The global Personal Financial Management Tool Market report emphasizes a detailed understanding of certain crucial factors such as size, share, sales, forecast trends, supply, production, demand, industry and CAGR to provide a comprehensive perspective of the overall market. In addition, the report also highlights challenges that hinder market growth and expansion strategies used by leading companies in the “Personal Financial Management Tool Market”.
Global Personal Financial Management Tool market research report analyzes leading players in key regions such as North America, South America, the Middle East and Africa, Asia-Pacific. Provides insights and expert analyzes on important market trends and consumer behaviors, as well as insight into market data and key brands. It also provides all the data easily digestible information.
The authors of the report make an encyclopedic assessment of the most important regional markets and their development in recent years. Readers are provided with accurate facts and figures about the Personal Financial Management Tool market and its important factors such as consumption, production, revenue growth and CAGR. The report also shares the gross margin, market share, attractiveness index and value and volume growth for all segments studied by analysts. It highlights key developments, product portfolio, markets that are served and other areas that describe the business growth for large companies that are profiled in the report.
The report has been prepared using the latest methods and tools for primary and secondary research. Our analysts rely on government documents, white papers, press releases, reliable investor information, financial and quarterly reports, and public and private interviews to gather data and information about the market in which they operate.
Personal Financial Management Tool Market Segmentation:
Personal Financial Management Tool Market, By Application (2016-2027)
Account Information Management
Credit Card Management
Investment Analysing
Others
Personal Financial Management Tool Market, By Product (2016-2027)
Major Players Operating in the Personal Financial Management Tool Market:
BridgeTrack
FinanceWorks
Intuit
Geezeo
Mint
MoneyDesktop
SapientNitro
Strands Finance
Wells Fargo
Yodlee
The Personal Financial Management Tool market report has been divided into distinct categories such as product type, application, end user and region. Each segment is rated based on CAGR, participation and growth potential. In the regional analysis, the report highlights the potential region, which is expected to generate opportunities in the global keyword market in the coming years. This segment analysis will certainly prove to be a useful tool for readers, stakeholders and market participants to get a complete picture of the global keyword market and its growth potential in the coming years.
Personal Financial Management Tool Market Report Scope
ATTRIBUTES
Description
ESTIMATED YEAR
2022
BASE YEAR
2021
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For most of its existence, the yield curve on US Treasuries — an upward-sloping line on a graph that describes the amount paid out by US government bonds — has been an extremely prosaic thing, of interest only to traders in financial markets. Very occasionally, however, it changes shape and when it does so it becomes of interest to everyone, because it is one of the things economists use to predict an impending recession.
The normal rule is that the investors who lend money to the US government (by buying the Treasury bonds) expect it to pay more to borrow for longer, just like a mortgage provider will typically offer a higher fixed rate on a ten-year mortgage than it will on a two-year mortgage. Very rarely, however, this rule will be flipped, as the near future becomes less predictable and so investors shy away from short-term debt — or gravitate to long-term debt — and the yield curve inverts.
That happened earlier this week, very briefly, for the first time since 2019.
On Tuesday (29 March) one of the most closely-watched yield curves, between two-year and ten-year Treasuries, inverted for a few moments. The amount that investors were asking the US government to pay in return for lending money to it over a ten-year period briefly fell below the amount they were asking of it to lend for two years, admittedly by a tiny amount: 0.03 basis points, a basis point being one hundredth of a percentage point. This brief, tiny change is nonetheless significant because it signifies investors’ confidence in the most consequential economic question: the ability of the world’s largest economy to pay its debts.
This particular yield curve (as opposed to the one between five-year and 30-year Treasuries, which has been inverted for some time) is also watched closely by economists because it has previously done a very good job of predicting recessions. One 2015 study found that 85 per cent of recessions over the past 158 years had happened after an inversion of the yield curve between two-year and ten-year Treasuries.
Other canaries are also chirping. The same study found that all but two of the 33 recessions since the late 1850s had happened after the Federal Reserve had hiked interest rates, and futures traders are predicting that over the next year the Fed will raise rates to 2.6 per cent, up from 0.33 per cent today, according to Reuters data. Meanwhile, economists at the US banking giant Wells Fargo have put the chances of a recession by the end of 2023 at about 30 per cent.
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Not everyone sees the inversion as a harbinger of economic doom, however. Adrian Lowery, an analyst at Bestinvest, points out that the inversion was “brief and narrow” and that the complex factors at play — the war in Ukraine, countries emerging from lockdown and high inflation — might be distorting the markets. “The usual rules might not apply,” he says. The question now is whether it will happen again, and for how long.
MicroStrategy CEO and Bitcoin (BTC) permabull Michael Saylor believes that conventional monetary marketplaces aren’t quite prepared for Bitcoin-backed bonds.
Saylor told Bloomberg on Tuesday that he’d enjoy to see the day appear wherever Bitcoin-backed bonds are offered like mortgage-backed securities but warned that “the sector is not really all set for that right now. The upcoming greatest idea was a expression financial loan from a key lender.”
The remarks arrive two days immediately after MicroStrategy’s Bitcoin-particular subsidiary MacroStrategy declared that it had taken out a $205 million BTC-collateralized bank loan to obtain even extra Bitcoin. This financial loan was special, as it marked MicroStrategy’s very first time borrowing from its individual Bitcoin reserves — which are now valued at approximately $6 billion — to purchase additional of the cryptocurrency.
Saylor’s comments also observe El Salvador’s new conclusion to postpone the issuance of its $1 billion BTC-backed “Volcano Bond” on March 23. In accordance to El Salvador’s Finance Minister Alejandro Zelaya, the determination to delay the bond was thanks to general money uncertainty in the international current market pushed by conflict in Ukraine.
In a opportunity warning to El Salvador, Saylor stated that the country’s Volcano Bond was relatively riskier than his company’s Bitcoin-collateralized loan,
“That’s a hybrid sovereign financial debt instrument as opposed to a pure Bitcoin-treasury perform. That has its have credit history chance and has nothing at all to do with the Bitcoin hazard alone fully.”
Saylor included that he continues to be particularly bullish on the prolonged-expression prospective for Bitcoin-dependent bonds, going as considerably to say that it would be a superior idea for metropolitan areas like New York to use Bitcoin as a debt instrument.
“New York can situation $2 billion of credit card debt and invest in $2 billion worthy of of Bitcoin — the Bitcoin is yielding 50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or a lot more, the personal debt charges 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or significantly less.”
Related: MicroStrategy CEO will not sell $5B BTC stash despite crypto winter
Because its first $250-million BTC expenditure in August 2020, MicroStrategy has now amassed a substantial 125,051 BTC — which at the current cost of $44,547 equates to $5.5 billion. MicroStrategy has designed a series of individual BTC purchases using the company’s cash on hand as nicely as the proceeds of gross sales of convertible senior notes in personal offerings to institutional purchasers.
Saylor’s actions have steadily transformed MicroStrategy into a partly leveraged Bitcoin holdings company, with shares closely correlated with the value of Bitcoin.
Martin Marietta Supplies, Inc. (NYSE:Network marketing – Get Score) – Investment decision analysts at Truist Money reduced their Q1 2022 EPS estimates for Martin Marietta Resources in a investigate observe issued on Wednesday, March 30th. Truist Money analyst K. Hughes now forecasts that the design enterprise will generate $.75 for each share for the quarter, down from their past forecast of $.80. Truist Monetary has a “Get” ranking and a $525.00 cost concentrate on on the inventory. Truist Money also issued estimates for Martin Marietta Materials’ FY2022 earnings at $13.90 EPS. Martin Marietta Elements (NYSE:Multi-level marketing – Get Rating) past announced its earnings success on Thursday, February 10th. The development corporation described $3.15 EPS for the quarter, beating analysts’ consensus estimates of $2.94 by $.21. The company had revenue of $1.50 billion for the duration of the quarter, in comparison to the consensus estimate of $1.45 billion. Martin Marietta Supplies had a return on equity of 12.31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and a web margin of 12.98{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The firm’s profits for the quarter was up 26.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on a calendar year-above-yr basis. For the duration of the identical quarter in the prior calendar year, the corporation attained $2.93 earnings for each share.
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A selection of other equities analysts also not too long ago issued studies on the enterprise. Morgan Stanley lessened their cost objective on Martin Marietta Elements from $484.00 to $470.00 and set an “chubby” rating for the business in a report on Friday, February 11th. DA Davidson reduced their price tag objective on Martin Marietta Supplies from $465.00 to $450.00 in a report on Monday, February 14th. Barclays decreased their value goal on Martin Marietta Components from $485.00 to $450.00 and set an “overweight” ranking for the corporation in a report on Friday, February 11th. At last, StockNews.com assumed coverage on Martin Marietta Resources in a report on Thursday. They established a “market” score for the firm. 1 expense analyst has rated the inventory with a promote ranking, two have offered a maintain score and 8 have issued a get ranking to the inventory. According to MarketBeat, the firm now has an ordinary score of “Acquire” and an ordinary focus on value of $446.20.
Network marketing opened at $384.89 on Friday. The stock has a fifty working day straightforward shifting typical of $379.57 and a two-hundred day simple going ordinary of $392.77. The corporation has a recent ratio of 2.69, a rapid ratio of 1.69 and a credit card debt-to-equity ratio of .78. The organization has a sector cap of $24.02 billion, a rate-to-earnings ratio of 34.30, a value-to-earnings-advancement ratio of 2.15 and a beta of .78. Martin Marietta Materials has a 12-month low of $329.69 and a 12-month significant of $446.46.
The firm also just lately disclosed a quarterly dividend, which was compensated on Thursday, March 31st. Traders of report on Tuesday, March 1st were being offered a dividend of $.61 for every share. The ex-dividend day of this dividend was Monday, February 28th. This represents a $2.44 annualized dividend and a dividend generate of .63{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Martin Marietta Materials’s dividend payout ratio (DPR) is presently 21.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
Numerous institutional traders have not long ago additional to or minimized their stakes in the stock. AHL Financial investment Administration Inc. acquired a new posture in Martin Marietta Resources in the fourth quarter really worth about $31,000. Marshall Wace LLP obtained a new position in Martin Marietta Products in the fourth quarter value about $32,000. NuWave Investment Management LLC bought a new situation in Martin Marietta Products in the fourth quarter worth about $37,000. Tortoise Financial commitment Administration LLC procured a new place in Martin Marietta Resources in the fourth quarter truly worth about $39,000. Ultimately, KB Financial Companions LLC acquired a new place in Martin Marietta Components in the fourth quarter really worth about $40,000. 92.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the stock is at the moment owned by institutional buyers.
Martin Marietta Elements Enterprise Profile (Get Rating)
Martin Marietta Supplies, Inc engages in the provision of aggregates such as crushed stone, sand, and gravel as a result of its community of quarries and distribution yards. It operates by the adhering to geographical segments: East Team and West Group. The East Team segments offer aggregated solutions only.
See Also
This fast information inform was created by narrative science know-how and monetary data from MarketBeat in get to offer audience with the quickest and most accurate reporting. This tale was reviewed by MarketBeat’s editorial team prior to publication. Be sure to deliver any thoughts or comments about this story to [email protected]
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Canadian wealth administration organization CI Financial, a person of the industry’s most voracious RIA acquirers, reported it will obtain a part of the prosperity management organization of Eaton Vance WaterOak Advisors from Morgan Stanley, totaling about $11.4 billion.
At the similar time, Pathstone, an independent advisory agency with $23 billion AUM as of the end of December, declared it would obtain some $3 billion in assets from Eaton Vance WaterOak Advisors, bringing Pathstone’s complete belongings less than advisement higher than $35 billion.
Associated: Morgan Stanley to Invest in Eaton Vance for About $7 Billion
Eaton Vance WaterOak Advisors was initially identified as the Eaton Vance Financial investment Counsel when it was the prosperity management affiliate for Eaton Vance Corp. It obtained WaterOak in November 2020, right before Morgan Stanley obtained Eaton Vance and its subsidiaries in March of the subsequent yr in a $7 billion offer.
CI Money CEO Kurt MacAlpine mentioned the Eaton Vance crew had earned its standing as one particular of the United States’ foremost RIAs and explained he was very pleased to welcome them into the CI fold.
Relevant: Eaton Vance Completes Acquisition of WaterOak Advisors
“This is 1 of our largest U.S. acquisitions by belongings to day and aligns us with a escalating organization with a abundant background, an excellent staff, business-major prosperity administration abilities and loyal, sophisticated purchasers,” MacAlpine explained.
CI Monetary first entered the U.S. house in January 2020 when it obtained a bulk stake in the Phoenix-primarily based RIA Surevest Wealth Management and quickly followed it with a the greater part stake in the California-dependent $1.6 billion RIA A person Cash. CI’s ongoing to keep up the fevered acquisition rate to day, it’s made 32 deals in the United States.
With the completion of the Eaton Vance deal (and other transactions), CI Financial is envisioned to bounce to about $133 billion in property (the firm’s overall world wide belongings total about $311 billion). In February, CI Financial acquired Corient Funds Associates, a $5 billion firm based in Newport Seashore, Calif. In December, the organization acquired RegentAtlantic, a $6 billion organization centered in New York and New Jersey. Last September, CI Monetary declared it would open up a U.S. headquarters in Miami, leasing 20,000 sq. feet of business office place in the city’s Brickell money district. The workplace is expected to be finished this year and to open in 2023.
Pathstone’s partial acquisition of assets from Eaton Vance WaterOak will increase the previous firm’s footprint in Florida (WaterOak is based mostly out of Wintertime Park, Fla.), and, with the deal, Pathstone will develop to 14 areas with 235 group members during the United States.
WaterOak Advisors founder L. Clarke Lemons, who also heads the firm’s southeast division, said Pathstone would be a “fantastic partner” for the company and its clients for the foreseeable future.
“Pathstone represents the tradition, vision and perspective that we so remarkably worth in our care for our people today and clients,” he said.
The CI and Eaton Vance deal is predicted to close in the fourth quarter of 2022.
Doubled Direct-to-Consumer revenue to 50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales in Q4 2021 compared with 24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in Q1 2021
Expanded reach to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of California population with 11 retail stores, the second largest retail footprint in the state, 6 delivery depots and an immersive mobile shopping app
Appoints Tanisha Robinson as Chief Transformation Officer and Esther Song as Chief Marketing Officer
Conference Call to be Held, April 1, 2022, at 1:00 p.m. ET
SAN JOSE, Calif., March 31, 2022 /CNW/ – TPCO Holding Corp. (“The Parent Company” or the “Company”) (NEO: GRAM.U) (OTCQX: GRAMF), a leading consumer-focused California cannabis company, today announced its financial results for the fourth quarter (“Q4 2021”) and full year (“FY 2021”) ended December 31, 2021. All amounts are expressed in U.S. dollars.
The Parent Company (CNW Group/TPCO Holding Corp.)
Q4 2021 Financial Highlights
Net sales for Q4 2021 were $39.6 million
Gross profit for Q4 2021 was $2.3 million, or 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales
Net (income) loss and comprehensive (income) loss for Q4 2021 was $50.6 million
Adjusted EBITDA loss for Q4 2021 was $27.5 million. Adjusted EBITDA removes the effects of changes in fair value of financial instruments, impairment charges and other non-cash items.
FY 2021 Financial Highlights
Net sales for FY 2021 were $173.4 million
DTC Revenue for FY 2021 was $54.2 million or 31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of sales
Wholesale revenue for FY 2021 was $119.2 million of 69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of sales
Gross profit for FY 2021 was $20.2 million or 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales
Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million
Adjusted EBITDA loss for FY 2021 was $62 million.
Unrestricted Cash and equivalents totaled $165.3 million as of December 31, 2021
Management Commentary
“2021 was a foundational year, as we developed an integrated omnichannel retail platform that provides us with direct access to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of California’s adult population, positioning us to execute on our goal of becoming the number one choice for consumers by providing for both ease of access and high-quality innovative cannabis products,” said Troy Datcher, Chief Executive Officer of The Parent Company. “We have added significant talent to our organization, including industry experts and seasoned professionals that provide us with the depth of knowledge and expertise we need to lead in this market. Talent is incredibly important, and we are extremely proud of the caliber of team we have assembled. I also want to thank our entire team for the work they have done over the last year, which was instrumental in strongly positioning us for 2022 and beyond.”
Mr. Datcher continued, “While the challenges in the California market remain, including low bulk wholesale flower and oil pricing, high taxes and persisting illicit market, we have successfully begun to pivot our focus to our higher margin direct to consumer revenue, doubling DTC revenue as a percentage of sales between the first and fourth quarters. Today more than ever, we believe we are well positioned to win by leveraging our high-quality indoor grown cannabis, strong consumer brands and direct retail insights to innovate, create, and launch new products directly into the market that today’s consumers demand.”
Mr. Datcher added, “With our consumer-first approach, state-wide DTC retail footprint, robust branded products portfolio, and focus on higher value revenue streams, our priority for the remainder of the year will be preserving our strong balance sheet by reducing our cash burn while utilizing our DTC focus to drive improved margin to generate long-term value for our shareholders. Given our progress in 2021 and subject to any opportunistic partnership or acquisition transactions, we have set a goal to maintain a minimum cash balance of approximately $100 million at 2022 year end, sufficient to sustain our business for a minimum of three years, and pivot to generating positive cash flow in fiscal year 2023.”
Mr. Datcher concluded, “I am proud of our commitment to social equity initiatives and thrilled with the initial success of our partners. I look forward to empowering more entrepreneurs of color, who continue to be disproportionately impacted by current cannabis policies, while bringing our customers high-quality products, experiences, and culturally relevant brands. With the investments we made in 2021, we are ready to execute on this mission in 2022.”
Leadership Team Appointments and Board Changes
The Company further announced today the appointments of Tanisha Robinson as Chief Transformation Officer and Esther Song as Chief Marketing Officer. Additionally, the Company announced that Troy Datcher, Chief Executive Officer of The Parent Company, will be proposed as a director nominee to stand for election to the Board of Directors as Carol Bartz and Jeffry Allen have advised their intention to retire from the Board at the Company’s upcoming 2022 Annual meeting.
Mr. Datcher commented, “I am thrilled to officially welcome Tanisha and Esther to the team. We are proactively building a solid foundation for long term success, and I look forward to leveraging Tanisha and Esther’s extensive industry expertise to further mature and scale our organization. I’m confident we have assembled the right combination of high-quality products, compelling consumer brands, and leadership team to achieve our goals.
Ms. Robinson founded W*nder (pronounced “Wonder”), a company focused on creating accessible, reliable, intuitive cannabis and plant-based beverages to enhance and improve how consumers experience the world. Prior to her role at W*nder, she worked as Chief Disruption Officer of BrewDog globally, and was the first CEO of BrewDog USA, leading the company from its initial startup phase to becoming one of the largest and fastest growing craft breweries in the United States. In addition to her experience at W*nder and BrewDog, Ms. Robinson has founded several successful companies such as Print Syndicate, a design, technology, and marketing company, and TicketFire, a mobile app that allows consumers to use, transfer and sell paper tickets by converting them to a mobile format. Robinson also served in the US Army as an Arabic linguist. Her studies in Arabic at Ohio State University provided her the opportunity to work on women’s and human rights in Damascus, Syria, for two years. She is a featured international speaker on entrepreneurship, conscious capitalism, innovation, disruption and leadership and serves on the board of The Columbus College of Art and Design (“CCAD”) and Mount Carmel Health System.
Ms. Song has established expertise in public relations and marketing from over 20 years of experience in building brand visibility through strategic communications and global marketing campaigns, prioritizing direct consumer relationship building through loyalty programs and authentic storytelling. Prior to joining TPCO, she held the position of Chief Marketing Officer for Pure Beauty, and prior to that, similar roles at Canndescent and MedMen. During her time at MedMen, Song successfully launched a multi-state loyalty program and an integrated system allowing delivery and curbside services. In addition to her experience at MedMen, Song also led global digital and VIP public relations at fashion brands, including Tory Burch, Tod’s and public relations agency, BPCM. Song is currently on the leadership team of Cannabis for Black Lives.
Q4 2021 Operational Highlights
Expanded the Company’s California retail footprint to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the population through definitive agreements to acquire Coastal Holding Company, LLC (“Coastal”), a retail dispensary license holder and operator with six retail licensed locations, five currently operating, and two delivery depots.
In preparation of potentially being permitted to list the Company’s common shares and warrants on the New York Stock Exchange or the Nasdaq Stock Market upon regulatory advancement, the Company’s filed its Form 10 registration statement with the United States Securities and Exchange Commission (the “SEC”), which became effective pursuant to the Securities Exchange Act of 1934, as amended on October 8, 2021.
Further strengthened the senior management team with the appointments of Kerry Arnold as Chief People Officer of the Company and Tiffany McBride as Managing Director of Social Equity Ventures.
Expanded suite of edible offerings with the launch of DELI Dimes, a new gummy cannabis product available in three flavors: Black Cherry, Fresh Watermelon and Red Berry.
Subsequent Events
On January 28th, Company insiders, including the entire Board of Directors, Troy Datcher, Chief Executive Officer, Mike Batesole, Chief Financial Officer and other members of the senior leadership team, voluntarily entered into a twelve-month extension of lock-up agreements with the Company (the “Lock-Up Agreements”) with respect to an aggregate of over 34 million shares of common stock (“Lock-up Shares”), or approximately 35 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total issued and outstanding shares of common stock of the Company as of July 28, 2021.
FY 2021 Financial Results
Net sales for FY 2021 were $173.4 million, of which $54.2 million was Direct to Consumer sales, and $119.2 million was Wholesale.
Gross profit for FY 2021 was $20.2 million, representing gross margin of 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Company continues to focus on increasing direct-to-consumer sales as a percentage of overall revenue, to shift its sales to higher margin product categories, which over time, is expected to drive gross profit improvements.
Operating expenses for FY 2021 were $184.4 million, cash expenses included general and administrative costs of $47.3 million, salaries and benefits of $36.9 million, and sales and marketing expenses of $42.6 million. Non-cash expenses included: sales and marketing $30.2 million, stock-based compensation of $20.5 million, allowance for bad debts of $4.7 million and depreciation & amortization of $27.6 million.
Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million, which is primarily attributable to non-cash impairment charges of $654.3 million.
Adjusted EBITDA loss for FY 2021 was $62 million. The Adjusted EBITDA loss in 2021 was primarily attributable to the closing of the Qualifying Transaction and the integration initiatives undertaken since the closing.
Unrestricted Cash and cash equivalents totaled $165.3 million as of December 31, 2021. Since closing the Company’s qualifying transaction, the Company has invested $48.8 million in acquisitions and capital investments, $6.5 million to repurchase its own shares and $81.9 million or an average of $6.8 million of cash per month on operations as it integrates and scales its businesses.
The Company’s consolidated financial statements, as well as its accompanying management discussion and analysis of financial condition and results of operations (“MD&A”) have been included in its Annual Report on Form 10-K filed on EDGAR (www.sec.gov) as well as SEDAR (www.sedar.com). Please refer to The Parent Company’s MD&A for additional detail and discussion on the Company’s results from operations.
Conference Call
The Parent Company will host a conference call tomorrow, to discuss these results. Troy Datcher, Chief Executive Officer, and Mike Batesole, Chief Financial Officer will host the call starting at 1:00 p.m. Eastern time. A question-and-answer session will follow management’s prepared remarks.
1 (888) 203-1112 or 1 (647)-436-0148 Available until 12:00 midnight Eastern Time Friday, April 8, 2022
Replay Code: 2151082
Financial results and analyses are available on the Company’s website (ir.theparent.co), EDGAR (www.sec.gov) and SEDAR (www.sedar.com).
About The Parent Company
Formed in January 2021, The Parent Company is a leading consumer-focused California cannabis company. The company’s three manufacturing facilities provide unparalleled access to high-quality, low-cost cannabis, while its vast wholesale distribution network of more than 450 California dispensaries, a direct-to-consumer omnichannel platform, six consumer delivery hubs and eleven omni-channel retail locations, currently service approximately 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the largest legal cannabis market in the country. The Company’s curated product portfolio includes eight valuable and scalable brands, including Monogram by Shawn “JAY-Z” Carter, Caliva, Deli, Fun Uncle, and Mirayo, which sets the tone for The Parent Company’s industry leadership in California and beyond.
In addition to its vast manufacturing infrastructure, consumer reach and cultural influence, The Parent Company is committed to using its resources and status to play a significant role in molding a more equitable cannabis industry. Its social equity ventures initiative, established by Chief Visionary Officer Shawn “JAY-Z” Carter, was created to break down the systematic barriers Black and other minority entrepreneurs face as they endeavor to secure meaningful participation, growth and leadership in the multibillion-dollar legal cannabis industry.
Shares of The Parent Company common stock are traded on NEO Exchange under the ticker symbol “GRAM.U” and on the OTCQX under the ticker symbol “GRAMF”.
This press release may contain forward-looking information within the meaning of applicable securities legislation which reflects The Parent Company’s current expectations regarding future events. The words “will”, “expects”, “intends”, “believes” and similar expressions are often intended to identify forward looking information, although not all forward-looking information contains these identifying words.
Specific forward-looking information contained in this press release includes, but is not limited to, statements concerning (i) the Company’s future financial performance (ii) ability of The Parent Company to execute on its growth strategy; (iii) expectations regarding future corporate development activities; (iv) expectation regarding U.S. listing and regulatory landscape; and (v) expansion of the Company’s direct-to-consumer line of its business. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond The Parent Company’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the U.S. and Canadian regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading “Risk Factors” in The Parent Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022, which is available on the SEC’s website at www.sec.gov and on SEDAR at www.sedar.com. The Parent Company undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Non-GAAP Financial Measures
This news release contains the non-GAAP financial measure “Adjusted EBITDA,” which is not recognized under GAAP and does not have a standardized meaning prescribed by GAAP. As a result, this measure may not be comparable to similar measures presented by other companies. For a reconciliation of “Adjusted EBITDA” to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled “Reconciliation of Non-GAAP Measures” below.
Adjusted EBITDA
We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define Adjusted EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization, adjusted to exclude extraordinary items, non-recurring items and, other non-cash items, including, but not limited to (i) stock-based compensation expense, (ii) fair value change in contingent consideration and investments measured at Fair Value Through Profit and Loss (” FVTPL”), (iii) non-recurring legal and professional fees, human-resources, inventory and collections-related expenses, (iv) extra ordinary expenses related to COVID-19, (v) intangible and goodwill impairments and loss on disposal of assets, (vi) transaction costs related to merger and acquisition activities, and (vii) non-cash sales and marketing expenses.
Reconciliation of Non-GAAP Measures
Three Months
Year-ended
December 31, 2021
December 31, 2020
December 31, 2021
December 31, 2020
Net loss and comprehensive loss
$
(50,568,037)
(7,913,227)
$
(587,032,334)
$
(6,463,606)
Income taxes
5,645,521
–
(2,372,552)
–
Depreciation and amortization
8,790,536
–
27,615,762
–
Interest expense
1,455,241
–
5,183,817
–
EBITDA
(34,676,739)
(7,913,227)
(556,605,307)
(6,463,606)
Adjustments:
–
Share based compensation expense
3,005,477
–
20,456,297
–
Other non-recurring items:
–
Fair value change of contingent consideration
(8,821,983)
–
(229,819,070)
–
Loss on disposal of assets
(1,208,722)
–
2,447,985
–
Change in fair value of investments at FVTPL
832,172
–
1,250,990
–
Impairment loss
9,118,146
–
654,317,300
–
Provision for notes receivable
2,660,943
–
2,660,943
–
Write-off of prepaid inventory
1,620,891
–
1,620,891
–
Other taxes
–
–
2,243,441
–
De-SPAC costs
–
–
5,341,154
–
Restructuring costs
–
–
3,878,782
–
Sales and marketing expense
15,520
–
30,166,667
–
Adjusted EBITDA
$
(27,454,295)
(7,913,227)
$
(62,039,927)
$
(6,463,606)
Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve The Parent Company of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of The Parent Company and any proceedings brought against the Company thereunder may adversely affect the Company’s operations and financial performance.
