Columbia Care Reports Record Fourth Quarter and Full Year 2021 Results; Issues 2022 Guidance Under U.S. GAAP

Company Now Reporting in U.S. GAAP; Also Presenting Results This Quarter with Reference to 2021 IFRS Guidance

Full Year 2021 U.S. GAAP Results Include Record Revenue of $460 Million and Record Adjusted EBITDA of $58 Million (Non-GAAP Measure)

Record Quarterly Revenue of $139 Million, an Increase of 70% YoY, 5% Sequentially

Full Year 2021 Combined Revenue of $474 Million and Combined Adjusted EBITDA of $85 Million; Both Company Records and In-Line with Previously Communicated IFRS Guidance

Company Issues 2022 Guidance of $625M – $675M Revenue, $120M – $135M Adjusted EBITDA, in U.S. GAAP

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 fourth quarter ended December 31, 2021. All financial information presented in this release is in U.S. GAAP 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.

“We are pleased to report record results for the full year and fourth quarter of 2021, in what was a truly transformational year for Columbia Care,” said Nicholas Vita, CEO of Columbia Care. “In 2021, organic growth across our diversified portfolio and the integration of several major acquisitions drove full year revenue increase of 156% over the prior year. As we build scale and operationalize new markets, Adjusted EBITDA (non-GAAP measure) has improved 220% over fourth quarter 2020. We have also evolved as a company through our launch of the Cannabist retail experience and our own suite of product brands. Innovative technologies like Forage allow us to engage with and understand our patients and consumers better than ever before.”

Vita continued, “As we look ahead to the remainder of 2022, there are remarkable catalysts on the horizon, including adult use sales in New Jersey and growth in the medical programs in New York and Virginia. We will continue to roll out our award-winning Cannabist retail experience as we open new locations and will bring our house of brands to our strategic national footprint throughout 2022, providing consistent quality that patients and consumers demand. We’ve made tremendous operational improvements that are driving efficiencies in new and maturing markets. I am confident that our team will continue to demonstrate our successful strategies as we execute in 2022 and beyond.”

Management Commentary on Transaction with Cresco Labs

“Since our founding, Columbia Care’s mission has been to provide quality, expertise and trust in cannabis and to deliver the best outcome for our stakeholders,” said CEO Nicholas Vita. “In an evolving industry, the opportunities to better achieve our mission through consolidation led us to this historic moment. With Columbia Care’s strategic national footprint in the most attractive markets and Cresco’s success in execution and incredibly popular brands, we will together create the most important and investable company in cannabis. There is no better team in the industry to maximize the potential of this market defining combination.”

Full Year 2021 U.S. GAAP Financial Highlights (in $ thousands, excl. margin items):

Year Ended December 31,
 2021 2020% YoY
Revenue$460,080$179,503 156%
Gross Profit$194,015$62,143 212%
Net Loss$(146,853)$(119,649)$27,204
EBITDA (Non-GAAP)$(63,698)$(109,859)$(46,161)
Adjusted EBITDA (Non-GAAP)$57,852$(19,800)$(77,652)

Fourth Quarter 2021 U.S. GAAP Financial Highlights (in $ thousands, excl. margin items):

Q4 2021 (2)Q3 2021 (2)Q4 2020 (3)% QoQ% YoY
Adj. Gross Profit[1]$61,995$62,796$32,713-1%90%
Adj. Gross Margin[1] 45% 47% 40%-294 bps452 bps
Adj. EBITDA (Non-GAAP)$20,592$24,771$4,497-17%358%
[1] Excludes $4.7 million in Q4 2021, $1.4 million in Q3 2021 and $1.3 million in Q4 2020 related to the mark-up of inventory acquired in acquisitions.
[2] Represents Reported Results
[3] Represents Combined Results, which include dispensary operations in Ohio.

Full Year 2021 IFRS Guidance and Results (unaudited)

The following table provides the Company’s results for the year ended December 31, 2021 based on IFRS compared to the Company’s most recent 2021 guidance as issued on November 12, 2021:

MetricIFRS GuidanceIFRS Results
Combined Revenue$470M – $485M$473M
Combined Adjusted Gross Margin (Non-IFRS)(1)46%+45%
Combined Adjusted EBITDA (Non-IFRS)$85M – $95M$85M
[1] Excludes changes in fair value of biological assets and inventory sold for all periods presented,
as well as $7.7 million in 2021 related to the mark-up of inventory acquired in acquisitions.

With respect to the table above, Combined Revenue, Combined Adjusted Gross Margin and Combined Adjusted EBITDA include results from the CannAscend transaction prior to its close on July 1, 2021.

See “Non-GAAP & Non-IFRS Financial Measures” at the end of this press release for more information regarding the Company’s use of non-GAAP and non-IFRS financial measures.

Top 5 Markets by Revenue in Q4[4]California, Colorado, Massachusetts, Ohio, Pennsylvania

Top 5 Markets by Adjusted EBITDA in Q4[4]Colorado, Maryland, Massachusetts, Pennsylvania, Virginia

[4] Markets are listed alphabetically

Operational Highlights for Fourth Quarter 2021

Sustained momentum on branding initiatives at retail and product levels:

  • Transformed entire Florida footprint of 14 stores to Cannabist retail experience on December 8
  • Launched Classix brand in five new markets on October 13 in the industry’s widest multi-state flower brand launch in a single day
  • Announced partnership with Mike Tyson’s Tyson 2.0 cannabis line, as exclusive cultivation, manufacturing and distribution partner within Columbia Care markets

Building scale with continued retail expansion:

  • Entered the Missouri medical market in October
  • Closed acquisition of Medicine Man in Colorado in November, strengthening leadership position in the world’s second largest cannabis market
  • Opened new dispensary in a Richmond, Virginia suburb in November, the third location in the state

Proven cultivation expertise and execution:

  • First to offer whole flower for sale in New York medical market in October
  • Achieved first harvest out of Riverhead, Long Island greenhouse in December, with high quality testing / flower for the New York medical program
  • Continued to drive operational improvements and adherence to national cultivation SOPs, leading to increases in potency and yield throughout the cultivation portfolio
  • Wholesale revenue represented 19% of total revenue in Q4

Operational Highlights for Full Year 2021

Sustained momentum on branding initiatives at retail and product levels:

  • Unveiled Cannabist retail experience, transforming the storefront and shopping experience for patients and consumers; to date, there are 26 Cannabists across the U.S., representing nearly one-third of the 83 active retail locations
  • Launched Columbia Care house of brands across national footprint, including Seed & Strain, Triple Seven, Amber, Press and edibles. In-house and owned brands now account for 67% of all flower sold at Columbia Care owned dispensaries
  • Wholesale revenue increased from 13% in Q1 to 19% in Q4, due to additional cultivation capacity and ongoing brand rollout

Building scale across strategic national portfolio:

  • Added 12 retail locations in 2021 and opened in new markets of Missouri, Utah and West Virginia
  • Closed acquisitions throughout the year: 34-acre cultivation and manufacturing site in Long Island, NY in Q2; multi-state operator Green Leaf Medical in Q2; CannAscend transaction for Ohio assets in Q3; vertically-integrated Colorado operator Medicine Man in Q4
  • Added more than 1 million square feet of cultivation and production capacity to our footprint

Capital Markets Highlights

  • CCHW included in MSCI Canada Small Cap Index, as of market close on November 30
  • In December 2021, the Company secured a mortgage on the Riverhead, Long Island property for $20M at an annual interest rate equal to the Wall Street prime rate (“Index”) plus 2.25%
  • Subsequent to quarter close, on February 3, 2022, Company completed a private placement of US$185 million aggregate principal amount of 9.50% senior-secured first-lien notes due 2026

2022 Outlook

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

Columbia Care’s 2022 outlook assumes adult use sales begin in New Jersey in Q2 2022, but does not include any contribution from future acquisitions, nor does it assume any changes in the regulatory environment in markets where Columbia Care currently operates. This also excludes markets where a conversion from medical only to adult use is under consideration by the 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 Thursday, March 24, 2022 at 8:00 a.m. EST to discuss financial and operating results for the fourth quarter and full year of 2021.

To access the live conference call via telephone, please dial 1-877-407-8914 (US Callers) or 1-201-493-6795 (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.

U.S. GAAP Financial Reporting

Beginning with the quarter ended December 31, 2021, the Company has prepared its financial statements, including all comparative figures, in compliance with U.S. GAAP instead of IFRS. Changes to comparative figures for prior periods reflect their presentation in accordance with U.S. GAAP and is not a change in the Company’s underlying performance as previously reported under IFRS.

A reconciliation of non-GAAP financial measures to their nearest comparable GAAP measure is included in this press release and a further discussion of these items will be contained in our annual report on Form 10-K.

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