Business
Golden Leaf Reports Record Annual Revenue of US$15.7 million for 2019 Fiscal Year
Golden Leaf Reports Record Annual Revenue of US$15.7 million for 2019 Fiscal Year.
About this update from Chalice Brands Ltd.
[{"type":"text","content":"\n TORONTO, May 06, 2020 (GLOBE NEWSWIRE) -- Golden Leaf Holdings Ltd. (CSE:GLH) (OTCQB:GLDFF) (“Golden Leaf” or the “Company”), a pioneering cannabis solutions company and dispensary operator built around the recognized brands of Chalice Farms, today announced financial results for the fourth quarter and fiscal year ended December 31, 2019.  All figures in USD unless otherwise noted. Jeff Yapp, Chief Executive Officer of Golden Leaf stated, “The potential revenue impact resulting from the Vape ban in the fall of 2019 was a turning point for the Company.  By harnessing the new team’s agility, product and market ingenuity, we were able to quickly pivot, recover and demonstrate market leadership in Oregon.”  2019 Financial Highlights: Total revenue from continuing operations of US$15.8 million for FY 2019, a 7% year-over-year increase compared to US$14.7 million for FY 2018.Gross profit of US$4.3M at 27% margin, compared to US$0.9M at a 6% margin in 2018. This increase is the result of facility consolidations, headcount rationalization, and internal manufacturing of distillate raw material inputs.Adjusted EBITDA1 loss of US$8.8M in 2019 compared to US$14.4M in 2018.Disposed of money losing Canadian Operations for proceeds of C$3.0 million, reducing a continued drain on our cash balances.Q4 revenues of US$3.5M were a decrease from previous quarter, but attributed to impacts related to the vaping crisis in late 2019. Sales have recovered during the first quarter of 2020 to US $4.7M as previously announced on April 20, 2020. 2019 Accomplishments: Dramatically strengthened the management team with the hire of Jeff Yapp as CEO. Yapp has since built a world-class management team with a unique combination of Cannabis and Retail experience.Restructured the balance sheet resulting in conversion of debt to equity and extension of Chalice debt obligations to May 2022.The operating mantra of Crawl; Walk; Run was instituted and applied in a disciplined manner, resulting in a reduction of cash burn by nearly 50% from fiscal 2018.Pivoted product innovation and introduced new revenue streams, while reducing dependency on Vaping products, to recover from the revenue impact of Vape bans. Supply chain discipline in purchasing, inventory management and production established.Sourced and de...