Replies to post #402 on TILT Holdings Inc (TLLTF)

[FUNMAN]

If revs drop a little below $40M the PPS will retrace to 35¢

If revs revisits the mid $30M range, the PPS will retrace into the 20's.

Holding right now got a little scary without the confidence of the usual run up.

[FUNMAN]

Jupiter Research Launches New Cannabis Vape Features, Packaging

Javier Hasse
Benzinga
August 24, 2020

https://finance.yahoo.com/news/jupiter-research-launches-cannabis-vape-171222948.html

On Friday, TILT Holdings Inc. (CSE: TILT) (OTC: TLLTF) subsidiary Jupiter Research launched a new, customizable time-interval-metered dosage delivery system for cannabis vaporization.

The new feature, called Dose-CTI, will be included on most Jupiter devices, allowing extractors and licensed processors to give their customers more control over their cannabis vaping experience.

The company also announced last week it would be offering Kinder-Safe child-resistant packaging solutions to its clients.

Mark Scatterday, CEO of TILT and Jupiter’s founder, told Benzinga, “Jupiter Research continues to be a market leader with a reputation for providing our customers the latest innovative technologies while upholding the highest standards for product quality and safety.

“By combining metered dose customization and child-safe packaging with Jupiter’s existing, award-winning CCELL® technology, we’re delivering a diverse product portfolio designed to meet the vaporization industry’s most critical needs.”

Acquired by TILT in 2019, Jupiter is focused on driving continuous vape tech innovation, partnering with more than 800 brands around the world, including the likes of Curaleaf Holdings Inc (OTC: CURLF) and Surterra, to provide vaporization hardware quality, reliability and variety.

Courtesy image.

[FUNMAN]

TILT Holdings Announces Financial Results for the Three and Six-Months ended June 30, 2020

August 25, 2020

It sure appears that the PPS correctly reflected the anticipation that nothing was improving. I have to read the CC transcript when it comes out to see if they have encouraging guidance, or if nothing will improve until the Coronavirus is in the rearview mirror. TILT might be dead money for a long time.

Read at this link to see all of the financial info. - FUNMAN

https://investors.tiltholdings.com/press-releases/detail/100/tilt-holdings-announces-financial-results-for-the-three-and

Gross margin of 28.3%, a 384 basis point improvement year-over-year

Positive cash flow from operations for second consecutive quarter, a 196% improvement year-over-year

Cannabis revenues during the six-months ended June 30, 2020 up 103% year-over-year

Operating expenses decrease 76% year-over-year

PHOENIX, Aug. 25, 2020 (GLOBE NEWSWIRE) -- TILT Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTCQB: TLLTF), a provider of business solutions to the global cannabis industry, today reported its financial and operating results for the three and six-months ended June 30, 2020. All financial information is unaudited and provided in US dollars except where otherwise indicated.

“Second quarter results reinforced our position that TILT’s balanced portfolio of businesses offers multiple trajectories for ongoing shareholder value creation,” said Mark Scatterday, CEO of TILT. “For a second consecutive quarter, the company generated positive adjusted EBITDA, increased positive cash flow from operations and improved its cash position, all while navigating the effects COVID-19.”

“Jupiter’s highly efficient operating model continues to provide a foundation of consistent profitability and broad client reach. This is supplemented by the strong cash flow of our plant-touching businesses in two of the strongest limited license markets, and by Blackbird, which provides additional upside with its highly versatile integrated suite of enterprise software and logistics solutions.”

Financial Summary for the Quarter Ended June 30, 2020

Revenue of $38.6 million, down 9% from the quarter ended March 31, 2020 and down 1% from the prior year period, driven primarily by COVID-19 related headwinds2 including decreased sales at the Company’s inhalation technology subsidiary, Jupiter Research, LLC (“Jupiter”), as well as lower wholesale demand in the cannabis segment due to the temporary suspension of adult-use sales in Massachusetts from March 24th to May 25th.
Gross margin1 of 28.3%, up 63 basis points (“bps”) from the quarter ended March 31, 2020 and 384 bps from the prior year period driven by margin expansion at the Company’s software and services subsidiary, Blackbird, as well as improved harvest yields across the cannabis segment.
Positive adjusted EBITDA for the second consecutive quarter of $1.2 million, down $0.5 million from the quarter ended March 31, 2020 and an improvement of $5.2 million from the prior year period.
Cash and cash equivalents increased $2.1 million, up 25% from the previous quarter to $10.5 million as of June 30, 2020.
Operational Highlights for the Quarter Ended June 30, 2020

Jupiter’s Canadian revenue continues to grow, contributing $2.4 million for the quarter, an increase of 100% from the quarter ended March 31, 2020.
Operating cash flow was positive for the second consecutive quarter, increasing 40% from the quarter ended March 31, 2020 and 196% over the prior year period.
Operating expenses less non-cash adjustments for stock compensation, depreciation and amortization decreased 5% from the quarter ended March 31, 2020 and 29% from the prior year period as the Company continues to streamline operations and drive down costs.
Cultivation and manufacturing productivity continue to improve with second quarter revenue from the Company’s Standard Farms, LLC and Commonwealth Alternative Care, Inc. (“CAC”) plant touching subsidiaries up 69% compared to the prior year period.
Earnings Call and Webcast
The Company will host a webcast at 5:00 PM EDT 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 https://investors.tiltholdings.com/ir-calendar or at http://public.viavid.com/index.php?id=141211. Please register at least 15 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 two 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 hardware, software, logistics, cultivation and production, TILT services more than 2,000 brands and cannabis retailers across 33 states in the U.S. as well as Canada, Israel, Mexico, South America, and the European Union. TILT’s core businesses include Jupiter, a wholly owned subsidiary and leader in the vaporization segment focused on hardware design, R&D and manufacturing, Blackbird, a software and operations solutions provider for wholesale and retail distributors; and cannabis operations Commonwealth Alternative Care, Inc. in Massachusetts and Standard Farms, LLC in Pennsylvania. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.

Forward-Looking Information
This news release contains forward-looking information based on current expectations. Forward-looking information is provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward looking information may include, without limitation, the expected shift of the economy into a more normalized environment, the opinions or beliefs of management, prospects, opportunities, priorities, targets, goals, ongoing objectives, milestones, strategies and outlook of TILT, and includes statements about, among other things, future developments, future operations, strengths and strategy of TILT. Generally, forward looking information can be identified by the use of forward looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. These statements should not be read as guarantees of future performance or results. These statements are based upon certain material factors, assumptions and analyses that were applied in drawing a conclusion or making a forecast or projection, including TILT’s experience and perceptions of historical trends, current conditions and expected future developments, as well as other factors that are believed to be reasonable in the circumstances. Although such statements are based on management’s reasonable assumptions at the date such statements are made, there can be no assurance that they will be completed on the terms described above and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. TILT assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law. By its nature, forward-looking information is subject to risks and uncertainties, and there are a variety of material factors, many of which are beyond the control of TILT, and that may cause actual outcomes to differ materially from those discussed in the forward-looking statements. For additional information regarding forward-looking statements and their related risks, please refer to the “Risk Factors and Uncertainties” section in the Management Discussion and Analysis of the Company for the quarter ended on June 30, 2020, which is available on the Company’s SEDAR profile at www.sedar.com.

Non-IFRS Financial and Performance Measures
In addition to providing financial measurements based on International Financial Reporting Standards (“IFRS”), the Company provides additional financial metrics that are not prepared in accordance with IFRS. Management uses non-IFRS financial measures, in addition to IFRS financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate the Company’s financial performance. These non-IFRS financial measures are EBITDA and Adjusted EBITDA.

Management believes that these non-IFRS financial measures reflect the Company’s ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business, as they facilitate comparing financial results across accounting periods and to those of peer companies. Management also believes that these non-IFRS financial measures enable investors to evaluate the Company’s operating results and future prospects in the same manner as management. These non-IFRS financial measures may also exclude expenses and gains that may be unusual in nature, infrequent or not reflective of the Company’s ongoing operating results.

As there are no standardized methods of calculating these non-IFRS measures, the Company’s methods may differ from those used by others, and accordingly, the use of these measures may not be directly comparable to similarly titled measures used by others. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are financial measures that are not defined under IFRS. The Company uses these non-IFRS financial measures, and believes they enhance an investor’s understanding of the Company’s financial and operating performance from period to period, because they exclude certain material non-cash items and certain other adjustments management believes are not reflective of the Company’s ongoing operations and performance. The Company calculates EBITDA as net income (loss), plus (minus) income taxes (recovery), plus (minus) finance expense (income), plus depreciation and amortization expense. Adjusted EBITDA excludes certain one-time, non-cash or non-operating expenses, as determined by management, including stock compensation expense, business acquisition expense, debt issuance costs, severance, unrealized (gain) loss on changes in fair value of biological assets and fair value changes in biological assets included in inventory sold.

Reconciliations of Non-IFRS Financial and Performance Measures
Adjusted EBITDA is reconciled to Net Loss below as well as the section labelled “Reconciliation of Net Income (Loss) to Non-IFRS Measures” in the Management Discussion and Analysis of the Company for the quarter ended on June 30, 2020, which is available on the Company’s SEDAR profile at www.sedar.com.

1 Gross margin before adjustment for changes in fair value of biological assets and inventories.
2 Additional details regarding COVID-19 impact on TILT businesses can be found in the Management Discussion and Analysis of the Company for the quarter ended June 30, 2020, available on the Company’s SEDAR profile at www.sedar.com.

[FUNMAN]

Canaccord Maintains $1.00 Price Target On Tilt Holdings

August 26, 2020 11:27 AM
By: Justin Young

TILT Holdings (CSE: TILT) reported its second quarter revenues recently, posting revenue that was down 9% quarter over quarter to $38.6 million. The decrease quarter over quarter was driven by a decrease in sales from the company’s subsidiary Jupiter Research and lower wholesale demand that was blamed on COVID-19. Gross margins came in at 28.3%, and the company posted their second consecutive positive adjusted EBITDA of $1.2 million along with positive free cash flow.

In Canaccord’s note to investors, analyst Bobby Burleson reiterated his C$1 price target and speculative buy rating on the stock, while headling the note as “solid quarter ahead of improving demand trends.” Both revenue and adjusted EBITDA came relatively in line with Canaccord’s estimates of $38 million and ($0.5) million. He explained that their Nevada subsidiary Blackbird helped gross margins grow this quarter due to the ramping up of home delivery as dispensaries were temporarily closed due to COVID.

The 9% consecutive decline in revenue was said to be mainly due to the reduced demand in Massachusetts, where the state temporarily shut down recreational sales. Still, management has highlighted that June sales in Massachusetts showed strong demand with monthly sales higher than the last two months combined and shows hope that their Massachusetts arm of the business gets back to normalcy quicker.

Bobby Burleson says that he believes TILT will continue to report being free cash flow positive even with COVID headwinds and “capable of funding ongoing growth initiatives with its current cash position.”

Although Bobby did not change Canaccord’s 12-month price target or recommendation on TILT Holdings, he did change their full year revenue guidance. He now expects third quarter and 2020 full year revenue to come in at $40 million and $164 million, respectively, while 2021 estimates remain the same at $294 million.

[FUNMAN]

We're going to be able to buy 25¢ers soon. We'll be able to flip them at 40¢.

WooHoo

Dead money!