,711 | (230 | ) | -0 | |||||||||
EBITDA | $ | 438,890 | $ | 238,082 | $ | 200,808 | 84% | |||||||
EBITDA | $ | 438,890 | $ | 238,082 | $ | 200,808 | 84.3% | |||||||
EBITDA Margin | 55.0 | % | 40.7 | % | 94.2 | % | ||||||||
Gross Margin | 98.5 | % | 98.7 | % | -0.2 | % | ||||||||
Quarters ended | ||||||||||||||
$ Change | % Change | |||||||||||||
Rental income - related party | $ | 797,734 | $ | 667,366 | $ | 130,368 | 20% | |||||||
Net (loss) income | $ | 162,734 | $ | 24,240 | $ | 138,494 | 571% | |||||||
Interest income | (1,822 | ) | (3,119 | ) | 1,297 | 42% | ||||||||
Interest expense | 152,445 | 151,089 | 1,356 | 1% | ||||||||||
Interest expense - related party | 13,052 | 12,907 | 145 | 1% | ||||||||||
Depreciation and amortization | 112,481 | 112,480 | 1 | 0% | ||||||||||
EBITDA | $ | 438,890 | $ | 297,597 | $ | 141,293 | 47% | |||||||
EBITDA | $ | 438,890 | $ | 297,597 | $ | 141,293 | 47.5% | |||||||
EBITDA Margin | 55.0 | % | 44.6 | % | 108.4 | % | ||||||||
Gross Margin | 98.5 | % | 98.4 | % | 0.1 | % | ||||||||
Contact Information:
Corporate:
info@americann.co
www.americann.co
@ACANinfo on Twitter
@AmeriCann on Facebook
@AmeriCannInc on Instagram
Corporate Communications:
InvestorBrandNetwork (IBN)
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f7f67baa-00cc-473f-8dfc-eb50e4e7e114
AmeriCann, Inc. Massachusetts Cannabis Center
Rendering of AmeriCann , Inc.’s Massachusetts Cannabis Center. The development is permitted for nearly 1 million square feet of cannabis cultivation, product manufacturing, and distribution facilities.
2022 GlobeNewswire, Inc., source