Franchisor and operator of vertically integrated cannabis dispensaries Section 9 Labs Corp. INLB reported sound operating and financial results Tuesday for the 12 months ended September 30, 2021.
Andrew Bowden, Company CEO, said point 9 has “never been in a better position.“
“With adult sales going live in Arizona in January 2021, our products and brand have grown in popularity,” Bowden added. “We hit $2 million in monthly revenue and cemented our place in Arizona as one of the top brands in all of the dispensaries we sell, representing over 50% of the dispensaries in Arizona.”
Key Financial Highlights for Fiscal 2021
- Income increased by 170% year-on-year to $21.9 million.
- Gross profit increased by 161% year-on-year to $8.6 million.
- Gross margin remained stable at around 40%.
- Operating loss was $5.6 million compared to an operating loss of $5.4 million in fiscal 2020.
- Operating Expenses like a percentage of revenue decreased to 65%, against 107% the previous year.
- Net loss totaled $10.9 million compared to a net loss of $12.3 million.
- Net loss included $5.3 million ($700,000 cash) interest expense compared to $7.0 million ($450,000 cash) in fiscal 2020.
- Adjusted EBITDA was a loss of $1.7 million, compared to an adjusted EBITDA loss of $2.5 million in the prior year period.
Key Company Highlights in Fiscal Year 2021 in Dollars
- Won seven first place awards for product excellence in 2021.
- Secured a $19 million construction financing loan from Pelorus Equity Group for the expansion of culture and laboratory sites in Arizona and Nevada.
- Undertook an asset purchase agreement for a Colorado-based dispensary.
- Expanded footprint of Unity Rd. dispensary franchise in New England.
- Signed first Unity Rd. agreement in South Dakota.
- Membership of the International Franchise Association (IFA)
Section 9 will double down on its growth operations with a $13.5 million culture expansion board with two independent appointments, including Eric C. Kutscher and Lawrence X. Taylor.
Strengthening the franchise and marketing team by hiring Mike Keskey II, Kristen Mathis as VP of Marketing, Tracy Timko as Director of Franchise Support, Erica Tarnowski as Manager of Franchise Development and Emily Gritti as Senior Trade, Marketing and Events Manager.
More recent news from Item 9 Labs:
INLB Price Action
Section 9 shares traded up 22.92% at $1.15 per share at the time of writing, Tuesday morning.
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