MariMed, Inc. (CSE:MRMD) (OTCQX:MRMD), a leading multi-state cannabis operator focused on improving lives every day, recently announced its financial results for the third quarter that ended September 30, 2022.
Financial Highlights
The following table “summarizes the consolidated financial highlights for the three months ended September 30, 2022, and 2021 (in millions, except percentage amounts):” according to a press release.
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Operational Highlights
During the third quarter, the Company announced the following facets of its strategic growth plan:
- The approval of its expanded state-of-the-art kitchen in Maryland.
- The launch of its new Betty’s Eddies ice cream in partnership with Boston-based Emack & Bolio’s® ice cream company.
- The acquisition of a conditional dispensary license in central eastern Illinois close to the Indiana border.
- The launch of its Nature’s Heritage “LIVE Flower,” the freshest cannabis available
- The agreement to develop and manage a state-of-the-art production kitchen to manufacture and wholesale its award-winning branded products in Missouri.
- The agreement with 42 Degrees, a Michigan licensed cannabis producer and distributor, to manufacture and distribute MariMed’s award-winning brands and products throughout the state, according to a press release.
2022 Financial Guidance
According to its Q3 Financial Results, "MariMed remains committed to its proven strategic growth plan and continues to operate some of the best cannabis facilities with some of the highest margins and returns in the cannabis industry."
- Revenue of $132 million to $135 million.
- Gross margin of 48% to 49%.
- Non-GAAP Adjusted EBITDA of $32 million to $35 million.
- Capital expenditures of $16 million to $17 million.
“Our financial results remain some of the best in the industry, as we have improved gross margins and delivered positive adjusted EBITDA for the eleventh consecutive quarter,” said Susan Villare, CFO. “Our ability to generate positive cash flow from operations in this challenging macro environment is a testament to the outstanding asset base that MariMed has developed and maintained.”
Moreover, MariMed provided several non-GAAP financial measures: Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, and non-GAAP Adjusted EBITDA margin, as a supplement to Revenue, Gross margin, and other financial measures prepared in accordance with GAAP.
Management believes, “these non-GAAP financial measures are useful in reviewing and assessing the performance of the Company, as they provide meaningful operating results by excluding the effects of expenses that are not reflective of its operating business performance.” Additionally, “non-GAAP adjusted EBITDA is used by many investors and analysts themselves, along with other metrics, to compare financial results across accounting periods and to those of peer companies.”
Management defines non-GAAP Adjusted EBITDA as net income, determined in accordance with GAAP, excluding the following items: interest income and interest expense; income taxes; depreciation of fixed assets; amortization of acquired intangible assets; Impairment or write-downs of intangible assets; stock-based compensation; legal settlements; acquisition-related and other; other income and other expenses; and discontinued operations.
Other Business Developments
Subsequent to the end of the third quarter, the Company announced the following business developments:
- The opening of its first medical dispensary in Annapolis, Maryland, marked the beginning of the Company’s fully vertical operations in that state.
- The evolution of its award-winning and top-selling Betty’s Eddie's fruit chews line to address consumer demand for cannabis edibles that meet specific needs.
“We remain bullish for continued revenue and earnings growth,” said Marimed president Jon Levine. “Fueling our confidence are several new and expanded assets in our existing markets that will come online in 2023. Additionally, we look forward to our entry next year into additional high-growth cannabis markets, including Ohio, Missouri, and Michigan.”
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