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📈 Earnings, Earnings, Earnings 📈
Anthony Varrell
August 08, 2024
GM Everyone,
If you put politics aside for a second and actually look, the Democrat ticket for President is officially the most cannabis-friendly ticket in history. While the top of the ticket has a newfound love for the plant and a history that would show the contrary, the newly installed candidate for VP is a lifelong believer in the freedom of the plant. With the DNC under two weeks away, expect the cannabis rhetoric to start gaining traction within the conversation of the ticket.
Game. On.
Today’s letter can be read in 7 minutes and 38 seconds.
💸 High Impact
Curaleaf Announces Major Shake Up
The What - Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF), a major player in the international cannabis market, announced a significant leadership shift alongside its Q2 2024 earnings. Boris Jordan, the Executive Chairman and founding investor, will take on the role of Chairman and CEO effective August 16, 2024, succeeding Matt Darin who is set to retire but will remain as a special advisor until year-end to ensure a smooth transition.
The announcement came as Curaleaf reported Q2 2024 revenues of $342 million, reflecting a modest 2% year-over-year growth. The company also posted an adjusted EBITDA of $73 million, representing 21.3% of revenue, showcasing its solid profitability metrics. Operating cash flow from continuing operations stood at $30 million, while free cash flow was $6 million, highlighting the company’s efficient cash management.
Boris Jordan, who has been pivotal in Curaleaf’s rise, stated, “Since 2014, it has been a highlight of my career to focus on growing Curaleaf to become the leader of the global cannabis industry. In my role as Chairman and CEO, I have the incredible opportunity to further realize the vision I’ve had for what Curaleaf can ultimately become.” He emphasized the strategic benefits of his new role, including streamlining the organization, accelerating decision-making, and driving margin expansion.
Jordan's history with Curaleaf dates back to its origins as Palliatech in 2010, which initially focused on medical devices for late-stage cancer patients. Under his leadership, the company pivoted to medical cannabis, opening its first dispensary in New Jersey in 2015. Today, Curaleaf operates across 17 states, 15 countries, and has over 5,000 team members with 147 dispensaries in the U.S.
Current CEO Matt Darin, who will retire but remain as a special advisor, reflected on his tenure, stating, “I embarked on my cannabis career over 11 years ago and was honored to help grow the Grassroots brand and ultimately sell it to Curaleaf in 2020.” Darin became CEO in May 2022, leading the company through significant milestones, and expressed confidence in Curaleaf’s future under Jordan’s leadership.
Looking ahead, Jordan aims to leverage near-term catalysts such as the launch of adult-use sales in Ohio, positive polling trends in Florida for Amendment 3, and ongoing discussions about adult-use legalization in Pennsylvania. These initiatives, coupled with strategic acquisitions and expansions, position Curaleaf for continued growth and success in the ever evolving cannabis industry.
📈 Dog Walkers
Jushi Posts Quarter Going In The Right Direction
In Q2 2024, the company reported $64.6 million in total revenue, achieving a gross profit of $32.6 million with a 50.4% margin. Despite a net loss of $1.9 million, adjusted EBITDA reached $14.5 million, reflecting a 22.4% margin. The company holds a robust cash position with $35 million and generated $5.5 million in net cash flows from operations. Key developments include appointing Todd West as COO, launching 308 new SKUs, expanding in Illinois, and increasing Jushi-branded product sales to 55.9% of total retail revenue. These results underscore strategic growth and operational efficiency.
New Lake Posts Another Quarter Of Solid Growth
In Q2 2024, the company reported solid financials with $12.5 million in revenue, marking a 9.5% year-over-year increase. Net income for common stockholders hit $6.8 million. FFO and AFFO were $10.5 million and $11.0 million respectively, each up over 11% from last year. Cash reserves stood at $20.7 million, with $15.8 million earmarked for improvements. The dividend rose to $0.43 per share. Strategic moves included a $4 million facility purchase in Connecticut and a $50 million ATM program. Compared to Q2 2023, these figures reflect steady growth and strategic investment in future expansion.
MariMed Shows Boost In Revenue
MariMed Inc. (CSE: MRMD) (OTCQX: MRMD) posted mixed Q2 2024 results. Revenue surged to $40.4 million, an 11% increase from $36.5 million last year, driven by strong wholesale performance and a 24% rise in retail transactions. However, net loss widened to $1.6 million from $935,000, and gross margin slipped to 42% from 45%, reflecting expansion costs. Operating expenses also rose to $16 million from $12.8 million. Despite these challenges, MariMed reaffirmed its 2024 guidance with projected revenue growth of 5-7% and adjusted EBITDA growth of 0-2%. Recent strategic moves include dispensary acquisitions in Illinois and Maryland and appointing Mario Pinho as CFO.
🗞️ The News
📭 Research
Initiating Coverage: Green Thumb Industries - Download Here
Reconfirming Buy Rating: MariMed - Download Here
Initiating Coverage Of Verano Holdings Corp. - Download Here
Initiating Coverage: TerrAscend - Download Here
📺 YouTube
Marijuana MSO Earnings Continues: Ayr Wellness, Verano & Trulieve
What we covered:
✅ On our latest Trade To Black podcast as we dive into the latest earnings numbers for Trulieve (OTC: TCNNF), Ayr Wellness (OTC: AYRWF), and Verano Holdings (VRNOF).
We’ll also outline what company has performed the best so far, and are there concerns about a marijuana stock industry trend concerning increased competition.
Shadd will also discuss his trip yesterday around the state of Ohio and what he learned on the first official day of adult use cannabis sales.