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Second Quarter 2022 Income Development of 52.4% YoY and 17.6% QoQ to $72.8 million

Accomplished NuLeaf Acquisition and Expanded Vertically Built-in Footprint in Nevada

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Established Fifth Vertically Built-in State-Degree Operation in Ohio with Medical Dispensary License Win

BOCA RATON, Fla., Aug. 29, 2022 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Firm”) (CSE: JUSH) (OTCQX: JUSHF), a vertically built-in, multi-state hashish operator, introduced its monetary outcomes for the second quarter 2022 (“Q2 2022”) ended June 30, 2022. The Firm grew to become a U.S. reporting firm efficient August 12, 2022. All monetary info is supplied in U.S. {dollars} except in any other case indicated and are ready underneath U.S. Usually Accepted Accounting Rules (“GAAP”).

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Second Quarter 2022 Highlights

Second Quarter 2022 Operational Highlights

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Latest Developments

Administration Commentary

“We’re happy to report stable second quarter top-line progress and improved sequential profitability, a robust indication that our technique, capital investments and value financial savings initiatives are constructing a robust basis on which we are able to proceed to execute, regardless of the difficult macroeconomic atmosphere,” stated Jim Cacioppo, Chief Government Officer, Chairman and Founding father of Jushi Holdings Inc. “The event of our footprint in Nevada, together with the addition of NuLeaf’s high-quality property, had been significant contributors to our retail efficiency within the second quarter.”

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Mr. Cacioppo continued, “Within the second quarter, we accomplished the primary part of development of the cultivation portion of our grower-processor services in Pennsylvania and Virginia. In these two essential markets for Jushi, we’re centered on increasing manufacturing, bettering the sell-through charge of our own-branded merchandise at our Past Hey^TM shops and building-out our wholesale enterprise. We’re additionally centered on diversifying our product portfolio, together with the introduction of many new strains, together with hydro-carbon merchandise and Dwell Rosin vapes and concentrates that may permit us to distinguish our product providing, whereas persevering with to fulfill shopper demand.”

“Our staff has achieved a commendable job navigating via these difficult market situations. I’m assured that our sturdy basis and value self-discipline will guarantee we keep our momentum into the second half of the 12 months. We’re enthusiastic about what lies forward for Jushi and imagine we’re well-positioned to capitalize on the {industry} alternative and drive long-term worth for our shareholders,” concluded Mr. Cacioppo.

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Use of Non-GAAP Monetary Info

We imagine that the presentation of non-GAAP monetary info supplies necessary supplemental info to administration and buyers relating to monetary and enterprise developments referring to our monetary situation and outcomes of operations. For additional info relating to these non-GAAP measures, together with the reconciliation of those non-GAAP monetary measures to their most immediately comparable GAAP monetary measures, please discuss with the monetary tables beneath, in addition to the “Reconciliation of Non-GAAP Monetary Measures” part of this press launch.

Monetary Outcomes for the Second Quarter 2022

The next is a tabular abstract and commentary of income, gross revenue, adjusted gross revenue, web earnings (loss), and web earnings (loss) per share for the three month intervals ended June 30, 2022, March 31, 2022, and June 30, 2021.

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($ in thousands and thousands, besides per share amounts) 

Income in Q2 2022 elevated 52.4% to $72.8 million as in comparison with $47.7 million within the second quarter of 2021 (“Q2 2021”), pushed by the Firm’s acquisitions in Nevada and Massachusetts, and new Past Hey™ retailer openings in Pennsylvania and Virginia. Income elevated 17.6% to $72.8 million from $61.9 million in Q1 2022. The 17.6% improve in income was primarily pushed by the acquisitions in Nevada within the first half of 2022, together with contributions from 4 new state dispensaries, elevated retail and wholesale exercise in Massachusetts, and progress in retail gross sales in Illinois and Virginia.

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Gross revenue in Q2 2022 was $26.7 million, or 36.7% of income, in comparison with $19.1 million, or 30.9% of income in Q1 2022. Adjusted gross revenue in Q2 2022 was $27.8 million, or 38.3% of income, in comparison with $24.8 million, or 40.0% of income in Q1 2022. Adjusted gross margin was negatively impacted by the underneath absorption of mounted prices on the Firm’s grower-processor services because the wholesale enterprise scales and elevated promotional exercise of Jushi branded merchandise in Pennsylvania.

Working bills in Q2 2002 had been $38.7 million, or 53.3% of income, in comparison with $37.3 million, or 60.3% of income in Q1 2022. The 703 foundation level enchancment in working bills as a proportion of income was primarily pushed by managing labor and staffing bills throughout the group and decrease share primarily based compensation.

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Q2 2022 web earnings was $12.1 million, or $0.06 per primary share and web lack of $0.15 per diluted share, in comparison with web earnings of $3.6 million, or $0.02 per primary share and web lack of $0.09 per diluted share, in Q2 2021. The web lack of $0.15 per diluted share in Q2 2022 was primarily as a result of dilutive affect of the excellent warrant by-product legal responsibility.

Adjusted EBITDA in Q2 2022 was $0.5 million, a rise of $1.4 million as in comparison with $(0.9) million in Q1 2022 and a lower of $4.1 million in comparison with $4.6 million in Q2 2021. Adjusted EBITDA enlargement was slowed by infrastructure and headcount investments at our grower processors that proceed to have a transitional affect because the Firm scales and slower-than-expected progress of wholesale operations.

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Steadiness Sheet and Liquidity

As of June 30, 2022, the Firm had roughly $43.2 million of money and money equivalents. The Firm paid roughly $14 million in capital expenditures throughout Q2 2022. For the steadiness of the 12 months, we count on capital expenditures to be within the vary of $15 to 25 million, previous to any potential tenant enchancment reimbursements or financings, for a complete of $55 to $65 million for the total 12 months 2022, topic to market situations and regulatory adjustments. As of June 30, 2022, the Firm had roughly $200 million in principal quantity of complete debt, excluding leases and property, plant, and tools financing obligations. As of August 29, 2022, the Firm’s Acquisition Facility had $60 million of obtainable capability, together with the $25 million accordion function. As of August 29, 2022, the Firm’s issued and excellent shares had been 195,989,084 and its totally diluted shares excellent had been 290,921,762.

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Outlook

Mr. Cacioppo commented, “Shifting into the second half of the 12 months, we’re revising our fourth quarter 2022 annualized income to be between $320 to $350 million, with a low double digit Adjusted EBITDA margin. On the retail degree, we count on to open three extra Past Hey™ shops within the subsequent 4 months, together with two places in Virginia and one in Ohio. We’re additionally transferring an underperforming retailer in Pennsylvania. Furthermore, we’ll proceed work on including extra operational develop rooms and increasing manufacturing at our grower-processor services as we glance to extend the sell-through charge of our personal branded merchandise via our community of retail shops, together with pursuing wholesale alternatives.”

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Mr. Cacioppo concluded, “By the top of 2022, we count on to function 37 retail places and roughly 330,000 sq. ft. of cultivation and processing capabilities, together with 100,000 sq. ft. of cover. As all the time, we’re fiercely dedicated to producing return on funding for our shareholders, and I look ahead to reporting on the significant strides we count on to make as we proceed to strengthen our enterprise via the rest of 2022.”

Non-Reliance on Beforehand Issued First Quarter 2022 Monetary Statements

In reference to the preparation of the Firm’s unaudited condensed consolidated monetary statements for the three and 6 months ended June 30, 2022, the Firm’s administration recognized errors in its beforehand issued unaudited condensed steadiness sheet as of March 31, 2022, ensuing within the understatement of sure non-current property and related accruals. As well as, administration recognized errors within the unaudited condensed consolidated assertion of money flows for 3 months ended March 31, 2022. Such errors resulted within the understatement of web money flows utilized in working actions, the overstatement of web money flows utilized in investing actions, and the understatement of web money flows supplied by financing actions through the three months ended March 31, 2022. The Firm believes such errors didn’t affect the money steadiness as of March 31, 2022, and additional believes there isn’t any web change in money flows through the three months then ended. The Firm additionally believes that such errors won’t materially affect the unaudited condensed consolidated monetary statements as of and for the three and 6 months ended June 30, 2022.

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Consequently, the Firm will likely be required to restate its unaudited condensed interim consolidated monetary statements for the Quarter Ended March 31, 2022, filed in Canada on the System for Digital Doc Evaluation and Retrieval (“SEDAR”) on Could 27, 2022, as amended on June 24, 2022. 

On August 28, 2022, the Firm’s Audit Committee concluded, after dialogue with the Firm’s administration and its advisors, that the Firm’s beforehand issued unaudited condensed consolidated monetary statements as of and for the three months ended March 31, 2022 (“First Quarter 2022 Interim Monetary Statements “) had been materially misstated because of such errors. Consequently, the Firm’s First Quarter 2022 Interim Monetary Statements ought to now not be relied upon. Equally, any beforehand issued or filed experiences, registration statements, press releases, earnings releases and investor shows or different communications describing the Firm’s First Quarter 2022 Interim Monetary Statements ought to now not be relied upon.

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The Firm will, as quickly as practicable, make the suitable changes, which can embody restated consolidated monetary statements and every other applicable revisions.

Convention Name and Webcast Info

The Firm will host a convention name to debate its monetary outcomes for the second quarter 2022 at 9:00 a.m. ET at this time, Monday, August 29, 2022.

For people unable to hitch the convention name, a webcast of the decision will likely be obtainable for one 12 months following the convention name and could be accessed through webcast on Jushi’s Investor Relations web site.

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About Jushi Holdings Inc.        
We’re a vertically built-in hashish firm led by an industry-leading administration staff. In the US, Jushi is concentrated on constructing a multi-state portfolio of branded hashish property via opportunistic acquisitions, distressed exercises, and aggressive purposes. Jushi strives to maximise shareholder worth whereas delivering high-quality merchandise throughout all ranges of the hashish ecosystem. For extra info, go to jushico.com or our social media channels, Instagram, Fb, Twitter and LinkedIn.

Ahead-Trying Info and Statements   

This press launch incorporates sure “forward-looking info” inside the that means of relevant Canadian securities laws in addition to statements which will represent “forward-looking statements” inside the that means of inside the that means of the Non-public Securities Litigation Reform Act of 1995, Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended. All statements, apart from statements of historic information, contained on this press launch, together with statements relating to our technique, future operations, meant enlargement of our retail operations and manufacturing capability, meant enlargement of our cultivation services, future monetary place, projected prices, prospects, plans and goals of administration, together with with out limitation This fall 2022 annualized steering, in addition to anticipated filings, materiality or significance and results of errors on present or prior interval monetary statements, and any anticipated conclusions of the Firm, the Audit Committee or the Firm’s administration associated thereto, are forward-looking statements. These forward-looking statements are primarily based on Jushi’s present expectations and beliefs regarding future developments and their potential results. Consequently, precise outcomes may differ materially from these expressed by such forward-looking statements and such statements shouldn’t be relied upon. Usually, such forward-looking info or forward-looking statements could be recognized by means of forward-looking terminology similar to “plans,” “expects” or “doesn’t count on,” “is anticipated,” “price range,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “doesn’t anticipate,” or “believes,” or variations of such phrases and phrases or could include statements that sure actions, occasions or outcomes “could,” “may,” “would,” “may” or “will likely be taken,” “will proceed,” “will happen” or “will likely be achieved”. The forward-looking info and forward-looking statements contained herein could embody however should not restricted to, info in regards to the expectations relating to Jushi, or the power of Jushi to efficiently obtain enterprise goals, and expectations for different financial, enterprise, and/or aggressive components. Many components may trigger precise future occasions to vary materially from the forward-looking statements on this press launch, together with dangers associated to the power of Jushi to efficiently and/or well timed obtain enterprise goals, together with with regulatory our bodies, staff, suppliers, clients and opponents; adjustments usually financial, enterprise and political situations, together with adjustments within the monetary markets; adjustments in relevant legal guidelines; compliance with in depth authorities regulation, the chance that extra info could come up previous to the completion of restated condensed consolidated interim monetary statements or different subsequent occasions that might require us to make extra changes, in addition to different dangers, uncertainties and different cautionary statements within the Firm’s public filings with the relevant securities regulatory authorities on the SEC’s web site at www.sec.gov and on SEDAR at www.sedar.com. Ought to a number of of those dangers, uncertainties or different components materialize, or ought to assumptions underlying the forward-looking info or statements show incorrect, precise outcomes could fluctuate materially from these described herein as meant, deliberate, anticipated, believed, estimated, or anticipated.

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Though the Firm believes that the assumptions and components utilized in getting ready, and the expectations contained in, the forward-looking info and statements are cheap, undue reliance shouldn’t be positioned on such info and statements, and no assurance or assure could be provided that such forward-looking info and statements will show to be correct, as precise outcomes and future occasions may differ materially from these anticipated in such info and statements. The forward-looking info and forward-looking statements contained on this press launch are made as of the date of this press launch, and the Firm doesn’t undertake to replace any forward-looking info and/or forward-looking statements which might be contained or referenced herein, besides in accordance with relevant securities legal guidelines. All subsequent written and oral forward-looking info and statements attributable to the Firm or individuals performing on its behalf is expressly certified in its entirety by this discover.

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For additional info, please contact:

Investor Relations Contact:
Michael Perlman
Government Vice President of Investor Relations
561-281-0247
buyers@jushico.com

Media Contact:
Ellen Mellody
570-209-2947
ellen@mattio.com

The monetary outcomes contained herein are the accountability of administration and haven’t been reviewed by the Firm’s impartial registered public accounting agency, stays topic to alter, and shouldn’t be thought-about ultimate till the Firm information its second quarter 2022 Quarterly Report on Kind 10-Q.

JUSHI HOLDINGS INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(in 1000’s of U.S. {dollars}, besides share and per share quantities)

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JUSHI HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(in 1000’s of U.S. {dollars}, besides share quantities)

JUSHI HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in 1000’s of U.S. {dollars})

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JUSHI HOLDINGS INC.
Reconciliation of Non-GAAP Monetary Measures

EBITDA, Adjusted EBITDA and Adjusted Gross Revenue

Along with offering monetary measurements primarily based on GAAP, the Firm supplies extra monetary metrics that aren’t ready in accordance with GAAP. Administration makes use of non-GAAP monetary measures, along with GAAP monetary measures, to grasp and examine working outcomes throughout accounting intervals, for monetary and operational resolution making, for planning and forecasting functions and to guage the Firm’s monetary efficiency. These non-GAAP monetary measures are EBITDA, Adjusted EBITDA and Adjusted Gross Revenue (outlined beneath). Administration believes that these non-GAAP monetary measures mirror the Firm’s ongoing enterprise in a way that permits for significant comparisons and evaluation of developments within the enterprise, as they facilitate evaluating monetary outcomes throughout accounting intervals and to these of peer firms. As there aren’t any standardized strategies of calculating these non-GAAP measures, the Firm’s strategies could differ from these utilized by others, and accordingly, the usage of these measures is probably not immediately corresponding to comparable measures utilized by others, thus limiting their usefulness. Accordingly, these non-GAAP measures are meant to supply extra info and shouldn’t be thought-about in isolation or as an alternative choice to measures of efficiency ready in accordance with GAAP.

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EBITDA, Adjusted EBITDA and Adjusted Gross Revenue are monetary measures that aren’t outlined underneath GAAP. Administration defines EBITDA as web earnings (loss), or “earnings”, earlier than curiosity, earnings taxes, depreciation and amortization. Administration defines Adjusted EBITDA as EBITDA earlier than: (i) non-cash share-based compensation expense and different one-time prices; (ii) inventory-related changes; (iii) truthful worth adjustments in derivatives; (iv) different earnings/expense gadgets (v) transaction prices; and (vi) start-up prices. These monetary measures are metrics which have been adjusted from the GAAP web earnings (loss) measure in an effort to supply readers with a normalized metric in making comparisons extra significant throughout the hashish {industry}, in addition to to take away non-recurring, irregular and one-time gadgets which will in any other case distort the GAAP web earnings measure. Different firms within the Company’s {industry} could calculate this measure in another way, limiting their usefulness as comparative measures. Administration defines Adjusted Gross Revenue as gross revenue, as reported, adjusted to exclude sure inventory-related changes and start-up prices (inside price of products bought).

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JUSHI HOLDINGS INC.
UNAUDITED RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(in 1000’s of U.S. {dollars})

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(1) Web earnings (loss) consists of quantities attributable to non-controlling pursuits.
(2) Contains quantities which might be included in price of products bought and in working bills.
(3) Contains: (i) non-cash share-based compensation expense for the interval; and (ii) severance prices.
(4) Contains: (i) stock step-up on enterprise combos; (ii) stock recall reserves; and (iii) reserves for discontinued merchandise. The stock step-up on enterprise combos relate to the truthful worth write-up on stock acquired on the enterprise acquisition date after which bought subsequent to the acquisition date. The stock recall reserves relate to the estimated affect of the Pennsylvania Division of Well being recall and ban of vape merchandise containing sure hashish concentrates. The ban was lifted in June 2022.
(5) Contains: (i) remeasurement of contingent consideration associated to acquisitions; (ii) losses (good points) on investments and monetary property; and (iii) losses (good points) on authorized settlements.
(6) Enlargement and start-up prices incurred in an effort to put together a location for its meant use. Begin-up prices are expensed as incurred and should not indicative of ongoing operations of every new location.
(7) Transaction prices embody: (i) registration assertion prices similar to skilled charges and different prices referring to our SEC registration; and (ii) acquisition and deal prices.

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JUSHI HOLDINGS INC.
UNAUDITED RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT
(in 1000’s of U.S. {dollars})

(1) Contains: (i) stock step-up on enterprise combos; (ii) stock recall reserves; and (iii) reserves for discontinued merchandise. The stock step-up on enterprise combos relate to the truthful worth write-up on stock acquired on the enterprise acquisition date after which bought subsequent to the acquisition date. The stock recall reserves relate to the potential affect of the Pennsylvania Division of Well being recall and ban of vape merchandise containing sure hashish concentrates. The ban was lifted in June 2022.
(2) Enlargement and start-up prices incurred in an effort to put together a location for its meant use. Begin-up prices are expensed as incurred and should not indicative of ongoing operations of every new location.