Record Quarterly Revenues
DENVER, Nov. 07, 2017 (GLOBE NEWSWIRE) -- General Cannabis Corp (OTCQB:CANN), the comprehensive national resource to the regulated cannabis industry, today announced financial results for the quarter ended September 30, 2017.
For the three months ended September 30, 2017, we reported our highest quarterly revenues on record of approximately $980,000, representing an increase of 21% in total revenues when compared to the three months ended September 30, 2016. Total revenues for the nine months ended September 30, 2017, increased 15% when compared to the nine months ended September 30, 2016.
We are very pleased with our results for the third quarter. We continue to work with our established business segments to lead the national cannabis industry. Our diversified platform continues to produce stable overall revenue growth. Each of our divisions continues to take advantage of the nationwide expansion of state regulated cannabis.
“Next Big Crop continues to generate record revenues in 2017,” said Robert Frichtel, Chief Executive Officer of General Cannabis. “With the expanded legalization of medical and recreational cannabis in numerous states, Next Big Crop’s services are in high demand to assist companies submitting applications to acquire licenses, and to provide operational consulting and products.”
“We remain focused on managing discretionary spending throughout the quarter and enter the end of the year poised for growth,” Frichtel added. “We continue to spend on infrastructure and people that will drive future profitability. We are committed to building and expanding the best platform in the regulated cannabis industry and providing our customers with the highest quality services.”
Our full results can be found at www.generalcann.com/sec-filings/.
Financial Highlights
The following tables summarize our 2017 and 2016 third quarter results:
Three months ended September 30, | Percent | |||||||
2017 | 2016 | Change | ||||||
Segment Revenues | ||||||||
Security | $ | 533,065 | $ | 560,713 | (5 | )% | ||
Marketing | 49,394 | 106,402 | (54 | )% | ||||
Operations | 364,629 | 117,700 | 210 | % | ||||
Finance | 32,903 | 25,565 | 29 | % | ||||
979,991 | 810,380 | 21 | % | |||||
Total costs and expenses | 2,447,655 | 2,108,807 | 16 | % | ||||
Operating loss | (1,467,664 | ) | (1,298,427 | ) | 13 | % | ||
Other (income) expense | (2,054,537 | ) | 13,148,667 | 116 | % | |||
Net income (loss) | $ | 586,873 | $ | (14,447,094 | ) | 104 | % | |
Income (loss) per share | ||||||||
Basic | $ | 0.03 | $ | (0.93 | ) | |||
Diluted | (0.06 | ) | (0.93 | ) |
Nine months ended September 30, | Percent | |||||||
2017 | 2016 | Change | ||||||
Segment Revenues | ||||||||
Security | $ | 1,322,509 | $ | 1,599,907 | (17 | )% | ||
Marketing | 163,216 | 221,563 | (26 | )% | ||||
Operations | 947,725 | 289,566 | 227 | % | ||||
Finance | 99,251 | 93,398 | 6 | % | ||||
2,532,701 | 2,204,434 | 15 | % | |||||
Total costs and expenses | 7,512,692 | 5,349,371 | 40 | % | ||||
Operating loss | (4,979,991 | ) | (3,144,937 | ) | 58 | % | ||
Other (income) expense | (9,205,188 | ) | 13,826,860 | 167 | % | |||
Net income (loss) | $ | 4,225,197 | $ | (16,971,797 | ) | 125 | % | |
Income (loss) per share | ||||||||
Basic | $ | 0.21 | $ | (1.11 | ) | |||
Diluted | (0.21 | ) | (1.11 | ) | ||||
The significant change in the “Other (income) expense” category was due almost entirely to non-cash (gains) expenses associated with changes in the fair value of the warrants issued with our new debt.
Current Business Trends and 2017 Outlook
About General Cannabis Corp
General Cannabis Corp is the comprehensive national resource for the highest quality service providers available to the regulated cannabis industry. We are a trusted partner to the cultivation, production and retail sides of the cannabis business. We do this through a combination of strong operating divisions such as security, marketing, operational consulting and products, real estate and financing. As a synergistic holding company, our divisions are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed. Our website address is www.generalcann.com.
Forward-looking Statements
This presentation contains forward-looking statements that relate to future events or General Cannabis’ future performance or financial condition. Such statements include statements regarding the opportunity for us to significantly expand our business; statements that we are well-positioned to acquire additional businesses or expand into new markets; statements that we expect to make more acquisitions; statements regarding our expectations with respect to growth; statements regarding IPG expanding into California and broadening the suite of services it provides to clients; statements regarding our winter apparel line for the 2017 holiday season and our spring/summer line for 2018; statements regarding opportunities to expand our security business through the acquisition of Mile High Protection Services; statements regarding accelerating trends in state regulated marijuana; and statements regarding the estimates of results for revenue in the fourth quarter of 2017, including with respect to the Security Segment, Marketing Segment and Operations Segment
Any statements that are not statements of historical fact, such as the statements above and including statements containing the words “plans,” “anticipates,” “expects” and similar expressions, should also be considered to be forward-looking statements. These forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as result of a number of factors, including those described from time to time in General Cannabis’ filings with the Securities and Exchange Commission. General Cannabis undertakes no duty to update any forward-looking statements made herein.
Contact
Robert Frichtel
CEO, General Cannabis Corp
(303) 759-1300
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