MariMed, Inc. (OTCQX:MRMD), a leading multi-state cannabis operator focused on improving lives every day, today announced its financial results for the first quarter ended March 31, 2022.
“I am very pleased with our solid financial results this past quarter despite a slowdown in our industry coupled with rising inflation in the U.S.,” Bob Fireman, the company’s CEO, said. “We are executing on our strategic growth plan, as evidenced by the recent closings of both our Maryland and Illinois acquisitions. We will continue delivering on our promises to our shareholders, including maintaining our standing as one of the best stewards of capital in our industry.”
Q1 2022 Financial Highlights
- Revenues totaled increased 27% year-over-year to $31.3 million.
- Gross profit amounted to $17 million, representing a 29% year-over-year improvement.
- Operating expenses totaled $10 million, representing an increase of 61%.
- Revenue from retail dispensary operations grew 41% compared to the first quarter of 2021, which was driven by a new dispensary in Metropolis, Illinois, and higher customer counts in both Illinois and Massachusetts.
- Revenue from wholesale operations grew 6% compared to the first quarter of 2021 as a result of both the increased production from MariMed’s manufacturing facility and the increased number of licensed dispensary clients in Massachusetts.
- Revenue from licensing, management fees, and real estate income increased 2% compared to the first quarter of 2021 as a result of the continued success of the company’s award-winning brands that are licensed in seven states and Puerto Rico, as well as growth in the company’s managed businesses.
- Net income remained flat year-over-year, totaling $4.24 million.
- Non-GAAP EBITDA came in positive at $8.9 million, compared to a $7.6 million gain in the same quarter of 2021.
- Non-GAAP Adj. EBITDA came in positive at $10.4 million versus $8.03 million in the prior year’s quarter.
“We ended the first quarter with a cash balance of $33.5 million and generated positive cash flow from operations of $8.5 million,” Jon Levine, CFO of MariMed, said. “Our strong first-quarter financials during an industry-wide slowdown gives us the confidence we will meet or beat our financial guidance for 2022.”
2022 Financial Guidance Maintained
- Revenue of $145 million to $150 million.
- Gross margin in line with fiscal 2021 gross margin of 54% to 55%
- Non-GAAP Adjusted EBITDA of $47 million to $52 million.
- Capital Expenditures of approximately $25 million.