Jushi Holdings Inc. (OTCQX:JUSHF) (CSE:JUSH) released its financial results for the second quarter 2022 ended June 30, 2022, revealing total revenue of $72.8 million, an increase of 52.4% year-over-year and 17.6% as compared to Q1 2022.
Q2 2022 Highlights
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Gross profit of $26.7 million, an increase of 17.2% year-over-year and 39.5% as compared to Q1 2022.
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Adjusted gross profit of $27.8 million, an increase of 19.1% year-over-year and 12.3% as compared to Q1 2022.
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Net income of $12.1 million, compared to $3.6 million in Q1 2022.
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Adjusted EBITDA in Q2 2022 was $500,000, an increase of $1.4 million as compared to $(900,000) in Q1 2022 and a decrease of $4.1 million compared to $4.6 million in Q2 2021.
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Cash and cash equivalents were $43.2 million as of the quarter end.
Second Quarter 2022 Operational Highlights
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Expanded the company’s vertically integrated footprint in Nevada with the completion of the NuLeaf, Inc. acquisition, adding a 27,000 sq. ft. cultivation facility, a 13,000 sq. ft. processing facility, and three adult-use and medical retail dispensaries in the state
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Opened the 32nd and 33rd retail locations nationwide, marking the company’s third Beyond Hello location in California and fourth dispensary in Nevada
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Awarded a provisional medical marijuana dispensary license in the Cincinnati Tri-State Area of Ohio, establishing the company’s fifth vertically integrated state-level operation
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Debuted two new product lines in Pennsylvania under the company’s brand The Lab, including a line of solventless live rosin extracts and a line of hydrocarbon extracts, comprised of high-quality vapes and concentrates
Recent Developments
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Transitioned from IFRS to U.S. GAAP reporting as a result of becoming a U.S. reporting issuer as of August 12, 2022
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Opened the 34th retail location nationwide and third Beyond Hello dispensary in Alexandria, Virginia
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Opening the 35th retail location nationwide and fourth Beyond Hello dispensary in Fairfax, Virginia on August 31, 2022
“We are pleased to report solid second quarter top-line growth and improved sequential profitability, a strong indication that our strategy, capital investments and cost savings initiatives are building a strong foundation on which we can continue to execute, despite the challenging macroeconomic environment,” stated Jim Cacioppo, CEO, chairman and founder of Jushi Holdings Inc. “The development of our footprint in Nevada, including the addition of NuLeaf’s high-quality assets, were meaningful contributors to our retail performance in the second quarter."
Cacioppo continued, “Moving into the second half of the year, we are revising our fourth quarter 2022 annualized revenue to be between $320 to $350 million, with a low double digit adjusted EBITDA margin. At the retail level, we expect to open three additional Beyond Hello stores in the next four months, including two locations in Virginia and one in Ohio. We are also moving an underperforming store in Pennsylvania. Moreover, we will continue work on adding additional operational grow rooms and expanding production at our grower-processor facilities as we look to increase the sell-through rate of our own branded products through our network of retail stores, along with pursuing wholesale opportunities.”
Cacioppo concluded, “By the end of 2022, we expect to operate 37 retail locations and approximately 330,000 sq. ft. of cultivation and processing capabilities, including 100,000 sq. ft. of canopy. As always, we are fiercely committed to generating return on investment for our shareholders, and I look forward to reporting on the meaningful strides we expect to make as we continue to strengthen our business through the remainder of 2022.”
Non-Reliance on Previously Issued First Quarter 2022 Financial Statements
In connection with the preparation of the company’s unaudited condensed consolidated financial statements for the three and six months ended June 30, 2022, the company's management identified errors in its previously issued unaudited condensed balance sheet as of March 31, 2022, resulting in the understatement of certain non-current assets and associated accruals. In addition, management identified errors in the unaudited condensed consolidated statement of cash flows for three months ended March 31, 2022.
The company believes such errors did not impact the cash balance as of March 31, 2022, and further believes there is no net change in cash flows during the three months then ended. The company also believes that such errors will not materially impact the unaudited condensed consolidated financial statements as of and for the three and six months ended June 30, 2022.
As a result, the company’s first quarter 2022 interim financial statements should no longer be relied upon. The company will, as soon as practicable, make the appropriate adjustments, which will include restated consolidated financial statements and any other appropriate revisions.
Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels
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