Harvest Health & Recreation (CSE: HARV) announced their third quarter 2020 financial results this evening, reporting revenue net of discounts of $61.6 million for the period ended September 30, 2020, along with a loss of $2.1 million. Revenues were up roughly 11% on a quarter over quarter basis, from $55.7 million in the second quarter.
As has become customary for Harvest Health, full financial results were not released at the time of the news release issuance. The company has been traditionally waiting eight or nine days following the initial announcement of the results to provide full financial documents. Certain statements however were provided within the release.
In terms of gross profit, the company reported $28.7 million in gross profit before biological adjustments, an improvement over last quarter. Operating expenses came in at $26.4 million overall, down from $29.5 million in the second quarter. Operating expenses largely comprised of general and administrative expenses at $20.7 million, followed by depreciation and amortization of $3.6 million.
Other expenses meanwhile saw an interest expense of $13.2 million, compared to $12.3 million in the prior quarter, which ultimately placed the company in the negative on a quarterly income basis. The company overall recorded a net loss of $2.1 million.
Looking to the balance sheet, the company saw its cash positon essentially stay flat over the course of the quarter, rising to $62.8 million from $61.7 million. Accounts receivable declined marginally to $17.4 million from $17.8 million, while inventory climbed to $41.2 million from $31.7 million. Total current assets overall climbed to $208.8 million from $195.1 million in the prior period.
Accounts payable meanwhile declined marginally, hitting $6.2 million, down from $6.5 million, while other current liabilities climbed to $29.0 million from $23.3 million. Contingent consideration meanwhile fell from $15.9 million to $12.4 million. Total current liabilities overall climbed to $96.7 million from $92.6 million.
Finally, Harvest Health increased its 2020 revenue guidance for the full fiscal year. Previously placed at $215 to $220 million, the company has raised revenue guidance to “greater than $225 million.” To date, the company has posted revenues of $161.5 million net of discounts in fiscal 2020.
Harvest Health & Recreation last traded at $2.51 on the CSE.
Information for this briefing was found via Sedar, and Harvest Health and Recreation. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
