LOS ANGELES–(BUSINESS WIRE)–MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) announced today unaudited systemwide revenue for its fiscal 2019 third quarter ended March 30, 2019. Across the Company’s operations in California, Nevada, New York, Arizona and Illinois, systemwide revenue was US$36.6 million (CA$48.8 million). This represents a 22% quarter-over-quarter increase over its fiscal 2019 second quarter ended December 29, 2018. Systemwide revenue, pro forma for pending acquisitions that have not yet closed, was US$54.9 million (CA$73.2 million) for the quarter. For the third quarter, gross margin across its retail operations was 51%, compared to 53% in the previous quarter. The Company is expected to post its fiscal 2019 third quarter results in May 2019.
Currency in USD
|Revenue of Pending Acquisitions2||$||19.7||$||18.3|
|End of Quarter:|
|Operational Stores (including pending acquisitions)||32|
Systemwide retail revenue for the quarter, including revenue from pending announced acquisitions, is based on 32 retail stores that were operational at the end of the quarter. This includes the MedMen San Jose location which rebranded in January through the closing of the Buddy’s acquisition, the MedMen Oak Park location in Illinois which rebranded through the closing of the Seven Point acquisition as well as MedMen’s North Scottsdale and Tempe locations in Arizona which rebranded through the closing of Level Up in February. The operational retail locations, including pending acquisitions, represent 39% of the 82 total stores that the Company is licensed for across 12 states.
Strong systemwide retail revenue for the quarter is primarily attributable to MedMen’s retail expansion in Nevada and Arizona. In Nevada and Arizona, third quarter retail sales increased 34% and 513%, respectively, compared to the previous quarter. In Arizona, the increase was driven by the addition of stores in North Scottsdale and Tempe. In Nevada, MedMen’s Paradise location, the closest dispensary to McCarran Airport, is now the Company’s second highest performing store, with a 39% increase over the previous quarter.
“We will continue to scale our retail footprint in the most strategic and desirable locations, providing us first mover advantage and contributing to MedMen’s top-line growth,” stated Michael Kramer, Chief Financial Officer. “The continued acceleration of sales in markets like Arizona and Nevada, as evidenced by the impressive sales at our Paradise location, demonstrates our ability to replicate the success we’ve achieved in our home state of California across the U.S.”
MedMen’s stores in Southern California’s recreational market continue to perform well with increasing revenue numbers quarter-over-quarter. The Company’s ten operational retail locations reported a combined US$24.9 million (CA$33.2 million) in revenue, which represents a 5% quarter-over-quarter increase.
In addition to growing revenue at its existing locations, the Company has 16 new locations slated to open during calendar year 2019, including 12 locations in Florida, where the Company is licensed for up to 35 locations.
MedMen is a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York. MedMen’s mission is to provide an unparalleled experience that invites the world to discover the remarkable benefits of cannabis because a world where cannabis is legal and regulated is a safer, healthier and happier world. Learn more at www.medmen.com.
USD/CAD of $0.7497 as of March 30, 2019.
1 Total cost of goods sold across the Company’s retail operations was US$17.1 million during the quarter
2 Includes unaudited net revenue from retail stores and licenses to be acquired through pending acquisitions
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only MedMen’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of MedMen’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but are not limited to, expectations regarding the completion of pending acquisitions, expectations regarding the number of new locations to be opened in calendar year 2019 and expectations for other economic, business, and/or competitive factors.
By identifying such information and statements in this manner, MedMen is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of MedMen to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, MedMen has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and compliance with extensive government regulation. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
Although MedMen believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and MedMen does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to MedMen or persons acting on its behalf is expressly qualified in its entirety by this notice.
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