Jushi Sees Q4 Revenue Grow 22%, Points To Slowed Growth In 2022

Jushi Holdings (CSE: JUSH) this morning reported its fourth quarter financial results, for the year ended December 31, 2021. The company saw its revenue grow substantially on both a year over year and quarter over quarter basis to $65.9 million for the three month period, while posting positive net income.

Revenue climbed 22% on a quarter over quarter basis from $54.0 million in the third quarter, and 104% from the $32.3 million recorded in the year ago period. Gross profits meanwhile came in at $20.9 million for the three month period.

Operating expenses however grew rather significantly, climbing to $38.3 million, compared to the $24.6 million recorded last quarter. The increse is said to be the result of an expanded headcount as well as the company “investing in the business to support [their] long-term growth outlook.” As a result, the company posted a loss from operations of $17.5 million.

This loss however was offset from other income of $36.2 million, thanks in part to a $38.4 million bump from a fair value gain on derivatives. As a result, the company managed to posted net income for the quarter of $9.1 million, along with adjusted EBITDA of $1.5 million.

For the full fiscal year, the company saw revenues grow to $209.3 million, while gross profit came in at $87.4 million. With operating expenses of $109.9 million, the firm was again saved by other income related to fair value gains on derivatives, this time to the tune of $105.2 million, which enabled the company to post a net income of $25.3 million for the year. Adjusted EBITDA for the full fiscal year came in at $16.9 million.

The company closed out the year with $95.0 million in cash and cash equivalents. In terms of guidance for 2022, the company expects to spend $40 to $60 million in capital expenditures in 2020, which is to be funded via this cash.

For all of 2022, the company has lowered prior issued guidance due “experiencing a slowdown in revenue,” along with “a combination of headwinds.” The company now expects its fourth-quarter 2022 revenue, on an annualized run rate, to be between $375 to $425 million, with adjusted EBITDA to be between $70 to $90 million.

Full financial results have not yet been filed by the company as of the time of writing.

Jushi Holdings last traded at $3.98 on the CSE.

Information for this briefing was found via Sedar and the companies mentioned. 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.

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