FLUENT (TIUM.U) Q3 2024 earnings summary

Executive summary

• Completed business combination with RIV Capital, expanding to 42 stores and entering the New York market, with integration activities underway and expected to close by year-end.

• Achieved 12th consecutive quarter of positive cash flow from operations and year-over-year revenue growth.

• Report covers the three and nine months ended September 30, 2024, with all operations in the U.S. medical cannabis sector.

• The merger with RIV Capital will significantly alter capital structure and ownership, with Cansortium shareholders holding 51.25% and RIV Capital shareholders 48.75%.

• Florida operations expanded with increased cultivation canopy and plans for four new stores in 2025.

Financial highlights

• Q3 2024 revenue increased 3.5% year-over-year to $26.1 million, with Florida revenue rising 3.6% to $22 million.

• Gross profit before fair value adjustments was $14.3 million (54.6% margin), up from $13.7 million (54.0%).

• Adjusted EBITDA was $7.5 million (28.7%-29% margin), slightly down from $7.7 million due to higher G&A expenses.

• Net loss for Q3 2024 was $11.8 million, compared to $5.3 million in Q3 2023.

• Cash and equivalents at quarter-end: $8.9 million; total debt: $74.1 million.

Outlook and guidance

• Four new Florida stores are planned for 2025, with further canopy expansion from new facilities.

• The RIV Capital merger is expected to close in December 2024, positioning for growth in New York.

• Anticipates further cost savings of $2 million over six months from integration activities.

• Expects price compression and increased competition in Florida, with stabilization after two to three quarters.

• Continued focus on revenue growth opportunities in Pennsylvania and Texas.