Q3 2023 Revenue was
Conference call to be held
Q3 2023 Financial Highlights:
- Q3 2023 total revenue was
$32 million . - Gross profit was
$11.3 million , representing a 35% gross margin. Adjusted Gross Profit was$18.1 million , representing a 57% adjusted gross margin. Adjusted gross profit excludes operating expenses (including depreciation and amortization) related toU.S. tax code 280E adjustments, and non-recurring inventory adjustments. - Q3 2023 net income was
$23 million , including a non-cash$49 million bargain purchase gain realized on the Business Combination withTPCO Holding Corp. - Adjusted EBITDA loss was
$1.7 million in Q3 2023. Adjusted EBITDA was impacted by the Business Combination withTPCO Holding Corp. during the third quarter and the associated transaction and integration costs incurred. - Cash and cash equivalents totaled
$32.3 million as ofSeptember 30, 2023 .
Q3 2023 Operational Highlights:
- Completed its previously announced transaction resulting in the combination of
TPCO Holding Corp. ("TPCO"), andGold Flora, LLC , in an all-stock business combination (the "Business Combination"). - Achieved annualized cost savings of
$30 million , materially surpassing the Company's initial estimated target savings of$20-$25 million .- The savings were achieved through a strategic redesign of the organization and reduction in annualized payroll expense, real estate optimization and lease renegotiation, and the transition from third-party service providers to leverage the Company's vertically-integrated platform.
- Further synergies, driven by the integration of the Company's back-office infrastructure, are expected to generate additional cost savings.
- The Company's first party brands portfolio, consisting of Gold Flora, Caliva, Cruisers, Roll Bleezy, Jetfuel, Sword and Stoned, Aviation, Mirayo by Santana, and Monogram, accounted for 21% of total retail revenue in Q3 2023.
- Tripled the productive cultivation capacity at the Company's Desert Hot Springs Campus by activating an additional 40,000 square feet of new canopy.
- Launched Stately Distribution, a sales and distribution company, to drive growth in retail accounts of the Company's first party brands, as well act as the exclusive distributor of, and provide sales and marketing services to, a strategically curated portfolio of third-party partner brands. .
Subsequent Events:
- Launched an internally developed flower brand CURRENT, a retail brand targeted at consumer demand for curated, flavor-focused premium craft flower. Available in four distinct flavor classes including
Rare Gas , Rare Fruit, Rare Haze, and Rare Dessert. CURRENT is now available at all Gold Flora retail locations, includingAirfield Supply Company , Caliva, Coastal, Calma, King's Crew,Varda , Higher Level, and Deli. - Relaunched cultivation at Caliva in
San Jose , expanding the Company's active cultivation canopy by an additional 35,000 square feet. The first harvest from the facility is expected in Q1 2024.
Management Commentary
"We are focused on winning in
Corporate Update
Following the completion of its Business Combination in
The Company remains well-positioned as one of the largest indoor cultivators in the state as the challenging market conditions have resulted in various peers opting to not renew their outdoor cultivation permits and divest their
Q3 2023 Financial Results
in thousands | Q3 2023 | Q3 2022 | % Change |
Total Revenue | $ 31,960 | $ 16,420 | 95 % |
Wholesale Revenue | $ 3,717 | $ 2,270 | 64 % |
Retail Revenue | 100 % | ||
Gross Profit | $ 11,314 | $ 4,289 | 164 % |
Gross Margin | 35 % | 26 % | * |
Adjusted Gross Profit (1) | $ 18,087 | $ 6,099 | 197 % |
Adjusted Gross Margin | 57 % | 37 % | * |
Net Income (Loss) | $ 22,958 | $ (8,438) | * |
Adjusted EBITDA | $ (1,715) | $ 672 | * |
* Information is not meaningful. |
(1) Adjusting for depreciation & amortization, operating expense related to |
The Company's consolidated financial statements, as well as its accompanying management discussion and analysis of financial condition and results of operations ("MD&A") have been included in its Quarterly Report on Form 10-Q filed on EDGAR (www.sec.gov) as well as SEDAR (www.sedar.com). Please refer to
Conference Call
The Company will host a conference call to discuss the results on
CONFERENCE CALL DETAILS | |
DATE: | |
TIME: | |
WEBCAST: | Click Here |
DIAL-IN NUMBER: | 1 (416) 764-8609 or 1 (888) 390-0605 |
CONFERENCE ID: | 04745805 |
REPLAY: | 1 (416) 764-8677 or 1 (888) 390-0541 Replay Code: 745805 # |
For more information on
About Gold Flora Corporation
Gold Flora Corporation is a female-led, vertically-integrated cannabis leader that owns and operates a robust portfolio of nine cannabis brands, which are sold through its 17 retail dispensaries and, through its Stately Distribution business, to retailers throughout
Gold Flora Corporation operates an indoor cultivation canopy of approximately 72,000 square feet across three facilities in its
With hubs throughout the state, the Company distributes many prominent brands, including its own premium lines of Gold Flora, Caliva, Cruisers, Roll Bleezy, Sword & Stoned, Aviation Cannabis, Current, Jetfuel Cannabis, Mirayo by Santana and Monogram. Third party brands are increasingly contacting the Company in search of reliable input sources and established distribution.
References to information included on, or accessible through, websites and social media platforms do not constitute incorporation herein by reference of the information contained at or available through such websites or social media platforms, and the reader should not consider such information to be part of this press release.
For the latest news, activities, and media coverage, please visit www.goldflora.com.
Non-GAAP Financial Measures
This news release contains the non-GAAP financial measure "Adjusted EBITDA," and "Adjusted Gross Profit" which are not recognized under GAAP and do not have a standardized meaning prescribed by GAAP. As a result, these measures may not be comparable to similar measures presented by other companies. For a reconciliation of "Adjusted EBITDA" and "Adjusted Gross Profit" to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled "Reconciliation of Non-GAAP Measures" below.
Adjusted EBITDA
We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define "Adjusted EBITDA" as EBITDA adjusted to exclude extraordinary items, non-recurring items and, other non-cash items, including, but not limited to (i) share-based compensation expense, (ii) change in fair values of earn out liability, (iii) non-recurring legal and professional fees, human-resources, inventory and bad debt / collections-related expenses, (iv) intangible and goodwill impairments and loss on disposal of assets / debts, and (v) transaction costs related to merger and acquisition activities.
Adjusted Gross Profit
We believe Adjusted Gross Profit is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance. We define "Adjusted Gross Profit" as Gross Profit adjusted to exclude operating expenses (including depreciation and amortization) related to
Reconciliation of Non-GAAP Measures
Three Months Ended | Nine Months Ended | |||||||
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Revenues | $ 31,960,179 | $ 16,419,777 | $ 62,568,709 | $ 49,475,131 | ||||
Cost of Goods Sold | 20,646,157 | 12,130,431 | 43,268,725 | 38,017,000 | ||||
Gross Profit | 11,314,022 | 4,289,346 | 19,299,984 | 11,458,131 | ||||
35 % | 26 % | 31 % | 23 % | |||||
Adjustments to Gross profit | ||||||||
Depreciation and Amortization | 1,056,035 | 341,372 | 2,454,763 | 1,016,047 | ||||
Operating Expenses related to 280E adjustments | 5,717,144 | 1,468,129 | 8,848,706 | 3,634,068 | ||||
Non-Reoccurring Inventory Adjustments | - | - | - | 1,200,000 | ||||
Adjusted Gross Profit | $ 18,087,201 | $ 6,098,847 | $ 30,603,453 | $ 17,308,247 | ||||
57 % | 37 % | 49 % | 35 % | |||||
Adjusted Gross Profit % | ||||||||
Three Months Ended | Nine Months Ended | |||||||
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Net Income (Loss) | $ 22,958,253 | $ (8,437,679) | $ (488,342) | $ (26,389,562) | ||||
Interest Expense | 6,831,947 | 5,684,408 | 16,373,265 | 15,144,412 | ||||
Taxes | 6,806,747 | 1,343,514 | 8,320,741 | 3,354,711 | ||||
Depreciation and Amortization | 5,465,009 | 2,033,736 | 10,197,104 | 5,967,319 | ||||
EBITDA | $ 42,061,956 | $ 623,979 | $ 34,402,768 | $ (1,923,120) | ||||
Addback for Adjusted EBITDA | ||||||||
Noncash Operating Lease Expense | 333,500 | (65,079) | 625,373 | (79,545) | ||||
Change in Fair Value of Earnout Liability | - | - | 4,375,000 | - | ||||
Loss on Extinguishment of Debt | 1,440,207 | - | 1,440,207 | - | ||||
Gain on Bargain Purchase | (49,025,606) | - | (49,025,606) | - | ||||
Share-Based Compensation | 468,920 | 47,059 | 566,991 | 357,253 | ||||
Bad Debt Expense | 4,125 | 4,168 | 327,522 | 30,645 | ||||
Transaction Fees and Legal Fees | 2,634,434 | 62,007 | 4,180,208 | 464,392 | ||||
Transaction Related Expenses | 367,748 | - | 367,748 | - | ||||
Non-Reocurring Inventory Adjustments | - | - | - | 1,200,000 | ||||
Adjusted EBITDA | $ (1,714,716) | $ 672,134 | $ (2,739,789) | $ 49,625 |
Forward Looking Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the expectations or forecasts of business, operations, financial performance, prospects, and other plans, intentions, estimates and beliefs, and may include statements regarding Gold Flora's expected financial condition and performance, the current and projected market, and growth opportunities for the company. Words such as "expects," "continue," "will," "anticipates," and "intends," or similar expressions, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward–looking statements are based on Gold Flora's current projections and expectations about future events and financial trends that it believes might affect its financial condition, results of operations, prospects, business strategy and financial needs, and on certain assumptions and analysis made by it in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements to be materially different from future events, results, performance, and achievements expressed or implied by forward looking information and statements herein. Although Gold Flora believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof and, except as required by applicable laws, Gold Flora does not assume any obligation to update or revise any forward-looking information or statements contained herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise.
SOURCE
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