TILT Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTCQX: TLLTF), a provider of business solutions to the global cannabis industry that includes inhalation technologies, cultivation, manufacturing, processing, brand development, distribution and retail, announced preliminary financial results and operational highlights for the fourth quarter ended December 31, 2020 (“Q4 2020”) and full year outlook for 2021. All financial information is unaudited and provided in U.S. dollars except where otherwise indicated.
Projected Preliminary Financial Highlights:
- Q4 2020 revenue is projected to be between $42.2 million and $43.2 million, compared to Q3 2020 revenue of $40.4 million
- Q4 2020 Adjusted EBITDA is projected to be between $2.6 million and $3.6 million, compared to Q3 2020 Adjusted EBITDA of $2.8 million
- Pro-forma Q4 2020 revenue excluding the Company’s former subsidiary, Blackbird, is projected to be between $41.3 million and $42.3 million, compared to Q3 2020 pro-forma revenue of $39.1 million
- Pro-forma Q4 2020 Adjusted EBITDA excluding the Company’s former subsidiary, Blackbird, is projected to be between $4.6 million and $5.6 million, compared to Q3 2020 pro-forma Adjusted EBITDA of $5.4 million
- $7.4 million cash balance as of Dec. 31, 2020, compared to $4.3 million at Sept. 30, 2020
Fourth Quarter 2020 Operational Highlights:
- Jupiter Research LLC’s (“Jupiter”) power supply revenue doubled from Q3 2020 to Q4 2020; revenues during the quarter reached pre-COVID levels
- Commonwealth Alternative Care, Inc.’s (“CAC”) lab and kitchen production capacity increased 100% during the quarter; cultivation expansion approved October 2020 planted during Q4 2020 and expected to yield first harvest in March 2021
- Standard Farms, LLC (“Standard Farms”) doubled extraction processing capacity during the quarter; introduced six new manufactured product offerings
Full Year 2021 Outlook:
2021 strategic initiatives fully funded; outlook not expected to require significant CAPEX or M&A.
- Revenue range of $205 million to $210 million
- Adjusted EBITDA range of $30 million to $32 million
Management Commentary:
“2020 was a transformative year for TILT, as the Company reimagined what an MSO could look like,” said Gary Santo, president of TILT. “We finished the year with a strong fourth quarter that saw continued improvement in harvest yields and production efficiencies at our plant touching assets, and a return to pre-COVID revenue levels in our inhalation business. The added flexibility created by the divestiture of Blackbird during the quarter has positioned TILT to enter 2021 with additional resources and improved cash flow from operations that can be reinvested in core growth initiatives, such as research and development, expanding cultivation and contract manufacturing and wholesale operations.”
Mr. Santo added, “January has seen Jupiter ship over five million cartridges, a new Company record, and based upon our solid performance in the fourth quarter and a strong start to the new year, we are pleased to release full year 2021 revenue guidance of $205 million to $210 million and full-year 2021 adjusted EBITDA guidance of $30 million to $32 million. We look forward to delivering value to our shareholders through improved messaging and relentless execution of our strategic vision.”
