April 1, 2021 was the closing date for Mankind, a California-based long-standing retail cannabis brand. It is located in San Diego.”Mankind Acquisition”) helping GABY achieve:
Q4 and YTD revenue 2021 of $9.2million and $32.4million, respectively, up 7 times over comparable periods
Q4 and YTD gross profits margins of 47% & 36% were respectively higher than the respective periods last years, which was 3% and 4%, respectively.
Q4 and YTD Adjusted BITDA1 of $0.9 Million and $1.4 Million, respectively, are up from the respective negative $1.4million and negative $6.7 millions of the respective periods last year
Pro forma Adjusted EBITDA (Pro forma Adjusted EBITDA) $3.2 Million, assuming that unprofitable divisions were shut down January 1 instead of August 31,
In 2022, cut costs by US $3.0 Million
The continued rationalization and closure of unprofitable divisions has also contributed to gross margin and Adjusted EBITDA1 improvement, which helped to reduce net loss by 42%, 12% to $3.8million and $6.7million for Q4 2021 & FY 2021, respectively.
GABY branded products such as Kind RepublicTM were launched to increase margins. These products generate gross profit margins of 75%
A strong platform for profitability, cash flow, and EBITDA in 2022 is created by the rationalization and cost-cutting program.
SAN DIEGO CA / ACCESSWIRE / MAY 2, 2022 / GABY Inc.”GABY”Or the “Company”) (CSE:GABY)(OTCQB:GABLF), a California consolidator of cannabis dispensaries and the parent company of San Diego’s Mankind Dispensary (“Mankind Dispensary”Today, (), reported its financial and operational results for the fourth and fifth quarters and the year ended December 31, 2020. Unless otherwise indicated, all financial information will be provided in Canadian dollars. GABYs financial statements comply with International Financial Reporting Standards.”IFRS”).
GABY Inc. Sunday, May 1, 2022. Press Release picture
Sonoma Pacific (a part of GABY’s rationalization strategy) was created.”Sonoma”) was shut down in Q3 of 2021. Sonoma generated most of its revenue from bulk sales, which are high volume and low margin. Although revenue decreased after Sonoma’s wound down, gross margin rose from 34% to 35% in Q2 to 35% in subsequent quarters and 47% in the subsequent quarters. Adjusted EBITDA1 was affected in Q4 by one time costs related to the Sonoma closing.
Management expects to continue improving profitability in 2022 with:
The story continues
Annual cost savings in excess of USD 3,000,000 on payroll, operating and other costs. Implemented late Q4 2021. Should more fully materialize in Q1-2022 and beyond.
Higher volume sales in second half of year due to restructuring its delivery business. This will increase revenue by 1,000,000 over the next 12 month, starting Q4 2021. Marketing analytics and remerchandising efforts will also help to increase the size of both physical and virtual shopping carts.
Margin growth with merchandising that prioritizes higher margin products and proprietary products
Continuation in streamlining overhead costs
Margot Micallef was the founder and chief executive officer at GABY. “2021 was a game changer for us with the acquisition of Mankind, which generated significant financial improvements at GABY, but 2022 is where our integration efforts should really start to shine with higher revenue, higher margins and lower costs – the triple crown of organic growth.” Margot continued, “What’s more, is that the Mankind Acquisition has readied us for acquisition growth with our completion of a finely tuned operations manual by which future acquired dispensaries will operate and prosper.”
“I see the realization of the incremental benefits of the Mankind acquisition akin to nocking and aiming an arrow at a target. We readied the bowstring with the acquisition of Mankind. We drew it tight in Q2, as we observed, learned, and rationalized Q3. We released the arrow in Q4 as we started to realize our implementation efforts of driving profit from a combination of higher margin sales, higher volume and rationalization of costs. Our goal is to hit the bullseye and become cashflow positive in 2022″Margot was added. “I am so proud of our team and what they have accomplished in delivery, merchandising, marketing and operational efficiencies and am looking forward to all of us being rewarded with continued improved results throughout 2022 and beyond.”
Paul Stacey (CFO) commented. “I am very impressed with the highly motivated and competitive attitude of the GABY team. The entire team from the sales floor to C-Suite is pulling on the necessary levers to deliver improvements in the customer experience and streamlining of operations. I am excited to be at the forefront of this opportunity where GABY is poised to realize impressive organic and acquisitive growth.”
GABY Inc. is a California-focused retailer consolidator and the owner Mankind Dispensary. This dispensary is one of California’s oldest licensed. Mankind Dispensary is a highly-respected and well-known dispensary that has deep roots in the San Diego cannabis community. GABY curates and sells a diverse portfolio of products, including its own proprietary brands, Kind Republic™ Dank Space™ and Lulu’s™ through Mankind, A pioneer in the industry with a strong management team with experience in retail, consolidation, and cannabis, GABY is poised to grow its retail operations both organically and through acquisition.
GABY’s common shares trade at the Canadian Securities Exchange (“CSE”) under the symbol “GABY”and on OTCQB under the symbol “GABLF”. For more information about GABY, please visit www.GABYInc.comYou can also view the Company’s SEDAR profile. www.sedar.com.
For more information, please contact:
Margot Micallef is the Founder & CEO of Investor Relations at [email protected]
Senior Communications Manager
All references to “$”Or “C$”This press release refers to Canadian dollars. “US$”This Listing Statement refers to United States Dollars.
Forward-Looking Information and Disclaimer
The CSE cannot accept responsibility for the accuracy or adequacy of this release. Forward-looking statements in this news release could include information that involves substantial known and unknown risks or uncertainties. Some of these risks and uncertainties are beyond the Company’s control. Forward-looking statements can be described by words such: “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed”et al. similar words or statements indicating that certain events or conditions are likely “may”Or “will” occur. These statements are not predictions. These statements can only be interpreted as predictions. Forward-looking statements include, among other things, the expected continued improvement in GABY’s profitability in 2022, the estimated future and current cost savings of GABY, the Company’s future business strategy, which includes its plans to expand organically or through future acquisitions or greenfield extensions, as well as the anticipated benefits from GABY’s New Standard Operating Procedures. GABY believes that forward-looking information and statements are reasonable. However undue reliance shouldn’t be placed on forward-looking information and statements because GABY cannot guarantee their accuracy. Forward-looking information, by its nature, is subject to various uncertainties and risks that could cause actual results to differ materially from those anticipated or expected. These risks and uncertainties include the severity of the COVID-19 pandemic, risks associated with the cannabis sector in general, failure to benefit from partnerships and successfully integrate acquisitions, actions and initiatives by federal, state, and provincial governments, as well as changes to policies and execution and impact of these policies, initiatives, and actions; the size of the adult-use and medical cannabis markets; competition from other participants; adverse United States events (“U.S.“(Canadian and global economic conditions); failure to comply certain regulations; and the departure of key management staff or inability attract and retain talent. GABY assumes no obligation to make any forward-looking statements public or revise them, regardless of whether they are a result future events or new information, except as required under law.
Forward-looking statements contained in this press release may constitute forward-looking information. “future-oriented financial information”Or “financial outlooks”According to applicable Canadian securities laws, this information is being provided in order to demonstrate the Company’s anticipated financial performance. The reader is advised that such information may not be suitable for other purposes and that it is not appropriate for any other purpose. Future-oriented financial information and financial outlooks should not be relied upon by the reader. Future-oriented financial information, and financial outlooks, are based on assumptions and are subject to the risks and uncertainties set forth above for forward-looking statement. The Company’s actual financial situation and results of operations could differ materially to its management’s current expectations. This could lead to a material difference in the Company’s actual revenues from the projected revenue estimates or projections presented in this press release. These information are provided for illustration purposes only and may not reflect the Company’s actual financial situation or results of operations for any given financial period.
Select financial information from the Company’s Q4 2021 & fiscal year ending December 31, 2021 should not be read alone. GABY’s audited annual financial reports and management’s discussion & analysis for the three-months and year ended Dec 31, 2021 can be found on the Company’s SEDAR profile. www.GABYinc.com.
GABY Manufacturing and Mankind are both subsidiaries of GABY. They hold a California cannabis license. The United States has a much more stringent regulation of cannabis than Canada, which has Federal 032320-F legislation that governs the cultivation, distribution and sale of medical cannabis under the Cannabis Act (Federal). California has legalized cannabis, but it is still illegal under U.S. federal laws. Despite the permissive regulatory environment for cannabis at the State level cannabis remains illegal under U.S. federal laws. Cannabis-related activities, including the manufacture, importation and possession of cannabis, are still illegal under U.S. federal laws. According to the Company, each of GABY’s subsidiaries operate their businesses in compliance with California State law. GABY and its subsidiary are not exempted from liability under U.S. federal laws. Nor will strict compliance with State laws regarding cannabis provide any defense to any federal proceeding in America that could be brought against GABY or its subsidiary. GABY’s or its subsidiary could adversely impact the Company’s operations and financial performance in the U.S. Market.
(1) Adjusted EBITDA (from continued operations) doesn’t have a standardized meaning as required by IFRS and is therefore non-GAAP and may not be comparable with similar measures presented by other issuers. GABY management believes that Adjusted EBITDA, a non-GAAP measurement, combined with IFRS measurements, such as revenue, net loss, is a useful tool for investors. This measure provides a measure operating cash flows before servicing or capital expenditures, income taxes, and other gains and losses. As shown in GABY’s December 31, 2021 financial statement. www.sedar.comAdjusted EBITDA (from ongoing operations) is gross profit (loss), less selling, general, and administrative expenses. It excludes income items such as share-based compensation, expenses, depreciation, amortization, interest income and other income (expense). Non-GAAP Disclosures in the December 31, 2021 MD&A of the Company. www.sedar.comFor a more detailed explanation of the non GAAP measure Adjusted EBITDA for continuing operations, for which there is a reconciliation with the nearest GAAP measurement below:
GABY Inc. Sunday, May 1, 2022. Press Release picture