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Charlotte's Web Holdings Reports 2019 Q3 Earnings Conference Call - NOVEMBER 13, 2019 - RICH TV LIVE - (TSX:CWEB,OTCQX:CWBHF), Charlotte’s Web Holdings, Inc. (“Charlotte’s Web” or the “Company”) the market share leader in full spectrum cannabidiol (CBD) hemp extract products, today reported financial results for the third quarter ended September 30, 2019. All amounts are expressed in United States dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures. Third Quarter 2019 Financial Highlights Organic consolidated year-over-year revenue growth of 41.8% to $25.1 million B2C ecommerce sales increased 38.7%, B2B retail sales increased 66.4% Gross margin of 71.3% (before biological asset adjustments) produced gross profit of $17.9 million Increased operational investments in preparation of FDM channel growth Increased investment into expand production, distribution R&D and extraction capacity Adjusted EBITDA $0.7 million, 2.8% of consolidated revenue reflecting infrastructure build $35M cash and $96M working capital Third Quarter 2019 Business Highlights Surpassed 9,000 doors carrying Charlotte’s Web™ products Expanded into new states and locations with current and new retail partners Increased retail breadth and product depth with new CBD oil flavors, pet and gummy SKUs Evolved CPG leadership team and commenced buildout of infrastructure to expand production, distribution, R&D and extraction capacity processes ahead of the anticipated mass retail channel growth New 136,610 sq ft facility expected to increase current capacity by 10X with significant future operational and production cost savings through higher efficiencies by Q3 2020 Executed additional actions to support regulatory progress at the federal and state levels In an increasingly crowded, noisy and confusing CBD market, brands matter, and Charlotte’s Web is the most trusted hemp extract in the world. Consumers are becoming more informed about product ingredients, production quality, and variances between CBD isolate and full spectrum hemp extract efficacy. Consumer education is increasing and a 68% year-over-year increase in traffic through our online store drove Q3 B2C sales to new highs. Deanie Elsner, Chief Executive Officer of Charlotte’s Web “As the CBD category’s flagship brand, we saw a similar 66% increase in sales pull into our B2B segment which includes the food/drug/mass (“FDM”) and natural health retail channels. This helped drive Q3 growth to 42% year-over-year. The majority of our FDM channel partners to only sell CBD topicals while awaiting legal and regulatory clarity from the U.S. Food and Drug Association (“FDA”). Topicals account for less than 15% of our sales at independent stores that carry both our topical and ingestible CBD product lines. This indicates the potential revenue catalyst of a broad adoption of ingestible products within the FDM channel. We are prudently investing in the expansion of our production and distribution capacities as planned, ahead of anticipated FDA regulatory clarity that could enable wider adoption of our product portfolio. We remain hopeful that broad political support will help drive quick regulatory resolutions in 2020.” Ms. Elsner updated the Company’s revenue guidance: “We’re pleased with our growth of 42% for Q3 and 49.6% year-to-date. We expect full year revenue for 2019 to be in the range of $95 to $100 million and to maintain growth rates for 2020 in the 40% to 50% range or until clear regulations are set.” WWW.RICHTVLIVE.COM #RICHTVLIVE #CWEB #EARNINGS SHOP - www.richtvshop.com Disclaimer RICH TV LIVE company profiles and other investor relations materials, publications or presentations, including web content, are based on data obtained from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in RICH TV LIVE reports company profiles or other investor relations materials and presentations are subject to change. RICH TV LIVE and its affiliates may buy and sell shares of securities or options of the issuers mentioned on this website at any time. Investing is inherently risky. RICH TV LIVE is not responsible for any gains or losses that result from the opinions expressed on this website, in its research reports, company profiles or in other investor relations materials or presentations that it publishes electronically or in print. Disclosure - https://www.richtvlive.com/feature-.html We strongly encourage all investors to conduct their own research before making any investment decision. For more information on stock market investing, visit the Securities and Exchange Commission ("SEC") at www.sec.gov/Canadian CSA https://www.securities-administrators....
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