Schwazze, (OTCQX:SHWZ) (NEO:SHWZ) released financial results for the second quarter ended June 30, 2022, revealing revenues of $44.3 million, an increase of 44% compared to $30.7 million in Q2 2021.
Q2 2022 Financial Highlights:
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Gross profit increased to $25.2 million, an increase of 69% compared to $14.9 million during the same period in 2021.
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Gross profit margin increased as a percentage of revenue from 48.5% to 56.8%, and net of purchase accounting, the gross margin increased to 57.4%.
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Net Income was $33.8 million compared to a net income of $4.4 million for the same period last year
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Adjusted EBITDA of $15 million was 33.9% of revenue, compared to $10 million for the same period last year
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The company has cash and cash equivalents of $33.9 million at the end of Q2 2022.
Nancy Huber, CFO for Schwazze stated, "During Q2 we focused on completing integration of our acquisitions and made sure that we used our resources effectively. We are focused on reducing operating and SG&A expenses and judiciously investing growth capital to ensure adequate liquidity and profitability despite difficult market conditions in Colorado, which we believe to be transitory and temporary. Our balance sheet remains strong, and we have ample liquidity. We are focused on delivering positive cash flow net of acquisition costs for the year while driving organic growth and making smart acquisitions."
2022 Guidance
The company has revised its guidance for a fourth-quarter 2022 annualized run rate, which excludes transactions that are announced but not closed. Q4 2022 revenue annualized run rate is projected to be $175 million to $200 million, and the Q4 2022 adjusted EBITDA annualized run rate is projected to be from $60 million to $72 million.
Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels
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