Revenue increased 19% versus the second quarter in 2018; up 40% from first quarter 2019
IRVINE, CA / ACCESSWIRE / August 8, 2019 / Terra Tech Corp. (OTCQX:TRTC) (“Terra Tech” or the “Company”), a vertically integrated cannabis-focused agriculture company, today announced its financial results for the period ended June 30, 2019.
Derek Peterson, Chief Executive Officer of Terra Tech, commented, “We generated $10.37 million in revenue during the second quarter of 2019, a 19% increase from the $8.72 million in the same period of 2018. Gross margins saw a 526-basis point improvement over the prior year’s quarter due to our lower cost of goods and higher margin private label sales. These strong results were driven by one of our healthiest quarters on the retail level, especially in our San Leandro dispensary which commenced adult use sales in May, further positioning us as a leading vendor in California.
“The Company is as lean and healthy as it has ever been, and future quarterly results are expected to reflect the strength of our retail position and streamlined operations. In addition to our San Leandro performance, this quarter has seen several other milestones, including the launch of Terra Tech’s cannabis delivery service in Santa Ana which has cemented us as a major supplier of medical and adult-use cannabis to Santa Ana and its surrounding cities. The Company has made substantial headway in Nevada as well, where we started the process of opening our Blüm CBD store located in a highly trafficked section of Downtown Las Vegas. In Reno, we acquired complete ownership of our Blüm Reno dispensary allowing us to ramp cultivation and production.
“Our quarterly performance shows that the Company is trending in the right direction. Our restructuring program is well underway and we have already begun transitioning out of our non-core assets, streamlined both our operations and headcount, and identified some potential acquisition targets. Terra Tech is also looking to leverage relationships to investigate operations in the global CBD market due to its wide appeal, opposed to the heavily regulated cannabis market which is yet to see the same level of acceptance. We have a clear path to profitability and remain committed to building shareholder value,” concluded Mr. Peterson.
Financial Update
Business Update
California:
Nevada:
Conference Call
The company will also host a conference call on Thursday, August 8, 2019 at 4:30 PM Eastern.
Dial-In Number: 1-857-232-0157
Access Code: 422095
Derek Peterson, Chairman and CEO of Terra Tech Corp., will be answering shareholder questions at the end of the call. Should you have questions during or prior to the conference call please send an email to [email protected] with TRTC Question in the subject line. Mr. Peterson will answer as many questions as time will allow.
For those unable to participate in the live conference call, a replay will be available at https://www.smallcapvoice.com/trtc/. An archived version of the webcast will also be available on the investor relations section of the company's website.
To be added to the Terra Tech email distribution list, please email [email protected] with TRTC in the subject line.
About Terra Tech
Terra Tech Corp. (OTCQX:TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Blüm's retail and medical cannabis facilities provide the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions as well as premium cannabis to the adult-use market in Nevada and California. Blüm offers a broad selection of cannabis products including; flowers, concentrates and edibles through its multiple California and Nevada locations. IVXX, Inc. is a wholly-owned subsidiary of Terra Tech that produces cannabis-extracted products for regulated cannabis dispensaries throughout California and dispensaries in Nevada. The Company's wholly-owned subsidiary, Edible Garden, cultivates a premier brand of local and sustainably grown hydroponic produce, sold through major grocery stores such as ShopRite, Walmart, Ahold, Aldi, Meijer, Kroger, Stop & Shop and others nationwide. Terra Tech's MediFarm LLC subsidiaries are focused on medical and adult-use cannabis cultivation and permitting businesses throughout Nevada.
For more information about Blüm Retail Stores visit: http://letsblum.com
Visit us on Facebook @ https://www.facebook.com/terratechcorp/timeline
Follow us on Instagram @letsblum
Follow us on Twitter @terratechcorp
For more information about Edible Garden visit: http://www.ediblegarden.com/
Visit Edible Garden on Facebook @ https://www.facebook.com/ediblefarms?fref=ts
Cautionary Language Concerning Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to Terra Tech Corp. (the "Company") or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the Company's filings with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after such date.
Contact:
Philip Carlson
KCSA Strategic Communications
[email protected]
212-896-1238
TERRA TECH CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except for Shares and per-Share)
June 30, | ||||||||
2019 | 2018 | |||||||
Total Revenues | $ | 10,372 | $ | 8,718 | ||||
Cost of Goods Sold | 5,457 | 5,046 | ||||||
Gross Profit | 4,915 | 3,672 | ||||||
Selling, General and Administrative Expenses | 12,048 | 9,862 | ||||||
Loss from Operations | (7,133 | ) | (6,190 | ) | ||||
Other Income (Expense): | ||||||||
Impairment of Assets | (510 | ) | 0 | |||||
Interest Expense, Net | (4,061 | ) | (3676 | ) | ||||
Other Income/(Loss) | 1,022 | - | ||||||
Gain / (Loss) in Interest in Equity Investment | 350 | - | ||||||
Total Other Income (Expense) | (3,199 | ) | (3,676 | ) | ||||
Net Loss | (10,332 | ) | (9,866 | ) | ||||
Net Income (Loss) Attributable to Non-Controlling Interest | (191 | ) | 105 | |||||
NET LOSS ATTRIBUTABLE TO TERRA TECH CORP. | $ | (10,141 | ) | $ | (9,971 | ) | ||
Net Loss Per Common Share Attributable to Terra Tech Corp. Common Stockholders - Basic and Diluted (1) | $ | (0.10 | ) | $ | (0.15 | ) | ||
Weighted-Average Number of Common Shares Outstanding - Basic and Diluted (1) | 105,360,358 | 68,734,997 |
(1) Adjusted to reflect the one-for-15 reverse stock split. See "Note 1 - Description of Business."
TERRA TECH CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except for Shares)
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 1,922 | $ | 7,193 | ||||
Accounts Receivable | 2,310 | 1,247 | ||||||
Inventory | 3,777 | 2,280 | ||||||
Assets Held for Sale | 11,122 | 7,501 | ||||||
Prepaid Expenses and Other Current Assets | 1,108 | 741 | ||||||
Total Current Assets | 20,212 | 18,962 | ||||||
Property, Equipment and Leasehold Improvements, Net | 43,441 | 34,139 | ||||||
Intangible Assets, Net | 28,137 | 18,466 | ||||||
Goodwill | 36,757 | 35,173 | ||||||
Other Assets | 10,671 | 897 | ||||||
Other Investments | 5,000 | 12,451 | ||||||
TOTAL ASSETS | $ | 144,218 | $ | 120,088 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES: | ||||||||
Current Liabilities: | ||||||||
Accounts Payable and Accrued Expenses | $ | 8,612 | $ | 6,901 | ||||
Total Current Liabilities | 8,612 | 6,901 | ||||||
Long-Term Liabilities: | ||||||||
Long-Term Debt, Net of Discounts | 15,863 | 18,313 | ||||||
Long-Term Lease Liabilities | 9,603 | - | ||||||
Total Long-Term Liabilities | 25,466 | 18,313 | ||||||
Total Liabilities | 34,078 | 25,214 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Preferred Stock, Convertible Series A, Par Value 0.001: | - | - | ||||||
100 Shares Authorized as of March 31, 2019 and December 31, 2018; 12 Shares Issued and Outstanding as of March 31, 2019 and December 31, 2018 | - | - | ||||||
Preferred Stock, Convertible Series B, Par Value 0.001: | - | - | ||||||
41,000,000 Shares Authorized as of March 31, 2019 and December 31, 2018; 0 Shares Issued and Outstanding as of March 31, 2019 and December 31, 2018 | - | - | ||||||
Common Stock, Par Value 0.001: | - | - | ||||||
990,000,000 Shares Authorized as of March 31, 2019 and December 31, 2018; 100,648,444 and 81,759,415 Shares Issued and Outstanding as of March 31, 2019 and December 31, 2018, respectively (1) | 109 | 82 | ||||||
Additional Paid-In Capital (1) | 255,112 | 236,543 | ||||||
Accumulated Deficit | (157,965 | ) | (142,754 | ) | ||||
Total Terra Tech Corp. Stockholders' Equity | 97,256 | 93,870 | ||||||
Non-Controlling Interest | 12,884 | 1,003 | ||||||
Total Stockholders' Equity | 110,140 | 94,874 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 144,218 | $ | 120,088 |
SOURCE: Terra Tech Corp.