KushCo Holdings Reports Preliminary Fiscal Fourth Quarter 2020 Results
- Company Expects Fiscal Q4 2020 Revenue to Increase 14% to 17% Sequentially and to Achieve Positive Adjusted EBITDA For the First Time in Three Years
- Company Reiterates Fiscal Q4 2020 Cash SG&A Guidance of $6.5 Million to $7.5 Million
CYPRESS, CA / ACCESSWIRE / September 24, 2020 / KushCo Holdings, Inc. (OTCQX:KSHB) (”KushCo” or the ”Company”), the premier provider of ancillary products and services to the legal cannabis and CBD industries, today reported preliminary and unaudited financial results for its fiscal fourth quarter ended August 31, 2020.
KushCo expects its preliminary and unaudited fiscal fourth quarter 2020 revenue to be between approximately $25.5 million and $26.0 million, compared to approximately $22.3 million in its fiscal third quarter 2020, which represents an improvement from its previously disclosed guidance of between $24.0 million and $26.0 million. The 14% to 17% expected sequential increase in revenue is being driven primarily by an increase in sales to the Company’s top 100 customers, which consist of leading multi-state operators (MSOs), licensed producers (LPs), and brands.
The Company also expects its preliminary and unaudited fiscal fourth quarter 2020 cash SG&A expenses (which represent SG&A expenses excluding non-cash expenses, such as bad debt expense, stock-based compensation, depreciation, and amortization) to be between $6.5 million and $7.5 million, which is consistent with the Company’s previously disclosed financial guidance.
In addition, the Company expects adjusted EBITDA for the fiscal fourth quarter 2020 to be preliminarily between $0.25 million and $0.75 million, which represents an improvement from its previously disclosed guidance of between ($1.0) million and $1.0 million.
Fiscal Q4 2020 was arguably the most pivotal quarter in KushCo’s entire 10-year history, as we returned to growth, executed on our strategic plan, and achieved our first quarter of positive adjusted EBITDA in more than three years.
Nick Kovacevich, KushCo’s Co-founder, Chairman and Chief Executive Officer
On behalf of the entire leadership team, I could not be more proud of our KushCo family, who embraced our spirit and track record of overcoming significant challenges, and who came together in a time of immense difficulty to turn around the business and get us to the much healthier and promising position we believe we are in today.
Kovacevich added, “From right-sizing our cost structure, streamlining our inventory and consolidating our warehouses to refocusing on our core customers, tightening our credit standards and improving our collections activity, we are thrilled to have delivered on the initiatives we said we were going to deliver, giving us a solid foundation to continue growing our business profitably moving forward. We realize there is still a lot of work to be done, but we are encouraged with the substantial progress we have made, especially when considering the challenging, but constructive, journey we underwent in fiscal 2020, starting with the illicit market vape crisis and culminating with the ongoing COVID-19 pandemic. Looking ahead, we will continue to focus on aligning deeper with-and cross-selling more to-the large and creditworthy MSOs, LPs, and leading brands, who appear more poised than ever to reap the lion’s share of the benefits from the industry’s next stage of expansion.”
The Company ended the fiscal quarter and year with approximately $10.5 million in cash, and did not draw on its revolving credit facility during the fiscal quarter.
The preliminary results described in this press release are preliminary and unaudited and are subject to change based on the completion of the Company’s normal quarter-end review processes. As a result, these preliminary results may be different from the actual results that will be reflected in the Company’s condensed consolidated financial statements for the fiscal quarter ended August 31, 2020 when they are released. KushCo expects to report its complete fiscal fourth quarter and full year 2020 financial results in late October or early November 2020. The Company will announce the date, time and details of its earnings conference call at least a week prior to the call.
About KushCo Holdings
KushCo Holdings, Inc. (OTCQX:KSHB) (www.kushco.com) is the premier provider of ancillary products and services to the legal cannabis and CBD industries. KushCo Holdings’ subsidiaries and brands provide product quality, exceptional customer service, compliance knowledge and a local presence in serving its diverse customer base.
Founded in 2010, KushCo Holdings has now sold more than 1 billion units to growers, processors and producers across North America, South America, and Europe. The Company has been featured in media nationwide, including CNBC, Fox News, Yahoo Finance, Cheddar, Los Angeles Times, TheStreet.com, and Entrepreneur, Inc Magazine.
For more information, visit www.kushco.com or call (888) 920-5874.
