- Revenues Increased 258% Year-over-Year to approximately $8.85 million
SANTA ANA, Calif. – January 16, 2018 – Kush Bottles, Inc. (OTCQB: KSHB), a leading provider of packaging, supplies, vaporizers, accessories and branding solutions for the regulated cannabis industry, today reported financial results for its first fiscal quarter of 2018, for the period ended November 30, 2017.
Fiscal First Quarter Financial Summary
Revenue was up 258% Year-over-Year to $8.85 million.
Gross margins were 30%, compared with 34% in the prior year period, which is attributed to increased business in the lower margin vaporizer product segment.
Net income, including $382,000 in non-cash stock compensation, $202,000 in depreciation and amortization expense and $1.9 million in SG&A, was $94,615 compared to net loss of $161,000 in the fiscal first quarter of 2017.
Cash balance was $5.5 million as of November 30, 2017 compared to $0.9 million at August 31, 2017.
Working capital was $8.6 million as of November 30, 2017 compared to $3.4 million at August 31, 2017.
Nick Kovacevich, Chairman & CEO
Nick Kovacevich, Chairman and CEO of Kush Bottles, commented, “We entered fiscal 2018 with excellent momentum as we saw the impact of the strategic initiatives implemented throughout 2017 start to take hold. Revenues for the first fiscal quarter of 2018 reached approximately $8.85 million, representing a 258% increase compared with fiscal Q1 2017. This strength in the business led to net profits of $94,615 in fiscal Q1 2018. We also saw our cash balance increase to $5.5 million, which we plan to invest towards inventory purchasing, development of proprietary products, and other strategic initiatives.”
Mr. Kovacevich continued, “During the first fiscal quarter of 2018, we saw the release of California’s new temporary regulations for medical and adult-use cannabis sales, which took effect on January 1, 2018. California is not only the U.S.’s largest cannabis market, but also our home market where we have already extensively invested in sales, marketing and infrastructure. We consider the legalization of adult-use cannabis sales to be a major opportunity to scale the business throughout 2018 and beyond, and we have made significant headway to establish the Company as a leader in this market. Many of our clients have been granted temporary licenses and we are working with them closely during this hectic transition period as California finalizes its permanent regulations over the next 6 to 12 months.”
Earnings Results Conference Call
The company will also host a conference call today, Tuesday, January 16, 2018 at 4:30 PM Eastern Time.
Participant Dial-In Numbers:
Toll-Free: 1-800-281-7973 Toll / International: 1-323-794-2093 *Participants should request the Kush Bottles Earnings Call or provide confirmation code 8151586
Investors are also invited to listen via webcast on the Kush Bottles investor section of the Company website at https://ir.kushbottles.com. Please visit the website at least 15 minutes prior to the call to register, download, and install any necessary audio software. A replay of the call will be available on the Kush Bottles investor website approximately two hours after the conference call has ended.
For more information on Kush Bottles, Inc., call: 888-920-5874, or visit: www.kushbottles.com.
To be added to the distribution list, please email firstname.lastname@example.org with “Kush” in the subject line.
About Kush Bottles, Inc.
Kush Bottles, Inc. is a dynamic sales platform that provides unique products and services for both businesses and consumers in the cannabis industry. Founded in 2010 as a packaging and supplies company for dispensaries and growers, Kush Bottles has sold more than 100 million units and now regularly services more than 4,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe. The company has facilities in the three largest U.S. cannabis markets and a local sales presence in every major U.S. cannabis market.
Kush Bottles aims to be the gold standard for responsible and compliant products and services in the cannabis industry. Kush Bottles has no direct involvement with the cannabis plant or any products that contain THC.
For more information, visit www.kushbottles.com or call (888)-920-5874.
This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent our current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this release. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as: “potential,” “look forward,” “believe,” “dedicated,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings we make with the United States Securities and Exchange Commission (SEC), available at: www.sec.gov, and on our website, at: www.kushbottles.com.
Investor Contact: Phil Carlson / Elizabeth Barker KCSA Strategic Communications 212-896-1233 / 212-896-1203 email@example.com
PR Contact: Anne Donohoe KCSA Strategic Communications 212-896-1265 firstname.lastname@example.org