Columbia Care Reports First Quarter 2022 Results

Quarterly Revenue of $123 Million, an Increase of 43% YoY

Gross Profit of $57 Million, an Increase of 68% YoY

Gross Margin of 46%, an Increase of 676bps YoY, 149bps QoQ Over Prior Adjusted Gross Margin1

Adjusted EBITDA of $17 Million, an Increase of 355% YoY and Adjusted EBITDA Margin1 of 14%, an increase of 930bps YoY

Reiterates 2022 Guidance of $625M – $675M Revenue, $120M – $135M Adjusted EBITDA

NEW YORK–(BUSINESS WIRE)– Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”) today reported financial and operating results for the first quarter ended March 31, 2022. All financial information presented in this release is in U.S. GAAP, unaudited and in thousands of U.S. dollars, unless otherwise noted, and comparisons to prior quarter and prior year are made on an as-converted basis under U.S. GAAP, unless otherwise noted.

“The results of the first quarter of 2022 demonstrate how Columbia Care overcame a number of macro-economic headwinds by exercising strong operational discipline. We materially increased our gross and EBITDA margins, as we continued leveraging the scale we have built across our strategic national platform. During the first quarter, we drove a revenue increase of 43% over the prior year, achieved nearly 700 basis points of improvement in Adjusted Gross Margin and more than 930 basis points in Adjusted EBITDA Margin. As our recent capital investments yield enhanced efficiencies throughout the value chain, this will not only allow us to capitalize on our growth opportunities throughout the country, but continue to further improve profitability,” said Nicholas Vita, CEO of Columbia Care. “As 2022 continues to unfold, our priority is on driving profitability. We expect market specific cyclicality to be surpassed by the standout growth in several key markets in our diversified portfolio. Having new, high growth markets come on line, beginning in 2Q, will provide a strong counterbalance as several maturing markets show the impact of inflationary and competitive pressures.”

Vita continued, “We are excited about recent achievements and progress thus far in 2022, including our fourth dispensary in the rapidly expanding market of Virginia, opening four retail locations and launching the leading wholesale operation in West Virginia, and the launch of adult use in New Jersey in mid-April. As we look ahead to the remainder of the year, we are leaning in to the markets that will propel growth such as New Jersey, Virginia, West Virginia, and New York, making ongoing operational improvements to drive efficiencies in new and maturing markets, and focusing on driving free cash flow to fund our growth strategy. We also remain determined to deliver the best outcome for our stakeholders as we progress towards a successful close of the transaction with Cresco Labs, with the shared vision of creating the definitive market leader in the cannabis industry.”

1 See “Non-GAAP Financial Measures” in this press release for more information regarding the Company’s use of non-GAAP financial measures.
First Quarter 2022 U.S. GAAP Financial Highlights (in $ thousands, excl. margin items):
Q1 2022Q4 2021Q1 2021% QoQ% YoY
Revenue$123,087 $139,276 $86,095 -11.6%43.0%
Gross Profit$56,627 $57,253 $33,648 -1.1%68.3%
Adj. Gross Profit[1,2]$56,627 $61,995 $33,788 -8.7%67.6%
Adj. Gross Margin[1,2] 46.0% 44.5% 39.2%149 bps676 bps
Adj. EBITDA[2]$16,832 $20,592 $3,758 -18%348%
[1]Excludes $4.7 million in Q4 2021 and $0.1 million in Q1 2021 related to the mark-up of inventory acquired in acquisitions.
[2]Non-GAAP Measure

Top 5 Markets by Revenue in Q1[3]California, Colorado, Massachusetts, Pennsylvania, Virginia

Top 5 Markets by Adjusted EBITDA in Q1[3]Colorado, Maryland, Massachusetts, Pennsylvania, Virginia

[3]Markets are listed alphabetically

Operational Highlights for First Quarter 2021

Building scale with continued retail expansion:

  • Opened 5 additional retail locations in Q1: 4 in West Virginia and 1 in Virginia Beach, VA to bring active total to 84
  • Additional dispensaries in development include 8 in Virginia, 1 in West Virginia, and 1 in New Jersey
  • Virginia is now a Top 5 Market for both Revenue and Adjusted EBITDA with 4 active retail locations, with significant expansion of the medical program to begin July 1

Proven cultivation expertise and execution:

  • In Q1, operationalized the largest wholesale operation in West Virginia
  • Commercialized flower harvests from Riverhead, New York greenhouse for the medical market, helping to drive 1 million grams QoQ increase in finished flower grams
  • Continued to drive operational improvements and adherence to national cultivation SOPs, leading to increases in potency and yield throughout the cultivation portfolio

Sustained momentum on branding initiatives at retail and product levels:

  • In-house brands reached a record percentage of total revenue, supporting Gross Margin expansion; owned brands made up 69% of flower sales at Columbia Care locations
  • Subsequent to quarter close, launched Seed & Strain and Classix in Colorado market; Classix is now available in 13 markets and Seed & Strain is now available in 12 markets
  • Growth of in-house brands supports ability to exercise pricing discipline and Gross Margin
  • Converted Brooklyn, New York location to Cannabist retail experience; 31 Cannabist locations nationwide out of 84 active retail locations

Capital Markets & Liquidity Highlights

  • On February 3, 2022, Company completed a private placement of $185 million aggregate principal amount of 9.50% senior-secured first-lien notes due 2026
  • The Company exited Q1 2022 with $168.4 million in cash, up $86.2M from Q4 2021

2022 Outlook

MetricU.S. GAAP Guidance
Revenue$625M to $675M
Adjusted EBITDA (Non-GAAP)$120M to $135M

At this time, Columbia Care’s 2022 outlook does not include any contribution from future acquisitions, nor does it assume any additional changes in the regulatory environment in markets where Columbia Care currently operates or the anticipated impact of the pending Cresco Labs transaction. This also excludes potential future market changes where a conversion from medical only to adult use is under consideration by a governor and/or legislature. See “Caution Concerning Forward-Looking Statements” below for further discussion.

Conference Call and Webcast Details

The Company will host a conference call on Monday, May 16, 2022 at 8:00 a.m. ET to discuss financial and operating results for the first quarter.

To access the live conference call via telephone, please dial 1-844-283-2900 (US Callers) or 1-213-217-9431 (international callers). A live audio webcast of the call will also be available in the Investor Relations section of the Company’s website at or at

A replay of the audio webcast will be available in the Investor Relations section of the Company’s website approximately 2 hours after completion of the call and will be archived for 30 days.

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