Friday - January 10, 2025
First Quarter Fiscal 2022 and Recent Highlights:
Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWD), today announced its financial and operational results for the fiscal 2022 first quarter ended April 30, 2022.
"Fire & Flower has delivered impressive growth in the early stages of our business and now we are moving forward to focus on the next phase of our evolution. As we evolve, our goal is to deliver positive Adjusted EBITDA and free cash flow. These goals will be achieved through a focus on operational excellence in all our business segments, continual growth in our Hifyre cannabis consumer technology platform, and expansion of our Pineapple Express Delivery service, now integrated in our Wholesale and Logistics segment. Deep retail expertise and our close partnership with Alimentation Couche-Tard, combined with our industry leading cannabis consumer technology platform and competitive pricing strategy, are key drivers of value for the Company," said Stéphane Trudel, Chief Executive Officer of Fire & Flower.
"Competitive pressures, licence expansion outpacing market growth, and a growing value-oriented customer base have created challenging market conditions for the industry as a whole. With these market conditions, we look to optimize our retail network and have already seen favourable indications on our expanded Spark Perks Member Pricing program. As the market continues to grow, novel offerings such as the Firebird Rapid Delivery service, which brings cannabis products to consumers' doors within hours, will become important service differentiators for our customers. We remain focused on improving near term financial performance and remain steadfastly focused on our ultimate goal of financial sustainability through driving towards positive free cash flow."
Consolidated Financial Highlights
Thirteen weeks ended | ||
(In thousands of Canadian dollars, | 30-Apr-22 | 1-May-21 |
except per share amounts) | ||
Total Revenue | 40,944 | 44,084 |
Gross Profit | 12,166 | 16,518 |
Gross Profit Percentage | 29.7 % | 37.5 % |
Free Cash Flow | (8,724) | (5,424) |
Adjusted EBITDA | (2,311) | 2,307 |
Net loss | (9,906) | (61,598) |
Basic loss per share | (0.27) | (2.06) |
Segment Revenue
Thirteen weeks ended | ||
(In thousands of Canadian dollars unaudited) | 30-Apr-22 | 1-May-21 |
Revenue | ||
Retail | 29,556 | 33,619 |
Wholesale and Logistics | 8,459 | 7,628 |
Digital Platform | 2,929 | 2,837 |
Total Revenue | 40,944 | 44,084 |
Segment Adjusted EBITDA
Thirteen weeks ended | ||
(In thousands of Canadian dollars unaudited) | 30-Apr-22 | 1-May-21 |
Adjusted EBITDA | ||
Retail | (2,686) | 932 |
Wholesale and Logistics | (108) | 1,016 |
Digital Platform | 1,714 | 2,466 |
Corporate | (1,231) | (2,107) |
Total Adjusted EBITDA | (2,311) | 2,307 |
Adjusted EBITDA for the first quarter ended April 30, 2022 was negative $2.3 million compared to positive Adjusted EBITDA of $2.3 million for the comparable quarter for 2021 fiscal year.
Adjusted EBITDA
Thirteen Weeks ended | ||
(in thousands of dollars) | April 30, 2022 ($) | May 1, 2021 ($) |
Net loss – as reported | (9,906) | (61,598) |
(Gain) loss on revaluation of derivative liability | (261) | 54,110 |
Finance costs, net | 1,741 | 3,311 |
Income taxes, net | 619 | 687 |
Share-based compensation | 632 | 532 |
Acquisition and strategic initiative professional fees | 100 | 789 |
Depreciation & amortization | 4,764 | 4,329 |
Restructuring, impairment and other costs, net | - | 147 |
Adjusted EBITDA | (2,311) | 2,307 |
Lease liability cash payments for the thirteen weeks ended April 30, 2022 was $2.4 million (May 1, 2021: $2.2 million). |
"Free Cash Flow" is a non-IFRS metric used by management that does not have any standardized meaning prescribed by IFRS and may not be fully comparable to similar measures presented by other companies. Management defines Free Cash Flow as cash provided by operating activities less cash used to purchase property and equipment and less lease liability payments. Free Cash Flow is a key metric that measures the Company's ability to repay debt, finance strategic business acquisitions and investments, pay dividends and repurchase shares. As other companies may calculate this non-IFRS measure differently than the Company, this metric may not be comparable to similarly titled measures reported by other companies.
Free Cash Flow
Thirteen weeks ended | ||
(In thousands of Canadian dollars unaudited) | 30-Apr-22 | 1-May-21 |
Cash from Operating Activities | (5,959) | 52 |
Less: Lease liability payments | (2,401) | (2,413) |
Less Capital Expenditures | (383) | (3,268) |
Free Cash Flow (FCF) | (8,742) | (5,424) |
Fire & Flower will host a webcast and conference call with Stéphane Trudel, Chief Executive Officer, and Judy Adam, Chief Financial Officer at 8:30 a.m. EDT on June 14, 2022. The webcast will discuss Fire & Flower's first quarter financial and operational.
Dial-In Information
Toll-Free (Canada): 1-833-950-0062
Toll-Free (United States): 1-844-200-6205
Access code: 818860
Webcast Sign-Up
https://events.q4inc.com/attendee/697092776
Replay Information (Available until June 21, 2022)
Toll-Free (Canada): 1-226-828-7578
Toll-Free (United States): 1-866-813-9403
Replay Code: 553526
Upon completion of the live conference call, a replay of the conference call will be accessible on Fire & Flower's website at https://investors.fireandflower.com/.
Fire & Flower's financial statements and management discussion and analysis for the period are available on Fire & Flower's SEDAR profile at www.sedar.com and on Fire & Flower's website at https://investors.fireandflower.com.
Fire & Flower is a cannabis consumer retail and technology platform with more than 100 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through best-in-class retailing while the HifyreTM digital and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.
To learn more about Fire & Flower, visit www.fireandflower.com.
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to Fire & Flower. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower, which may cause Fire & Flower's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include: final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives and political and social uncertainties.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company's business are contained under the headings "Risk Factors" in the Company's Annual Information Form dated April 26, 2022 and "Risks and Uncertainties" in the management discussion and analysis for the thirteen weeks ended April 30, 2022 filed on its issuer profile on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Last Trade: | US$0.12 |
Daily Volume: | 0 |
Market Cap: | US$5.420M |
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