The Company achieved record quarterly revenue and net income for its quarter compared to the same quarter in prior years
DENVER, Feb. 16, 2023 — AmeriCann Inc. (OTCQB: ACAN) (the “Company”), a cannabis company that develops state-of-the-art cultivation, product manufacturing and distribution facilities, has released financial and operational results for its quarter ending December 2022.
“AmeriCann’s focus on financial performance has produced excellent results, with four consecutive quarters of positive net income,” said CEO Tim Keogh. “We look forward to building upon these results for the future by expanding operations at our Massachusetts Cannabis Center to produce even greater cash flow.”
The Company achieved four consecutive quarters of positive net income. Revenue increased approximately 11.4% for the quarter ended December 2022 relative to the quarter ended December 2021, and net income increased by $555,773.
AmeriCann’s adjusted EBITDA for the prior four quarters grew to $1,577,781.
The increase in financial performance is attributable to greater revenue received from products produced and manufactured at Building 1, the Company’s initial building at its Massachusetts Cannabis Center (“MCC”) development in Freetown, Massachusetts.
Building 1 is a 30,000-square-foot cultivation greenhouse and processing facility that utilizes AmeriCann’s proprietary “Cannopy” cultivation system. Building 1 is fully occupied by Bask Inc., an existing Massachusetts licensed vertically integrated cannabis operator.
AmeriCann receives base rent and a revenue participation fee of 15% of all gross monthly sales of cannabis, cannabis-infused products and non-cannabis products produced at the Massachusetts Cannabis Center. As operations commenced and accelerated at Building 1, AmeriCann established many milestones for its financial performance.
AmeriCann commenced operations at its Massachusetts Cannabis Center in 2019, and, since then, the Company has generated more quarterly revenue each quarter than the same quarter the prior year.
Highlights for quarter ended Dec. 31, 2022
- Accelerating revenue, net income and adjusted operating EBITDA driven by the performance of the Company’s Massachusetts Cannabis Center.
- Company revenue of $734,764 represents a 13% increase for the quarter compared to the quarter ended December 2021.
- Adjusted EBITDA for the quarter grew by $111,794, a 49.5% increase as compared to the same quarter the year prior.
- Annual gross margins were 98.1%.
- Adjusted operating EBITDA margins were 45.9% the quarter.
See definitions of non-GAAP measures later in this release.
- In addition to increased cultivation productivity in the state-of-the-art greenhouse, the manufacturing of cannabis-infused products has increased dramatically in Building 1.
- Manufactured infused products produced at Building 1 have achieved success as some of the bestselling cannabis brands in Massachusetts in their respective categories.
- For 2022, the revenue from the Massachusetts cannabis market was $1.76 billion, which was 9% greater than 2021.
- The sale of cannabis in Massachusetts has exceeded $5 billion in medical and adult-use cannabis since adult-use sales commenced in late 2018.
- AmeriCann released a video highlighting the high-tech, sustainable designs at the Massachusetts Cannabis Center and Building 1, which can be found HERE.
AmeriCann is in the final design phase of the expansion of its MCC development in Freetown, Massachusetts. The Company has secured provisional cultivation and manufacturing licenses for the MCC. The next phase of the Massachusetts Cannabis Center calls for up to 60,000 square feet of extraction, manufacturing and distribution infrastructure and approximately 160,000 square feet of additional cannabis cultivation infrastructure.
AmeriCann (OTCQB:ACAN) is a cannabis company that develops cultivation, processing and product manufacturing facilities.
AmeriCann uses greenhouse technology, which is superior to the current industry standard of growing cannabis in warehouse facilities under artificial lights. According to industry experts, by capturing natural sunlight, greenhouses use 25% fewer lights, and utility bills are reduced by as much as 75% compared to typical warehouse cultivation facilities. As such, AmeriCann’s Cannopy System enables cannabis to be produced with a greatly reduced carbon footprint, making the final product less expensive. Additionally, greenhouse construction costs are nearly half of warehouse construction costs.
AmeriCann is also designing GMP-certified cannabis extraction and product manufacturing infrastructure. The Company has secured provisional licenses to produce cannabis-infused products, including beverages, edibles, topicals and concentrates. AmeriCann plans to operate a marijuana product manufacturing business at the Massachusetts Cannabis Center.