VANCOUVER, BC / ACCESSIRE / April 1, 2022 / 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF)(OTCQB:TGIFF), a Nevada-focused cannabis consumer packaged goods company, is pleased to announce its second quarter ("Q2 2022") financial results for the three and six months ended January 31, 2022. All amounts expressed are in Canadian dollars.
Financial statements are prepared in accordance with International Financial Reporting Standards. Detailed information regarding the Company's financial results as well as management's discussion and analysis can be found at https://sedar.com/ and https://1933industries.com/investors/financial-information
During the reporting period, the Company progressed towards achieving higher revenues, decreasing net loss, and improving gross margin. The Company's cultivation subsidiary recorded a 33% increase in revenues from the sale of cannabis flower, pre-rolls and extraction products due to the optimization of both its cultivation and processing facilities. The Company upgraded and refined its processing methods and practices and completed full automation of its plant feeding systems to improve plant growth and health, resulting in improved yields and a 31% increase in inventory. The Company has successfully gained additional self-space in dispensaries and continues to service its major wholesale accounts throughout Nevada.
The Company has significantly decreased its net loss each quarter sequentially, with the ultimate goal of achieving profitability. Revenues in Q2 improved by 23% over Q1 2022, operating expenses were reduced by 65%, and net loss decreased by 87% compared to fiscal 2021. Improved financial performance as well as revenue growth continue to be key priorities for 1933 Industries, and the improvements that the Company has set in motion are now reflecting in increased flower capacity, consistency, and quality. The Company remains on the right path to improve its the long-term growth and reach profitability in fiscal 2022 and beyond.
Q1 2022 Financial Highlights
| Q1 2022 Financial Highlights | |||||||||
| January 31, 2022 | January 31, 2021 | ||||||||
Revenues | $ | 3,208,082 | $ | 3,406,826 | |||||
Gross margin | $ | 1,470,286 | $ | 1,694,994 | |||||
Expenses | $ | 2,404,798 | $ | 3,104,154 | |||||
Net loss for the period | $ | (819,814 | ) | $ | (1,409,063 | ) | |||
Basic and diluted loss per share | $ | (0.00 | ) | $ | (0.00 | ) | |||
Comprehensive loss for the period | $ | (647,979 | ) | $ | (2,745,087 | ) | |||
Adjusted EBITDA loss | $ | (340,150 | ) | $ | (117,741 | ) | |||
Cash balance | $ | 803,187 | $ | 4,405,849 | |||||
Total assets | $ | 44,637,986 | $ | 45,353,816 | |||||
Total liabilities | $ | 21,111,356 | $ | 20,121,280 | |||||
Total liabilities and shareholders' equity | $ | 44,637,986 | $ | 45,353,816 | |||||
| Quarterly Comparison | |||||||||
| Q2 2022 | Q1 2022 | ||||||||
January 31, 2022 | October 31, 2021 | ||||||||
Revenues | $ | 3,208,082 | $ | 2,466,064 | |||||
Gross margin | $ | 1,470,286 | $ | 1,103,102 | |||||
Expenses | $ | 2,404,798 | $ | 1,937,229 | |||||
Net loss for the period | $ | (819,814 | ) | $ | (948,825 | ) | |||
Basic and diluted loss per share | $ | (0.00 | ) | $ | (0.00 | ) | |||
Comprehensive loss for the period | $ | (647,979 | ) | $ | (1,120,750 | ) | |||
Adjusted EBITDA loss | $ | (340,150 | ) | $ | (303,978 | ) | |||
Cash balance | $ | 803,187 | $ | 3,162,952 | |||||
Total assets | $ | 44,637,986 | $ | 44,585,701 | |||||
Total liabilities | $ | 21,111,356 | $ | 20,418,844 | |||||
Total liabilities and shareholders' equity | $ | 44,637,986 | $ | 44,585,701 | |||||
Q2 2022 CONSOLIDATED OPERATING FINANCIAL HIGHLIGHTS
- Total revenues were $3.2 million for Q2 2022 and $3.4 million for Q2 2021.
- Expenses were $2.4 million for Q2 2022 and $3.1 million for Q2 2021, a decrease of 23%.
- Gross margin was $1.5 million or 46% for Q2 2022 and $1.7 million or 50% for Q2 2021.
- Net loss from continuing operations was $0.8 million for Q2 2022 and a net loss of $1.4 million for Q2 2021, an 87% decrease compared to fiscal 2021.
- Adjusted EBITDA loss was $0.3 million for Q2 2022 and an adjusted EBITDA loss of $0.1 million for Q2 2021.
Q2 2022 Key Developments
Refer to Management Discussions and Analysis
Please note the next financial release dates in accordance with the continuous disclosure schedule set out by the British Columbia Securities Commission:
Q3/2022: June 29, 2022
Q4/YE 2022: November 28, 2022
About 1933 Industries Inc.
1933 Industries is a Nevada-based, growth-orientated company, focusing on the cultivation and manufacturing of a large portfolio of cannabis consumer-packaged goods in a variety of formats for both the wholesale and retail markets. Its product offerings include: THC flower, pre-rolls, and extracted products under the AMA and Level X brands for the Nevada market; Canna Hemp™, national cannabidiol (CBD) brand of infused wellness products including CBD tinctures, gummies, topicals and sport recovery products. The Company owns 91% of Alternative Medicine Association, LC (AMA), 100% of Infused MFG LLC (Infused), and subject to the closing of the proposed transaction, 100% of Day One Beverages Inc.
About Alternative Medicine Association
AMA is a licensed medical and adult-use cannabis cultivation and extraction subsidiary that produces its own branded line of unique cannabis products. AMA's extensive menu of cannabis products include: craft cannabis flower, pre-rolls, full spectrum oils, high quality distillates, proprietary blends of terpenes, vaporizer products and boutique concentrates such as shatter, crumble, batter, sugar wax, diamonds, and live resin. Ultra-craft brand Level X is an exclusive collection of exotic strains, selected specifically for their distinctive terpene profiles, high THC levels, and flavonoids. With state-of-the-art cultivation and extraction facilities based in Las Vegas, Nevada, AMA seeks to offer medical patients and recreational users alike a cannabis experience that's exceptional, potent, and consistent in quality. AMA is also licensed in Nevada as an adult-use cannabis distributor.
About Canna Hemp™
With an extensive product line that includes CBD topicals, CBD creams, CBD gummies, CBD vaporizers, CBD tinctures, CBD capsules, CBD pre and post workout recovery sports products, and CBG and CBN tinctures, 1933 Industries' proprietary Canna Hemp™ brand utilizes the power of hemp-extracted cannabinoids to bring natural wellness.
For further information please contact:
Alexia Helgason, VP, IR, Marketing, Media
604-728-4407
Paul Rosen, CEO
paul@1933industries.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: 1933 Industries Inc.
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https://www.accesswire.com/695613/1933-Industries-Reports-Second-Quarter-2022-Financial-Results
