cbdMD, Inc. Reports Record Q2 Sales
May 16 2019 - 7:30AM
Business Wire
cbdMD Product Sales Sequential Quarterly
Growth of 55%, 78% Above Earn-Out Targets
cbdMD, Inc. (NYSE American: YCBD), reported today that in its
fiscal quarter ended March 31, 2019, it generated total net sales
of $5.7 million, up 84% over prior year results and sales for cbdMD
products have grown 55% sequentially from the December 2018 quarter
to March 2019 quarter.
FINANCIAL HIGHLIGHTS:
- Total net sales on a GAAP basis
increased 84% to $5.7 million for the second quarter ended March
31, 2019 compared to the prior year period.
- Gross profit as a percentage of net
sales was 62.4% for the second quarter ended March 31, 2019, up
from 60.6% in the quarter ended December 31, 2018.
- Working capital of $12.3 million at
March 31, 2019, compared to working capital of $10.8 million at
September 30, 2018. In addition, completed a secondary financing
with net proceeds of approximately $12.6 million that closed on May
15, 2019.
- Ecommerce sales platform generated over
70% of net sales.
- 97%, or $30.9 million of the quarterly
net loss of $31.8 million for the quarter ended March 31, 2019,
attributed to the change in the value of the contingent liability
related to acquisition of the cbdMD brand. The change in value was
primarily related to the increase in the company’s stock
price.
“Our goal is to build cbdMD into the most recognized cbd brand
in the America. Our strong second quarter results place us in a
great position to accomplish this goal. Our March quarter results
put us on pace to meet or exceed the established revenue earn-out
targets for the first year of operations for cbdMD, which was $20
million for 2019. In fact, our March quarter was 78% ahead of those
earn-out projections. Furthermore, we are currently trending a full
year ahead of the revenue earn-out projections, although there is
no assurance that this trend will continue. Our Ecommerce sales
platform remains strong and has accounted for over 70% of our total
net sales. We are starting to track more direct retail sales
through a growing list of wholesalers and retail outlets. On a
store count basis, we have grown from under 600 doors in December
2018 to over 2,000 currently, and we continue to build momentum,”
stated Martin A. Sumichrast, Chairman and CEO of cbdMD, Inc.
“Our strong financial position has enabled us to strengthen and
grow valuable partnerships and sponsorships with world-class
athletes that resonate with our customers,” continued Mr.
Sumichrast. “One of those athletes, former UFC Light
Heavyweight Champion, Quinton "Rampage" Jackson, joined cbdMD
president Caryn Dunayer and me on the NYSE trading floor on May 1st
for our official launch under our new ticker, YCBD. Also joining us
was 2 Time Masters Champion and 12-time PGA Tour winner Bubba
Watson, who has joined our all-star roster of partner athletes. We
are excited to watch Bubba tee off today at the PGA Championship
with cbdMD as his sponsor and wish him the best of luck. We are
excited to be the first CBD company to partner with a PGA major
champion.”
CONFERENCE CALL DETAILS Thursday May 16, 2019, 9:00 a.m.
Eastern Time Domestic: 1-877-451-6152 International:
1-201-389-0879 Replay – Available through May 30, 2019 Domestic:
1-844-512-2921 International: 1-412-317-6671 Conference ID:
13690742
About cbdMD, Inc.
cbdMD, Inc. (NYSE American: YCBD) owns and operates the
nationally recognized consumer cannabidiol (CBD) brand cbdMD whose
current products include CBD tinctures, CBD gummies, CBD topical,
CBD bath bombs, CBD oils, and CBD pet products. The company also
operates licensing and corporate brand management businesses as
well as the products division.
Forward-Looking Statements
This press release contains certain forward-looking statements
that are based upon current expectations and involve certain risks
and uncertainties within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements can
be identified by the use of words such as ''should,'' ''may,''
''intends,'' ''anticipates,'' ''believes,'' ''estimates,''
''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and
''proposes.'' These forward-looking statements are not guarantees
of future performance and are subject to risks, uncertainties, and
other factors, some of which are beyond our control and difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements,
including, without limitation, statements made with respect to the
expansion of the consumer market for CBD products and our ability
to increase our market share, , our limited operating history, our
ability to expand our business and significantly increase our
revenues and meet earnout projections, and our ability to report
profitable operations in the future. You are urged to carefully
review and consider any cautionary statements and other
disclosures, including the statements made under the heading "Risk
Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal
year ended September 30, 2018 as filed with the Securities and
Exchange Commission (the "SEC") on December 12, 2018, our Quarterly
Report on Form 10-Q for the period ended March 31, 2019 as filed
with the SEC on May 15, 2019 and our other filings with the SEC.
All forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements, many of which are
generally outside the control of cbdMD, Inc. and are difficult to
predict. cbdMD, Inc. does not undertake any duty to update any
forward-looking statements except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20190516005237/en/
Investors:RedChip CompaniesCraig Brelsford,
407-644-4256craig@redchip.com
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