SHWZ - Schwazze (SHWZ) - Reports 4Q20 and Full Year Results

4Q Results. For the fourth quarter, Schwazze reported revenue of $7.9 million, an increase of approximately 139% as compared to $3.3 million during the same period in 2019 and a net loss of $8.5 million, or $0.21 per share, compared to a net loss of $3.4 million, or $0.10 per share, for 4Q19. We had forecast revenue of $8.1 million and a net loss of $2.6 million, or $0.06 per share.Star Buds Update. The Company is currently integrating the 13 Star Buds dispensary locations into its data-driven operating system to create operational and financial synergies and expects to complete the process by mid-June. Together with Schwazze and the proforma revenue for 2020 Mesa Organics Ltd, acquired by Schwazze in April 2020, total 2020 proforma revenue is estimated to be approximately $100 million on a combined basis. The 13 Star Buds generated total revenue in 2020 of approximately $75 million.Currently Cash Flow Positive. In what we believe is a significant accomplishment, so far in 2021, the Company is generating positive cash flow. Positive cash flow provides the Company with greater options in financing future acquisitions as well as a means of paying down past acquisition debt. 2021 Guidance and More? The Company provided the following outlook for 2021 guidance: revenue in a range of $105-$125 million and adjusted EBITDA in the $28-$36 million range. Notably, the guidance excludes any unannounced acquisitions; however, management set a goal to double proforma revenue over the next twelve months through accretive acquisitions and internal growth. Projections and Price Target. We will update our projections and price target following our follow-up call with management. For now, we are maintaining our Outperform rating and $4.00 price target.Read More >>