One of the leading providers of ancillary products and services to the legal cannabis industry, KushCo Holdings, recently reported its preliminary, unaudited financial results corresponding to the fourth quarter and fiscal year ending on August 31, 2020. The company’s revenue and overall performance exceeded the expectations set and, for the first time, it might be reaching a positive adjusted EBITDA score. The complete fiscal fourth quarter and full-year 2020 financial results are expected for late October or early November 2020, which will be accompanied by an earnings conference call that will be further announced.
“Fiscal Q4 2020 was arguably the most pivotal quarter in KushCo’s entire 10-year history, as we returned to growth, executed on our strategic plan, and achieved our first quarter of positive adjusted EBITDA in more than three years,” said Nick Kovacevich, KushCo’s co-founder, chairman and CEO. KushCo’s revenue for its fourth quarter is between $25.5 million and $26 million, which is an improvement from the estimated being between $24 million and $26 million. Also, the total revenue means there was an expected sequential increase in revenue of between 14% and 17%. This increase is being driven by an increase in sales to top customers of the company, who are multi-state operators, licensed producers and brands.
“On behalf of the entire leadership team, I could not be more proud of our KushCo family, who embraced our spirit and track record of overcoming significant challenges, and who came together in a time of immense difficulty to turn around the business and get us to the much healthier and promising position we believe we are in today,” added Kovacevich. “We realize there is still a lot of work to be done, but we are encouraged with the substantial progress we have made, especially when considering the challenging, but constructive, journey we underwent in fiscal 2020, starting with the illicit market vape crisis and culminating with the ongoing COVID-19 pandemic.” KushCo finished the year with nearly $10.5 million in cash and didn’t need to use any credits during the most recent fiscal quarter.