Terra Tech Reports Record Second Quarter 2016 Results
(Source: http://sports.yahoo.com/news/terra-tech-reports-record-second-201500939.html)
NEWPORT BEACH, CA--(Marketwired - August 15, 2016) - Terra Tech Corp. (TRTC) ("Terra Tech" or the "Company"), a vertically integrated cannabis-focused agriculture company, today announced its second quarter 2016 financial results for the period ending June 30, 2016.
Derek Peterson, CEO of Terra Tech, commented, "We reported record revenues of $9.7 million in the second quarter of 2016, representing an increase of 93% compared to the prior year period. This excellent result was primarily driven by higher cannabis sales from our two new Blum dispensaries in Oakland, California, and Las Vegas, Nevada. In addition, our overall gross margins also grew from 5% to 17% year-over-year. This was the first reporting period that our top-line results benefited from our brick-and-mortar retail store locations and we are very pleased with the traction our dispensaries have generated. We expect to experience further benefits from our vertically-integrated, seed-to-sale structure, such as improved margins and better brand recognition in the market, as our retail operations scale. Looking ahead to the second half of 2016, we will open a further three Nevada-based dispensaries by the end of the summer season, including our next location at 3650 South Decatur Boulevard, Suite 6 & 7, Las Vegas, Nevada, which will host its Grand Opening later this week, on August 20th, 2016.
"We ramped production of our IVXX Vape Product lines during the second quarter, with the launch of two pre-filled cannabis oil cartridge lines. These are sold in our Blum retail locations, as well as through our wholesale distribution network. We plan to build out our wholesale business and expand our product lineup throughout the second half of 2016 to grow market share," continued Mr. Peterson.
"The Edible Garden segment also reported strong growth in the second quarter as our strategic initiatives took hold. We expanded our product lines to include SUPERLEAF™, a nutritionally-enhanced lettuce sold at ShopRite, and various vitamin and dietary supplement lines. We also invested in sales and marketing to drive brand awareness as we build out our operations," concluded Mr. Peterson.
Financial Update:
Total revenues generated for the quarter ended June 30, 2016 were approximately $9.7 million, compared to $5.0 million in the same period in 2015. This is an increase of 93% from the quarter ended June 30, 2015. The increase in second quarter revenues was primarily attributable to sales from the acquisition of the Blüm dispensary in Oakland, California, which closed on April 1, 2016, and sales from the Western, Las Vegas Blum dispensary which opened during the quarter. Second quarter revenues also benefited from higher Edible Garden sales of its produce, herbs and floral products.
Gross margin for the second quarter of 2016 amounted to approximately 17%, compared to a gross margin of approximately 5% for the second quarter of 2015. The improved margins were attributable to better margins at Edible Garden, as the business continues to scale and higher gross profit from the cannabis segments of Blum and IVXX.
Selling, general and administrative expenses for the second quarter of 2016 amounted to approximately $5.5 million, compared with approximately $3.4 million for the second quarter of 2015. The increase was primarily due to an increase in consultants' fees mostly paid in common stock due to the appreciation in the market price and an increase in salaries due to new hires associated with the Blum dispensaries, and other expenses. These increases were offset by a decrease in legal fees and a decrease of $1.15 million for no warrants issued in the quarter ended June 30, 2016 versus the warrants issued in 2015.
We realized an operating loss of approximately $3.8 million for the second quarter of 2016, compared to an operating loss of approximately $3.1 million for the second quarter of 2015.
The net loss for the quarter ended June 30, 2016 was approximately $4.9 million or $0.01 per share compared with a loss of approximately $2.8 million or $0.01 per share for the second quarter of 2015. The primary reason for the increase in net loss is an approximately $1.2 million loss from the fair market valuation of derivatives during the quarter ended June 30, 2016 compared to the prior year's second quarter, and operating cost at our Western, Las Vegas Blum dispensary.
Stockholders' equity for the second quarter of 2016 amounted to approximately $41.5 million, compared with approximately $6.3 million as of December 31, 2015. The increase is attributable to the Blum Oakland acquisition reduced by the current quarters' loss.
Short-term debt as of June 30, 2016 amounted to approximately $628,000, a decrease of approximately 32% compared to approximately $917,000 as of December 31, 2015. Long term debt increased from zero to $1.6 million during the first six months of 2016.
Business Update:
Cannabis Segment Updates:
Opened the Company's first Nevada-based medical cannabis dispensary, located at 1921 Western Avenue in Las Vegas
Grand Opening of second Nevada-based medical dispensary, located at 3650 South Decatur Boulevard, Suite 6 & 7, Las Vegas, Nevada, slated for August 20, 2016.
Launched two IVXX Vape cannabis oil cartridge lines, the "Z35" cannabis oil cartridge line in April, 2016 and the "Z92" cartridges in June, 2016
Opened the Company's first Nevada-based medical cannabis dispensary, located at 1921 Western Avenue in Las Vegas
Grand Opening of second Nevada-based medical dispensary, located at 3650 South Decatur Boulevard, Suite 6 & 7, Las Vegas, Nevada, slated for August 20, 2016.
Grand Opening of second Nevada-based medical dispensary, located at 3650 South Decatur Boulevard, Suite 6 & 7, Las Vegas, Nevada, slated for August 20, 2016.
Launched two IVXX Vape cannabis oil cartridge lines, the "Z35" cannabis oil cartridge line in April, 2016 and the "Z92" cartridges in June, 2016
Edible Garden Updates:
Shipped the first order of nutritionally-enhanced SUPERLEAF™ lettuce to ShopRite Supermarkets. The lettuce was developed in partnership with Nutrasorb LLC in conjunction with Rutgers University.
Expanded retail offering through introduction of vitamin and dietary supplement lines, including VitaminWay®, Vitamin Whey Protein®, SlimTrim®, Surgex Sports Nutrition®, OmEssentials® and Bikini Ready ®
Shipped the first order of nutritionally-enhanced SUPERLEAF™ lettuce to ShopRite Supermarkets. The lettuce was developed in partnership with Nutrasorb LLC in conjunction with Rutgers University.
Expanded retail offering through introduction of vitamin and dietary supplement lines, including VitaminWay®, Vitamin Whey Protein®, SlimTrim®, Surgex Sports Nutrition®, OmEssentials® and Bikini Ready ®
Miscellaneous Updates
Derek Peterson, Terra Tech's CEO, presented on a cannabis investing panel at the 5th Annual Marcum MicroCap Conference in June, 2016 in New York City. The discussion focused on the legal, regulatory and other factors affecting the cannabis industry.
Attended the NCIA Cannabis Business Summit & Expo, in June 2016, in Oakland, California. 3,000 industry executives and investors attended the two day national event, as well as policy makers and influencers in the cannabis economy.
Derek Peterson, Terra Tech's CEO, presented on a cannabis investing panel at the 5th Annual Marcum MicroCap Conference in June, 2016 in New York City. The discussion focused on the legal, regulatory and other factors affecting the cannabis industry.
Attended the NCIA Cannabis Business Summit & Expo, in June 2016, in Oakland, California. 3,000 industry executives and investors attended the two day national event, as well as policy makers and influencers in the cannabis economy.