Third Quarter 2022 Financial and Operational Highlights:
- Revenue in the three months ended
September 30, 2022 was$5,541,144 net of inter-company eliminations, compared to$8,738,964 in the three months endedSeptember 30, 2021 , a 36.6% decrease. Revenue was affected by the decrease in pricing in the overall cannabis markets for bothOregon andCalifornia . - Total sales in the three months ended were 1,974,509 grams (three months ended
September 30, 2021 : 3,835,969 grams), a 48.5% decrease. Flower sales decreased by 18.1% to 1,115,563 grams (three months endedSeptember 30, 2021 : 1,362,670 grams), sales of pre-rolls decreased by 82.8% to 120,553 grams (three months endedSeptember 30, 2021 : 701,074 grams), oils and extract sales decreased by 43.1% to 702,953 grams (three months endedSeptember 30, 2021 : 1,234,801 grams) and edibles sales decreased by 93.4% to 35,440 grams (three months endedSeptember 30, 2021 : 537,424 grams). - Wholesale Revenue1: In the three months ended
September 30, 2022 ,Oregon generated$3,079,248 in revenue (three months endedSeptember 30, 2021 $6,303,290 ), a 51.1% decrease. In the three months endedSeptember 30, 2022 , theCalifornia wholesale business generated$1,950,678 in revenue (three months endedSeptember 30, 2021 :$1,933,573 ), a 0.9% increase. - Retail Revenue: Budega NOHO which started operations in March of 2022, added revenues of
$259,359 in the three months endedSeptember 30, 2022 . Budega Westwood, which started operations inMay 2022 , added revenues of$251,859 in the three months endedSeptember 30, 2022 . - The adjusted EBITDA, the loss or gain before interest, tax, depreciation & amortization and adjusted for non-cash items ("adjusted EBITDA2") was a loss of
$1,244,363 (three months endedSeptember 30, 2021 ; loss$4,504,831 ). - As of
September 30, 2022 , the Company had unrestricted cash available in the amount of$1,711,855 .
________________________________ | |
1 | Wholesale Revenue means all non-retail revenue in |
2 | Adjusted EBITDA is a non-IFRS financial measure. Please refer to the section entitled "Non-IFRS Financial Measures". |
"In Q3 2022 we continued to improve operations. Despite downward pricing pressure, over-supply, and other challenging factors, Halo's financial metrics have improved. While revenue is down from Q3 2021, in
She concluded, "I am excited to continue our progress through the fourth quarter of 2022. We plan to launch an original indoor flower brand and new genetics at our
Third Quarter 2022 Financial Results
Revenue
Revenue in the three months ended
Total sales in the three months ended
Wholesale Revenue: In the three months ended
Retail Revenue: Budega North Hollywood, which started operations in March of 2022, added revenues of
Gross Profit
In the three months ended
In the three months ended
In the three months ended
Liquidity and Cash Balance
In the three months ended
As of
Additional Information
Complete results are reported in the Company's consolidated financial statements for the three and nine months ended
[1] See "Non-IFRS Financial Measures". |
About
Halo is focused on the
In the non-THC sector, Halo is expanding into health and wellness categories, including CBD and functional supplements such as nootropic nutraceuticals and nonpsychotropic mushrooms. Halo, through a series of acquisitions, has product offerings in the form of beverages (H2C Beverages), dissolvable strips (Dissolve Medical), capsules (Hushrooms™), and topical supplements (Hatshe) with proposed national distribution via a strategic agreement with
Halo has successfully acquired and integrated a variety of companies which were subsequently reorganized to create
For further information regarding Halo, see Halo's disclosure documents on SEDAR at www.sedar.com
Connect with
www.haloco.com/investors
Non-IFRS Financial Measures
Adjusted EBITDA is a non-IFRS financial measure that the Company uses to assess its operating performance and does not have any standardized meaning prescribed by IFRS. Management defines Adjusted EBITDA as earnings (loss) before interest, tax, depreciation, and amortization, as adjusted for non-cash items. Adjusted EBITDA is provided to assist management and investors in determining the Company's operating performance. The Company also believes that securities analysts, investors, and other interested parties frequently use Adjusted EBITDA in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate Adjusted EBITDA differently than the Company, Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities. For a reconciliation of Adjusted EBITDA, please refer to "Reconciliation of Non-GAAP Financial Measures" in the Q3 2022 MD&A, which is available on the Company's SEDAR profile at www.sedar.com.
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information may relate to anticipated events or results including, but not limited to expectations regarding improved performance, management's plans regarding
By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: inability of management to successfully integrate the operations of acquired businesses, changes in the consumer market for cannabis products, changes in the expected outcomes of the proposed changes to Halo's operations, delays in obtaining required licenses or approvals necessary for the build-out of
The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.
Non-Solicitation
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
SOURCE
© Canada Newswire, source