Body and Mind Reports Q1 2021 Financial Results— Including Positive Adjusted EBITDA
Press Release and Commentary
VANCOUVER, B.C., CANADA (February 2, 2021) – Body and Mind Inc. (CSE: BAMM, OTCQB: BMMJ) (the “Company” or “BaM”), a multi-state operator, is pleased to report its financial results for the first fiscal quarter ended October 31, 2020.
Our focus on limited license jurisdictions and efficient operations has resulted in strong financial results, a clean balance sheet and no long-term debt. As we fully consolidate our current assets and complete our current projects, we look forward to adding revenue within our current infrastructure.Michael Mills, CEO of Body and Mind
Q1 FY2021 Financial Summary (in $USD unless otherwise indicated):
● Reported Q1 FY2021 revenue of $5.29 million, a 144% increase over Q4 FY2020 ($2.17 million) and
267 % increase over Q1 FY2020 ($1.44 million);
● Q1 FY2020 Gross profit of $ 1.8 million
● Q1 FY2020 Operating Loss of $ 0.69 million
● Q1 FY2020 Net Loss of $ 0.78 million
● Basic and Diluted loss per share of $0.01;
● Positive Adjusted EBITDA of $ 57,135*
● Managed Q1 FY2020 revenue of $6.49 million**;
● Inventory of $1.87 million as of October 31, 2020;
● At October 31, 2020, BaM had $1.33 million in cash and working capital surplus of $1.91 million;
● Total Assets were $40.57 million, Total Current Liabilities were $4.61 million and Total Liabilities
were $7.19 million at October 31, 2020;
● 108,377,778 common shares were issued and outstanding as of January 25, 2021;
Operational Milestones for Q1 FY2021 and to Date:
● ShowGrow Long Beach dispensary ownership transferred to 100 % owned Body and Mind
subsidiary to allow consolidation of revenues effective August 28, 2020;
● ShowGrow Long Beach dispensary commenced curbside pickup and online ordering purchase options
● ShowGrow San Diego dispensary has commenced delivery service in addition to curbside pickup and other on-line ordering purchase options.
● Received cannabis distribution license from the state of Nevada;
● Received approval to expand cultivation canopy. The Company continues to renovate past
production areas into new cultivation space;
● Worked with brand partner Her Highness to launch their female focused brand into the Las Vegas
● Ownership of The Clubhouse dispensary outside Cleveland, Ohio transferred to a 100 % owned Body and Mind subsidiary to allow consolidation of revenues effective September 4, 2020;
● A definitive agreement is in place to acquire the remaining 70% ownership of NMG Ohio LLC subject to regulatory approval;
● Development of the NMG Ohio production facility, which is currently 30% indirectly owned by BaM, was advanced with construction expected to be completed around March 2021.
● Body and Mind dispensary awarded “Best Dispensary in Arkansas” by Ark420.com;
● Commenced delivery and online ordering options;
● Preparation for cultivation ongoing with cultivation team engaged in the final stages of set up in advance of inspection and permitting by local and state authorities;
● The facility construction Capex is complete with roughly 3,500 square feet of retail and approximately 6,500 square feet constructed for future cultivation and packaging operations.
“These strong quarterly results reflect our emphasis on lean operations and asset consolidation” stated Michael Mills, CEO of BaM. “Our current production and cultivation developments are anticipated to expand the Body and Mind branded product portfolio into Ohio and Arkansas. Our dispensary and cultivation operations show steady growth as we continue to evaluate new expansion and acquisition opportunities for licenses and the Body and Mind brand.”
*Adjusted EBITDA is a Non-GAAP metric used by management that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies.
**Managed revenue: refers to results for the full three months ended October 31, 2020, including managed revenues, which are sales of cannabis products from entities for which management arrangements or definitive agreements are in place but BaM cannot consolidate due to regulatory restrictions, or from equity investments, in which results cannot be consolidated. Managed entities include Body and Mind’s involvement in certain California, Ohio and Arkansas operations.
The unaudited consolidated interim financial statements for the quarter ended October 31, 2020 are available on SEDAR and EDGAR and should be read in connection with this news release.
The Company will be hosting earnings call on Wednesday, February 3 rd , 2021 at 4:30 p.m. Eastern. Participants can dial 1-888-664-6392 or 416-764-8659 and confirmation number 57147511
A replay of the conference call will be available at 1-888-390-0541 until February 10, 2021. Please use replay number 147511 #
To read the press release in its entirety, please click here.
TDR: Q1 2021 was a breakthrough quarter for Body and Mind. The company achieved several milestones, including registering its first positive Adj. EBITDA quarter and record quarterly top line revenue of $5.29 million The latter smashed the previous quarterly high of $2.17 million achieved in Q4 2020, and wasn’t far away from the $6.23 million total reported in the entire fiscal year of 2020.
The big increase in quarterly revenue was mainly due to the consolidation of revenue across business operations. Predominantly, this included the recognition of top line revenue from two months of the company’s Ohio and Long Beach dispensaries, which the company acquired majority control around the beginning of September. In their next reporting period (Q2 2021 and beyond), BaM will enjoy consolidated revenue in all three months, which should push top line revenues materially higher.
Although revenues from the company’s Arkansas dispensaries shall remain in the “managed” column for the next few quarters, eventually that should switch over. No timeline has been established for that occurrence.
TDR will have additional coverage as events warrant.