Business
Greenlane Reports Record Q4 2021 Revenue of $56.0 Million, Up 54% Year-over-Year
Company Expects Newly Implemented Strategic Plan to Result in Positive Adjusted EBITDA by Q3 2022BOCA RATON, FL / ACCESSWIRE / March 30, 2022 / Greenlane
About this update from Greenlane Holdings, Inc.
[{"type":"text","content":"Company Expects Newly Implemented Strategic Plan to Result in Positive Adjusted EBITDA by Q3 2022BOCA RATON, FL / ACCESSWIRE / March 30, 2022 / Greenlane Holdings, Inc. (\"Greenlane\" or \"the Company\") (NASDAQ:GNLN), one of the largest global sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today reported financial results for the fourth quarter and full year ended December 31, 2021 (\"Q4 2021\" and \"FY 2021\").Recent HighlightsTotal revenue for Q4 2021 increased 54% to $56.0 million, compared to $36.3 million for Q4 2020. Total revenue for 2021 increased 20.1% to $166.1 million, compared to $138.3 million for 2020.Sales of Greenlane Brands increased 16.9% to $7.4 million, or 13.2% of total revenue, in Q4 2021 compared to $6.3 million, or 17.5% of total revenue for Q4 2020. Sales of Greenlane Brands increased 52.3% to $34.8 million, or 21.0% of total revenue, in 2021 compared to $22.8 million, or 16.5% of total revenue, in 2020.Implemented a new strategic plan (the \"2022 Plan\") to accelerate the path to profitability and capitalize the business in a non-dilutive manner by reducing headcount and facility footprint, disposing of non-core assets, discontinuing distribution and selling of lower-margin 3rd-party brands, and securing an asset-based loan to support the Company's long-term working capital needs. The Company expects the 2022 Plan to:Reduce adjusted SG&A (defined as SG&A excluding depreciation and amortization; see note labeled \"Adjusted SG&A\" below for a further explanation of this metric) by nearly 40% on a quarterly basis to between approximately $14 million and $16 million in Q3 2022, down from $26.6 million in Q3 2021Help the Company achieve positive adjusted EBITDA by Q3 2022Generate liquidity in excess of $30 million if all measures are successfulFully achieved the committed synergy cost savings with over $20 million per year saved as a result of the merger with KushCo Holdings, Inc. (\"KushCo\")Appointed corporate restructuring consultant and seasoned business leader Craig Snyder as new Chief Commercial Officer, who will be responsible for the Company's sales and \"go-to-market\" strategyReceived approval from U.S. Postal Service to ship B2B electronic nicotine delivery systems products, rendering 97%+ of Company's shipments eligible for shipment using...