Mr. Michael Mills reports
BODY AND MIND REPORTS YEAR END FINANCIAL RESULTS AND PROVIDES SHAREHOLDER UPDATE
Body and Mind Inc. has released its financial results for the fiscal year ended July 31, 2020, and is providing shareholders with an operational update. All monetary values are in United States dollars unless otherwise stated.
Fiscal 2020 financial summary:
For the fiscal year ended July 31, 2020, achieved record annual consolidated revenue of $6.23-million;
- For the fiscal year ended July 31, 2020, achieved record system wide managed revenue of $17.66 million*;
- Gross profit totalled $1.51-million for fiscal 2020, yielding a gross profit margin of 24 per cent;
- Significant inventory of $1.77-million as of July 31, 2020;
- Basic and diluted loss per share of four cents for the fiscal year;
- Consolidated revenue is reported from Nevada and San Diego operations only. Income from the Elyria, Ohio, dispensary is treated as equity pickup as the licences for ShowGrow Long Beach and the Elyria, Ohio, dispensaries were transferred to the company after the fiscal year-end;
- At July 31, 2020, Body and Mind had $1.35-million in cash;
- Total current assets were $5.6-million, total assets were $38.8-million, total current liabilities were $2.81-million and total liabilities were $5.49-million at July 31, 2020;
- 107,513,812 common shares were outstanding as at July 31, 2020.
Fiscal 2020 Q4 summary:
Fourth quarter consolidated sales of $2.17-million, a 106-per-cent gain over Q3 consolidated sales;
- Fourth quarter system wide managed revenue of $5.57-million, a 39-per-cent gain over Q3;
- Gross profit totalled $740,000, yielding a gross profit margin of 34 per cent;
- Basic and diluted loss per share of one cent for the fourth quarter;
- Consolidated revenue is reported from Nevada and San Diego operations only.
Operational milestones for fiscal 2020 and to date
Opened the San Diego dispensary in Miramar, San Diego, in April, 2020;
- Assumed management of ShowGrow Long Beach dispensary, effective Aug. 1, 2019, which is fully operational;
- Completed licence transfer of the ShowGrow Long Beach dispensary into a 100-per-cent-owned subsidiary of Body and Mind in September, 2020;
- Entered into brand management and brand director agreement for production operations for Body and Mind-branded products at a licensed Cathedral City facility;
- Expended sales of Body and Mind-branded products to new dispensaries in California.
Completed construction and commenced operating in the new approximately 7,500-square-foot production facility designed to allow for expanded edible, extract and white label production;
- Commenced construction of space conversion in the cultivation facility to convert past production area into new cultivation space to provide an approximate 20-per-cent increase in flower canopy;
- Developed proprietary new strains and expanded Body and Mind-branded SKUs;
- Partnered with Her Highness to launch the Her Highness brand in Nevada.
Completed licence transfer for the Clubhouse dispensary to a 100-per-cent-owned subsidiary of Body and Mind in August, 2020;
- Commenced construction of approximately 4,000-square-foot production facility;
- Rebranded The Clubhouse dispensary to Body and Mind.
Body and Mind dispensary awarded best dispensary in Arkansas by Ark420;
- Expanded into Arkansas with in-state partner Comprehensive Care Group LLC for a dispensary and cultivation facility;
- Completed construction of the facility which is approximately 10,000 square feet with roughly 4,000 square feet for retail and 6,000 square feet for cultivation and operations;
- Opened the Body and Mind-branded medical marijuana dispensary in West Memphis, Ark.;
- Commenced set-up for the cultivation facility.
"We achieved record sales in fiscal 2020, with consolidated revenues for the fourth quarter increasing by 106 per cent quarter over quarter as sales from dispensaries and demand for our premium-branded products continued to drive our strong growth. Our consolidated revenue for fiscal 2020 was primarily booked from our Nevada operations with inclusion of new revenue from ShowGrow San Diego dispensary after opening the operation in Miramar, San Diego, in late April. We continue to build infrastructure to support all our operations and look forward to consolidating revenue from the Long Beach and Ohio dispensaries now that both licence transfers are complete," stated Michael Mills, president and chief executive officer of Body and Mind.
Mr. Mills continued: "Two thousand twenty was a challenging year for all business and a significant growth year for Body and Mind as we opened new operations across multiple states, grew revenues considerably, introduced new proprietary strains and expanded the Body and Mind-branded product portfolio. We look forward to offering our award-winning portfolio of products in Ohio and Arkansas in the new year as our facilities come on line. Body and Mind remains disciplined stewards of capital and we intend to accelerate our growth by pursuing new state licences, upgrading and expanding our existing assets and evaluating attractive acquisition opportunities. We look forward to updating you on our progress as we continue to execute through fiscal 2021 and beyond."
The audited consolidated financial statements for the fiscal year ended July 31, 2020, are available on SEDAR and EDGAR and should be read in connection with this news release.
The company will be hosting earnings call on Wednesday, Dec. 16, 2020, at 4:30 p.m. ET.
Participants can dial 1-888-664-6392 or 416-764-8659 and use confirmation No. 97760089.
A replay of the conference call will be available at 1-888-390-0541 until Dec. 23, 2020. Please use replay No. 760089, followed by the number sign.
About Body and Mind Inc.
Body and Mind is an operations-focused, multistate operator investing in high-quality medical and recreational cannabis cultivation, production and retail. Our wholly owned Nevada subsidiary was awarded one of the first medical marijuana cultivation licences and holds medical and adult-use cultivation and production licences. Body and Mind products include dried flower, edibles, oils and extracts, as well as GPEN products. Body and Mind cannabis strains have won numerous awards.
Body and Mind continues to expand operations in Nevada, California, Arkansas and Ohio and is dedicated to increasing shareholder value by focusing time and resources on improving operational efficiencies, facility expansions and state licensing opportunities, as well as mergers and acquisitions.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.