Second Quarter 2019 and Recent Financial and Operating Highlights
Record revenue of $16.9 million for the second quarter of 2019, an increase of 36% over the same quarter in 2018;
14 consecutive quarters of sequential revenue growth;
Gross margin improved to 70.9% from 70.8% in the first quarter of 2019;
Retail distribution increased to 4,591 stores as of June 30, 2019, a 39% increase from March 31, 2019;
Broadened retail presence into the food, drug and mass channel and in active discussions for further expansion of the PlusCBD™ Oil brand;
Generated $2.7 million of cash from operations, with total cash balance increasing to $15.7 million at quarter end;
Dismissal of class action suit which was originally filed in 2014;
Announced planned 500% increase in production capacity with addition of new 45,500 square foot facility;
Initiated domestic sourcing efforts, committing to more than 500 acres of U.S. Hemp Production to support future sales;
A first of its type randomized controlled clinical trial utilizing PlusCBD™ Oil was published demonstrating it can improve sleep, help reduce appetite and enhance the quality of life in humans; and
PlusCBD™ Oil used in first study examining clinical benefit of CBD for patients with PTSD.
“We generated 13% sequential and 36% year-over-year revenue growth during the second quarter, driven by significant distribution gains across both new national food, drug and mass (FDM) channel retailers and broadly across our channels of distribution. Year to date, we have more than doubled the number of retail doors where PlusCBD™ Oil products are carried and continue to enjoy a strong pipeline of new distribution opportunities,” stated Joseph Dowling, Chief Executive Officer of CV Sciences. “We have seen a positive response to the innovation we have developed this year, including nine new products launched year to date. We have further innovation scheduled for introduction during the second half of the year and believe there is a significant opportunity to expand our offering within existing retailers, particularly as the FDM channel further develops. To support our anticipated growth, we recently announced a 500% increase in our production capacity.”
$CVSI
The future is looking EXTREMELY bright... one word... KROGER!
$CVSI
