- Q2 Revenue up 12% YoY to a record $27.3 Million- 11th Consecutive Quarter of Positive Cash Flow from Operations
TAMPA, Fla., Aug. 22, 2024 /PRNewswire/ - Cansortium Inc. (CSE:TIUM) (OTCQB:CNTMF) ("Cansortium" or the "Company"), a vertically-integrated, multi-state cannabis company operating under the FLUENT™ brand, today announced financial and operating results for the quarter ended June 30, 2024. Unless otherwise indicated, all financial results are presented in U.S. dollars.
"We delivered another quarter of year-over-year revenue growth and positive cash flow generation during the second quarter as we continued to execute on our growth objectives," said CEO Robert Beasley. "We continue to lay the foundation for growth and scalability while remaining excited about the opportunities ahead."
"In Florida, we have focused on enhancing manufacturing efficiencies and cultivation yields, which has resulted in both an improvement of product quality and cost of goods sold. This has allowed us to retain high profit margins while price competition continues to heat up."
"Looking ahead, we are excited about our upcoming business combination with RIV Capital and have already begun key integration steps. Our shared focus remains on driving growth and profitability by leveraging our core strengths in cultivation, operating expertise and inventory optimization to drive results for shareholders. We remain laser focused on our existing portfolio in Florida, Pennsylvania and Texas and look forward to closing the RIV Capital agreement in the fourth quarter."
Q2 2024 Financial Highlights (vs. Q2 2023)
Revenue increased 12% to $27.3 million compared to $24.4 million.
Florida revenue increased 15% to $23.1 million compared to $20.1 million.
Adjusted gross profit1 was $12.3 million or 48.6% of revenue, compared to $10.2 million or 46.4% of revenue.
Adjusted EBITDA was $7.7 million compared to $6.8 million, with the increase primarily driven by higher revenues due to additional production and stores.
Cash flow from operations for the three months ended June 30, 2024 was $2.8 million compared to $4.8 million in the prior year primarily due to settlement of tax payments that had been carried over from previous periods.
On June 30, 2024, the Company had approximately $8.5 million of cash and cash equivalents and $67.5 million of total debt, with approximately 300 million shares outstanding.
Recent Operational Highlights
In Florida, Cansortium currently operates 35 stores and anticipates opening 4 new stores by Q2 2025.
In Pennsylvania, Cansortium completed renovations and expanded its Hanover store, refreshing its look and doubling its size. The store remained operational for the entirety of renovations.
The company has begun integration activities with RIV Capital sharing best operational practices and driving efficiencies in advance of the business combination expected to close in Q4 2024.
About Cansortium Inc.Cansortium is a vertically-integrated cannabis company with licenses and operations in Florida, Pennsylvania and Texas. The Company operates under the Fluent™ brand and is dedicated to being one of the highest quality cannabis companies for the communities it serves. This is driven by Cansortium's unrelenting commitment to operational excellence in cultivation, production, distribution and retail. The Company is headquartered in Tampa, Florida.
Cansortium Inc.'s Common Shares trade on the CSE under the symbol "TIUM.U" and on the OTCQB Venture Market under the symbol "CNTMF". For more information about the Company, please visit www.getFLUENT.com.
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1 Adjusted gross profit is a non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. The Company calculates adjusted gross profit from gross profit plus (minus) the changes in fair value of biological assets, as presented in the consolidated statement of operations.
Forward-Looking InformationCertain information in this news release may constitute forward-looking information within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "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", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent the Company's expectations, estimates, and projections regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control.
Forward-looking information is necessarily based on many opinions, assumptions, and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.For further information: www.getFLUENT.com.
Company ContactRobert Beasley, CEO(850) 972-8077investors.getFLUENT.com
Investor Relations
Cansortium Inc.Consolidated Statements of Financial PositionAs of June 30, 2024, and December 31, 2023 (Amounts expressed in thousands of United States Dollars unless otherwise stated)
June 30,
December 31,
2024
2023
Assets
Current assets
Cash
$ 8,483
$ 10,521
Trade receivable
83
215
Inventory, net
Note 3
13,400
9,244
Biological assets
Note 4
4,279
331
Prepaid expenses and other current assets
Note 5
2,705
1,882
Total current assets
28,950
22,193
Property and equipment, net
Note 6
26,138
27,642
Intangible assets, net
Note 7
94,845
93,593
Right-of-use assets, net
Note 12
32,187
31,943
Goodwill
Note 8
1,525
1,525
Other assets
997
907
Total assets
$ 184,642
$ 177,803
Liabilities
Current liabilities
Trade payable
$ 5,676
$ 5,525
Accrued liabilities
10,445
9,779
Income taxes payable
28,666
22,009
Derivative liabilities
Note 10
1,715
9,109
Current portion of notes payable, net
Note 11
62,063
213
Current portion of lease liabilities
Note 12
3,081
2,872
Total current liabilities
111,646
49,507
Notes payable, net
Note 11
5,489
61,189
Lease liabilities
Note 12
37,944
37,242
Deferred tax liability
20,365
17,398
Other long-term liabilities
Note 20
3,447
3,882
Total liabilities
