Benzinga | Jun 28, 2021 01:03PM EDT

Flower One Q1 2021 Revenue Spikes 53% YoY, Expects To Post Record Revenue In Q2

Cannabis producer Flower One Holdings Inc. (CSE:FONE) (OTCQX:FLOOF) (FSE: F11) posted its latest financial earnings report on Monday revealing a pop in revenue, which prompted

its president and interim CEO Kellen O'Keefe to announce that the company had "reported the best performance," in its history that he attributed to the "impact of the restructuring and operational improvements."

The Toronto-headquartered company reported a 53% year-over-year increase in revenue, reaching $13.9 million in the first quarter of 2021 and a second-quarter 2021 preliminary unaudited revenue guidance of $16-$18 million.

"While first quarter 2021 was a record quarter, we expect our financial performance to continue to improve and for growth to accelerate throughout the remainder of the year, as reflected in our preliminary second-quarter 2021 guidance," Richard Groberg, the company's interim CFO, said.

Here's a breakdown of what the first-quarter earnings report showed:

* Revenue improved sequentially by roughly 43%.

* The cost of sales hovered around $7.7 million, as in the prior period.

* General and administrative expenses totaled $7.4 million, compared to $6.2 million in the same quarter of 2020 and $8.2 million in the previous period.

* Gross profit amounted to $11.3 million or 81.8% of revenues versus a gross loss of $25.7 million in the fourth quarter of last year.

* Income from operations was $3.8 million.

* Net loss totaled $10.6 million, including $9.5 million of finance expenses alongside fair value losses on derivatives, losses on note modifications, and foreign exchange losses.

* At the quarter-end, Flower One had $5.9 million in cash and cash equivalents.

Operational Highlights

The company closed on a $10 million non-brokered convertible debenture offering that could increase to $25 million earlier this year on the heels of strengthening its board of directors by tapping Mitchell Kahn, Eliza Gairard and O'Keefe as members.

O'Keefe was appointed to serve as Interim CEO, replacing Ken Villazor, who resigned as CEO, president and board chair in January. In addition, O'Keefe continued to oversee the company's strategy, a position he has been holding since 2019.

To wrap up the series of new appointments, the company named COO of Nevada Operations, Salpy Boyajian, executive vice president and board chairman. Nitin Kaushal will serve as chair of the company's audit, risk and finance committee.

Flower One also holds one of the top-selling flower brands in Nevada (NLVO is only second to Berner's Cookies), as well as being a leading seller of distillates, bulk cannabis and white label flower in the state.

Photo by Esteban Lopez on Unsplash