KushCo Holdings Inc (OTCMKTS:KSHB) just announced financial results for its fiscal year 2018, for the period ended August 31, 2018. According to the company’s release, revenue was up 177% year-over-year to $52.1 million; gross margins were 24.2%, compared with 35.2% in the prior year period (this is primarily related to the year-end inventory adjustments of $2.8 million – excluding this year end adjustment, gross margins for the year would have been 30%); net loss, including $1.0 million in depreciation expense, $23.9 million in SG&A, and $1.6 million in provisions for income tax, was approximately $10.2 million compared to net income of $69,000 in fiscal 2017; and the cash balance was $13.5 million as of August 31, 2018 compared to $900,000 at August 31, 2017.
The company notes that this increase was primarily a result of the completion of a registered direct offering for approximately $32.9 million in net proceeds in June 2018 and a $6.0 million equity investment by the Company’s strategic partner, Merida Capital Partners in February 2018. Working capital was $40.2 million as of August 31, 2018 compared to $3.4 million at August 31, 2017.
KushCo Holdings Inc (OTCMKTS:KSHB) casts itself as the parent company to a diverse group of business units that are transformative leaders in the cannabis, CBD, and other related industries.
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KushCo Holdings’ subsidiaries and brands provide exceptional customer service, product quality, compliance knowledge and a local presence in serving its diverse customer base. KushCo Holdings’ brands include Kush Bottles, a dynamic sales platform that is the nation’s largest and most respected distributor of packaging, supplies, and accessories, Kush Energy, which provides ultra-pure hydrocarbon gases and solvents to the cannabis and CBD sector, Hybrid Creative, a premier creative design agency for cannabis and non-cannabis ventures, and Koleto Packaging Solutions, the research and development arm driving intellectual property development and acquisitions.
Founded in 2010, KushCo Holdings has now sold more than 1 billion units and regularly services more than 5,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe.
KushCo Holdings subsidiaries maintain facilities in the five largest U.S. cannabis markets as well as having a local sales presence in every major U.S. cannabis market.
Moreover, the company provides various products and services for the regulated cannabis, CBD, and other related industries. It distributes vaporizer products, packaging, supplies, and accessories, as well as offers branding services to cannabis operators; and provides hydrocarbon gases and solvents to the cannabis sector. The company also operates a creative design agency for cannabis and non-cannabis brands that provide brand strategy, design and marketing, Web application development, and e-commerce solutions.
In addition, it researches and develops packaging solutions to the pharmaceutical and veterinary industries. The company was formerly known as Kush Bottles, Inc. and changed its name to KushCo Holdings, Inc. in September 2018. KushCo Holdings, Inc. was founded in 2010 and is headquartered in Garden Grove, California.
Beat to General Quarters
We started off by noting that KSHB just hit the wires with the announcement of its financial results for its fiscal year 2018, for the period ended August 31, 2018.
KSHB has been through some pressure over the past week. But the news has helped to repair that damage and reset the action in terms of the past week’s performance. KSHB shares have been relatively flat over the past month of action, with very little net movement during that period.
Nick Kovacevich, Chairman and Chief Executive Officer, commented, “We are exceptionally pleased with the financial results we achieved during the fiscal year with revenues of $52.1 million, representing 177% growth compared to approximately $18.8 million in fiscal 2017. Our strong revenue growth was the result of dramatic growth in our most critical markets, with growing customer numbers, an increasingly diversified offering and expanded facility capabilities. Our growth was further supported by an expanded global presence with recently-opened offices in Canada and China. While we are disappointed with the impact our dramatic growth has had on margins, we believe they are short-term consequences and we’re pleased to have already implemented several initiatives to improve margins on a go-forward basis.”
KushCo Holdings Inc (OTCMKTS:KSHB) generated sales of $12.9M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 24.5% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($3.6M against $10.9M, respectively).
Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!
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