STMH - Stem Holdings (STMH)(STEM:CA) - Reports Full Year FY2021 Results
FY2021 Results. Stem reported net revenue of revenue of $35.8 million compared to $14.0 million last year. Excluding the subsequently divested Driven operations, net revenue totaled $20.9 million, up 49% y-o-y. Adjusted EBITDA loss for the year totaled $5.8 million, compared to a loss of $5.4 million in fiscal 2020. Stem reported a net loss of $64.6 million for the year, including $52.3 million of non-cash impairment charges. Reported EPS loss was $0.40.FY4Q21. Although Stem did not disclose fourth quarter 2021 results, by our calculations net revenue was $9.2 million, up from $5.2 million in the year ago period but down from the $10.6 million in the fiscal third quarter. Driven results are included for the full quarter. Reflecting the Driven impairment charge, net loss was $55.2 million, or $0.23 per share.Current Strategy. Operationally, the focus will be on the Oregon and California retail and growing businesses. However, the Oregon market has fallen back to pre-COVID sales levels while the California industry is struggling. On the positive side, Stem did receive a recreational license in California which should help drive sales. As for the rest of its ownership interests, management stated that if a 100% ownership level was unobtainable, the disposal of such interests would be an alternative.Updated Projections. Management is confident of improving operations at two lagging retail locations as well as significant upside to improve yields at its grow operations. Timing of such is unclear, however. The fiscal first quarter will include Driven for most of the quarter. We are forecasting revenue of $8.5 million for the quarter and a net loss of $4.95 million, or $0.02 per share.Maintaining Market Perform. With the Company's future still in a state of flux, we are maintaining our Market Perform rating. We believe the Company has an attractive position in the Oregon market and a solid performer in its California location but it is unclear what the outcome of the Company's other holdings will be nor its competitive advantage over the increasing number of MSOs. Read More >>