Schwazze (SHWZ) - Solid 2Q21 Results; Continuing Colorado Expansion
Solid 2Q21 Results; Continuing Colorado Expansion
Medicine Man Technologies, Inc. is now operating under its new trade name, Schwazze. Schwazze is executing its strategy to become a leading vertically integrated cannabis holding company with a portfolio consisting of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line. Schwazze leadership includes Colorado cannabis leaders with proven expertise in product and business development as well as top-tier executives from Fortune 500 companies. As a leading platform for vertical integration, Schwazze is strengthening the operational efficiency of the cannabis industry in Colorado and beyond, promoting sustainable growth and increased access to capital, while delivering best-quality service and products to the end consumer. The corporate entity continues to be named Medicine Man Technologies, Inc.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
2Q21 Results. Revenue totaled $30.7 million, up 467% from $5.4 million last year and up 58.9% sequentially, driven by the acquisitions. Adjusted EBITDA for the quarter was $10 million, up from $5.8 million sequentially and representing a 32.6% margin. Schwazze recorded net income of $4.4 million, or $0.08 per diluted share compared to a loss of $6.6 million, or $0.16 per share, last year. Net income received a boost from a $1.9 million pre-tax derivative gain in the quarter. We were at $30.2 million and $0.02, respectively.
Operating Metrics Improving. Same store sales of the seventeen Star Buds dispensaries when compared to last year, prior to taking ownership of the assets, were $21.5M up 16%, or about twice the overall Colorado market growth. Average basket size was $61.04, up 6.4%, and recorded customer visits were 357,056, up 8.9%. GM increased to 48.5% from 42.7% last year ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.