Harborside is a pioneer of the legalized cannabis industry focused on cultivation, branded products and retail in California, where it operates three dispensaries in the Bay Area and a cultivation facility in Salinas, as well as two additional stores in Oregon.
In this executive webcast, CEO Andy Berman joined Investor Intelligence Analyst Mike Regan to discuss the company’s long-term strategy, potential and execution of its California- and Oregon-focused, vertically integrated model.
Key takeaways include:
- Berman reiterated 2019 guidance for Harborside at $55 million-$75 million and expectations to be “adjusted-EBITDA positive” for the calendar year.
- While he declined to give guidance for 2020, Berman noted that profit should improve with revenue growth from the addition of new dispensaries and products.
- The company aims to reduce SG&A by 500 basis points in 2020, bringing those costs to 35% and yielding a margin of at least 5%.
- Harborside welcomed the reduction in tax liability related to 280E, but plans to appeal the ruling that granted it. Lawyers have said that appeals typically take two years, so the cash tax liability is still a ways off and could decline further still.
Download the slide deck here and view the video below.