Vibe Reports Record Positive Adjusted EBITDA and Revenue; Provides First Quarter 2020 Financial Results and Second Quarter Ou...
2020年5月28日 - 8:00PM
Vibe Bioscience Ltd.
(
CSE:VIBE)(
OTC:VBSCF) (the
“
Company” or “
Vibe”), a
vertically integrated cannabis retailer and marijuana cultivator,
is pleased to announce record quarterly Adjusted EBITDA during the
first quarter of 2020 as a result of significantly increased
year-over-year sales volumes at its California dispensaries, and
reports the financial and operating results for the three months
ended March 31, 2020. All financial information is provided in U.S.
dollars unless otherwise indicated. The Financial Statements and
Management’s Discussion and Analysis (“
MD&A”)
for the three months ended March 31, 2020 are available on the
Company’s SEDAR profile at www.sedar.com and on Vibe’s website at
www.vibebycalifornia.com.
“The first quarter of 2020 marked a significant
milestone for Vibe,” stated Mark Waldron, Chief Executive
Officer. “Not only did we achieve record dispensary sales
volumes and positive adjusted EBITDA, Vibe was one of only a few
public cannabis companies to achieve positive pre-tax net income
during a challenging quarter. Our results reinforce our belief that
providing exceptional experiences to our customers while
aggressively managing costs positions Vibe to become a leading
California retailer and creator of long-term value for our
shareholders.”
First Quarter 2020 Financial Highlights
(a)
- Adjusted EBITDA of $335,549, a 312%
increase from the fourth quarter of 2019 and a 466% increase over
the $59,336 recorded during the 42 days recorded in the first
quarter of 2019;
- Revenue was $4.27 million, a
225% increase over the first quarter of 2019;
- Pre-tax income from operations
was $44,329;
- Gross margin reached $1.47
million, a 25% increase over Q4 2019 and year-over-year growth of
152%;
- Net loss narrowed to $0.22 million,
a decrease of approximately $2
million year-over-year;
- Adjusted funds flow was $13,273
versus a negative $709,650 of adjusted funds flow in the first
quarter of 2019; and
- Total general and administrative
expenses decreased by 22% to $0.62 million compared to the fourth
quarter of 2019.
Second Quarter 2020 Outlook
- Vibe is on pace to generate
positive net income for the quarter, one of only a few publicly
traded cannabis operators to achieve profitability;
- The Company is seeing an increase
in merger, acquisition and business development opportunities. At
the same time, the capital markets appear more receptive to funding
accretive asset development situations. To position itself for
these emerging opportunities, the Company has added M&A
personnel and resources;
- Vibe has increased market share in
its operating segments;
- The Company anticipates revenues of
approximately $5.35 million to $5.50 million in the second quarter
of 2020, representing an approximately 74% increase over the second
quarter of 2019(b);
- The Company expects selling,
marketing and security costs as a percentage of sales to decrease
in the second quarter of 2020;
- Upon the closing of the NGEV Inc.
cultivation acquisition, the Company will commence an expansion of
the cultivation canopy by approximately 40%;
- Apart from the canopy expansion,
the Company does not anticipate any significant capital
expenditures on existing assets in 2020.
(a) This is a non-IFRS measure. Readers are
cautioned that the amounts presented do not have standardized
meanings prescribed by IFRS. Please see the non-GAAP Financial
Measures Disclosure below.(b) This is a forward-looking statement.
See “Forward-Looking Information”.
Significant Growth at California
Dispensaries
- Vibe’s Stockton dispensary
generated revenue of $1,789,749 and gross margin of $741,188 in the
three months ended March 31, 2020, an increase of 183% and 145%,
respectively, over the prior year’s quarter;
- The Company’s Sacramento dispensary
generated $2,170,068 and gross margin of $751,138 in the three
months ended March 31, 2020, an increase of 292% and 179%,
respectively; and
- Vibe’s Redding dispensary opened on
February 26th and did not contribute to the Company’s gross margin
during the first quarter of 2020. The store has surpassed
management projections in the second quarter to date.
First Quarter 2020 Operational Highlights
- Redding
acquisition. On February 26, 2020, Vibe commenced retail
operations at its Redding, California dispensary, following the
completion of the acquisition of all membership interests in the
outstanding securities of EVR Managers LLC in December 2019.
- NGEV
acquisition. In March 2020, the Company entered into
an acquisition agreement with NGEV Inc. to acquire a 13,000 square
foot cannabis cultivation facility in Crescent City, California.
The acquisition will be completed with the issuance of 600,000
common shares of the Company and the assumption of approximately
$463,000 in term debt. The completion of the NGEV acquisition is
subject to, among other things, the receipt of regulatory
approvals, receipt of certain consents from third parties and the
satisfaction or waiver of closing conditions and is expected to
occur in the second quarter.
- Touchless curbside
pickup. In March 2020, the Company obtained local and
state approvals to provide compliant touchless pickup options at
all locations, enabling Vibe’s clients and staff to remain healthy.
The Company's priority is on the safety and well-being of its
employees and clients.
- Delivery service
commenced. In March 2020, Vibe applied for a
delivery license from the City of Redding. The delivery license was
approved on or about April 9, 2020. Vibe expects to realize the
benefits of this throughout 2020. Customer adoption of Vibe’s
delivery services has continued to increase as clients adjust to
the restrictions resulting from the COVID-19 Pandemic.
- Store renovation.
In late March and early April 2020, Vibe undertook and
completed a renovation of its Sacramento dispensary. The
store renovation greatly improves the customer experience and
expands product placement opportunities by more than 75%.
Financial Highlights
The Company’s core cannabis business commenced
upon the acquisition of the U.S. Targets on February 18,
2019. Consequently, first quarter 2019 revenue, gross margin,
G&A, selling and marketing expense and adjusted EBITDA amounts
include results of; (i) the U.S. Targets from February 18, 2019 to
March 31, 2019; and (ii) the Company’s head office for the entire
three months ended March 31, 2019. The Company’s key
financial results for the three months ended March 31, 2020 are as
follows:
U.S. dollars |
Three Months EndedMarch 31, 2020 |
Three Months EndedMarch 31, 2019 |
Total revenue(a) |
$4,272,598 |
$1,313,726 |
|
Gross margin |
$1,467,759 |
$583,307 |
|
Gross margin
%(a) |
|
34.4 |
|
44.4 |
|
Adjusted EBITDA(a) |
$335,549 |
$59,336 |
|
Adjusted EBITDA %(a) |
|
7.9 |
|
4.5 |
|
Adjusted funds
flow(a) |
|
13,273 |
|
(709,650 |
) |
(a) This is a non-IFRS measure. Readers are
cautioned that the amounts presented do not have standardized
meanings prescribed by IFRS. Please see the non-GAAP Financial
Measures Disclosure below.
Additional Highlights
- Management is broadening its
acquisition outreach in California;
- Successful launch of “Hype Cannabis
Co.” extracts, and the addition of genetically optimized craft
cannabis flower and products in its retail locations and select
third-party dispensaries;
- Completion of a significant
expansion and upgrade of its existing cultivation facilities, with
upgrades expected to improve the harvest process, increase yields
and harvested annual volumes;
- The Company is determined to
continuously maximize efficiency of the point-of-sale process at
its dispensary locations and improve on the methods of product
delivery, including providing on-line ordering and door-to-door
delivery;
- The Company successfully secured
delivery licenses in June 2019 (Sacramento), April 2020 (Redding),
and May 2020 (Stockton), the benefits of which is being realized in
2020, especially in light of the COVID-19 pandemic;
- Management believes that by
providing multiple and convenient product payment and delivery
methods the Company will attract a wider and more varied customer
demographic and further increase customer loyalty; and
- Management is focused on ensuring
all retail dispensaries deliver an exceptional and unique “Vibe by
California” customer experience. Capital has been invested in
all dispensary locations, which is intended to develop consistent
store branding in addition to creating an inviting and consistent
customer experience. Management believes that investing in
consistent corporate and product branding across all dispensaries
will improve customer recognition and loyalty for the “Vibe by
California” and “Hype Cannabis Co.” brands while maximizing the
return on capital invested.
About Vibe Bioscience Ltd.
Vibe is a vertically integrated cannabis company delivering
exceptional retail experiences with its Vibe by California brand
and ethos, premier cultivation product and high-efficiency
delivery, and online sales. The Company’s management team brings
expertise in retail, cannabis cultivation and mergers and
acquisitions to support its U.S. expansion through accretive
acquisitions and organic growth. For more information, please visit
www.vibebycalifornia.com.
Special Note Regarding non-GAAP Financial
Measures
(a) This is a non-GAAP measure. Readers are
cautioned that the amounts presented do not have standardized
meanings prescribed by IFRS. See discussion of non-IFRS Measures in
the MD&A for reconciliation to measures reported in the
Company’s consolidated financial statements.
(b) Adjusted funds flow (previously referred to
as funds flow from operations) is a non-GAAP measure that
represents cash flows from operating activities as presented in the
Company's Consolidated Statements of Cash Flows before the changes
in non-cash working capital. The Company considers adjusted funds
flow a key measure as it demonstrates the Company’s ability to
generate the cash flow necessary to fund future growth through
capital investment and to repay debt.
Forward-Looking Information
Certain statements contained in this press
release constitute forward-looking information. These statements
relate to future events or future performance. The use of any of
the words “anticipate”, “could”, “intend”, “expect”, “believe”,
“will”, “projected”, “estimated” and similar expressions and
statements relating to matters that are not historical facts are
intended to identify forward-looking information and are based on
the parties’ current belief or assumptions as to the outcome and
timing of such future events, and may be impacted as a result of
general economic conditions or the ongoing COVID-19 pandemic.
Actual future results may differ materially.
The forward-looking information contained in
this release is made as of the date hereof and the parties are not
obligated to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws. Because of the
risks, uncertainties and assumptions contained herein, investors
should not place undue reliance on forward looking information. The
foregoing statements expressly qualify any forward-looking
information contained herein. Risk factors related to the Company
are described in the Company’s Management Discussion and Analysis,
a copy of which is available under the Company’s profile on
SEDAR.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”) or any State securities laws
and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable State securities laws or an exemption from such
registration is available. Not for distribution to U.S. Newswire
Services or for dissemination in the United States. Any failure to
comply with this restriction may constitute a violation of U.S.
securities laws.
Unlike in Canada which has Federal legislation
uniformly governing the cultivation, distribution, sale and
possession of medical cannabis under the Cannabis Act (Federal),
readers are cautioned that in the U.S., cannabis is largely
regulated at the State level. To the knowledge of Vibe Bioscience
Ltd., there are to date a total of 33 states, plus the District of
Columbia, that have legalized cannabis in some form.
Notwithstanding the permissive regulatory environment of medical
cannabis at the State level, cannabis continues to be categorized
as a controlled substance under the Controlled Substances Act in
the U.S. and as such, cannabis-related practices or activities,
including without limitation, the manufacture, importation,
possession, use or distribution of cannabis are illegal under U.S.
Federal law. Strict compliance with State laws with respect to
cannabis will neither absolve Vibe Bioscience Ltd. of liability
under the U.S. Federal law, nor will it provide a defense to any
Federal proceeding, which may be brought against Vibe Bioscience
Ltd. Any such proceedings brought against Vibe Bioscience Ltd. may
adversely affect its operations and financial performance.
Contact Information |
Company Contact: |
|
Mark Waldron, CEO |
|
Phone: +1 833-420-VIBE |
|
Email:
info@vibebycalifornia.com |
|
Website:
www.vibebycalifornia.com |
|
|
|
Investor Relations Contact:Glen NelsonPhone: +1
833-420-VIBE x 107Email: ir@vibebycalifornia.com
Vibe Growth (CSE:VIBE)
過去 株価チャート
から 11 2024 まで 12 2024
Vibe Growth (CSE:VIBE)
過去 株価チャート
から 12 2023 まで 12 2024