TILT Holdings Inc. TILT TLLTF, a global provider of cannabis business solutions, reported its financial and operating results for Q1 2023 late Monday.
Key Takeaways
- The company reported revenue of $42.3 million, slightly lower than the previous year, with gross profit at $8.8 million.
- TILT’s net loss improved to $4.9 million, attributed to an $8.4 million gain from a sale-leaseback transaction. However, adjusted EBITDA declined to $79,000 due to lower gross profit and increased expenses.
- TILT amended its revolving credit facility to increase credit availability and improve terms. Additionally, it completed transactions to alleviate near-term debt maturity and reduce non-revolving debt
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Interim CEO Tim Conder, who took the reins at Tilt in late April amid a C-suite shakeup said his mission this year will be to “optimize our operations, instill frugality as a core value, and hold ourselves and our team to high levels of accountability.”
Q1 2023 Financial Summary
- Revenue: $42.3 million, slightly lower than the previous year
- Gross profit: $8.8 million, representing approximately 20.8% of revenue, compared to $9.4 million or approximately 22.1% of revenue in the prior year. Decrease due to price compression in the Massachusetts cannabis market, partially offset by increased profit in the inhalation business.
- Net loss: Improved to $4.9 million compared to a net loss of $11.6 million in the prior year, driven by an $8.4 million gain from a sale-leaseback transaction.
- Adjusted EBITDA: $(79) thousand compared to $1.5 million in the prior year. Decrease due to lower gross profit, higher general and administrative expenses, and increased retail headcount in Massachusetts.
- Cash and debt: $5.2 million in cash, cash equivalents, and restricted cash as of March 31, 2023, compared to $3.5 million at December 31, 2022.
- Total net debt on March 31, 2023, amounted to $48.9 million, down from $59.7 million on December 31, 2022.
Business Highlights
- TILT’s operational highlights for Q1 2023 include the launch of Coda Signature, a renowned cannabis chocolatier, in the Massachusetts market, and the introduction of Black Buddha Cannabis, a socially driven wellness brand, in Pennsylvania.
- TILT announced a licensing agreement to bring the innovative ThredzTM stackable cartridge technology to market through its subsidiary Jupiter Research, LLC.
- Tim Conder has been appointed Interim CEO, while Mark Scatterday, founder of Jupiter, will serve as a senior advisor focusing on the company’s inhalation business.
Price Action
TILT’s shares were trading higher by 12.75% at the time of market close on Monday, at $0.057 per share.
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Photo by Towfiqu barbhuiya on Unsplash.