Benzinga | Sep 28, 2021 03:51PM EDT

C21 Investment Reports Q2 Slightly Lower Revenue Of $9M, Improved Positive Adjusted EBITDA

The vertically integrated cannabis company C21 Investments Inc. (CSE:CXXI) (OTCQX: CXXIF) reported its unaudited results Tuesday for the second quarter ended July 31, 2021, posting revenues of $9.0 million, compared to $9.15 million in the previous quarter.

Q2 Financial Highlights

* Gross profit for the quarter was $4.7 million (before fair value adjustments), with a gross margin of 52.3% (BFVA), up 367 basis points from Q1;

* Adjusted EBITDA for the quarter reached $3.3 million, up 7% over the first quarter;

* Net income was $3.7 million or $0.03 per share, versus $4.37 million or $0.04 per share in the prior quarter;

* Gross margin (before fair value adjustments) was 52.3% -- up 367 basis points from Q1;

* Operating cash flow was $3.4 million -- up 16% over Q1 -- $6.3 million year-to-date;

"C21 continues to deliver strong, profitable bottom-line performance with one of the leading cash flow margins in the industry," Sonny Newman, C21 president and CEO stated. "Cash Flow from Operations was up 32% over Q1 resulting in a reported $0.03 in Earnings per Share, and enabling further significant reduction in Total Liabilities. We completed our first phase buildout of our cultivation expansion on budget, and expect its first harvest next week, which we anticipate will increase top-line results and further strengthen operating margins going forward. We continue to work diligently to deliver greater scale for the Company."

Price Action

C21's shares were trading 3.65% lower at 71 cents per share at the time of writing Tuesday early afternoon.

Photo: Courtesy of CRYSTALWEED cannabis on Unsplash