Lowell Farms Inc., previously referred to as Indus Holdings, Inc., Announces Fourth Quarter and year that is fiscal Results
Vertically-Integrated Cannabis Leader Doubles Down on Path to Scalability and Self-Sustaining Profitability With a Renewed Go-Forward Strategy
SALINAS, Calif., March 02, 2021 (GLOBE NEWSWIRE) — Lowell Farms Inc. (the “Company”) (CSE: INDS converting to LOWL; OTCQX: INDXF to LOWLF effective March 5, 2021), a leading, vertically-integrated, California-focused cannabis company, announced revenue and operating results for the fourth quarter and fiscal year (ended December 31, 2020). All figures stated are in US Dollars.
Fourth Quarter and Fiscal Year Financial Highlights:
- Revenue generated for the three-month period ended December 31, 2020, was $9.2 million; a decline of 15% from the fourth quarter year that is last. Income for the season finished December 31, 2020, ended up being $42.6 million; 15% year-over-year development.
- Adjusted EBITDA for the period that is three-month December 31, 2020, was ($3.7 million) compared to ($13.2 million) in the fourth quarter last year; Adjusted EBITDA for the year-end December 31, 2020, was ($9.8 million) compared to ($36.0 million) in 2019. See “Use of Non-IFRS Financial Information” below.
- Operating expenses were $5.5 million for the three-month period ended December 31, 2020, compared to $12.0 million in the fourth quarter in the year that is prior. For the season finished December 31, 2020, running expenses had been $20.6 million; a decline of 45% from 2019.
- Gross margin (before web improvement in reasonable value of biological assets) of 8% when compared with negative margin of 40% into the 4th quarter year that is last. For the year ended December 31, 2020, gross margin (before net change in fair value of biological assets) was 11% compared to negative margin of 23% in 2019. See “Use of Non-IFRS Financial Information” below.
- Operating loss before net change in fair value of biological assets of $4.8 million compared to loss that is operating of14.0 million in Q4 2019. For the season finished December 31, 2020, running loss before web improvement in reasonable value of biological assets ended up being $16.1 million when compared with an operating loss before web improvement in reasonable value of biological assets of $45.8 million in 2019. See “Use of Non-IFRS Financial Information” below.
The declined revenue and running leads to the quarter are mainly the direct results of suppressed cultivation yields caused by the wildfires and extreme conditions in belated summer time, additionally the resultant plant anxiety that ensued.
Despite the headwinds experienced year that is last we have much to look ahead and our shift in strategy to acquire Lowell Herb Co and become Lowell Farms will position us for the future.
Mark Ainsworth, Chief Executive Officer for Lowell Farms Inc
Our team has shown drive and tenacity to make the journey to where we have been, and I also know very well what we have been effective at attaining whenever all cylinders are switched on and now we are performing to your most useful of our capabilities. The near future is bright for Lowell Farms and I also can’t wait to generally share more we solidify our positioning within the California market.
Operational with you as Highlights and Ongoing Initiatives in 2021:
The Company’s focus and strategic planning of key initiatives continue to drive sustainable growth that is profitable with top priorities on its cultivation facilities, increasing functional effectiveness, and refinement of biological assets.
- Subsequent occasions to your fiscal quarter that is third 31, 2020:
- Indus Holdings, Inc. Welcomes Bruce Gates to Board of Directors; Announces outcomes of Annual Shareholder Meeting
October 22, 2020 – Press launch
- Indus Holdings, Inc. Appoints Board Member Brian Shure as Chief Financial Officer, Steve Neil will stay during the business in a capacity that is senior
November 9, 2020 – Press launch
- Indus Holdings, Inc. announces the purchase of Lowell Herbs Co
February 25, 2021 – Press launch
- hereCultivation Quality and effectiveness
- As the business continues to gauge its cultivation processes, refine genetics, and enhance facilities and systems, the main focus happens to be on enhancing the production.
- The business effectively finished the electric, technical, and upgrades that are environmental final approval from the county in the quarter. The upgrades that are environmental assist mitigate implications experienced through the wildfires and extreme conditions skilled into the summer time.
- Lowell Farms is tissue that is actively exploring clones to be able to expand and refine its strain selection.
- Portfolio of strains from the newly enhanced cultivation have actually regularly tested into the mid to high 20’s for THC strength.
- Continued yield improvements are required become regarded as environmentally friendly control system happens to be set up and implemented.
- In Q4, Indus commissioned an automated flower packaging line which implied an instantaneous 61% decrease in flower packaging headcount.
- When completely optimized, the decrease will create 2 times the efficiency from 50 pounds. per change to 100 pounds. per change.Owned Core Brands
- Owned brands continue steadily to gain share of the market by strategically expanding in many different groups into the 4th the quarter of 2020:
- Flavor ended up being the quantity four focus brand name in Q4 2020 and handedly that is single up 6% of most concentrate devices offered during Q4 2020.
- Expanding profile of services and products:
- The business is taking care of expanding brands that are existing new categories while also growing its brand portfolio to engage with new consumers and create additional revenue streams.
- We launched 11 net sku’s that are new
- Distribution abilities:
- In an endeavor to simplify and refocus the continuing business on owned brands, the Company has continued to move away from the agency and distribution aspects of its business.
In Order to process the increased flower from its renovated cultivation, Indus has submitted for a processing and cultivation permit application for warehouse facilities. Plans for construction for the post-harvest processing space are underway and also been submitted and authorized by the City.
Q4 and Fiscal Financial Results Earnings Conference Call Details:
The conference call with management at 8:30 a.m year. ET on Tuesday, March 2, can be accessed using the dial-in that is following
U.S. and Canadian Toll Free: 1-877-407-0789
Conference ID: 13716552
Please dial-in at the least ten minutes ahead of the call to join up.
The Conference call shall be webcast live and archived on the investor relations section of the Lowell Farms website at https://ir.indusholdingco.com/.
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