Simply Solventless Concentrates (HASH) Q3 2024 earnings summary

Executive summary

• Q3 2024 projected to deliver record gross revenue and extend streaks of positive adjusted EBITDA and normalized net income to ten and eight quarters, respectively.

• Acquisition of CannMart Inc. closed September 12, 2024, expected to drive revenue growth and cost synergies.

• 27 new products launching in Alberta and Ontario in Q4 2024 across Astrolab, Frootyhooty, Roilty, Lamplighter, Uncommon Cannabis, and Rilaxe brands.

Financial highlights

• Q3 2024 gross revenue guidance: ~$7,000,000 (up 65% quarter-over-quarter, up 373% year-over-year).

• Q3 2024 adjusted EBITDA: ~$1,000,000 (up 5% quarter-over-quarter, up 270% year-over-year).

• Q3 2024 normalized net income: ~$900,000 (flat sequentially, up 372% year-over-year).

• Nine months ended September 30, 2024: gross revenue ~$14,354,895 (up 177% year-over-year), adjusted EBITDA ~$2,564,557 (up 18%), normalized net income ~$2,337,230 (up 25%).

Outlook and guidance

• Projected annualized gross revenue for September 2024: $33,000,000, with a goal of $40,000,000 annualized gross revenue.

• Targeting $6,200,000 annualized adjusted EBITDA and $6,000,000 annualized normalized net income.

• B2B and tolling revenue expected to rebound in Q4 2024 after seasonal Q3 dip; full cost synergies from CannMart integration anticipated by early Q4 2024.