SHWZ - Schwazze (SHWZ) - Poised for a Breakout 2022

4Q21 Results. Revenue for the quarter totaled $26.5 million, up from $7.9 million a year ago, but down from $31.8 million in the third quarter. The sequential drop was due to overall softness in cannabis in Colorado during the quarter, both on the retail and wholesale level. Adjusted EBITDA was $7.5 million in the quarter. Schwazze reported $5.5 million of net income, or $0.13 per share.Strong Metrics. Two year stacked IDs for the quarter were 40.4% and one year IDs were 4.9%. Average basket size for 4Q21 was $59.70, up 12.1% y-o-y. Customer visits in the quarter totaled 329,357, down 7.2% y-o-y. Once again, Schwazze outperformed the overall Colorado market making it four quarters in a row, a testament to management's focus on the operating strategy, in our view.More Growth to Come. New Mexico adult recreational goes live today and we expect adult recreational to drive New Mexico sales during 2022. In Colorado, Schwazze is now the largest cannabis company by revenues in the state and we expect additional growth as management continues to implement the operating playbook and seeks out additional tuck-in acquisitions.Guidance. Management provide the following guidance for 2022: Fourth quarter 2022 projected revenue will be at an annualized revenue run rate in the $220-$260 million range and fourth quarter 2022 projected adjusted EBITDA annualized run rate in the $70-$82 million range. There could be upside potential from additional acquisitions. Read More >>