Next Green Wave Holdings Inc. (CSE: NGW) (OTCQX: NXGWF) (“Next Green Wave”, “NGW” or the “Company”), a premium seed-to-shelf craft cannabis producer, is pleased to announce the following financial update:
Release of Q3 2021 Results
The Company has exceeded both its Q3 2021 Adjusted EBITDA* projection and Q3 2021 Facility Revenue Projection (originally announced HERE).
The Company has released its financial statements for the three and nine-month periods ended September 30, 2021, which can now be found on SEDAR.
Q3 2021 highlights are as follows:
- In September 2021, the Company extinguished all of its remaining debt, and as a result, has approximately US$6.6 Million in Cash and Accounts Receivable, while only having approximately US$730K in total liabilities as at September 30, 2021.
- Improved Q3 2021 results over Q2 2021 from the Company’s Facility are as follows:
- Facility Revenue in Q3 2021 was US$4,000,363, compared with US$3,047,287 in Q2 2021, a quarter over quarter increase of over 31%.
- Facility Adjusted EBITDA margin in Q3 2021 was 44%, compared with 30% in Q2 2021, a quarter over quarter increase of over 46%.
- Facility Revenue in Q3 2021 was US$4,000,363, compared with US$3,047,287 in Q2 2021, a quarter over quarter increase of over 31%.
In the below table, the Company has provided Revenue and Adjusted EBITDA* for the last four quarters.
In Q3 2021, the Company continued its new distribution revenue source (“Distro Revenue”), which involves buying and selling third party flower. As the margins on Distribution Revenue are lower than Facility Revenue, the Company has chosen to provide separately, revenue and costs relating to both Distro Revenue and Facility Revenue.
The three tables below break out the following by quarter:
- Total (Facility + Distro) Revenue, Costs and Adjusted EBITDA*
- Facility Revenue, Costs and Adjusted EBITDA*
- Distro Revenue, Costs and Adjusted EBITDA*
Total (Facility + Distro) Revenue, Costs and Adjusted EBITDA*
Facility Revenue, Costs and Adjusted EBITDA*
Distro Revenue, Costs and Adjusted EBITDA*
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“Our Q3 performance confirms the adjustments we made earlier this year were well considered and on target. By refocusing our brand toward only high margin products and increasing operational efficiency, we’ve stabilized top line revenue and once again achieved top of the industry EBITDA margins. Furthermore, improvements in genetics and SOP’s have increased flower yields by 15% year over year, minimizing the potential impact of our exposure to the volatile pricing of the bulk flower market. This is just the beginning!”
Michael Jennings
Chief Executive Officer, Director
Next Green Wave Holdings Inc.
