LAS VEGAS, NV / ACCESSWIRE / August 24, 2023 / CLS Holdings USA, Inc. (OTCQB:CLSH)(CSE:CLSH), (the 'Company' or 'CLS'), a diversified cannabis company operating as Cannabis Life Sciences, today announced its financial results for the fiscal year ending May 31, 2023 ("FY2023"). All amounts are expressed in U.S. dollars.
- Net revenue for Q1 2023 was $23.1 million
- Dispensary revenue remained flat, however, there was a 16% increase in the number of customers served. Our customers are looking for items with lower price points.
- Production revenue grew 7% to $8.3 million
- Gross profit for FY 2023 was $9.8 million, or 42% of net revenue due to a non-recurring adjustment of $1.2 million
- Net loss attributable to CLS for FY 2023 was $13.8 million.
- EBITDA for FY 2023 was -$7.9 million due to non-recurring losses and impairments
- Adjusted EBITDA for FY 2023 was positive $693 thousand, a substantial increase of 2,678%
- Net Operating Cashflow was positive for Q3 and Q4 of the fiscal year with an overall increase of 92.7% over the twelve months
| FY2023 Financial Results | |||||||||||
| Twelve Months Ended May 31, | |||||||||||
| (In thousands) | 2023 | 2022 | YoY% Change | ||||||||
| Net Revenues | $ | 23,134 | $ | 22,663 | 2% | ||||||
| Dispensary Revenue | $ | 14,823 | $ | 14,870 | 0% | ||||||
| % of revenue | 64% | 66% | * | ||||||||
| Production Revenue | $ | 8,311 | $ | 7,793 | 7% | ||||||
| % of revenue | 36% | 34% | * | ||||||||
| Gross Profit | $ | 9,804 | $ | 10,490 | -7% | ||||||
| Gross Margin | 42% | 46% | * | ||||||||
| Net Loss | $ | (14,844) | $ | (2,440) | -508% | ||||||
| Net Loss Attributable to CLS | $ | (13,800) | $ | (2,343) | -489% | ||||||
| EBITDA | $ | (7,960) | $ | 2,602 | -406% | ||||||
| Adjusted EBITDA | $ | 693 | $ | (27) | 2678% | ||||||
- The FY 2023 gross margin saw a reduction from 46% to 42% due to a non-recurring adjustment of $1.2 million. Without this adjustment, the gross margin for the fiscal year would have reflected 48%, an increase compared to the prior year.
- Adjusted EBITDA reflects non-recurring gains, losses, and impairments.
Cash Flow From Operating Activities
| Twelve Months Ended May 31, | |||||||||||||
| (In thousands) | 2023 | 2022 | YoY% Change | ||||||||||
| Q1 | $ | (1,462) | $ | (785) | -86% | ||||||||
| Q2 | $ | (360) | $ | (742) | 52% | ||||||||
| Q3 | $ | 803 | $ | (1,030) | 178% | ||||||||
| Q4 | $ | 789 | $ | (600) | 231% | ||||||||
| 12 months ended | $ | -230 | $ | (3,158) | 93% | ||||||||
Forward-Looking Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 (collectively, the "forward-looking statements"). These statements relate to, among other things, the expected development of our business and joint ventures, results of operations and financial performance, future liquidity, working capital and capital requirements. The continued spread of COVID-19 could have, and in some cases already has had, an adverse impact on our business, operations and financial results, including through disruptions in our cultivation and processing activities, supply chains and sales channels, and retail dispensary operations as well as a deterioration of general economic conditions including a possible national or global recession. In some cases, you can identify forward looking statements by terminology such as "may," "might," "will," "should," "intends," "expects," "plans," "goals," "projects," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these terms or other comparable terminology. These forward-looking statements are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. We cannot guarantee future results, levels of activity or performance. You should not place undue reliance on these forward-looking statements, which speak only as of the date that they were made. These cautionary statements should be considered together with any written or oral forward-looking statements that we may issue in the future. Except as required by applicable law, we do not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events or circumstances or to reflect the occurrence of unanticipated events. See CLS Holdings USA filings with the SEC and on its SEDAR profile at www.sedar.com for additional details.
Keep out of reach of children. For use only by adults 21 years of age and older. While supplies last*. Management reserves all rights. Serenity Wellness Center LLC RD046 and D046. Serenity Wellness Products LLC RP024 & P024.
Contact Information
CLS Holdings USA, Inc.
Andrew Glashow - Chairman/CEO
info@clsholdingsinc.com
888-260-7775
Instagram: @clsholdingsusa
Facebook: @CLSHoldingsUSA
Twitter: @CLSHoldingsUSA
LinkedIn: CLS Holdings USA Inc
SOURCE: CLS Holdings USA, Inc.
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