Unrivaled Brands (OTCQX:UNRV) Inc posted revenue of $20.73 million in the quarter ended March 31, 2022, a whopping 907.5% increase from the $2.06 million it recorded in the year-ago period, thanks to a swift transformation plan to tighten operations and improve financial systems and control.
The company said revenue for the fiscal first quarter composed of retail revenue of $12.11 million and cultivation/distribution revenue of $8.62 million, compared to $1.70 million and $0.36 million, respectively.
"I am pleased to report that after an exhaustive review of each of the company's business units, we have made significant strides in tightening operations and improving financial systems and controls. We have addressed and continue to identify meaningful opportunities to reset the cost structure,” Tiffany Davis, Unrivaled Brands (OTCQX:UNRV) CEO said in a statement.
READ: Unrivaled Brands outlines 100-day transformation plan to drive profitability
Unrivaled Brands (OTCQX:UNRV) said selling, general and administrative expenses for 1Q were up 48.4% to $18.77 million as a result of the merger with UMBRLA and the acquisitions of People's First Choice and SilverStreak Solutions in 2021, which led to more operations with additional facilities, employees and costs to support them.
The company provided the following selected expense items (year-over-year):
- Amortization and depreciation expenses increased by $2.76 million
- Facilities-related expenses such as rent, utilities, repairs and maintenance, security and insurance increased by $2.38 million
- Option expense and director's compensation increased by $1.81 million with the addition of two more board members or 196 percent
- Taxes, licensing and permitting increased by $1.27 million
- Advertising increased by $900,000
- Employee-related expenses decreased by $4.86 million or 69.4%
Next Steps
Unrivaled Brands (OTCQX:UNRV) is taking necessary steps to restructure its debt, starting with People's First Choice which will help preserve operating cashflow, Davis said, adding that the company is also actively pursuing sources of non-dilutive capital.
"We realize any transformation takes time and we have a lot of work ahead of us. We expect to announce new members of the management team who have successfully led relevant transformation and turnarounds prior to joining Unrivaled,” she said.
“Together, we are making progress and I look forward to sharing more details on our refined strategy and the resulting specific accomplishments in the coming weeks and months," she added.
Unrivaled Brands (OTCQX:UNRV) operates four dispensaries in California, as well as direct-to-consumer delivery, a state-wide distribution network, company-owned brands, and two cultivation facilities. In Oregon, it operates a state-wide distribution network, company-owned brands and outdoor and greenhouse cultivation.
Contact the author at jon.hopkins@proactiveinvestors.com