There was good news and bad news the last time
Ianthus Capital Holdings (NASDAQOTH:
ITHUF) reported its 2018 fourth-quarter results in April.
The company announced impressive year-over-year revenue
growth but a much wider net loss.
Any questions that investors had about Ianthus'
first quarter were answered when the company announced its Q1
results after the market closed on Thursday. Here's what you need
to know from the company's quarterly update.
Image source: Getty Images.
The company reported Q1 revenue of $9.6 million,
a huge 4,166.7% jump from the $225,000 reported in the prior-year
period. This total also reflected a 384% quarter-over-quarter
increase, and iAnthus easily topped the average analysts' Q1
revenue estimate of $2.78 million.
iAnthus posted a GAAP net loss in
the first quarter of $18.3 million, or $0.15 per share. This was
much worse than the $645,000, or $0.01 per share, reported in the
prior-year period. It also missed the average analysts' estimate of
a loss of $0.07 per share.
However, the company's adjusted EBITDA trended in a
positive direction. iAnthus announced an adjusted EBITDA loss of
$5.1 million in Q1. This reflected an improvement from the adjusted
EBITDA loss of $6.5 million reported in the prior quarter.
iAnthus ended the first quarter with cash, cash
equivalents, and short-term investments of $42.3 million.
The company's strong revenue growth was due
largely to a couple of factors. Greenfield projects coming on line
throughout 2018 boosted revenue in Q1 compared to the prior-year
period. In addition, iAnthus' acquisition of MPX in February made a
Why did iAnthus' GAAP loss widen while its
revenue soared? Significantly higher spending. The company
increased its head count with the MPX acquisition. It's also done a
lot of internal hiring.
The adjusted EBITDA loss wasn't as bad, though.
iAnthus backed out expenses related to the MPX acquisition,
including advisory, professional, legal, consulting, and accounting
fees, in the adjusted figure since they're not part of ongoing
Other highlights for iAnthus' Q1 included
expanding its wholesale distribution operations and hiring Neil
Calvesbert as chief marketing officer. Calvesbert will focus on
building the company's new national retail brand.
One thing coming up that iAnthus is especially
excited about is the planned opening of its first "Be." retail
cannabis store in Brooklyn this fall. Other new stores will also be
opened in Miami, Las Vegas, and Atlantic City. Over time, iAnthus
plans to retrofit its existing stores to the "Be." branding
Another big development is the company's closing
of its acquisition of CBD for Life. This should boost iAnthus'
sales significantly, as CBD for Life is available nationwide in the
U.S. and a new premium product line and adult line will be launched
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Keith Speights has no
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