I'm not saying. I'm just saying. Great Job!!
Revenues up 19%, Gross Profit up 34%, Gross Margins up to a solid 47% and Net loss reduced by 33% to 10 cents a share from 15 cents a share.
Baby, the corner is turned!
RESULTS OF OPERATIONS
Three Months Ended June 30, 2019 Compared to Three Months Ended June 30, 2018
Revenues
For the three months ended June 30, 2019, we generated revenues of $10.37 million, compared to $8.72 million for the three months ended June 30, 2018, an increase of $1.65 million or 19.0 percent. The increase was primarily due to increased Cannabis revenues due to our Dispensary year-over-year growth of $0.95 million or 14.0% due to increased customer traffic, improvements in store operational standards and enhanced product assortment. Also driving the increase over prior year is the development of cultivation and production operations, which accounted for $0.70 million of the increase.
Gross Profit
Our gross profit for the three months ended June 30, 2019 was $4.92 million, compared to a gross profit of $3.67 million for the three months ended June 30, 2018, an increase of $1.25 million or 34.1% percent. Our gross margin percentage for the three months ended June 30, 2019 was 47.4 percent, compared to 42.1 percent for the three months ended June 30, 2018. The increase in gross margin percentage was attributable to the Cannabis segment, which had $5.43 million and $3.11 million gross profit, or 52.8 percent and 43.5 percent gross margin, for the three months ended June 30, 2019 and 2018. The Cannabis segment gross margin improvements were due to an increase of higher margin private label sales, lower cost of goods from vendor negotiations and price optimization on top selling items.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the three months ended June 30, 2019 were $12.05 million, compared to $9.86 million for the three months ended June 30, 2018, an increase of $2.19 million or 22.2 percent. The increase was primarily due to (i) a $0.77 million increase in depreciation expense, (ii) a $0.54 million increase in amortization expense , (iii) a $0.47 million increase in stock options expense related to employee bonuses and (iv) a $0.43 million increase in marketing/advertising expense.
Operating Income (Loss)
We realized an operating loss of $7.13 million for the three months ended June 30, 2019, compared to an operating loss of $6.19 million for the three months ended June 30, 2018, an increase in loss of approximately $0.94 million or 15.2 percent.
Other Income (Expense)
Other expense for the three months ended June 30, 2019 was $3.20 million, compared to other expense of $3.68 million for the three months ended June 30, 2018, a decrease of $0.48 million or 13.0 percent. This improvement was primarily attributable to a $1.02 million increase in Other Income partially offset by a $0.51 million charge for Impairment of Assets.
Net Loss Attributable to Terra Tech Corp.
We incurred a net loss of $10.14 million, or $0.10 per share, for the three months ended June 30, 2019, compared to a net loss of $9.97 million, or $0.15 per share, for the three months ended June 30, 2018.
