Some of North America’s Largest Cannabis Companies Are Releasing Earnings This Week. Here Are the Highlights.


Charlotte’s Web Holdings reported Q1 2019 revenue of $21.7 million, a 66 percent revenue increase from $13.1 million in the same period last year. The company will also delist from the CSE and land on the TSX Friday.

During an earnings call, the company highlighted the expansion of its canine line, which now includes hemp-CBD chews, flavored and unflavored oils, and a topical balm. Though most of the pet product sales are currently coming in through e-commerce, CFO Rich Mohr said that the company is “looking for local distribution first and working with the large retailers.”

The company also discussed doubling its hemp acreage planting to 700 acres. When asked what the company’s plans were for the inventory, Mohr said that the crop would be used mainly as a means for the company to “react very quickly when it comes to these fast retailers that are coming on board” as well as a cushion for the future. “This is an agricultural crop so there’s a lot of variations from year-to-year and you can’t be left in a situation where you don’t have enough raw material to produce your products, which is the reason we go for larger inventory levels,” Mohr said. “We still believe that the inventory we produce during 2018 will cover us for 2019 and 2020 and we’re being proactive with our growth in 2019’s crops.”


Acreage Holdings reported Q1 2019 revenue of $12.9 million, up 487% compared to the same period in 2018, but also a net loss of $31.2 million.

Naturally, Canopy Growth’s pending acquisition came up, and the deadline for Acreage’s shareholder approval next month. CFO Glen Leibowitz outlined how, upon shareholder approval by both Acreage and Canopy and British Columbia’s top court, Canopy will pay $300 million to Acreage shareholders. “This 300 million dollars will be paid on a pro rata basis and equates for a range of  $2.50 to $2.63 cents per share depending on when our pending transactions close,” said Leibowitz, who also noted that once a qualifying event takes place that would trigger Canopy’s acquisition, such as a change in US federal cannabis law, all Acreage shareholders will receive .5818 shares of Canopy per Acreage share.

Acreage continues to expect 50 to 60 dispensaries in operation by the end of the year. The pending agreement with Canopy also may mean a revision to Acreage’s original growth plans for the year. “It’s too early to provide specifics as we have not yet had those discussions,” said Leibowitz. “However, it could entail accelerating our build up in some states and potentially slowing down in others, all of which can have an impact on our financial results.”


Trulieve Cannabis reported Q1 2019 revenue of $44.5 million, a 192% increase from $15.2 million in the same quarter last year.

Moving forward in 2019, Trulieve is looking to increase its footprint in Florida, where it is already the largest medical cannabis company, as well as expand more nationally to include operations in California and Connecticut, the latter in which it recently acquired The Healing Corner dispensary.

“In 2020, of course, Florida continues to be the lion’s share of the guidance, which we feel at this point very confident in our ability to model out,” said CEO Kim Rivers, who added that next in ranking of contribution to the company in its future outlook would be Massachusetts. “It’s important to note that in Massachusetts there is a mix of retail in the vertical model and also wholesale. For Connecticut and California, those were very much based on historical performance… those were just simply projected forward.”

As Trulieve looks to expand outside of Florida, its EBITDA margin is expected to fall slightly between 2019 and 2020 as it adjusts to the different regulatory structures of the different states. “As we go into other regulatory structures, we’re required, of course, to flex to those opportunities,” said Rivers. Their 2020 guidance therefore shows numbers that are realistic with what the company saw as achievable when “driven by the regulatory structures that we’ll find ourselves in as we move into those other markets.”


MedMen Enterprises reported Q3 2019 revenue of $36.6 million, up 156% from $16.8 million in the same quarter last year, but its loss was still significant at $63.1 million.

Adam Bierman, co-founder and CEO, began the company’s earnings call Wednesday evening by addressing some of the issues that MedMen has faced in the previous quarter and recently, including multiple lawsuits and coverage questioning the company’s financial health. “Over the past year we’ve created tremendous long term value for the business yet we’ve also had to deal with a few not-so-great realities of managing a high-growth business, such as a well-publicized employee and early investor lawsuit. From an operational standpoint, this company has never been better positioned than it is right now today. Yet we have a stock price that has underperformed the North American Marijuana Index by over 45 percent since our all-time high last October,” said Bierman. “This disconnect is our responsibility to reconcile and our work to do so is well underway.”

CFO Michael Kramar said that the company has already reduced its expenses by 9 percent, from $40.9 million to $37.5 million, this quarter. “Everyone across the organization has gone into this initiative,” said Bierman who noted that as a part of this commitment, both he and Andrew Modlin, co-founder and president, have entered into new employment agreements, taking $50,000 in annual salaries.


Cresco Labs reported Q1 2019 revenue of $21.1 million, up 313% from $5.1 million in the same quarter last year.

In some states, such as Ohio, sales have been lower than initial expectations as the medical use program has gotten off to a slow start. “Only 17 of the 56 dispensaries [in Ohio] have received a certificate of operation,” said CFO Ken Amann. In other states such as Arizona and California, where revenue contributions are still in the early stages for Cresco, Amann said he expects growth to accelerate and “have meaningful contributions beginning in the second half of the year.”

Despite generating revenue from six states, Amann noted that the bulk of the company’s revenue were comprised from Illinois and Pennsylvania, places where Cresco has seen an acceleration of patient growth. “Illinois’ patient count has increased by 25 percent this year to over 65,000. And in Pennsylvania, nearly 102,000 patients are registered to participate in that program, up from 83,000 at the end of last year, an increase of 23 percent,” Amann noted.

The company also expects its pending acquisitions of Origin House and VidaCann to allow for more expansion outside of Illinois and Pennsylvania and into the broader North American cannabis market. With its new acquisitions, Charles Bachtell, co-founder and CEO said that Cresco “will have the distribution platform to enable us to take market share in the largest and most important markets in the cannabis industry.”

Origin House also reported Q1 2019 revenue yesterday, which rose to C$11.2 million from C$0.6 million the same quarter last year. Net loss was C$17.4 million, up from C$4.7 million.

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