Kush Bottles Inc (OTCMKTS:KSHB) posted financial numbers for its third fiscal quarter closed May 31, 2017. Revenue was up 103% YoY to $4.7 million, which comprised one month of revenue from CMP Wellness which was bought on May 1, 2017. Gross margins came at 33% as against 32% in the same year period.
Net income, comprising non-cash stock compensation worth $0.26 million, depreciation of $29,000 and SG&A of $1.3 million, came at $6,119 as against net income of $23,284 in Q3 2016; the jump in operating expenses comes from costs related with the acquisition deal of CMP Wellness, and higher operational expenses to support an expanded external sales program. Working capital came at $4.1 million as against $2.03 million as of close of August 31, 2016.
Nick Kovacevich, the CEO and Co-founder of Kush Bottles, reported that the third quarter showcases a thrilling new chapter for company as it transformed from a cannabis packaging provider firm to a dynamic, comprehensive sales platform with considerably increased distribution channels and diversified product range.
They led this growth via the acquisition deal of CMP Wellness, a California-based supplier of vaporizers, accessories and cartridges, and the acquisition of the Roll-Uh-Bowl.com web distribution platform, which built their presence extensively in the B2C industry for the first time. This development was noted in remarkable revenues in the third quarter, which surged 103% YoY and 59% sequentially.
Mr. Kovacevich continued that to support the advancement of their operations, they implemented numerous operational measures in the quarter, counting the addition of new distribution associates in Puerto Rico and Hawaii, which they consider are major medical cannabis markets, and the appointment of Kevin Nguyen to head the Supply Chain and Logistics team.
The company remain committed to enhancing their businesses and re-investing in the firm to advance an aggressive long-term growth plan. Looking ahead to the year, the prime focus is on integrating CMP Wellness and Roll-Uh-Bowl to use cross-selling prospects and grow market share.
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