Kush Bottles News

Drama Builds in KushCo Holdings Inc (OTCMKTS:KSHB)

4/12/2019

 

The action has heated up in shares of KushCo Holdings Inc (OTCMKTS:KSHB)following the launch of some class action lawsuits related to the company’s restatement of prior financials. To make matters far more interesting, amid that tension, the company just put out its second fiscal quarter of 2019, for the period ended February 28, 2019.

To wit: the company reported that net revenue increased 240% year-over-year to $35.2 million compared to the same quarter a year ago, net revenue rose by 39% sequentially over quarterly high of $25.3 million reported during the first fiscal quarter of 2019, and GAAP basis gross profit was 12.9%, compared to 28.1% during the prior year period.

KushCo Holdings Inc (OTCMKTS:KSHB) is the parent company to a diverse group of business units that are transformative leaders in the cannabis, CBD and other related industries. KushCo Holdings’ subsidiaries and brands provide exceptional customer service, product quality, compliance knowledge and a local presence in serving its diverse customer base.

KushCo Holdings’ brands include Kush Bottles, a dynamic sales platform that is the nation’s largest and most respected distributor of packaging, supplies, and accessories, Kush Energy, which provides ultra-pure hydrocarbon gases and solvents to the cannabis and CBD sector, Hybrid Creative, a premier creative design agency for cannabis and non-cannabis ventures, and Koleto Packaging Solutions, the research and development arm driving intellectual property development and acquisitions.

Founded in 2010, KushCo Holdings has now sold more than 1 billion units and regularly services more than 5,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe. KushCo Holdings subsidiaries maintain facilities in the five largest U.S. cannabis markets as well as having a local sales presence in every major U.S. cannabis market.

According to its materials, “KushCo Holdings, strives to be the industry leader for responsible and compliant products and services in the legal cannabis and CBD industry. The Company has been featured in media nationwide, including CNBC, Los Angeles Times, TheStreet.com, Entrepreneur, and business magazine Inc.  While KushCo Holdings services all facets of the cannabis and CBD industries, it has no direct involvement with the cannabis plant or any products that contain THC or CBD.”

As noted above, KSHB just put out its second fiscal quarter of 2019, for the period ended February 28, 2019, reporting that net revenue increased 240% year-over-year to $35.2 million compared to the same quarter a year ago.

We’ve witnessed sideways action in share pricing for the listing in the past month. What’s more, the name has benefitted from a jump in recent trading volume to the tune of 34% over what the stock has registered over the longer term.

Nick Kovacevich, Chairman and Chief Executive Officer, commented, “Revenue for the second fiscal quarter of 2019 saw record growth of 240% year-over-year, reaching $35.2 million, compared with $10.4 million in the second fiscal quarter of 2018 and $25.3 million in the first fiscal quarter of 2019. This strong performance was attributable to our growing customer base and increased sales across our key markets as we successfully leveraged our diverse business units to cross sell product classes and gain market share. We now have customers in every U.S. state where cannabis is legal and in 25 countries.”

Earning a current market cap value of $486.71M, KSHB has a significant war chest ($3M) of cash on the books, which stands against about $19.5M in total current liabilities. One should also note that debt has been growing over recent quarters. KSHB is pulling in trailing 12-month revenues of $68.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 186.2%. We will update the story again soon as developments transpire.

Source: https://oracledispatch.com/2019/04/12/drama-builds-in-kushco-holdings-inc-otcmktskshb/

 

KushCo sees 1Q revenue almost triple but bottom line turns negative

1/08/2018

The company reported a net loss of US$8.2 million as compared to net income of US$100,000 a year earlier

person holding cannabis plant

KushCo sells packaging, containers, and other ancillary products for the cannabis industry

Cannabis packaging company KushCo Holdings Inc (OTCQB:KSHB) reported earnings late Tuesday, nearly tripling its revenue year over year to US$25.3 million.

Despite the surge in revenue, its bottom line turned negative.

The maker of packaging, containers and other products for the cannabis industry said short-term supply chain capacity issues and vendor control quality control initiatives affected results.

WATCH: KushCo Holdings Inc moves into sustainable cannabis packaging

“This strong performance reflects the strength of our business model, which leverages our ecosystem of diverse business units and product categories to cross-sell product classes, reinforce the sticky nature of our business and support stable revenue growth,” said Chairman and CEO Nick Kovacevich in a release.

KushCo is the parent company of industry leaders such as Kush Supply Co., Kush Energy, The Hybrid Creative, and Koleto Packaging Solutions, which provide a range of services and products for a variety of industries including the regulated cannabis and CBD industries.

“New opportunities continue to rapidly emerge in the industry. With the recent signing of the 2018 Farm Bill into law on December 20 to legalize industrial hemp, we expect to see more large-scale production and sale of CBD oil and related products, fueling demand for our packaging, supplies and labeling solutions, as well as for our solvents and marketing and branding services,” said Kovacevich.

“We also expect to see an increase in adult vaping of CBD, which is a major component of our business and a key driver behind our expanding customer base as vape sales attract new customers onto our sales platform,” he added.

Shares of KushCo closed at up 5.5% at $6.34 on Tuesday.

Source: https://www.proactiveinvestors.com/companies/news/212191/kushco-sees-1q-revenue-almost-triple-but-bottom-line-turns-negative-212191.html