Cresco Labs Demonstrates Success of Cash Flow Focused Strategy with Third Quarter 2024 Financial Results
Record quarterly operating cash flow of $49 million and year to date operating cashflow of $103 million, an increase of 66% from the prior year period
CHICAGO–(BUSINESS WIRE)– Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (“ Cresco Labs ” or the “ Company ”), the industry leader in branded cannabis products with a portfolio of America’s most popular brands and the operator of Sunnyside dispensaries, today released its financial and operating results for the third quarter ended September 30, 2024. All financial information presented in this release is reported in accordance with U.S. GAAP and in U.S. dollars, unless otherwise indicated, and is available on the Company’s investor website.
Third Quarter 2024 Highlights
- Third quarter revenue of $180 million.
- Gross profit of $93 million. Adjusted gross profit¹ of $95 million; and an Adjusted gross margin¹ of 53% of revenue, a 250 bps improvement year-over-year.
- SG&A of $57 million. Reduced Adjusted SG&A¹ by 6% year-over-year to $53 million, or 30% of revenue.
- Net loss of $8 million.
- Third quarter Adjusted EBITDA¹ of $51 million, up 5% year-over-year; and Adjusted EBITDA margin¹ of 29%, a 280 bps improvement year-over-year.
- Record third quarter operating cash flow of $49 million and Free Cash Flow¹ of $43 million.
- Retained the No. 1 share position in Illinois, Pennsylvania and Massachusetts and improved to a top 3 position in Ohio² .
1 See “Non-GAAP Financial Measures” at the end of this press release for more information regarding the Company’s use of non-GAAP financial measures.
2 According to BDSA.
Management Commentary
Our focus remains the same, win in strategic markets with a brand portfolio consumers love, provide best-in-class retail operations and maintain a relentless pursuit of financial strength. Our Q3 results underline the success of this strategy with $180 million in revenue at 29% adjusted EBITDA margin¹ , and most importantly $49 million of operating cashflow, our highest ever.
Charlie Bachtell
So far this year, we’ve generated $103 million in operating cashflow, enabling us to reinvest in our core, and to explore new markets and growth verticals, all while improving our balance sheet and paying down debt.
“While we’re disappointed that the Florida initiative didn’t reach the super majority threshold it needed to pass, we still saw substantial bipartisan majority support at 56% for cannabis legalization. For the first time ever, we had two presidential candidates that both supported broad federal cannabis reform. We look forward to working with the incoming administration to follow through on its commitment to developing a commonsense approach to cannabis laws including the passage of SAFE banking, rescheduling, and the fact that no one should be arrested for personal cannabis use,” said Charlie Bachtell, Cresco Labs CEO and co-founder.
Balance Sheet, Liquidity and Other Financial Information
- As of September 30, 2024, current assets were $312 million, including cash, cash equivalents and restricted cash of $157 million. The Company had senior secured term loan debt, net of discount and issuance costs, of $390 million and a mortgage loan, net of discount and issuance costs of $18 million.
- On October 25, 2024, the Company repurchased $40 million principal amount of our Senior Loan and paid $0.3 million of accrued Interest. There were no prepayment penalties or exit fees due on this repurchase.
- Total shares on a fully converted basis to Subordinate Voting Shares were 474,731,040 as of September 30, 2024.
Conference Call and Webcast
The Company will host a conference call and webcast to discuss its financial results on Friday, November 8, 2024 , at 8:30am Eastern Time (7:30am Central Time). The conference call may be accessed via webcast or by dialing 1-833-470-1428 (US Toll Free) or 1-404-975-4839 (US Local), providing access code 435112. Archived access to the webcast will be available for one year on Cresco Labs’ investor website.
About Cresco Labs Inc.
Cresco Labs’ mission is to normalize and professionalize the cannabis industry through a CPG approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production and branded product distribution, the Company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s and Remedi, on a national level. The Company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. Learn more about Cresco Labs’ journey by visiting www.crescolabs.com or following the Company on Facebook, X or LinkedIn.
