SHWZ - Schwazze (SHWZ) - Reports 3Q21 Results Adding Another Dispensary

3Q21 Results. Revenue totaled $31.8 million, up from $30.7 million sequentially, and up 328.4% over the same period last year. Adjusted EBITDA for the quarter was $8.8 million, down from $10.0 million sequentially and representing a 27.6% margin. Schwazze recorded net income of $968,756, or $0.02 per diluted share compared to a loss of $2.9 million, or $0.07 per share, last year. We were at $34.2 million and $0.06, respectively.Operating Metrics Improving. Notably, Schwazze continues to outperform the overall Colorado market, with sales at the 17 Star Buds up 1% in the quarter compared to an overall decline in the market of 10.5%. Average basket size was $59.05, up 7.3%. Recorded customer visits fell 5.8% in the quarter, but were up 5.1% YTD to 1,046,232. GM increased to 47.3% from 37.4% last year.Continued Acquisition Growth. Yesterday, Schwazze also announced an agreement to purchase Smoking Gun, which operates a dispensary in the center of the greater Denver area. Schwazze is paying $4 million plus 100,000 common shares for the assets. The addition will increase Schwazze's dispensary count to 20.Updated Guidance. Management tightened its 2021 revenue guidance to $110-$115 million, down from a previous $110-$125 million and its adjusted EBITDA range to $32-$34 million from a prior $30-$36 million. We believe the lowering of the top end is a reflection of the cycling through the COVID generated upswing from 2020, while the increase in the low-end of the adjusted EBITDA range reflects better operating performance from the Company.Call With Management. We are having a follow up call with management to discuss the quarter. We will update our models and provide additional commentary following the call. Read More >>