C21 Investments Announces Q2 Results – PRNewswire

Cash Flow of $4.2 Million Highlights Strong Operating Performance

VANCOUVER, BC, Sept. 24, 2020 /PRNewswire/ – C21 Investments Inc. (CSE: CXXI) (OTCQB: CXXIF) (“C21” or the “Company”), a leading vertically integrated cannabis company, today announced unaudited results for its second quarter ended July 31, 2020. 

Q2 Highlights: (all currency in U.S. dollars)

(May 1, 2020 to July 31, 2020):

Revenue of $9.4 million – an increase of 15% over Q1 Gross Margin of $4.8 million (before fair value adjustments), up 65% from Q1; Gross Margin of 51% Adjusted EBITDA[1] of $3.0 million; first quarter reporting Positive Adjusted EBITDA1 from Oregon Operations Cash Flow from Operations of $4.2 million, an increase of $2.8 million or 200% from Q1 Income from Operations of $2.5 million (before fair value adjustments) Delivered Positive Earnings Per Share

Management Commentary:

Revenue for the second quarter was $9.4 million, an increase of 15% from Q1.  The Nevada retail operations generated a record run-rate for the quarter, up 23% from the previous quarter.  Gross Margin of $4.8 million this quarter represented a 65% improvement from Q1.  This was driven largely by higher sales, lower delivery costs as the business was able to resume in-store operations, and the substantial efficiency gains achieved in the Oregon operations. 

Adjusted EBITDA1 was $3.0 million in the quarter – a 32% EBITDA Margin.  In addition to strong revenues, the quarter benefited significantly from the cost reduction efforts over the last 12 months.  Q2 SG&A expenses were down more than 50% from a year ago.  The consolidation and streamlining of the Oregon operations resulted in this segment delivering its first positive adjusted EBITDA quarter. 

Cash Flow from Operations of $4.2 million is up 200% from the previous quarter.  For the first six months, Cash Flow from Operations of $5.6 million surpassed the amount generated for the

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