MariMed Inc. (MRMD), a multi-state cannabis operator, disclosed its financial outcomes Wednesday evening for the first quarter of 2024, which ended on March 31. The company reported a revenue of $37.9 million, an increase from $34.4 million in the corresponding quarter last year.
Jon Levine, the CEO highlighted the substantial growth in their wholesale business as a key driver behind the quarter's success, marking their 17th consecutive quarter of positive adjusted EBITDA.
Revenue And Gross Margin
Despite the revenue growth, MariMed's gross margin showed a decline.
The GAAP gross margin was recorded at 43%, down from 45% in Q1 2023. Similarly, the non-GAAP gross margin decreased to 44% from 46%. This probably indicates a tightening in profitability, which could be attributed to increased costs or changes in product mix.
Net Loss And Profitability
The financials also revealed a widening net loss. The GAAP net loss deepened to $1.3 million from a loss of $0.7 million in the previous year.
On a non-GAAP basis, the company swung from a net income of $0.3 million in Q1 2023 to a net loss of $0.6 million in Q1 2024. This downturn reflects challenges despite the top-line growth, potentially signaling increased operational expenses or other financial impacts not directly tied to sales.
EBITDA And Future Outlook
Adjusted EBITDA stood at $4.7 million, down from $7.1 million year-over-year, with the margin shrinking significantly from 21% to 12%. This reduction underscores pressures that might be impacting the company's operational efficiency or cost management strategies.
Looking ahead, MariMed expects revenue to grow by 5% to 7% and adjusted EBITDA by 0% to 2% for the full year. The company plans to invest $10 million in capital expenditures throughout 2024.
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MariMed's 2023 In Perspective
In 2023, MariMed Inc. (MRMD) saw its cash position increase to $14.73 million, up from $9.86 million in 2022. Total assets rose from $152.20 million to $196.12 million, reflecting capital investments. Despite these developments, total debt increased by 176.41%, with long-term debt rising from $30.58 million in 2022 to $84.65 million. Total liabilities also grew from $94.89 million to $126.21 million.
During the last three quarters of 2023, MariMed's financial performance showed varied results. Revenue increased slightly from $38.80 million in June to $38.90 million in December, after an initial rise from $36.52 million.
Gross profit consistently increased, reaching $17.32 million by December. However, operational efficiency metrics showed declines.
EBITDA moved from a positive $5.69 million in June to a negative $5.52 million by December, and EBITDA declined from $3.65 million to a negative $8.07 million. Net earnings also deteriorated, with losses expanding from $958,000 in June to $10.17 million by December.
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