BOCA RATON, Fla., May 25, 2022 (GLOBE NEWSWIRE) — PRESS RELEASE — Jushi Holdings Inc., a vertically integrated, multi-state cannabis operator, has announced its financial results for the first quarter 2022 ended March 31, 2022. All financial information is provided in U.S. dollars unless otherwise indicated.

First Quarter 2022 Highlights

Total revenue of $61.9 million, an increase of 48.5% year-over-yearAdjusted gross profit(1) of $25.5 million, an increase of 33.1% year-over-yearNet loss of $14.3 millionAdjusted EBITDA(1) of $1.1 million, or 1.7% of revenueCash and cash equivalents were $76.2 million as of the quarter end

First Quarter 2022 Operational Highlights

Completed the acquisition of The Apothecarium(2) in Las Vegas, Nevada, an operating adult-use and medical retail dispensaryDebuted a series of cannabis brands and product launches in Massachusetts, beginning with the launch of flower brands The Bank and SèchèClosed a non-brokered private placement, for total proceeds of approximately $13.7 millionPlaced on The Globe and Mail’s Third-Annual Women Lead Here benchmark of executive gender diversityAnnounced that Jim Cacioppo, chief executive officer, chairman and founder, purchased 66,800 Class B Subordinate Voting Shares of the company in the open market for an approximate amount of $220,000

Recent Developments

Awarded a provisional medical marijuana dispensary license in Ohio, establishing the company’s fifth vertically integrated state-level operationExpanded the company’s vertically integrated footprint in Nevada with the completion of the NuLeaf, Inc. acquisition, adding a 27,000-square-foot cultivation facility, 13,000-square-foot processing facility, and three adult-use and medical retail dispensaries in the stateLaunched the company’s first line of solventless cannabis extracts in the Pennsylvania market under its award-winning The Lab brand, comprised of high-quality live rosin vapes and concentratesOpened the 32nd retail location nationwide and 3rd BEYOND / HELLO dispensary in CaliforniaClosed on the purchase of land adjacent to the company’s Toledo Ohio grow facility which will allow Jushi to significantly expand its cultivation footprint at the Ohio grow facility, subject to regulatory approvals

Management Commentary

“Despite the seasonal weakness in the first quarter and a series of challenges including the loss of store hours due to Omicron, snowstorms and the Pennsylvania distillate cartridges recall, I am pleased with our first quarter performance and the progress we have made in positioning our business for the long term,” said Cacioppo. “We remain focused on investing in our businesses, including building out our store base, significantly expanding our cultivation and processing facilities in both Pennsylvania and Virginia, scaling our wholesale channel in Massachusetts, Pennsylvania and Virginia, and integrating our two recently acquired businesses in Nevada. At the same time, we have taken decisive steps to manage our costs across all operating units and are encouraged by the initial results. I am confident that our investments into the business and the cost savings measures we have recently implemented position us to achieve accelerated growth and profitability through the balance of the year.”

Cacioppo concluded, “I am very encouraged by what we have accomplished to date and remain confident that we are creating one of the most robust and exciting platforms to capitalize on the growth in the U.S. cannabis industry. I am incredibly proud of our people and their contributions and look forward to scaling our operations in 2022 and beyond.”

(1) See “Reconciliation of Non-IFRS Financial Measures” at the end of this press release for more information regarding the company’s use of non-IFRS financial measures.
(2) The Apothecarium is used under license with an affiliate of TerrAscend Corp.

Financial Results for the First Quarter 2022

The following is a tabular summary and commentary of revenue, gross profit, adjusted gross profit, net income (loss), and net income (loss) per share for the three-month periods ended March 31, 2022, Dec. 31, 2021 and March 31, 2021.        

($ in millions, except per share amounts) 

  Quarter Ended
March 31,
2022 Quarter Ended
December 31,
2021 % Change Quarter Ended
March 31,
2022 Quarter Ended
March 31,
2021 % Change Revenue $ 61.9   $ 65.9   (6.1 )% $ 61.9   $ 41.7   48.5 % Gross profit $ 27.9   $ 20.9   33.8 % $ 27.9   $ 20.1   39.1 % Adjusted gross profit(1)$ 25.5   $ 26.4   (3.1 )% $ 25.5   $ 19.2   33.1 % Net income (loss) $ (14.3 ) $ 7.5     $ (14.3 ) $ (26.6 )   Net income (loss) per share – basic $ (0.08 ) $ 0.04     $ (0.08 ) $ (0.18 )   Net loss per share – diluted $ (0.08 ) $ (0.15 )   $ (0.08 ) $ (0.18 )  

Revenue in Q1 2022 increased 48.5% to $61.9 million as compared to $41.7 million in the first quarter of 2021, driven by the expansion of our retail footprint from 17 to 29 stores, the acquisition of Nature’s Remedy of Massachusetts, and increased wholesale sales at our Pennsylvania and Virginia grower-processor facilities. On a sequential quarterly basis, revenue declined 6.1% from $65.9 million in the fourth quarter of 2021. The 6.1% sequential decrease in revenue was driven primarily by a seasonal slowdown in activity, industry headwinds, such as continued inflationary pressures on consumer spending, regulatory delays impacting the expansion and sale of product offerings in select states, and temporary store closures related to the pandemic and snowstorms.

Adjusted gross profit(1) in Q1 2022 was $25.5 million, or 41.3% of revenue, compared to $26.4 million, or 40.0% of revenue, in Q4 2021. The increase in gross margin was primarily driven by margin improvement in Pennsylvania, partially offset by an increase in promotional activity at retail in Illinois and Massachusetts and pricing compression in wholesale as the company continues to build out its brands across state markets.

Q1 2022 net loss was $14.3 million, or $0.08 per basic share and net loss of $0.08 per diluted share, compared to net income of $5.2 million, or $0.04 per basic share and net loss of $0.15 per diluted share, in Q4 2021. The net loss of $0.08 per diluted share in Q1 2022 was primarily due to the infrastructure and headcount investments that were completed in 2021 that are expected to have a transitional impact on our 2022 results.

Adjusted EBITDA(1) in Q1 2022 was $1.1 million, a decrease of $0.4 million as compared to $1.5 million in Q4 2021 and a decrease of $3 million compared to the $4 million in Q1 2021. The decrease in Adjusted EBITDA(1) on a sequential quarterly basis was driven by lower revenues and gross profit.

Balance Sheet and Liquidity

As of March 31, 2022, the company had $76.2 million of cash and cash equivalents, including proceeds from the Offering closed in Q1 2022. The company paid approximately $29 million in capital expenditures during Q1 2022, of which $10 million was paid for capital expenditures accrued at year end 2021. The Company expects to incur approximately $40 to $60 million of new cash capital expenditures for the full year 2022, subject to market conditions and regulatory changes. As of March 31, 2022, the company had approximately $147 million in principal amount of total debt, excluding leases and property, plant, and equipment financing obligations. As of May 25, 2022, the company’s Acquisition Facility had $60 million of available capacity, including the $25 million accordion feature. As of May 25, 2022, the company’s issued and outstanding shares were 194,542,278 and its fully diluted shares outstanding were 281,438,589.


Cacioppo commented, “Looking ahead to the remainder of the year, we expect to open an additional four dispensaries and continue to build-out the grow rooms in our Pennsylvania and Virginia grower-processor facilities, which will increase our margins and substantially grow our wholesale sales in 2022 and beyond.” Cacioppo added, “We are modestly revising our fourth quarter 2022 annualized revenue to be between $340 to $380 million, and our 2022 annualized Adjusted EBITDA to be between $60 to $80 million on an IFRS basis. The slight reduction in revenue and Adjusted EBITDA guidance was driven by (1) weakening in the macro environment; (2) ongoing regulatory delays; and (3) supply chain issues. We want to be conservative in regard to our projected revenue ramp through the remainder of the year. By the end of 2022, we are targeting 50 retail licenses across seven markets, including 36 operating retail locations and approximately 330,000 square feet of cultivation and processing capacity.”

Cacioppo concluded, “We are putting in significant work, optimizing our resources, and making important investments where needed, to execute on our strategic initiatives and build out our business for long-term, sustained growth for our shareholders.”

The company’s MD&A and consolidated financial statements for the first quarter ended March 31, 2022, will be filed in May. The company’s previous public filings may be found on SEDAR at

Conference Call and Webcast Information

The company will host a conference call to discuss its financial results for the first quarter 2022 at 9:00 a.m. ET today, Wednesday, May 25, 2022.

Event: First Quarter 2022 Financial Results Conference Call Date: Wednesday, May 25, 2022 Time: 9:00 a.m. Eastern Time Live Call: +1-833-646-0490 (U.S. Toll-Free) or +1-918-922-6617 (International) Conference ID: 6827238 Webcast: Register

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until June 24, 2022, and can be accessed by dialing +1-855-859-2056 (U.S. Toll-Free) or +1-404-537-3406 (International) and entering replay pin number: 6827238.

Consolidated Financial Statement
The financial information reported in this press release is based on unaudited management prepared financial statements for the three months March 31, 2022. These financial statements have been prepared in accordance with IFRS. This release contains certain preliminary financial results for first quarter 2022, including, but not limited to, Cost of goods sold; Gross profit; Income tax (expense) benefit; Net loss; Inventory, net; Goodwill, net; Deferred taxes, contingent consideration and accrued expenses. The company expects to file its unaudited consolidated financial statements for the first quarter 2022 ended March 31, 2022, on SEDAR in May. Accordingly, such financial information may be subject to change. All financial information contained in this press release is qualified in its entirety with reference to such financial statements. While the company does not expect there to be any material changes between the information contained in this press release and the consolidated financial statements it files on SEDAR, to the extent that the financial information contained in this press release is inconsistent with the information contained in the company’s financial statements, the financial information contained in this press release shall be deemed to be modified or superseded by the company’s filed financial statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws. Further, the reader should refer to the additional disclosures in the company’s unaudited financial statements for the first quarter ended March 31, 2022.