1933 Industries Inc (CSE:TGIF) (OTCMKST:TGIFF) posted fiscal year 2019 results after the close on Thursday that saw revenue jump 44% year-on-year to $18.1 million, driven by strong contributions from its cannabis subsidiaries.
The Vancouver-based company said its 100% owned subsidiary, Infused Manufacturing — a Las Vegas-based manufacturer of hemp and cannabidiol-based medicinal and skincare products — contributed $9.9 million in annual revenue.
Similarly, its 91%-owned Alternative Medicine Association LC (AMA) — a licensed medical and adult-use cannabis cultivation and production facility in Las Vegas that creates its own line of products and manufactures other company’s brands — contributed $8.1 million in total revenue. AMA’s products include concentrates such as Cake Batter, Crumble and Sugar; a vape pen sold with distillate oil; and several flower strains.
Meanwhile, for the fourth quarter, the company said “steady growth across its subsidiaries” netted $5.2 million in revenue, the largest quarterly haul for the company.
The company’s net loss for the year stood at $19.1 million of which $5 million was chalked-up to a one-time non-cash impairment write-down of a non-performing subsidiary, and $3.4 million in biomass purchases.
For the fiscal year 2019 ended in July, the company said it had working capital of $22.5 million, compared to $11 million on July 31, 2018.
The company had a strong balance sheet with a cash position of $17.6 million, compared to $5.1 million a year earlier.
Focused on long-term viability
In a statement accompanying 1933’s latest numbers, CEO Chris Rebentisch said: “We are razor-focused on continuing to ensure the long-term viability of the company. We have implemented cost-cutting measures aimed at reducing our current operating expenses, improving efficiencies and strengthening our product offerings.”
“Exceeding expectations, we increased revenues by 44% from our previous year while awaiting our new cultivation facility to become operational. We oversaw