2024-YTD EBITDA increased to $7.5 million; a twenty-fold improvement compared to 2023-YTD EBITDA of $0.4 million2024-YTD Adjusted EBITDA increased 260% to $9.6 million compared to 2023-YTD of $3.7 millionFive new Florida medical cannabis dispensaries scheduled to launch in the first quarter of 2025 Expanded Canadian distribution network to include Prince Edward Island and New Brunswick TORONTO, Nov. 29, 2024 (GLOBE NEWSWIRE) -- Red White & Bloom Brands Inc. (CSE: RWB) ("RWB” or the "Company”) is pleased to report it has filed its Condensed Interim Consolidated Financial Statements (the "Financial Statements”), Management's Discussion and Analysis ("MD&A”), and associated certifications for its third quarter ended September 30, 2024.
President's Commentary
Colby De Zen, President, stated, "Our primary focus has been, and remains, optimizing the business through careful analysis of all legacy, non-core assets and operations, with the goal of transitioning RWB into a profitable enterprise. Over the first nine months of the fiscal year, we have made significant strides toward achieving our strategic objectives. Our EBITDA has increased 20 times compared to the same period last year, reaching approximately $7.5 million. Adjusted EBITDA stands at $9.6 million for the same period. These improvements reflect all of the RWB team's efforts in achieving more profitable revenue streams through organizational efficiencies and exiting unprofitable product lines and ventures."
"In the third quarter, the construction of five new medical dispensary locations in Florida progressed as planned, with all locations set to become operational within the next three to four months. Our Florida operations also saw a notable increase in same-store revenues, driven by new Platinum-branded products and customer engagement efforts. In California, the Company established a key value chain partnership which has already enhanced prospects within our distribution network. In Canada, Emblem expanded its distribution network by adding Prince Edward Island and New Brunswick, with another province set to launch in our fourth quarter, while increasing product listings across all existing provinces. To support this growth, investments in offtake agreements, cultivation, and production operations across the United States and Canada remain on track to mitigate supply chain risks in fiscal 2025. RWB continues to leverage synergies, prioritize cost savings, execute targeted divestitures, and grow profitable business segments to increase shareholder value."
Recent business highlights for the Company's third quarter ended September 30, 2024 and subsequent to September 30, 2024
Emblem Cannabis Corporation, our wholly owned subsidiary, has been granted a total of seventy-two (72) new Platinum and DIVVY product listings in preferred product formats across all provincial distributors (up from sixty-seven (67) as of 2024-Q2 close), including a total of thirty-five (35) listings approved by the Ontario Cannabis Store ("OCS”) (up from twenty-eight (28) as of 2024-Q2 close). The Company continues to add, refine, and sunset product offerings throughout its Canadian distribution network.Added Prince Edward Island and New Brunswick to our Emblem distribution network with another Eastern province pending confirmation of activation in 2024-Q4 as well as continuing to increase penetration in existing markets such as Alberta, Saskatchewan, Manitoba, and British ColumbiaUpdated genetics and refined cultivation processes at the Paris indoor facility, boosting efficiency while achieving higher THC potency and improved harvest yields.Acquired new equipment, upgraded existing systems, and implemented automated manufacturing processes to enhance production and extraction capabilities at our Paris facility.Launched a new line of live rosin and live resin products in our California distribution network, further expanding our product portfolio.With regulatory extraction approvals secured for production in the first half of 2024, Platinum Vape distillate disposables and Platinum Vape 5/10 distillate cartridges are now available at all active medical retail locations across Florida.During 2024-Q3, adult-use sales commenced in the newly legalized state of Ohio with Platinum Vape products as part of an executed licensing agreement with a vertically integrated licensed producer and distributor in Ohio.During 2024-Q3, adult-use sales in Missouri continued at a strong pace as part of an executed licensing agreement with a vertically integrated licensed product and distributor in Missouri.Continued with the corporate restructuring of our adult-use and medical-use retail operations in Michigan, contributing to prospective cost savings associated with variable and fixed overheads for each of the target retail locations. The Company will continue to execute on divestiture of non-profitable operating assets under the restructuring program through the end of fiscal 2024 and the first quarter of 2025.
2024 Third Quarter ("2024-Q3”) Condensed Interim Consolidated Highlights
Revenues were $21.7 million for 2024-Q3, a $1.6 million increase from restated 2023-Q3 revenues of $20.1 million.Gross profit, before fair value adjustments, was $7.0 million for 2024-Q3, a $0.8 million decrease from restated 2023-Q3 gross profit before fair value adjustments of $7.9 million primarily related to period adjustments associated with the Emblem Group's inventory.Gross profit, after fair value adjustments, was $10.3 million for 2024-Q3, an increase of $3.7 million from restated 2023-Q3 gross profit after fair value adjustments of $6.6 million.EBITDA was $7.5 million for 2024-YTD an increase of $7.1 million compared to restated 2023-YTD EBITDA of $0.4 million.Adjusted EBITDA for 2024-YTD was $9.6 million, an increase of $5.9 million compared to restated 2023-YTD Adjusted EBITDA of $3.7 million.
The following is a condensed summary of the Company's results from operations for 2024-Q3 and 2024-YTD, and 2023-Q3 and 2023-YTD
2024-Q3 2023-Q3
restated Variance 2024-YTD 2023-YTD
restated Variance $ $ $ $ $ $ Revenue21,714 20,127 1,587 66,287 68,307 (2,020) Gross Profit after fair market value adjustments10,288 6,572 3,716 24,501 20,802 3,699 General and administration8,661 6,169 2,492 25,728 20,446 5,282 Marketing expenses1,229 287 942 3,684 1,331 2,353 Share-based compensation59 149 (90) 165 607 (442) Depreciation and amortization1,327 866 461 3,071 2,905 166 Bad debt expense(i)861 688 173 3,079 956 2,123 Total operating expenses12,137 8,159 3,978 35,727 26,245 9,482 Loss from operations before other expenses or income(1,849) (1,587) (262) (11,226) (5,443) (5,783) Total other (income) expenses9,556 4,654 4,902 14,260 16,727 (2,467) Loss before income taxes(11,405) (6,240) (5,165) (25,486) (22,170) (3,316) Net Loss for the year from continuing operations(ii)(1,841) (4,772) (2,931) (15,328) (18,797) (3,469) Basic Loss per share from continuing operations(ii)(0.00) (0.01) 0.01 (0.03) (0.04) 0.01 EBITDA385 1,143 (758) 7,488 373 7,115 Adjusted EBITDA3,847 4,818 (970) 9,587 3,700 5,887 (i)Bad debt expense includes non-cash expected credit loss provisions in accordance with IFRS of $0.9 million for 2024-Q3 and $3.1 million for 2024-YTD compared to $0.7 million in 2023-Q3 and $1.0 million in 2023-YTD
(ii)Net loss and basic loss per share excludes net losses attributable to non-controlling interests
Adjusted EBITDA
The following summarizes results from operations for 2024-Q3 and 2024-YTD & 2023-Q3 and 2023-YTD (restated).
2024-Q3 2023-Q3
restated Variance 2024-YTD 2023-YTD
restated Variance Net Income (Loss) for the Period(2,886) (6,540) 3,654 (19,626) (25,405) 5,779 Depreciation and amortization1,327 866 461 3,071 2,905 166 Interest income(340) (1,641) 1,301 (578) (1,741) 1,163 Accreted interest, leases676 673 3 2,030 2,018 12 Current income tax expense/(recovery)(8,130) 1 (8,131) (4,361) 2,116 (6,477) Deferred income tax expense/(recovery)(535) - (535) (2,109) (1,696) (413) Finance expenses267 289 (22) 543 519 24 Interest on credit facilities629 556 73 1,818 1,611 207 Interest on convertible notes2,115 1,429 686 5,214 5,422 (208) Accreted interest on convertible notes311 1,144 (833) 2,641 3,278 (637) Accreted interest on promissory notes82 - 82 248 - 248 Interest on promissory notes6,869 4,365 2,504 18,597 11,346 7,251 EBITDA385 1,143 (758) 7,488 373 7,115 Bad debt expense861 688 173 3,079 956 2,123 Read The Rest at :
