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CV Sciences, Inc. Reports Second Quarter 2018 Financial Results
BY GlobeNewswire
08/01/2018
Growth and Profitability Driven by Key Financial Performance Metrics, including Record GAAP Net Income of $3.2 Million
CV Sciences, Inc. announced today its financial results for the second quarter ended June 30, 2018.
Second Quarter 2018 Financial and Operating Highlights
Record Sales of $12,349,000, an increase of 203% compared to Q2 2017
Record Gross Profit of $9,060,000, an increase of 219% compared to Q2 2017
Record GAAP Net Income of $3,186,000, an improvement of $4,178,000 compared to Q2 2017
Record Adjusted EBITDA $3,806,000, an improvement of $4,087,000 compared to Q2 2017
Increased Retail Channel Distribution to 1,968 Stores as of June 30, 2018, an 11% sequential increase over the Company’s retail store count for the first quarter of 2018
Continued Progress in Drug Development Division including preclinical progress with CVSI-007, the Company’s patent-pending synthetic-based cannabidiol, which will be co-administered with nicotine to provide treatment options for smokeless tobacco use and addiction, currently a multibillion-dollar market with no currently FDA-approved drugs available to help patients.
First Six Months 2018 Financial Highlights
Record Sales of $20,419,000, an increase of 160% compared to the first six months of 2017
Record Gross Profit of $14,622,000, an increase of 177% compared to the first six months of 2017
GAAP Net Income of $3,805,000, an improvement of $8,582,000 compared to the first six months of 2017
Record Adjusted EBITDA of $5,628,000, an improvement of $6,099,000 compared to the first six months of 2017
Cash Flow from Operations of $5,369,000, with a cash balance increase of $3,344,000 during Q2 2018
Sales for Q2 2018 were $12.3 million, demonstrating the Company’s continued organic expansion into all sales channels including the natural product retail, wholesale and direct-to-consumer channels. This is a 53% sequential quarterly increase from $8.1 million reported for Q1 2018. The Company’s natural product retail channel now includes 1,968 locations nationwide.
CV Sciences plans to continue developing new sales channels and is encouraged by the strength of its branded products as evidenced by SPINS® Scan data, which positions the Company as the #No. l selling hemp CBD product line in the natural products retail channel.
Gross profit for Q2 2018 was $9.1 million and demonstrates the Company’s ability to expand sales while maintaining strong gross margins.
Adjusted EBITDA for Q2 2018 was $3.8 million and shows strong operating leverage from the Company’s significant investment in inventory, product development, systems, marketing and distribution.
“CV Sciences delivered strong financial results for the second quarter of 2018, including our second consecutive quarter of profitability. We also reported record key performance metrics that include triple-digit year-over-year revenue growth and double-digit sales growth on a sequential quarterly comparison.
To date, we have been able to successfully execute our planned strategy of aggressively and consistently growing our sales distribution channels, further penetrate the market and increase our market share within the natural products industry. Our operating performance is driven by the strength of our market-leading PlusCBD™ product line, which today is #No. 1 in the hemp CBD product category in the natural products retail channel.
In every aspect, we set new performance records and laid the groundwork for future expansion as the health and wellness markets continue to embrace CBD commercialization and standardization,” stated Joseph Dowling, Chief Executive Officer of CV Sciences.
Mr. Dowling added, “Our drug development program is making steady progress in advancing our proprietary lead drug candidate - CVSI-007 - which addresses the multibillion dollar smokeless tobacco use and addiction market. We continue to make progress with our pre-clinical program as we advance toward filing an Investigational New Drug application in 2019.
We are confident that our continued growth and profitability will allow us to initially pursue our drug development plans without the need for additional outside capital in the near term. We also filed our application for up-listing to the Nasdaq Capital Market which could significantly enhance shareholder value. In looking ahead, we expect to deliver a strong second half and believe we have the ability to continue this growth momentum in 2019 and beyond.”
