Delta 9 Reports Year End and Q4 2020 Results

DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the fourth quarter and full year ending December 31, 2020.  

Financial Highlights for the Year 2020

• Record net revenues of $52 million in 2020, up 64% in 2020 compared to $31.8 million in 2019, including the following revenue segmentation highlights: 
  • Retail revenue increased 109% to $32.2 million in 2020
  • Wholesale revenue increased 24% to $11.8 million in 2020
  • Business to business revenue increased 38% to $8.6 million in 2020
• Gross profit¹ of $17.8 million in 2020 was up 105% compared to $8.7 million last year.
• Gross profit margin of 34% in 2020 compared to 27% last year.
• Adjusted EBITDA² of $3.8 million in 2020 compared to an Adjusted EBITDA² (loss) of $(3.4 million) last year.
• Income (Loss) from Operations of $(2.8 million) in 2020 compared to Income (Loss) from Operations of $(5.0 million) last year.
• Working capital was up 18% to $22.9 million as at December 31, 2020.

Financial Highlights for Fourth Quarter of 2020

• Record quarterly net revenues of $14.15 million for the fourth quarter of 2020, up 34% compared to $10.6 million for the same quarter last year. 
  • Sequentially net revenues increased 8% for the fourth quarter of 2020 compared to $13.1 million in the third quarter of 2020.
• Gross profit¹ of $4.4 million for the fourth quarter of 2020, up 132% compared to $1.9 million for the same quarter last year. 
  • Sequentially gross profit¹ was up 11% in the fourth quarter of 2020 compared to $3.96 million in the third quarter of 2020.
• Gross profit margin was 31% for the fourth quarter of 2020.
• Sequentially Adjusted EBITDA² improved to $1.9 million in the fourth quarter of 2020 compared to and Adjusted EBITDA (loss) of $(474,039) in the third quarter of 2020.
• Income (Loss) from Operations of $(2.4 million) in the fourth quarter compared to Income (Loss) from operations $(5.0 million) in the third quarter of 2020.

“Our focus on disciplined, profitable growth has paid dividends for Delta 9 as we are reporting record Adjusted EBITDA and record year over year and sequential revenue results”, said John Arbuthnot, CEO. “Delta 9 Cannabis continues to execute its vertically integrated strategy as it continues to accelerate revenue growth and implement prudent control costs. We are incredibly proud of our 300 plus employees for helping make this a record year for Delta 9.”

A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the fourth quarter and year ending December 31, 2020 filed on SEDAR and can be found at www.sedar.com.

Q4 Results 2020 Conference Call

Delta 9 has scheduled a conference call to discuss the results of the fourth quarter and full year ending December 31, 2020. The conference call will be hosted April 1, 2020 at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer and Jim Lawson, Chief Financial Officer, followed by a question-and-answer period.