Schwazze (OTCQX:SHWZ) (NEO: SHWZ) announced its financial results for the fourth quarter and year ended December 31, 2021.
Financial Summary for Year Ended 2021:
- Revenues of $108.4 million grew 352% compared to $24.0 million
- Gross Margin of $49.4 million was 629% better than YE 2020 and 1,730 bps
- Net Income Attributed to Common Shareholders was $7.2 million or $0.17Basic Earnings per share compared to a Net Loss of ($19.4) million in 2020 or ($0.47) Basic Loss per share
- Adjusted EBITDA of $32.2 million was 29.7% of revenue, compared to a loss of ($7.6) million in 2020
- Cash Flow from operations for Y-E 2021 was $57.3 million(1) compared to ($9.8) million in 2020
- Retail Sales were $73.7 million and when compared to last year Retail Sales were up 1,811%
- Two year stacked IDs for same-store sales were 47.3% and one year IDs were 13.3%
Q4 2021 Financial Summary:
- Revenues of $26.5 million grew 234% compared to $7.9 million in Q4 2020
- Gross Margin of $12.1 million was 1,856% better than Q4 2020 and 3,798 bps over Q4 2020
- Net Income Attributed to Common Shareholders was $5.5 million compared to a Net Loss of ($8.5) million for the same period last year
- Adjusted EBITDA of $7.5 million for the quarter was 28.3% of revenue, compared to a loss of ($3.4) million for the same period last year
- Cash Flow from operations for the quarter was $52.5 million(1) compared to ($3.5) million for the same period last year
- Retail sales for the quarter were $19.6 million and were up 887% when compared to the same period last year
- Year-End 2021 Revenue
- Total revenue was $108.4 million for the year ended March 31, 2021, compared to $24.0 million during the same period in 2020 and represents an increase of approximately 352%. Retail sales were $73.7 million for 2021 from $3.9 million dollars the previous year representing a 1,811% increase driven primarily by acquisitions of dispensaries in Colorado. Wholesale operations revenue increased to $34.4 million from $18.6 million compared to the previous year representing an 85% increase, primarily driven by acquisition of cultivation facilities and increase in sales of distillate products to the market. Other sales were $0.3 million from $1.5 million the previous year, primarily driven by the pivoting away consulting sales.
"2021 was a transformational year for Schwazze as we became an MSO with a super-regional focus and a clear strategy to "go deep" in the states we are now operating in. Our private capital raise of $95 million provided momentum for our M&A and organic growth strategy. The Company's stock was listed on the NEO Exchange, earlier this month, providing an additional platform for liquidity and awareness of our stock for retail and institutional investors," stated Justin Dye, CEO of Schwazze.
Guidance
Q4 2022 Projected Revenue Annualized Run Rate of Approximately $220 million - $260 million
Q4 2022 Projected Adjusted EBITDA Annualized Run Rate of Approximately $70 million - $82 million
