MJardin Group Announces Third Quarter 2019 Financial Results

DENVER and TORONTO, Nov. 25, 2019 (GLOBE NEWSWIRE) — MJardin Group, Inc. (“MJardin” or “the Company”) (CSE: MJAR) (OTCQX: MJARF), a leader in premium cannabis production, today announced its financial and operating results for the three and nine-month periods ending September 30, 2019. All amounts are expressed in Canadian dollars unless otherwise indicated.
Q3 and YTD 2019 Highlights:Revenue of $7.6 million, includes $0.8M contribution from Cheyenne since acquisition date;Generated positive Adjusted EBITDA of $0.5 million;Sequential revenue growth from AMI facility of 47% compared to the prior quarter;Improved efficiencies by reducing corporate overhead by 45%;Announced first EU Supply agreement from the AMI facility for 250 KG a month beginning in the first quarter of 2020;Submitted application to Health Canada for a cultivation license at MJardin’s “GRO” facility in Dunnville, Ontario and received official RMI from Health Canada. MJardin expects full licensing at the facility by Q4 2019;Production metrics at our AMI and WILL facility continue to produce at approximately 60 grams per square foot;MJardin anticipates providing revised guidance as part of its full-year 2019 financial reporting in early 2020.Subsequent Events:October 4, 2019 – MJardin advanced the previously disclosed purchase price pursuant to the signed LOI with Peguis First Nation and began construction on Phase 2 of the Warman Project;October 18, 2019 – MJardin prepaid a portion of the purchase price of the previously disclosed Cannabella transaction. In consideration for the pre-payment of a portion of the purchase price, MJardin will receive certain benefits under its management agreement with Cannabella that it would otherwise have had to wait until closing to receive;  November 12, 2019 – MJardin signed a partnership agreement with Robes Inc. to cultivate and distribute Robes Cannabis and BLLRDR Brands.”The third quarter results reflect another period of building out size and scale across our operational platform, which as expected comes with challenges in any business, however we continue to successfully tackle these issues as we execute against our strategic plans which are centred around growth and profitability in 2020,” commented Pat Witcher, CEO of MJardin. “We further reduced SG&A and have decreased those costs by 45% compared to Q2 2019. This allows us to focus on and effectively allocate resources to developing our product lines within Health Canada’s upcoming regulations around extraction, edibles and topicals. We continue to invest in these business lines on both sides of the border. Responsible deployment of capital to maximize shareholder value remains our top priority as we grow our operational footprint with accelerated revenue growth.”Second Quarter Financial Summary
Non-IFRS MeasuresEBITDA, Adjusted EBITDA and Adjusted Net Loss from Operations are non-IFRS measures that the Company uses to assess its operating performance.EBITDA is defined as net earnings (loss) before net finance costs, income tax expense (benefit) and depreciation and amortization expense.Adjusted EBITDA is defined as EBITDA adjusted to exclude: impairment, settlements, share-based compensation, advisory fees and listing expenses, loss on foreign exchange and gain (loss) from equity investments and one-time gains or losses. Adjusted Net Loss from Operations is defined as operating income (loss) adjusted to exclude share-based compensation.The Company uses these non-IFRS measures to provide investors and others with supplemental measures of its operating performance. The Company believes these non-IFRS measures are important supplemental measures of operating performance because they eliminate items that have less bearing on the Company’s operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company also believes that securities analysts, investors and other interested parties frequently use these non-IFRS measures in the evaluation of issuers, many of which present similar metrics when reporting their results.  As other companies may calculate these non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies.RevenueMJardin continued the development of the sales of cannabis from its owned facilities, generating the first sales from the Cheyenne facility post license transfer of $0.8 million as well as recording $0.3 million in sales in the third quarter from the WILL facility.The Company’s Colorado operations continue to provide consistent revenues, generating $6.5 million in the third quarter.Gross Margin