MedMen Reports Fourth Quarter and Fiscal Year 2020 Financial Results and Pre-announces First Quarter 2021 Revenue
LOS ANGELES, October 15, 2020 –(BUSINESS WIRE)–MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF), a cannabis retailer with operations across the U.S., today released its consolidated financial results for the fourth quarter and fiscal year ended June 27, 2020. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated. Beginning in the fourth quarter 2020, the Company began reporting in U.S. generally accepted accounting principles (“GAAP”).
We made significant progress during the fourth quarter by focusing on retail profitability, optimizing our corporate infrastructure and strengthening our balance sheet ahead of an exciting new chapter for the Company.
MedMen Interim Chief Executive Officer Tom Lynch
Through the strength of our management team and Board of Directors, as well as the continued support of our capital partners, we are well-positioned to execute on our goal of being the leading cannabis retailer.
Fourth Quarter Financial Highlights:
Revenue: Net revenue across MedMen’s operations in California, Nevada, New York, Illinois and Florida was $27.4 million for the fourth quarter, down 40% sequentially, primarily due to the impact of COVID-19 on the Company’s retail operations. The Company estimates first quarter fiscal 2021 revenue to be $37.4 million(1), a 37% increase from the fourth quarter fiscal 2020 revenue on a comparable basis. Gross Margin: Company-wide gross margins were 40% in the fourth quarter compared to 32% in the prior quarter. Corporate SG&A(2): Corporate SG&A, which is a non-GAAP financial measure as described below, totaled $13.7 million in the fourth quarter, a 21% decrease from the fiscal third quarter and 58% from the same period last year, representing $77.0 million in annualized cost savings. Adjusted EBITDA(2): Adjusted EBITDA,