TILT Holdings Inc (TLLTF)

[greenwillow]

TILT Holdings Reports Record First Quarter 2021 Financial Results
May 25, 2021

https://www.globenewswire.com/news-release/2021/05/25/2235926/0/en/TILT-Holdings-Reports-Record-First-Quarter-2021-Financial-Results.html

Record Q1 Revenue of $46.8 Million up 15% YoY and 11% QoQ

Record Adjusted EBITDA of $6.2 Million up 28% YoY and 36% QoQ

Reiterates 2021 Guidance of Revenue Between $205 - $210 Million and Adjusted EBITDA Between $30 -$32 Million

PHOENIX, May 25, 2021 (GLOBE NEWSWIRE) -- TILT Holdings Inc. (“TILT" or the “Company”) (CSE: TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, reported its financial and operating results for the three-months ended March 31, 2021. All financial information is provided in U.S. dollars unless otherwise indicated.

“Our first quarter results reflect another period of strong execution as we continue to build an integrated B2B cannabis company that partners with leading MSOs, LPs and cannabis brands,” said Gary Santo, President of TILT. “The results of that execution and our team’s hard work show up where it matters—in the numbers. We generated double-digit revenue growth and reduced cash operating costs on an absolute basis, all from the same asset base. We are more efficient operators today and we are just getting started. Over the coming quarters, we expect to benefit from our recently added cultivation capacity and secure additional brand partners as we expand our portfolio of products and services for our B2B partners and the industry at large.”

Q1 2021 Financial Summary (vs. Q1 2020, where applicable)

Revenue increased 15% to $46.8 million compared to $40.6 million driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 45% to $11.7 million and inhalation and accessory revenue increased 8% to $35.1 million.
Gross profit before fair value adjustments increased 7% to $13.5 million or 29% of revenue, compared to $12.6 million or 31% of revenue. Gross margins were impacted by timing of capacity expansions in Massachusetts.
Operating expenses less non-cash adjustments for stock compensation, depreciation/ amortization and one-time charges was $7.9 million, a 10% decrease from $8.8 million. As a percentage of revenue, operating expenses totaled 17% compared to 22%.
Adjusted EBITDA increased 28% to $6.2 million compared to $4.9 million. As a percentage of revenue, Adjusted EBITDA totaled 13.2% compared to 12%.
At March 31, 2021, cash and cash equivalents increased 21% to $9.0 million compared to $7.4 million at December 31, 2020.
Q1 2021 Operational Highlights

Generated record accessory orders during the quarter.
Generated record flower sales for March in Pennsylvania, where cultivation yields are up 16% over the last five months.
Launched three Her Highness NYC branded products in Massachusetts within 30 days of signing manufacturing and distribution contract.
Completed expansion of additional grow rooms in Massachusetts, which more than doubles cultivation capacity in the state to 56,500 ft2.
Taunton, MA medical dispensary reported record monthly revenue in March.
Increased footprint in the northeast with completed acquisition of Standard Farms Ohio LLC, which brings a 9,600 ft2 processing and CO2 extraction facility.
Operational Highlights Subsequent to Quarter End

President Gary Santo to succeed Mark Scatterday as CEO of TILT Holdings, effective June 1, 2021. Mark Scatterday to continue on as Chairman of the Board.
Approved for adult-use license in Brockton, Massachusetts; state license still pending.
Announced partnership with Airo Brands, a multi-state CPG company focused on proprietary inhalation products to launch products in Pennsylvania.
Earnings Call and Webcast

The Company will host a webcast at 5:00 PM ET today to discuss financial and operational results for the reported quarter.

The live webcast may be accessed from the Events and Presentations menu in the Investor Relations section of the Company’s website at http://public.viavid.com/index.php?id=144960 or to access the conference call via telephone, please dial, 1-877-705-6003. Please register at least 10 minutes prior to the scheduled start to download and install any necessary audio software.

A replay of the webcast will be available in the Past Events section of the Company’s Investor Relations website approximately 2 hours after the live event and will be archived for 30 days.

About TILT

TILT helps cannabis businesses build brands. Through a portfolio of companies providing technology, hardware, cultivation and production, TILT services brands and cannabis retailers across 36 states in the U.S., as well as Canada, Israel, Mexico, South America and the European Union. TILT’s core businesses include Jupiter Research LLC, a wholly-owned subsidiary and leader in the vaporization segment focused on hardware design, research, development and manufacturing; and cannabis operations, Commonwealth Alternative Care, Inc. in Massachusetts, Standard Farms LLC in Pennsylvania and Standard Farms Ohio, LLC in Ohio. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.