Delta 9 Reports Year End and Q4 2021 Results
Financial Highlights for the Year Ending December 31, 2021
- Record net revenues of $62.3 million in 2021, up 20% compared to $52.0 million in 2020, including the following revenue segmentation highlights:
- Retail revenue increased 25% to $40.2 million in 2021
- Wholesale revenue increased 57% to $18.5 million in 2021
- Business to business revenue decreased 42% to $5.0 million in 2021
- Gross profit1 of $18.3 million in 2021 compared to $17.8 million last year.
- Adjusted EBITDA2 of $2.0 million in 2021 compared to an Adjusted EBITDA2 of $3.8 million last year.
- Loss from Operations of $(7.6 million) in 2021 compared to Loss from Operations of $(2.8 million) last year.
- Record quarterly net revenues of $17.1 million for the fourth quarter of 2021, up 21% compared to $14.2 million for the same quarter last year.
- Sequentially net revenues increased 13% for the fourth quarter of 2021 compared to $15.2 million in the third quarter of 2021.
- Gross profit of $4.9 million for the fourth quarter of 2021, down 22% compared to $6.3 million for the same quarter last year.
- Sequentially gross profit1 was up 2% in the fourth quarter of 2021 compared to $4.8 million in the third quarter of 2021.
- Sequentially Adjusted EBITDA improved to $0.6 million in the fourth quarter of 2021 compared to and Adjusted EBITDA of $0.2 million in the third quarter of 2021.
Summary of Quarterly Results
|Consolidated Statement of Net Income (Loss)||Q1 2021||Q2 2021||Q3 2021||Q4 2021|
|Cost of Sales||9,539,620||11,817,720||10,425,214||12,247,951|
|Gross Profit Before Unrealized Gain From Changes In Biological Assets||3,687,920||4,932,975||4,767,054||4,872,981|
|Unrealized gain from changes in fair value of biological assets (Net)||(736,225)||(42,861)||1,690,676||(1,853,245)|
|General and Administrative||3,517,490||2,742,066||3,687,945||2,972,633|
|Sales and Marketing||2,176,965||2,537,879||2,649,302||3,212,250|
|Share Based Compensation||501,370||413,716||175,514||371,433|
|Total Operating Expenses||$6,195,825||$5,693,661||$6,512,761||$6,556,316|
|Adjusted EBITDA (Loss) 1||6,199||1,199,876||191,056||613,562|
|Income (Loss) from Operations||$(3,244,130)||$(803,547)||$(55,031)||$(3,536,580)|
|Other Income/ Expenses||(755,851)||(736,367)||(788,741)||(1,622,996)|
|Net Income (Loss)||$(3,999,981)||$(1,138,899)||$(843,772)||$(5,159,576)|
|Basic and Diluted Earnings (Loss) Per Share||$(0.04)||$(0.01)||$(0.01)||$(0.05)|
- Adjusted EBITDA is a non-IFRS measure, and is calculated as earnings before interest, tax, depreciation and amortization, share-based compensation expense, fair value changes and other non-cash items.
Q4 Results 2021 Conference Call
Delta 9 has scheduled a conference call to discuss the results of the fourth quarter and full year ending December 31, 2021. The conference call will be hosted March 31, 2022 at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer and Jim Lawson, Chief Financial Officer, followed by a question-and-answer period.
|DATE:||March 31, 2022|
|TIME:||9:00 a.m. Eastern Time|
|DIAL IN #||1-888-886-7786|
Available until 12:00 midnight Eastern Time, June 30, 2022
|REPLAY PASSCODE:||240752 #|
For more information contact:
Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
About Delta 9 Cannabis Inc.
Delta 9 Cannabis Inc. is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. Delta 9's shares trade on the Toronto Stock Exchange under the symbol "DN" and on the OTCQX under the symbol "DLTNF". For more information, please visit www.delta9.ca.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to (i) the Company’s expansion plans; and (ii) the Company’s forward strategy. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including all risk factors set forth in the annual information form of Delta 9 dated March 31, 2022 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.