Cresco Labs reports 20% growth in Q1 revenue

Cresco Labs Inc., CRLBF CL FSE: 6 CQ, released its financial results for the three months ended March 31, 2022, showing revenue of $214 million, up 20% year-over-year.

Gross profit excluding fair value mark-up for acquired inventory of $113 million or 53% of revenue, an increase of 29% year-over-year.

EBITDA was $51 million, or 24% of revenue, an increase of 45% year-over-year.

Retail revenue increased 44% year-over-year, to $119 million, or $2.5 million per average store open in the quarter, and same-store sales increased 9% year-over-year.

Q 1 was a good quarter for the team at Cresco Labs in a challenging environment for all consumer product categories. While our 10 state footprint saw a cumulative contraction of 4.5%, we held market share in most of our states and outperformed the markets with our 2% decline. We understand that an emerging industry's growth trajectory is rarely linear, especially a highly regulated industry with a fragmented state-by-state structure, conflicting federal and state laws, and the addition of general macro pressures, said Charles Bachtell, co-founder and CEO of Cresco Labs.

We continue to execute with a clear and focused strategy to attain market leadership with a portfolio of cannabis brands that consumers love and a plan to get them on as many shelves as possible. The strategy remains the same, and the acquisition of Columbia Care CCHWF by Columbia Care fits hand-in- glove with the stated priorities in the quarter. Bachtell concluded that we are pairing the best consumer brands with a broad, deep and strategic footprint.

Balance Sheet, Liquidity, and other financial information are the subject of Balance Sheet, Liquidity, and other financial information.

As of March 31, 2022, current assets were $400 million, including cash and cash equivalents of $179 million. The company had a working capital of $69 million and senior secured term loan debt of $378 million, net of discount and issuance costs.

The total shares on a fully converted basis were 439.87 million as of March 31, 2022.

Over the past few months, 'The Sentence of Michael Thompson' documentary has been accepted into eight film festivals and won a Clio Award, Audience Choice Award at the South by Southwest Film Festival and Best Documentary Short Film Award at the RiverRun International Film Festival. The short film was produced by the Company's Cresco brand and aims to help people understand the impact of injustice on the lives of people adversely impacted by the war on drugs. This is in support of the company's mission to drive awareness and action toward cannabis legalization and criminal justice reform.

On March 23, 2022, the company announced a definitive arrangement agreement whereby Cresco will acquire Columbia Care in an all-stock transaction.

The HSR announced on May 16, 2022 that the company will end the 30 day waiting period in connection with the proposed Columbia Care transaction.

The company is hosting a conference call and webcast to discuss its financial results on May 18, 2022, at 8: 30 am Eastern Time.

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