[ad_1]
When MedMen companies (NASDAQOTH: MMNFF) announced its quarterly results in February, there was good news. Revenues climbed 864.5% to $ 29.9 million. However, the company has had a lot of bad news in 2019. The stock is down 17% since the beginning of the year, making it one of the worst performing pot stocks of the market up to Now this year.
But MedMen had the opportunity to change its story by releasing its third quarter update of fiscal year 2019 after market close on Wednesday. How did the MedMen behave? Here is what you need to know about the third quarter results of the company.
Source of the image: MedMen.
In numbers
MedMen reported revenue of $ 36.6 million in the third quarter. This index reflects a spectacular jump of 156% compared to the same period of the previous year and 22% compared to the previous quarter. However, the company's revenues were well below Wall Street's consensus estimates of $ 49.2 million.
The Company reported a GAAP net loss of $ 23.7 million, or $ 0.20 per share, in the third quarter. This represents a worsening of the net loss of $ 18.4 million, or $ 0.83 per share, recorded in the same quarter of 2018.
MedMen ended the third quarter with cash, cash equivalents and short-term investments of $ 21.9 million. This index reflects an increase from the $ 15.7 million available as at March 31, 2018.
Behind the numbers
California continued to be the primary MedMen target in the third quarter. The company had a 7% market share in that state. MedMen's revenues in California increased 5% from the previous quarter to $ 24.9 million.
But MedMen has also experienced strong growth in other states. The company experienced particularly strong growth in Nevada, where overall retail revenue grew 34% from the previous quarter. The MedMen cannabis store near Las Vegas Airport has become No. 2 in sales performance.
MedMen's financial results were not as good, though. Total expenses increased by 243% over the previous year to almost $ 79 million. This index is the result of growth in the workforce and operating costs of retail stores in California, New York, Nevada, Arizona and Illinois.
In addition to presenting its financial results, MedMen also provided an update on several other recent developments. The company has made several executive changes, including appointing Ryan Lissack as Chief Technology Officer and accepting the resignations of COO Ben Cook and Lisa Sergi, MedMen Senior Legal Counsel and a member of its board of directors. administration. Ben Rose has also moved from chairman of the board of directors to executive chairman to participate more actively in the company's business.
MedMen also slashed the compensation of its two key executives, Adam Bierman, CEO, and Andrew Modlin, President. Both men agreed to accept an annual salary of $ 50,000.
Look to the front
MedMen's top-tier musical seats could result in strategy changes for the company. However, the company should continue to move forward with its approach to increasing its presence in the US retail business.
In particular, MedMen still expects to open 15 new stores in the United States this year. Twelve of them are planned for Florida, a state where MedMen holds licenses for 35 sites.
[ad_2]
Source link
