CHICAGO--PRESS RELEASE--Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ), a vertically integrated, multistate cannabis company with a portfolio of brands and the operator of Sunnyside dispensaries, released its financial and operating results May 15 for the first quarter ended March 31, 2024. All financial information presented in this release is reported in accordance with U.S. GAAP and in U.S. dollars, unless otherwise indicated, and is available on the company’s investor website.
First Quarter 2024 Highlights
- First quarter revenue of $184 million, flat year-over-year, excluding the impact from strategic divestitures aimed to drive profitability.
- Gross profit of $92 million. Adjusted gross profit1 of $95 million up 7% year-over-year; and an adjusted gross margin1 of 51% of revenue, a 580 bps improvement.
- SG&A of $54 million. Reduced adjusted SG&A1 by 24% year-over-year to $52 million, or 28% of revenue.
- First quarter income before income taxes of $16 million, net loss of $2 million.
- First quarter Adjusted EBITDA1 of $53 million, up 82% year-over-year; and Adjusted EBITDA margin1 of 29%, a 1,380 bps improvement.
- $36 million in operating cash flow up 1,000% year-over-year. $33 million in Free Cash Flow1.
- Retained the No. 1 share position in Illinois, Pennsylvania and Massachusetts2.
1See “Non-GAAP Financial Measures” at the end of this press release for more information regarding the Company’s use of non-GAAP financial measures.
2According to BDSA.
Management Commentary
“I want to thank the Cresco team for taking our learnings from the Year-of-the-Core, making them a part of our DNA and producing such a strong start to 2024. The continued development of our teams’ capabilities and our relentless focus on efficient execution is leading to very strong performance across our retail and branded product business resulting in a 10x increase in operating cash flow year-over-year," said Charles Bachtell, CEO of Cresco Labs. "This is just the start, with upcoming adult use catalysts in Ohio and potential catalysts in Florida and Pennsylvania we have the ability to generate significant operating leverage and additional cash flow going forward.
"I also want to thank the team for continuing Cresco’s leadership on cannabis reform. The recently announced potential federal rescheduling will fundamentally change the future for cannabis and all of its stakeholders. The team is fulfilling our vision of being the most important company in cannabis and leading the development of the most responsible, respectable and robust industry possible.”
Balance Sheet, Liquidity and Other Financial Information
As of March 31, 2024, current assets were $285 million, including cash, cash equivalents and restricted cash of $125 million. The Company had senior secured term loan debt, net of discount and issuance costs, of $387 million and a mortgage loan, net of discount and issuance costs of $18 million.
Total shares on a fully converted basis to Subordinate Voting Shares were 475,235,515 as of March 31, 2024.
