MedMen Releases Preliminary Third Quarter 2019 Systemwide Revenue Results – Designated News Release
LOS ANGELES, April 15, 2019–(BUSINESS WIRE)–MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) announced today unaudited systemwide revenue for its fiscal 2019 third quarter ended March 30, 2019. Across the Company’s operations in California, Nevada, New York, Arizona and Illinois, systemwide revenue was US$36.6 million (CA$48.8 million). This represents a 22% quarter-over-quarter increase over its fiscal 2019 second quarter ended December 29, 2018. Systemwide revenue, pro forma for pending acquisitions that have not yet closed, was US$54.9 million (CA$73.2 million) for the quarter. For the third quarter, gross margin across its retail operations was 51%1, compared to 53% in the previous quarter. The Company is expected to post its fiscal 2019 third quarter results in May 2019.
Systemwide retail revenue for the quarter, including revenue from pending announced acquisitions, is based on 32 retail stores that were operational at the end of the quarter. This includes the MedMen San Jose location which rebranded in January through the closing of the Buddy’s acquisition, the MedMen Oak Park location in Illinois which rebranded through the closing of the Seven Point acquisition as well as MedMen’s North Scottsdale and Tempe locations in Arizona which rebranded through the closing of Level Up in February. The operational retail locations, including pending acquisitions, represent 39% of the 82 total stores that the Company is licensed for across 12 states.
Strong systemwide retail revenue for the quarter is primarily attributable to MedMen’s retail expansion in Nevada and Arizona. In Nevada and Arizona, third quarter retail sales increased 34% and 513%, respectively, compared to the previous quarter. In Arizona, the increase was driven by the addition of stores in North Scottsdale and Tempe. In Nevada, MedMen’s Paradise