Jushi Holdings Inc Class B · CSE:JUSH
Jushi Holdings Inc Class B — Q3 2022 Earnings Presentation
22 slides from Jushi Holdings Inc Class B's earnings presentation, Nov 14, 2022
Slide 1: Q3 2022 Earnings Presentation
Q3 2022 Earnings Presentation
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward - Looking Statements 2 This presentation contains certain "forward - looking information" within the meaning of applicable Canadian securities legislation as well as statements that may constitute "forward - looking statements" within the meaning of within the
Slide 3: Jim Cacioppo, Chief Executive Officer
Jim Cacioppo Chief Executive Officer 3
Slide 4: Agenda
Financial Highlights Operational Achievements Financial Performance Agenda Summary Q&A 4
Slide 5: Strong Top Line and Expanding Margin Profile
Strong Top Line and Expanding Margin Profile US$ Millions, prepared under U.S. GAAP $54.0 $72.8 $72.8 $72.8 +35% Q2 2022 Q3 2022 Revenue Q3 2022 Q3 2021 36.7% 38.1% Gross Margin Q3 2022 Q2 2022 +144 basis points 5
Slide 6: Growing Vertical Margin With Increased Sell-Through of Jushi Branded Product
Growing Vertical Margin With Increased Sell - Through of Jushi Branded Product • Significant profitability driver in the coming quarters • Sell - through rate improvement of +600 basis points to 28% vs. 21% in Q2’22 • ~90% QoQ increase in private branded products sold through Beyond Hello Ρ stores i
Slide 7: Continued Headway on Cost Savings Measures
Continued Headway on Cost Savings Measures Retail • Expect to reduce costs by ~$8 million throughout 2022 • Shifted to a higher mix of part - time employees • Optimized labor model to align with market activity and demand • Maximized field leadership model resulting in reduced number of field leader
Slide 8: Explosive Growth in Virginia Following Market Developments
Explosive Growth in Virginia Following Market Developments Grower - Processor (Manassas) Operational Beyond Hello Dispensaries (4) Beyond Hello Arlington (Opening Q1 2023) Beyond Hello Woodbridge (Opening in first half of 2023) +210% QoQ Increase in Active Customers Patient & Customer Growth Retail
Slide 9: Opening Beyond Hello Cincinnati, Ohio in Q4 2022
9 Opening Beyond Hello Cincinnati, Ohio in Q4 2022 9
Slide 10: Nearly Doubled Canopy at Scranton, PA Grower-Processor
10 Nearly Doubled Canopy at Scranton, PA Grower - Processor *Planned expansion by end of FY2022. ~27k sq. ft. of canopy ~15k lbs. of annual biomass capacity 7 grow rooms ~30k sq. ft. of canopy ~22k lbs. of annual biomass capacity 9 grow rooms Year - End 2022* 10 Q3 2022
Slide 11: Steady Progress on Expansion at Manassas, VA Grower-Processor
Steady Progress on Expansion at Manassas, VA Grower - Processor • Began generating revenue in four new grow rooms • Introduced various new cultivars and THC - only vapes • Expected to increase canopy size to ~16,000 sq. ft., improve annual biomass production to ~10,000 lbs., and plant two new grow r
Slide 12: Launched Two New Products from Tasteology in Massachusetts
Launched Two New Products from Tasteology in Massachusetts Cannabis Infused Chocolates Coming to VA in Q1 2023 12 Cannabis Infused Fruit Chews Coming to VA, OH & NV in Q1 2023 Comprehensive suite of form factors available across Jushi’s portfolio
Slide 13: Jon Barack, President, Interim Chief Financial Officer
Jon Barack President Interim Chief Financial Officer 13 13
Slide 14: Q3 2022 Financial Performance: Revenue
Q3 2022 Financial Performance US$ Millions, prepared under U.S. GAAP $72.8 $72.8 Q3'21 Q3'22 Q2'22 Q3'22 $54.0 $72.8 • The year - over - year increase in revenue of 35% in Q3’22 was primarily attributable to the acquisitions in Massachusetts and Nevada, and the new Beyond Hello Œ store openings • On
Slide 15: Q3 2022 Financial Performance: Gross Profit and Adj. EBITDA
Q3 2022 Financial Performance US$ Millions, prepared under U.S. GAAP $26.7 $27.7 Q2'22 Q3'22 Gross Profit Q2’22 vs. Q3’22 36.7% 38.1% *See Disclaimers for the definition of Adjusted EBITDA and “Reconciliation of Non - GAAP Financial Measures” at the end of this presentation $0.7 15 $0.7 Q2'22 Q3'22
Slide 16: Liquidity
Liquidity *As of September 30, 2022, includes cash, cash equivalents and short - term investments **As of September 30, 2022, excluding leases and property, plant and equipment financing obligations (Amounts in millions) Cash* $31.1 Total Debt** $209.0 Net Debt $177.9 November 11, 2022 Subordinate V
Slide 17: Disclaimers: Reconciliation of Non-GAAP Financial Measures
Disclaimers JUSHI HOLDINGS INC. Reconciliation of Non - GAAP Financial Measures Adjusted net loss, EBITDA and Adjusted EBITDA In addition to providing financial measurements based on GAAP, the Company provides additional financial metrics that are not prepared in accordance with GAAP . Management us
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation JUSHI HOLDINGS INC. UNAUDITED RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (in thousands of U.S. dollars) Three Months Ended Three Months Ended Three Months Ended September 30, 2022 (9) June 30, 2022 September 30, 2021 NET (LOSS) INCOME (1)(2) $ (52,857) - (62,763) $
Slide 19: Disclaimers
Disclaimers NO OFFERS This presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities of the Company in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
Appendix
Slide 22: Consensus Estimates
Consensus Estimates (Amounts in millions) Consensus Revenue Consensus Adj. EBITDA $384.7 $64.0 Full Year 2023 Full Year 2023 Leverage Total Debt / ‘23 Adj. EBITDA 3.3x 2.8x Total Net Debt / ‘23 Adj. EBITDA Note: (1) Consensus estimates by analysts do not represent opinions, forecasts, or predictions