Columbia Care Reports Second Quarter 2022 Results

Quarterly Revenue of $129.6 Million, an Increase of 5% QoQ and 18% YoY

Gross Profit of $50.8 Million, an Increase of 17% YoY

Adjusted EBITDA1 of $12.0 Million and YTD Adjusted EBITDA Margin1 of 11%

Expected to Be Last Quarterly Results before Announcing Divestitures Related to Combination with Cresco

Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”) today reported financial and operating results for the second quarter ended June 30, 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.

“In these challenging times, Columbia Care achieved exceptional results in several key markets that serve as meaningful, positive long-term indicators. Despite the economic headwinds and challenges that were particularly impactful in our most mature markets, we saw surprising resilience across the country, in addition to outstanding performance in our highest growth, emerging markets. We delivered solid organic topline growth of 5% sequentially to reach $130 million in revenue for the quarter, an increase of 18% over Q2 2021. New Jersey, the most recent state to launch adult use, was a primary driver in sequential revenue growth, along with Virginia and West Virginia, where we are the number one wholesaler and retailer in these rapidly-expanding medical markets” said Nicholas Vita, CEO of Columbia Care.

Vita continued, “Sixteen of our seventeen U.S. markets generated positive EBITDA in the quarter and twelve markets saw sequential improvement in gross margin. Excluding California and Colorado, our EBITDA margin would have been over 500 basis points higher for the quarter. We continued to drive the organization forward by capitalizing upon growth from emerging markets as they transition to more favorable regulatory environments, leveraging our expanding scale, and implementing strategies in mature markets to consolidate supply and distribution channels.”

“For the remainder of 2022, Columbia Care will execute against our strategic priorities while completing the steps necessary to close the merger with Cresco on time. The integration planning process has brought an overwhelming sense of excitement and momentum. As a founder of Columbia Care, seeing our organizations collaborate so well has been humbling and deeply gratifying. Our shared vision has enabled both organizations to focus on the range of opportunities that lay before us and meet the future with clarity, momentum and capabilities that will drive outsized shareholder value for years to come. The embedded growth and sustainable margin opportunity being unlocked by this combination will be a gamechanger.”

Second Quarter 2022 U.S. GAAP Financial Highlights (in $ thousands, excl. margin items):

Q2 2022Q1 2022Q2 2021[3]% QoQ% YoY
Revenue$129,571 $123,087 $109,744 5.3%18.1%
Gross Profit$50,848 $56,627 $43,339 -10.2%17.3%
Adj. Gross Profit[1,2]$55,118 $56,627 $47,678 -2.7%15.6%
Adj. Gross Margin[1,2] 42.5% 46.0% 43.4%-347 bps-91 bps
EBITDA[1]$(3,996)$6,606 $(982)N/A N/A 
Adj. EBITDA[1]$12,029 $16,832 $16,422 -28.5%-26.8%

[1] See “Non-GAAP Financial Measures” in this press release for more information regarding the Company’s use of non-GAAP financial measures.

[2] Excludes $4.3 million in Q2 2022 related to inventory revaluation adjustments and $1.4 million in Q2 2021 related to the mark-up of inventory acquired in acquisitions.

[3] Figures for Q2 2021 are Combined, including dispensary and manufacturing operations in Ohio, Non-GAAP. Gross Profit is as Reported in Q2 2021.

Top 5 Markets by Revenue in Q2[4]California, Colorado, Massachusetts, Pennsylvania, Virginia

Top 5 Markets by Adjusted EBITDA in Q2[4]Maryland, Massachusetts, Ohio, Pennsylvania, Virginia
[4]Markets are listed alphabetically

Operational Highlights for Second Quarter 2022

Building scale with continued retail growth:

  • In April, launched adult use sales in New Jersey with limited hours; expanded to full adult use hours in June 2022; revenue in New Jerseymore than doubled sequentially
  • Completed expansion of Jefferson Park dispensary in Illinois, adding more than 1,700 sqft and converted to the Cannabist retail experience
  • Celebrated rebrand of Portsmouth, Virginia location to Cannabist, the 31st in the nation
  • Retail revenue increased 4% over Q1 2022, led by New Jersey, Virginia and West Virginia
  • Wholesale revenue increased 11% sequentially, led by growth in Pennsylvania and West Virginia
  • Total of 84 active retail locations in operation; no new locations opened in Q2 2022
  • Additional dispensaries in development include 8 in Virginia, 1 in West Virginia, and 1 in New Jersey
  • Expanded Gross Margin sequentially in 12 markets (AZ, DC, DE, FL, IL, MA, MO, NJ, NY, OH, UT, WV)
  • Despite a $6 million sequential decline in Colorado EBITDA, EBITDA increased sequentially in ten markets (DC, DE, FL, IL, MO, NJ, NY, OH, UT, WV)

Proven cultivation expertise and execution:

  • In Q2, operationalized second cultivation facility in New Jersey, adding approximately 270,000 square feet of cultivation and production capacity, as well as post-harvest automation equipment; first harvest from second cultivation site expected in Q3 2022
  • Continued to drive operational improvements and adherence to national cultivation SOPs, leading to an increase in yield of approximately 10 grams per square foot in finished flower across the cultivation portfolio in Q2, as well as reduction in overall cost per gram of production; achieved record potency across the portfolio, with approximately 100% increase in percentage of finished flower testing 22.5% THC or higher compared to October 2021

Sustained momentum on branding initiatives at retail and product levels:

  • In-house brands reached a record percentage of total revenue; owned brands made up 69% of flower sales at Columbia Care locations
  • In Q2, launched Seed & Strain and Classix in Colorado market; Classix is now available in 14 markets and Seed & Strain is now available in 13 markets
  • Subsequent to quarter close, launched a new loyalty program and mobile application, Stash Cash, in 14 markets

Update on Cresco Transaction & Milestones Achieved

  • Cleared federal Hart Scott Rodino antitrust review in May
  • Received overwhelming approval from our shareholders, with over 98% of the votes cast in favor of the transaction in July
  • Received approval from the Supreme Court of British Columbia in July
  • The asset divestiture process has been progressing as planned in terms of timeline and expectations for gross proceeds; moving through the final negotiations to sign definitive purchase and sale agreements, which we expect to announce in the next 30-45 days
  • Submitted regulatory approval/license transfer applications for over half of the licenses that require approval
  • All targeted integration milestones are on track, in terms of integration and pre-close workstreams needed to plan for an efficient and effective combination to accommodate a close around the end of the year
  • Working with a third-party expert to independently determine any milestone obligation to gLeaf Medical given its potential impact on the exchange ratio

2022 Outlook

Anticipating business and financial reporting impacts and adjustments from the asset divestitures required for the Cresco transaction, ongoing economic headwinds, and assuming no material improvement in Colorado or California, Columbia Care is forecasting continued sequential top line growth of mid-single digits in each of the next two quarters. In addition, the Company expects sequential improvements in market level EBITDA margin in the range of 150-250 basis points per quarter compared to our YTD results.

At this time, Columbia Care’s 2022 outlook does not assume any additional changes in the regulatory environment in markets where Columbia Care currently operates. 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. Finally, although we have seen improvement in both Colorado and California in July and the beginning of August, we are not including any material changes in those markets – either of which would have a significant impact upon financial performance. See “Caution Concerning Forward-Looking Statements” below for further discussion. This new revised outlook replaces all prior outlook and guidance provided by the Company.

Conference Call and Webcast Details

The Company will host a conference call on Monday, August 15, 2022 at 8:00 a.m. ET to discuss financial and operating results for the second quarter.

To access the live conference call via telephone, participants must pre-register at After registering, instructions will be shared on how to join the call for those who wish to dial in. 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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