MedMen Releases Preliminary Second Quarter 2019 Systemwide Revenue Results
LOS ANGELES–(BUSINESS WIRE)–MedMen
Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX:
MMNFF) (FSE: A2JM6N) announced today unaudited systemwide revenue for
its fiscal 2019 second quarter ended December 29, 2018. Across the
Company’s operations in California, Nevada, New York and Arizona,
systemwide revenue was US$29.9 million (CA$39.7 million). This
represents a 40% quarter-over-quarter increase over its fiscal 2019
first quarter ended September 30, 2018. Systemwide revenue, pro forma
for pending acquisitions that have not yet closed, was US$49.5 million
(CA$65.7 million) for the quarter. For the second quarter, gross margin
across its retail operations was 54%1, compared to 45% in the
previous quarter. The Company is expected to post its fiscal 2019 second
quarter results in February.
| Expected | |||||||||||||||||||
| Q1 2019 | Q2 2019 | % | Closing | ||||||||||||||||
| (Currency in USD) | Actual | Actual | Change | (Fiscal) | |||||||||||||||
| Systemwide Revenue | $ | 21.4 | $ | 29.9 | 40 | % | — | ||||||||||||
|
Revenue from Pending Acquisitions2 |
$ | 17.9 | $ | 19.6 | 10 | % | |||||||||||||
| PharmaCann (National) | Q4 2019 | ||||||||||||||||||
| Level Up (Arizona) | Q3 2019 | ||||||||||||||||||
| Buddy’s (California) | Q3 2019 | ||||||||||||||||||
| Seven Point (Illinois) | Q3 2019 | ||||||||||||||||||
| Ann Arbor (Michigan)3 | Q1 2020 | ||||||||||||||||||
| Total Pro Forma Revenue | $ | 39.3 | $ | 49.5 | 26 | % | |||||||||||||
| End of Quarter: | |||||||
| Retail Licenses |
77 |
|
|||||
| Operational Stores (Including Pending Acquisitions) |
31 |
|
|||||
Systemwide retail revenue for the quarter, including revenue from
pending announced acquisitions, is based on 31 retail stores that were
operational at the end of the quarter. This includes the MedMen Paradise
location near McCarran International Airport in Las Vegas, which opened
in October, and the MedMen Scottsdale location in Arizona, which opened
in December through the closing of the Monarch acquisition. The
operational retail locations, including pending acquisitions, represent
40% of the 77 total stores that the Company is licensed for across 12
states.
Strong systemwide retail revenue for the quarter is primarily
attributable to MedMen’s stores in Southern California’s recreational
market. In California, the Company’s eight retail locations reported a
combined US$23.7 million (CA$31.4 million) in revenue, which represents
a 27% quarter-over-quarter increase. Cowen’s most recent estimate
projects California will be a US$11 billion market by the end of 20304.
“California is the prize of the cannabis industry and the performance of
our stores, quarter-over-quarter, is a reflection of our continued
execution in our home state,” said Adam Bierman, MedMen chief executive
officer and co-founder.
In addition to growing revenue at its existing locations, the Company
has 16 new locations slated to open during calendar year 2019, including
12 locations in Florida, where the Company is licensed for up to 30
locations. The Company is set to open four retail stores in Florida in
the next 90 days, which include locations in Miami Beach, Orlando, West
Palm Beach and Key West.
ABOUT MEDMEN:
MedMen Enterprises is a leading cannabis company in the U.S. with assets
and operations across the country. Based in Los Angeles, MedMen brings
expertise and capital to the cannabis industry and is one of the
nation’s largest financial supporters of progressive marijuana laws.
Visit http://www.medmen.com
USD/CAD of $0.7543 as of January 16, 2019.
1 Total cost of goods sold across the Company’s retail
operations was $16.2 million during the quarter
2 Includes unaudited net revenue from retail stores and
licenses to be acquired through pending acquisitions
3 During the quarter, the Company signed a definitive
agreement to acquire a retail operation in Michigan through a
combination of cash and shares. The Company does not disclose deal
values for transactions it deems immaterial from a purchase price
standpoint.
4 Cowen Group per “Cannabis: $75B Opportunity; Category
Cross-Currents Keep Us Cautious on Booze”
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain “forward-looking information”
within the meaning of applicable Canadian securities legislation and may
also contain statements that may constitute “forward-looking statements”
within the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Such forward-looking
information and forward-looking statements are not representative of
historical facts or information or current condition, but instead
represent only MedMen’s beliefs regarding future events, plans or
objectives, many of which, by their nature, are inherently uncertain and
outside of MedMen’s control. Generally, such forward-looking information
or forward-looking statements can be identified by the use of
forward-looking terminology such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”, or
variations of such words and phrases or may contain statements that
certain actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “will continue”, “will occur” or “will be achieved”.
The forward-looking information and forward-looking statements contained
herein may include, but are not limited to, expectations regarding the
Arizona cannabis market and expectations for other economic, business,
and/or competitive factors.
By identifying such information and statements in this manner, MedMen
is alerting the reader that such information and statements are subject
to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements
of MedMen to be materially different from those expressed or implied by
such information and statements. In addition, in connection with the
forward-looking information and forward-looking statements contained in
this press release, MedMen has made certain assumptions. Among the key
factors that could cause actual results to differ materially from those
projected in the forward-looking information and statements are the
following: changes in general economic, business and political
conditions, including changes in the financial markets; changes in
applicable laws and compliance with extensive government regulation.
Should one or more of these risks, uncertainties or other factors
materialize, or should assumptions underlying the forward-looking
information or statements prove incorrect, actual results may vary
materially from those described herein as intended, planned,
anticipated, believed, estimated or expected.
Although MedMen believes that the assumptions and factors used in
preparing, and the expectations contained in, the forward-looking
information and statements are reasonable, undue reliance should not be
placed on such information and statements, and no assurance or guarantee
can be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information and statements.
The forward-looking information and forward-looking statements contained
in this press release are made as of the date of this press release, and
MedMen does not undertake to update any forward-looking information
and/or forward-looking statements that are contained or referenced
herein, except in accordance with applicable securities laws. All
subsequent written and oral forward-looking information and statements
attributable to MedMen or persons acting on its behalf is expressly
qualified in its entirety by this notice.
SOURCE: MedMen Enterprises
Contacts
MEDIA CONTACT:
Briana Chester
Senior Publicist
Email:
briana.chester@medmen.com
(424)
888-4260
INVESTOR RELATIONS CONTACT:
Stéphanie Van Hassel
Head
of Investor Relations
Email: investors@medmen.com
(323)
705-3025
