“Our focus on cost efficiency has produced some of the strongest adjusted operating EBITDA margins in the industry,” said CFO
Financial Overview
The Company achieved four consecutive quarters of increased operating revenue, culminating in record net income for the quarter ending
AmeriCann’s adjusted annual EBITDA grew to
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
Highlights for the Fiscal Year Ended
- Accelerating revenue, net income and adjusted operating EBITDA driven by the performance of the Company’s Massachusetts Cannabis Center.
- Revenue increased 44% year-over-year to
$2,927,819 . - Adjusted EBITDA grew by
$903,553 year-over-year to$1,465,987 , a 160% increase. - Annual gross margins were 98.5%.
- Adjusted operating EBITDA margins were 50.1% for the year.
Highlights for the Quarter Ended
- Quarterly revenue increased 10% year-over-year to
$811,774 . - The Company’s quarterly net income increased by 307% to
$172,810 . - Adjusted operating EBITDA grew by
$82,025 sequentially year-over-year to$469,476 . - Adjusted operating EBITDA margins were 57.8% for the quarter.
- Quarterly gross margins were 98.5%.
- Seven consecutive quarters of positive Adjusted EBITDA.
See definitions of non-GAAP measures later in this release.
Additional Management Commentary
“AmeriCann’s financial performance and strong cash flow reflect the strength of our operations,” stated President
Market Information
- In addition to increased cultivation productivity in the state-of-the-art greenhouse, the manufacturing of cannabis-infused products has increased dramatically in Building 1.
- Manufactured infused products produced at Building 1 have achieved success as some of the bestselling cannabis brands in
Massachusetts in their respective categories. - For the first 10 months of 2022, the revenue from the
Massachusetts cannabis market was$1.46 billion , which was 9.7% greater than the first 10 months of 2021. The annualized revenue estimate based on the first 10 months of 2022 is approximately$1.75 billion . Experts believe the market will exceed$1.8 billion annually. - The sale of cannabis in
Massachusetts has exceeded$3.7 billion in legal cannabis since adult-use sales commenced in late 2018. AmeriCann released a video highlighting the high-tech, sustainable designs at the Massachusetts Cannabis Center and Building 1, which can be found HERE.
About
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 that 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. For additional uncertainties that could impact the Company's forward-looking statements, please see the Company’s Registration Statement on Form S-1, which may be viewed at www.sec.gov.
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 income, interest expense, depreciation and amortization, amortization of right of use assets, stock based compensation, warrants revaluation expense, and amortization of debt discount. 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.
Insert table here
Contact Information:
Corporate:
info@americann.co
www.americann.co
@ACANinfo on
@AmeriCann on Facebook
Wire Service Contact:
InvestorWire (IW)
www.InvestorWire.com
212.418.1217 Office
Editor@InvestorWire.com
SELECTED QUARTERLY FINANCIAL DATA | ||||||||||||||||||||||
Quarters ended in 2022 | Year ended | |||||||||||||||||||||
September, 30 2022 | ||||||||||||||||||||||
Total revenue | $ | 650,945 | $ | 667,366 | $ | 797,734 | $ | 811,774 | $ | 2,927,819 | ||||||||||||
Net (loss) income | (533,028 | ) | 24,240 | 162,734 | 172,810 | (173,244 | ) | |||||||||||||||
Interest income | (3,561 | ) | (3,119 | ) | (1,822 | ) | (3,002 | ) | (11,504 | ) | ||||||||||||
Interest expense | 154,775 | 151,089 | 152,445 | 156,818 | 615,127 | |||||||||||||||||
Interest expense - related party | 13,195 | 12,907 | 13,052 | 13,194 | 52,348 | |||||||||||||||||
Depreciation | 112,481 | 112,480 | 112,481 | 112,481 | 449,923 | |||||||||||||||||
Amortization of right-of-use asset | 17,021 | 17,072 | 17,123 | 17,175 | 68,391 | |||||||||||||||||
Stock based compensation expense | 209,346 | - | - | - | 209,346 | |||||||||||||||||
Warrants revaluation expense | 255,600 | - | - | - | 255,600 | |||||||||||||||||
Adjusted EBITDA | $ | 225,829 | $ | 314,669 | $ | 456,013 | $ | 469,476 | $ | 1,465,987 | ||||||||||||
Adjusted EBITDA Margin | 34.7 | % | 47.2 | % | 57.2 | % | 57.8 | % | 50.1 | % | ||||||||||||
Quarters ended in 2021 | Year ended | |||||||||||||||||||||
September, 30 2021 | ||||||||||||||||||||||
Total revenue | 271,585 | 437,344 | 584,546 | 735,076 | $ | 2,028,551 | ||||||||||||||||
Net (loss) income | $ | (502,284 | ) | $ | (304,092 | ) | $ | (98,955 | ) | $ | 42,438 | $ | (862,893 | ) | ||||||||
Interest income | (5,148 | ) | (4,780 | ) | (4,392 | ) | (3,985 | ) | (18,305 | ) | ||||||||||||
Interest expense | 191,659 | 259,669 | 215,667 | 206,148 | 873,143 | |||||||||||||||||
Interest expense - related party | 13,195 | 12,908 | 13,051 | 13,194 | 52,348 | |||||||||||||||||
Depreciation | 112,634 | 112,711 | 112,711 | 112,481 | 450,537 | |||||||||||||||||
Amortization of right-of-use asset | 16,831 | 16,877 | 16,924 | 16,972 | 67,604 | |||||||||||||||||
Stock based compensation expense | - | - | - | - | - | |||||||||||||||||
Warrants revaluation expense | - | - | - | - | - | |||||||||||||||||
Adjusted EBITDA | (173,113 | ) | 93,293 | 255,006 | 387,248 | 562,434 | ||||||||||||||||
Adjusted EBITDA Margin | -63.7 | % | 21.3 | % | 43.6 | % | 52.7 | % | 27.7 | % |
Highlights | ||||||||||||||||
Quarters ended | ||||||||||||||||
$ Change | % Change | |||||||||||||||
Total revenue | $ | 811,774 | $ | 735,076 | $ | 76,698 | 10 | % | ||||||||
Net income | $ | 172,810 | $ | 42,438 | $ | 130,372 | 307 | % | ||||||||
Interest income | (3,002 | ) | (3,985 | ) | 983 | 25 | % | |||||||||
Interest expense | 156,818 | 206,148 | (49,330 | ) | -24 | % | ||||||||||
Interest expense - related party | 13,194 | 13,194 | - | 0 | % | |||||||||||
Depreciation and amortization | 112,481 | 112,481 | - | 0 | % | |||||||||||
Amortization of right-of-use asset | 17,175 | 16,972 | 203 | 1 | % | |||||||||||
Stock based compensation expense | - | - | - | |||||||||||||
Warrants revaluation expense | - | - | - | |||||||||||||
Adjusted EBITDA | $ | 469,476 | $ | 387,248 | $ | 82,025 | 21 | % | ||||||||
Adjusted EBITDA Margin | 57.8 | % | 52.7 | % | 5.2 | % | ||||||||||
Quarters ended | ||||||||||||||||
$ Change | % Change | |||||||||||||||
Total revenue | $ | 811,774 | $ | 797,734 | $ | 14,040 | 2 | % | ||||||||
Net income | $ | 172,810 | $ | 162,734 | $ | (1,180 | ) | -1 | % | |||||||
Interest income | (3,002 | ) | (1,822 | ) | (1,180 | ) | -65 | % | ||||||||
Interest expense | 156,818 | 152,445 | 4,373 | 3 | % | |||||||||||
Interest expense - related party | 13,194 | 13,052 | 142 | 1 | % | |||||||||||
Depreciation and amortization | 112,481 | 112,481 | - | 0 | % | |||||||||||
Amortization of right-of-use asset | 17,175 | 17,123 | 52 | 0 | % | |||||||||||
Stock based compensation expense | - | - | - | |||||||||||||
Warrants revaluation expense | - | - | - | |||||||||||||
Adjusted EBITDA | $ | 469,476 | $ | 456,013 | $ | 2,155 | 0 | % | ||||||||
Adjusted EBITDA Margin | 57.8 | % | 57.2 | % | 0.7 | % | ||||||||||
Year ended | ||||||||||||||||
$ Change | % Change | |||||||||||||||
Total revenue | $ | 2,927,819 | $ | 2,028,551 | $ | 899,268 | 44 | % | ||||||||
Net loss | $ | (173,244 | ) | $ | (862,893 | ) | $ | 689,649 | 80 | % | ||||||
Interest income | (11,504 | ) | (18,305 | ) | 6,801 | 37 | % | |||||||||
Interest expense | 615,127 | 873,143 | (258,016 | ) | -30 | % | ||||||||||
Interest expense - related party | 52,348 | 52,348 | - | 0 | % | |||||||||||
Depreciation and amortization | 449,923 | 450,537 | (614 | ) | -0 | % | ||||||||||
Amortization of right-of-use asset | 68,391 | 67,604 | 787 | 1 | % | |||||||||||
Stock based compensation expense | 209,346 | - | 209,346 | |||||||||||||
Warrants revaluation expense | 255,600 | - | 255,600 | |||||||||||||
Adjusted EBITDA | $ | 1,465,987 | $ | 562,434 | $ | 903,553 | 160.7 | % | ||||||||
Adjusted EBITDA Margin | 50.1 | % | 27.7 | % | 22.3 | % | ||||||||||
Source:
2023 GlobeNewswire, Inc., source