Kush Bottles, a provider of packaging, supplies, accessories and branding solutions for the regulated cannabis industry, reported financial results for its second fiscal quarter ended February 28, 2017.
Second Quarter Fiscal 2017 Financial Summary
- Revenue was up 65% Year-over-Year to $3.0 million;
- Gross margins increased 240 basis points Year-over-Year to 35.6%;
- Net income, including $0.15 million in non-cash stock compensation, $43,000in depreciation and $0.9 million in SG&A, was $3,619 compared to net income of $8,618 in 2Q 2016;
- Record cash balance of $2.8 million compared to $1.0 million at August 31, 2016;
- Working capital up significantly to a record $4.6 million compared to $2.03 million at August 31, 2016
"We reported another quarter of record revenues, which were up 65% year-over-year and 20% sequentially," commented Nick Kovacevich, co-founder and CEO of Kush Bottles. "These results were driven by increased traction in sales of custom packaging and newly introduced products. Sales also benefitted from stronger e-commerce activity, which increased our market penetration across the U.S. andCanada and enabled us to grow market share."
Mr. Kovacevich continued, "During the second fiscal quarter we also continued to build out the Company's infrastructure to support long term sustainable growth in the business. This included strengthening our Board of Directors with the appointment of Eric Baum and naming Edd Pratt as Vice President of Operations to improve operational efficiencies as we scale our business. We also made improvements to our supply chain, including increasing production volumes in the U.S. which led to decreased freight costs and improved margins.
"We are very excited to enter the second half of the year with a significant cash balance and virtually no debt. In a rapidly growing industry challenged by a lack of access to capital, Kush Bottles is in a prime position to invest in growth both organically or through acquisitions."