FLUENT (TIUM.U) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $27.3 million, up 12% year-over-year, and marked the eleventh consecutive quarter of positive cash flow from operations, reflecting consistent business execution and strategic growth initiatives.

• Florida revenue grew 15% to $23.1 million, with two new dispensaries opened in 2024 and four more planned by Q2 2025, aiming for 39 total in the state.

• Ongoing expansion in Pennsylvania and Texas, including facility upgrades and a new Houston delivery center planned for early 2025.

• Integration activities for the business combination with RIV Capital are underway, with closing anticipated in Q4 2024.

Financial highlights

• Revenue increased 12% year-over-year to $27.3 million in Q2 2024, driven by increased production and new dispensaries.

• Adjusted gross profit was $12.3 million (48.6% margin), up from $10.2 million (46.4% margin) year-over-year.

• Adjusted EBITDA reached $7.7 million, compared to $6.8 million in the prior year, with margin at approximately 28%.

• Cash from operations was $2.8 million, down from $4.8 million, due to settlement of prior tax payments.

• Net income for Q2 2024 was $947, compared to a net loss of $5.4 million in Q2 2023.

• Cash balance at June 30, 2024, was $8.5 million, with total debt of $67.5 million.

Outlook and guidance

• Four additional Florida dispensaries expected by Q2 2025, with strategic positioning for potential adult use market transition.

• Anticipates first harvest from new Rosa facility in Q1 2025; Williston facility closing expected around January 2025.

• Plans to scale up production and retail in anticipation of possible adult use legalization in Florida.

• Business combination with RIV Capital expected to close in Q4 2024, with integration focused on operational efficiencies.

• Refinancing of debt maturing in May 2025 is in process, with strong lender interest.