Harvest Health & Recreation Inc
Harvest Health & Recreation — Q2 2021 Earnings Presentation
19 slides from Harvest Health & Recreation's earnings presentation, Aug 10, 2021
Slide 1: Earnings Conference Call August 10, 2021
Earnings Conference Call August 10, 2021 CSE: HARV OTCQX: HRVSF [email protected]
Slide 2: Disclaimer
DISCLAIMER IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING: The information contained in this document has been prepared by Harvest Health & Recreation Inc., a British Columbia, Canada corporation (“HHR”), and Harvest Enterprises Inc., a Delaware corporation and a wholly owned subsidiary of
Slide 3: Disclaimer: Future-Oriented Financial Information
DISCLAIMER CAUTIONARY NOTE REGARDING FUTURE-ORIENTED FINANCIAL INFORMATION: To the extent any forward-looking information in this presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable United States and Canadian securities laws, such
Slide 4: Agenda
AGENDA Pending Acquisition by Trulieve Second Quarter Financial Highlights Quarterly Trends Liquidity Capital Allocation Core Markets Financial Highlights
Slide 5: Pending Acquisition by Trulieve
PENDING ACQUISITION BY TRULIEVE On May 10, 2021, Trulieve announced its planned acquisition of Harvest Under the terms of the deal, Trulieve will acquire all of the issued and outstanding shares of Harvest Each Harvest shareholder is expected to receive 0.1170 shares of Trulieve for each Harvest sha
Slide 6: Second Quarter Financial Highlights
SECOND QUARTER FINANCIAL HIGHLIGHTS Second quarter sales grew +84% year over year and +15% sequentially Second quarter same store sales comp was +100% year over year (32 stores) and +11% sequentially (36 stores) Traffic increased 22% while basket size decreased 9% sequentially, driven by recreationa
Slide 7: Quarterly Trends
QUARTERLY TRENDS *Refer to reconciliation of Adjusted EBITDA, a Non-GAAP Measure, on slide 16
Slide 8: Liquidity
LIQUIDITY As of June 30, 2021, Harvest had ~$71 million in cash and ~$279 million in debt As of June 30, 2021, debt service for the remainder of 2021 is ~$34 million, including $10 million convertible debt which was converted to equity during the third quarter Capital expenditures in 2021 are expect
Slide 9: Capital Allocation
CAPITAL ALLOCATION Harvest is focused on improving operations across the existing asset base and further expanding operations in key states Second quarter capital expenditures were ~$17.6 million The majority of 2021 capital expenditures are slated for our top four states where we expect additional
Slide 10: Arizona
ARIZONA Limited License Medical/Recreational Market 124 Operational Dispensaries as of 8/01/21 143 Licenses for Retail/Up to 169 Maximum ~300 Potential Cultivation and Manufacturing Operators 313,906 Medical Patients Reported July 2021 Recreational Sales Launched January 22, 2021 Harvest Operations*
Slide 11: Florida
FLORIDA Limited License Medical Market 359 Approved Dispensaries All Vertical Licenses – No Wholesale Market 595,045 Qualified Patients Reported 08/06/21 Harvest Operations* 11 open retail dispensaries Alachua: 292,000 ft2 indoor cultivation and processing facility Gainesville: 37,500 ft2 greenhouse
Slide 12: Maryland
MARYLAND Limited License Medical Market 102 Dispensary Licenses 19 Cultivation Licenses/24 Processing Licenses 127,649 Patients Reported February 2021 Harvest Operations* 3 open retail dispensaries Hancock: 101,750 ft2 indoor cultivation, 8,400 ft2 processing facility and 12,000 ft2 greenhouse culti
Slide 13: Pennsylvania
PENNSYLVANIA Limited License Medical Market 119 Operational Dispensaries 30 Cultivation and Processing Facilities Online ~582,000 Patients and Caregivers May 2021 Harvest Operations* 10 open retail dispensaries; licensed for 15 total Reading: 46,800 ft2 indoor cultivation and processing facility Cap
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS SAME STORE SALES COMPARISON INCOME STATEMENT HIGHLIGHTS (USD mittions) Revenue GrossProfit Gross Margin SCRA SGRA a% Revenue Net Loss before Non-Controlling Interest ‘Adjusted EBITDA" *hefertorcomilatonot Adjsted EBITDS, aNon-GAsP Measure, onside 16 REVENUE DETAIL Retail Wholesd
Slide 15: Financial Highlights: Balance Sheet and Diluted Shares
FINANCIAL HIGHLIGHTS BALANCE SHEET HIGHLIGHTS (USD millions) 02:21_au:21_ as: Cash 7” 107~«78 Debt 279° 270265 DILUTED SHARE COUNT ESTIMATE (millions as of June 30, 2021 on as if converted basis} Subordinate Voting Shares B60 Multiple Voting Shares* 16 Super VotingShares 20 Total Shares Outstanding
Slide 16: Financial Highlights: Reconciliation of Non-GAAP Measures
FINANCIAL HIGHLIGHTS Reconciliation of Non-GAAP Financial Measures ‘The table below recon les Net Loss to Adjusted EBITDA for the periods indicated. Three months ended June 30, (Amounts expressed in thousands of United States dollars) 2021 2020 Net loss (GAAP) before non-controlling interest (19,229
Slide 17: Retail Presence
RETAIL PRESENCE As of 08/06/2021; Dates listed in table represent timing of initial revenue contribution. ARIZONA 710 W Elliot Rd #102 Tempe Opened 05/2013 15190 N Hayden Rd Scottsdale Opened 09/2016 1691 Industrial Blvd Lake Havasu Acquired 07/2017 3828 S Vermeersch Rd Avondale Opened 09/2017 1821
Slide 18: Harvest Is a Leading U.S. Multi-State Operator
HARVEST IS A LEADING U.S. MULTI-STATE OPERATOR 2011 YEAR FOUNDED >1,600+ EMPLOYEES $1.9B ENTERPRISE VALUE(1) $400M+ REVENUE TARGET(2) 44 RETAIL LOCATIONS(1) Harvest Health & Recreation is well positioned as an industry leader in the U.S. combining a targeted strategy, talented management team and di
Slide 19: Thank You
THANK YOU CSE: HARV OTCQX: HRVSF [email protected]
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