Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision IR
  • Guaranteed Paid Placement
  • SocialBoost
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision IR
  • SocialBoost
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

Charlotte's Web Holdings, Inc. Reports Third Quarter 2018 Financial Results

Charlotte's Web CBD by Stanley Brothers Q3 Growth (CNW Group/Charlotte’s Web Holdings, Inc.)

News provided by

Charlotte’s Web Holdings, Inc.

Nov 27, 2018, 16:05 ET

Share this article

Share toX

Share this article

Share toX

Q3 revenue of $17.7 million on 57% year-over-year growth

Year-to-date revenue reaches $48.0 million with 34% Adjusted EBITDA

BOULDER, CO, Nov. 27, 2018 /PRNewswire/ - Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") (CSE:CWEB, OTCQX:CWBHF), the market share leader in hemp-based CBD wellness products, today reported financial results for the third quarter and nine-months ended September 30, 2018. All amounts are expressed in United States dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures.

Highlights of Third Quarter 2018 Results versus Third Quarter 2017 Results

  • Organic revenue growth of 57% to $17.7 million
  • Gross profit (before biological asset adjustments) increased 54% to $13.8 million, or 78% of consolidated revenue
  • Adjusted EBITDA increased 23% to $5.4 million, or 31% of consolidated revenue
  • Significant marketing investment made in brand relaunch to be leveraged throughout 2019
  • Completed Initial Public Offering generating net proceeds of $71.5 million

Highlights of Nine-Months 2018 Results versus Nine-Months 2017 Results

  • Organic revenue growth of 75% to $48.0 million
  • Gross profit (before biological asset adjustments) increased 80% to $37.1 million, or 77% of consolidated revenue
  • Adjusted EBITDA increased 71% to $16.2 million, or 34% of consolidated revenue

"During the third quarter we completed a successful initial public offering and private placement that generated significant capital for the Company that is being deployed to accelerate our growth in the hemp-derived CBD sector," said Hess Moallem, President and Chief Executive Officer. "This capital is being used primarily to expand the Company's cultivation and production capacities to meet the increasing demand for our industry leading Charlotte's Web products, both domestically and internationally. Charlotte's Web is the market leader in the rapidly expanding hemp-derived CBD wellness markets, and we are committed to the highest quality products and efficacy. Our future product expansion plans will continue to support the stringent demands and expectations of our valuable customers."

Mr. Moallem added, "a successful passing of the forthcoming 2018 Farm Bill by the US Congress will be a catalyst for the growth in our industry adding further momentum to the evolving market sector. We have contributed to and supported this important legislation from the beginning for the positive impact it will have on consumer access for both hemp-based CBD products and for our valuable farming communities throughout the country." 

"Product portfolio sales increased year-over-year during the quarter with human nutrition products and animal nutrition products growing by 42% and 153%, respectively, with the pet line growing from a smaller base as it was just launched in February of last year," said Mr. Moallem. "In general, broader consumer awareness of the benefits of cannabinoids, namely cannabidiol (CBD), and whole plant hemp extract is driving increased uptake in both our retail channels and within our e-commerce platform."

Primarily available in natural health stores throughout the United States, the Company recently surpassed 3000 retail locations during the quarter after the first a major drug-store chain began carrying Charlotte's Web products in the northwest US. Consumer education is driving demand through ever larger retail chains illustrating the widening mainstream awareness and demand for Charlotte's Web products.

The Company continues to expand its market leading product line, adding two new products in September; a Maximum Strength Hemp Extract Oil and a CBD Isolate Oil. The Maximum Strength Hemp Extract product is a 100% CO2-extracted formulation containing the highest level of CBD in the Company's product line to support overall health and wellness. The Company's new CBD Isolate product, a formulation that contains no more than 13 parts per million tetrahydrocannabinol (THC), gives Charlotte's Web users the ability to add more CBD to their existing full spectrum routine without increasing intake of other cannabinoids, if desired. These products are just the beginning of the Company's expanding product portfolio as new products will continue to be introduced demonstrating the Company's leadership in the market. Additional products are under development where CBD can be incorporated into lifestyle products such as beverages, animal nutrition and other wellness related products.

Third Quarter and Year-to-Date 2018 Results

The following table sets forth selected financial information for the periods indicated.

   

Three months ended

 

Nine months ended

   

September 30,

 

September 30,

U.S. $ millions, except per share data

 

2018

 

2017

 

2018

 

2017

Revenue

 

$

17.7

 

$

11.3

 

$

48.0

 

$

27.5

Gross profit before biological assets adjustment

 

$

13.8

 

$

9.0

 

$

37.1

 

$

20.6

Net impact, fair value of biological assets

 

$

1.5

 

$

0.7

 

$

1.0

 

$

0.6

IPO related costs expensed

 

$

0.5

 

$

-

 

$

1.3

 

$

-

Income before taxes

 

$

2.8

 

$

3.3

 

$

11.9

 

$

7.9

Net income 

 

$

1.8

 

$

2.0

 

$

8.7

 

$

5.1

EPS basic 

 

$

0.02

 

$

0.03

 

$

0.11

 

$

0.06

EPS diluted

 

$

0.02

 

$

0.02

 

$

0.10

 

$

0.06

Adjusted EBITDA

 

$

5.4

 

$

4.4

 

$

16.2

 

$

9.5

                 

Assets:

 

Sep 30, 2018

 

Jun 30, 2018

 

Mar 31, 2018

 

Dec 31, 2017

Cash and cash equivalents

 

$

79.4

 

$

10.8

 

$

10.4

 

$

7.1

Total assets

 

$

110.4

 

$

27.6

 

$

24.3

 

$

19.5

Liabilities:

                       

Long-term liabilities

 

$

2.9

 

$

0.4

 

$

0.4

 

$

0.5

Total liabilities

 

$

14.2

 

$

7.7

 

$

8.3

 

$

6.8

The following information sets forth selected quarterly revenue information for the Company's eight most recent fiscal quarters.

 

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Q4

U.S. $ millions

2018

2018

2018

2017

2017

2017

2017

2016

Total revenue

$

17.7

$

17.2

$

13.1

$

12.5

$

11.3

$

9.1

$

7.1

$

5.0

Revenue for the quarter ended September 30, 2018 (Q3-2018) totaled $17.7 million, compared to $11.3 million for the same period in 2017, representing a 57% increase. On a year-over-year basis for Q3-2018, e-commerce revenue grew by 37% and wholesale, distributor and retail revenue grew by 118%. Revenue from human nutrition products and animal nutrition products grew by 42% and 153%, respectively (the Company's canine products were introduced in February of 2017).

Revenue for the year-to-date period ended September 30, 2018 (YTD-2018) totaled $48.0 million, compared to $27.5 million for the same period in 2017, representing a 75% increase. On a year-over-year basis for YTD-2018, e-commerce revenue grew by 48% and WDR revenue grew by 156%. On a year-over-year basis for YTD-2018, revenue from human nutrition products and canine products grew by 76% and 199%, respectively. The Company's topical products accounted for approximately 2% of total revenue during YTD-2018.

Gross profit totaled $12.3 million for the quarter ended September 30, 2018, compared to $8.2 million for the same period in 2017, a year-over-year increase of 50%. As a percent of total revenue, gross profit in Q3-2018 was 69%, compared to 73% for the same period in 2017. Gross profit prior to biological asset adjustments as a percentage of revenue for both the Q3-2018 and Q3-2017 periods was 78% and 79%, respectively.

Gross profit totaled $36.0 million for the year-to-date period ended September 30, 2018, compared to $20.0 million for the same period in 2017, a year-over-year increase of 80%. As a percent of total revenue, gross profit for YTD-2018 was 75% compared to 73% for the same period in 2017. Gross profit prior to the biological asset adjustment as a percentage of revenue for YTD-2018 was 77%, compared to 75% for the same period in 2017.

For the quarters ended September 30, 2018 and 2017, advertising, promotions and selling costs were $2.8 million and $0.6 million, respectively (year-to-date $4.7 million and $2.1 million, respectively). As a percent of revenue, advertising, promotions and selling costs for the quarters ending September 30, 2018 and 2017 were 15.8% and 5.3%, respectively.

Certain marketing expenditures during Q3-2018 were higher than prior quarters due to a brand relaunch and associated media spend. Significant costs were incurred for production of marketing assets (video, photography and creative) that will be leveraged throughout 2019 within packaging, website, social, print, PR and additional brand awareness, customer acquisition and retention efforts. Additionally, onetime programming and development fees were incurred for the Company's website relaunch to further drive an improved user experience, product education, e-commerce sales and support, and improved customer conversion rates.  

Operating Income decreased slightly during Q3-2018 to $2.5 million (year-to-date $11.7 million) from $3.3 million (year-to-date $8.1 million) during the same period in 2017. Excluding IPO related costs of $0.5 million in Q3-2018 (year-to-date $1.3 million), operating income was $3.0 million (year-to-date $13.0 million) and reflects a significant investment in marketing related activities during the quarter and $1.5 million of adjustments for biological assets.

   

Three months ended

 

Nine months ended

   

September 30,

 

September 30,

U.S. $ millions

 

2018

 

2017

 

2018

 

2017

                 

Net income (loss)

 

$

1.8

 

$

2.0

 

$

8.7

 

$

5.1

Depreciation of property and equipment

 

0.4

 

0.2

 

1.0

 

0.5

Financing costs

 

0.0

 

0.1

 

0.2

 

0.2

Income taxes

 

1.0

 

1.3

 

3.3

 

2.8

EBITDA

 

3.2

 

3.6

 

13.0

 

8.5

Share-based compensation

 

0.2

 

0.1

 

0.6

 

0.3

IPO related costs

 

0.5

 

-

 

1.3

 

-

Impairment of assets

 

0.1

 

-

 

0.2

 

-

Net impact, fair value of biological assets 

 

1.5

 

0.7

 

1.0

 

0.6

Adjusted EBITDA

 

$

5.4

 

$

4.4

 

$

16.2

 

$

9.5

Adjusted EBITDA1 as a percentage of consolidated revenue for the quarters ended September 30, 2018 and 2017 was 31% and 39%, respectively. For the year-to-date period ended September 30, 2018 and 2017, adjusted EBITDA as a percentage of consolidated revenue was 34% for both periods.

Balance Sheet and Cash Flow

The Company used $4.6 million of cash in operations during the third quarter 2018 compared to $2.5 million of cash provided from operations during the third quarter of 2017. The reduction in cash flows from operations primarily reflects the investment in inventory associated with the 2018 hemp crop and other raw materials used in the production process in anticipation of materially increasing revenue opportunities. The Company's cash at September 30, 2018 was $79.4 million compared to $7.1 million on September 30, 2017. Working capital at September 30, 2018 was $90.2 million.

 

Three months ended

       
 

September 30

       
 

2018

 

2017

 

$ Change

 

% Change

Cash beginning of period

$

10.8

 

$

3.2

 

$

7.6

 

237%

Cash flows from (used in):

             

Operating activities

$

(4.6)

 

$

2.5

 

$

(7.1)

 

-281%

Investing activities

$

(1.1)

 

$

(0.8)

 

$

(0.3)

 

35%

Financing activities

$

74.2

 

$

-

 

$

74.3

 

n/a

Cash, end of period

$

79.4

 

$

4.9

 

$

74.5

 

1518%

Consolidated Financial Statements and Management's Discussion and Analysis

The Company's unaudited condensed consolidated interim financial statements and accompanying notes as at and for the three and nine months ended September 30, 2018 and related management's discussion and analysis of financial condition and results of operations ("MD&A") are available under the Company's profile on SEDAR at www.sedar.com and on the Investor Relations section of the Company's website at https://investors.cwhemp.com.

Conference Call

Management will host a conference call to discuss the Company's third quarter 2018 results at 4:30 pm ET on Tuesday, November 27, 2018. To participate in the call, please dial 1-647-427-7450 or 1-888-231-8191 approximately 10 minutes before the conference call and provide conference ID 6842466. A recording of the call will be available through December 4, 2018. To listen to the rebroadcast please dial 1-416-849-0833 and provide the same conference ID.

A webcast of the call can be accessed through the investor relations section of the Charlotte's Web website.

About Charlotte's Web Holdings, Inc.

Charlotte's Web Holdings, Inc. is the market leader in the production and distribution of innovative hemp-based cannabidiol ("CBD") wellness products. Founded by the Stanley Brothers, the Company's premium quality products start with proprietary hemp genetics that are responsibly manufactured into whole plant hemp extracts naturally containing a full spectrum of phytocannabinoids, including CBD, terpenes, flavonoids and other beneficial hemp compounds. Industrial hemp products are non-intoxicating. Charlotte's Web current product categories include tinctures (liquid products), capsules, topical, as well as pet products. Charlotte's Web hemp-based whole plant extracts are sold through select distributors, brick and mortar retailers, and online through the Company's website at www.charlottesweb.com. The rate the Company pays for agricultural products reflects a fair and sustainable rate driving higher quality yield, encouraging food farming practices, and supporting U.S. farming communities.

Charlotte's Web is a socially conscious company and is committed to using business as a force for good and a catalyst for innovation. The Company weighs sound business decisions with consideration for how its efforts affect its employees, customers, the environment, and the communities where its employees live and where it does business, while maximizing profits and strengthening its brands. The Company's management believes that socially oriented actions have a positive impact on the Company, its employees and its shareholders. Charlotte's Web donates a portion of its pre-tax earnings to charitable organizations.

Shares of Charlotte's Web trade on the Canadian Securities Exchange under the symbol "CWEB" and in the United States on the OTCQX under the symbol "CWBHF".  Charlotte's Web has 17,247,246 Common Shares outstanding and 188,816.57 Proportionate Voting Shares convertible at 400:1, for an effective equivalent of 92,773,474 Common Shares outstanding.  

1.     

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) is not a recognized performance measure under IFRS. The term EBITDA consists of net income (loss) and excludes interest (financing costs), taxes and depreciation. Adjusted EBITDA also excludes share-based compensation, IPO related costs, impairment of assets and adjustments for fair valuing of biological assets. Adjusted EBITDA is included as a supplemental disclosure because Management believes that such measurement provides a better assessment of the Company's operations on a continuing basis by eliminating certain non-cash charges and charges or gains that are nonrecurring. The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net income (loss). The following is a reconciliation of the Company's net income (loss) to Adjusted EBITDA.

Forward-Looking Information

This press release may contain forward-looking information within the meaning of applicable securities legislation. In the interest of providing the shareholders and potential investors of Charlotte's Web Holdings, Inc. with information about the Company and its subsidiaries, including management's assessment of the Company and its subsidiaries' future plans and operations, certain information provided in this press release constitutes forward-looking statements or information (collectively, "forward-looking statements"). Forward-looking statements are typically identified by words such as "may", "will", "should", "could", "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Although these forward-looking statements are based on assumptions the Company considers to be reasonable based on the information available on the date such statements are made, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors which may cause actual results, levels of activity, and achievements to differ materially from those expressed or implied by such statements. The forward-looking information contained in this press release is based on certain assumptions and analysis by management of the Company in light of its experience and perception of historical trends, current conditions and expected future development and other factors that it believes are appropriate.

The Company's forward-looking statements are subject to risks and uncertainties pertaining to, among other things, revenue fluctuations, nature of government regulations, economic conditions, loss of key customers, retention and availability of executive talent, competing products, common share price volatility, loss of proprietary information, product acceptance, internet and system infrastructure functionality, information technology security, cash available to fund operations, availability of capital and, international and political considerations, including but not limited to those risks and uncertainties discussed under the heading "Risk Factors" in the MD&A and the Company's other filings with securities regulators. The impact of any one risk, uncertainty, or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent, and the Company's future course of action depends on Management's assessment of all information available at the relevant time. Except to the extent required by law, the Company assumes no obligation to publicly update or revise any forward-looking statements made in this press release, whether as a result of new information, future events, or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.

CHARLOTTE'S WEB HOLDINGS, INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In thousands of United States dollars)

 
         
   

September 30,
2018

 

December 31,
2017

ASSETS

     

Current assets:

     
 

Cash

$

79,359

 

$

7,056

 

Trade and other receivables

3,456

 

2,129

 

Inventories

14,396

 

4,808

 

Prepaid expenses and other current assets

4,299

 

436

   

101,510

 

14,429

Non-current assets:

     
 

Property and equipment, net 

4,915

 

3,373

 

Deferred tax assets

3,167

 

549

 

Loan due from related party 

107

 

107

 

Other long-term assets 

683

 

996

   

$

110,382

 

$

19,454

         

LIABILITIES AND SHAREHOLDERS' EQUITY

     

Current liabilities:

     
 

Accounts payable

$

3,675

 

$

948

 

Accrued liabilities

6,838

 

3,343

 

Deferred revenue

438

 

490

 

Income taxes payable

53

 

157

 

Convertible note 

-

 

1,040

 

Current portion of notes payable 

9

 

15

 

Current portion of finance lease obligations

282

 

299

   

11,295

 

6,292

Non-current liabilities:

     
 

Long-term note payable 

14

 

28

 

Long-term finance lease obligations 

188

 

397

 

Deferred rent

76

 

98

 

Other long-term liabilities

2,643

 

-

   

14,216

 

6,815

Shareholders' equity:

     
 

Share capital 

79,222

 

5,835

 

Contributed surplus

2,271

 

787

 

Retained earnings 

14,673

 

6,017

   

96,166

 

12,639

 

Commitments

     
   

$

110,382

 

$

19,454

CHARLOTTE'S WEB HOLDINGS, INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

(In thousands of United States dollars)

       
       
 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

2018

 

2017

 

2018

 

2017

               

Revenue

$

17,736

 

$

11,274

 

$

48,046

 

$

27,454

Cost of sales

3,967

 

2,318

 

10,990

 

6,877

Gross profit before loss on fair value of biological assets

13,769

 

8,956

 

37,056

 

20,577

Realized fair value amounts included in inventory sold

(147)

 

(50)

 

(600)

 

(167)

Unrealized fair value loss on growth of biological assets 

1,622

 

789

 

1,622

 

789

Gross profit 

12,294

 

8,217

 

36,034

 

19,955

Expenses:

             

General and administrative 

5,272

 

3,214

 

14,252

 

7,274

Sales and marketing 

3,910

 

1,507

 

8,385

 

4,244

Research and development 

132

 

157

 

386

 

380

Initial public offering related costs

473

 

-

 

1,332

 

-

 

9,787

 

4,878

 

24,355

 

11,898

Operating income

2,507

 

3,339

 

11,679

 

8,057

Financing costs

(31)

 

(69)

 

(160)

 

(180)

Interest income

138

 

7

 

191

 

9

Other income 

196

 

-

 

196

 

-

Income before taxes

2,810

 

3,277

 

11,906

 

7,886

Income taxes

(987)

 

(1,250)

 

(3,250)

 

(2,769)

Net income (loss) and comprehensive income (loss)

$

1,823

 

$

2,027

 

$

8,656

 

$

5,117

               

Weighted average number of common shares - basic 

83,472,950

 

79,439,113

 

80,792,665

 

79,144,336

Weighted average number of common shares - diluted

91,501,078

 

84,626,894

 

86,937,632

 

84,332,118

               

Earnings per share - basic 

$

0.02

 

$

0.03

 

$

0.11

 

$

0.06

Earnings per share - diluted 

$

0.02

 

$

0.02

 

$

0.10

 

$

0.06

CHARLOTTE'S WEB HOLDINGS, INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(In thousands of United States dollars)

               

Nine months ended September 30, 2017

Share
capital

 

Contributed
surplus

 

Retained
earnings
(deficit)

 

Total

               

Balance - December 31, 2016

$

5,835

 

$

327

 

$

(1,458)

 

$

4,704

               

Share-based compensation expense

-

 

294

 

-

 

294

               

Net income

-

 

-

 

5,117

 

5,117

               

Balance - September 30, 2017

$

5,835

 

$

621

 

$

3,659

 

$

10,115

               

Nine months ended September 30, 2018

Share
capital

 

Contributed
surplus

 

Retained
earnings
(deficit)

 

Total

               

Balance - December 31, 2017

$

5,835

 

$

787

 

$

6,017

 

$

12,639

               

Initial public offering

71,958

 

-

 

-

 

71,958

               

Private placement 

4,256

 

-

 

-

 

4,256

               

Exercise of stock options

42

 

-

 

-

 

42

               

Issuance of broker stock warrants 

(845)

 

845

 

-

 

-

               

Exercise of broker stock warrants 

1,782

 

-

 

-

 

1,782

               

Share-based compensation expense

-

 

639

 

-

 

639

               

Share issuance costs

(3,806)

 

-

 

-

 

(3,806)

               

Net income

-

 

-

 

8,656

 

8,656

               

Balance - September 30, 2018

$

79,222

 

$

2,271

 

$

14,673

 

$

96,166

CHARLOTTE'S WEB HOLDINGS, INC.

       

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of United States dollars)

       
           
     

Nine months ended September 30, 

     

2018

 

2017

Cash flows from operating activities:

       
 

Net income

 

$

8,656

 

$

5,117

Items not involving cash:

       
 

Depreciation

 

951

 

475

 

Loss from change in fair value of biological assets

 

1,622

 

621

 

Accretion on convertible note

 

71

 

105

 

Loss from change in fair value of convertible note

 

(66)

 

(63)

 

Allowance for doubtful accounts

 

119

 

(13)

 

Write down obsolete inventory

 

181

 

-

 

Deferred rent

 

(22)

 

(28)

 

Share-based compensation

 

639

 

294

 

Gain on sale of assets

 

(28)

 

-

 

Deferred income taxes

 

(2,617)

 

(13)

           

Changes in working capital:

       
 

Trade and other receivables

 

(1,446)

 

(691)

 

Inventories

 

(11,391)

 

(1,031)

 

Prepaid expenses and other current assets

 

(3,863)

 

(307)

 

Accounts payable 

 

2,727

 

(142)

 

Accrued liabilities

 

3,494

 

1,473

 

Income taxes

 

(104)

 

(819)

 

Deferred revenue

 

(52)

 

(130)

 

Other long-term liabilities

 

2,643

 

-

     

1,514

 

4,848

           

Cash flows from investing activities:

       
 

Purchases of property and equipment

 

(2,503)

 

(1,404)

 

Proceeds from sale of assets

 

38

 

-

 

Other long-term assets

 

313

 

(496)

     

(2,152)

 

(1,900)

           

Cash flows from financing activities:

       
 

Proceeds from initial public offering

 

71,958

 

-

 

Proceeds from private placement

 

4,256

 

-

 

Proceeds from stock warrant exercise

 

1,782

 

-

 

Payments on notes payable

 

(20)

 

(10)

 

Payments on finance lease obligations

 

(226)

 

(159)

 

Payments on convertible note

 

(1,000)

 

-

 

Debt settlement

 

(45)

 

-

 

Share issuance costs

 

(3,806)

 

-

 

Proceeds from sale of common stock

 

42

 

-

 

Proceeds from notes payable

 

-

 

1,038

     

72,941

 

869

           
 

Increase in cash 

 

72,303

 

3,817

 

Cash, beginning of year

 

7,056

 

1,090

 

Cash, end of period

 

$

79,359

 

$

4,907

           
 

Supplemental disclosures of cash flow information:

       
 

Cash paid for interest

 

$

31

 

$

73

SOURCE Charlotte’s Web Holdings, Inc.

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED

Modal title

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • Asia
  • APAC
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Korea
  • Italy
  • Japan
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.