CALGARY, AB, Oct. 21, 2020 /CNW/ - YSS Corp.™ (the
"Company" or "YSS") (TSXV: YSS) (WKN: A2PMAX), a
premier Canadian cannabis retailer with operations under the YSS™
and Sweet Tree™ brands and a trusted destination to explore and
discover cannabis in Canada, is pleased to announce
preliminary Q3 2020 highlights. Results below are solely
attributable to existing store growth as no new stores were opened
during Q3 2020.
Q3 2020 Highlights
- Revenue of $5.8 million increased
24% over Q2 2020 and exceeded the Company's Q3 2020 outlook of
$5.6 million.
- Gross margin of $1.8 million was
31% higher than Q2 2020 and exceeded the Company's Q3 2020 outlook
of $1.6 million.
- Store-level EBITDA1 of $560
thousand increased 56% compared to the previous
quarter.
- YSS has continued to take steps to improve its operational
efficiencies and its store-level EBITDA1 margin, which
has grown from 4% in Q1 2020, 8% in Q2 2020 to 10% in Q3 2020.
- General and administrative costs of $733
thousand are 9% higher than Q2 2020 relating to resumed
construction and leasing activities to support the ongoing growth
of the Company.
On October 16, 2020, YSS opened
its 18th location, YSS Hamptons, in Edmonton. The Company's construction
activities on its next two YSS stores, located in Waterloo and
Calgary, are ongoing.
With $4.1 million of cash as at
June 30, 2020, YSS has ample capital
to support its ongoing existing store growth and its planned new
store growth in Alberta and
Ontario, while maintaining the
financial flexibility to evaluate and pursue strategic
opportunities. YSS remains on target to exit 2020 with positive
run-rate corporate EBITDA1.
YSS is also pleased to announce it will participate in the
Canadian Cannabis Retail Conference, hosted by BDO Capital
Advisors, LCC on November 10, 2020.
For additional details and to register please visit
https://bdoca.webex.com/bdoca/onstage/g.php?MTID=e31c8dc5690c706df84874cfcbf62fd26.
Additional Information
Concurrent with this press release, the Company has posted an
updated corporate presentation on the investor portal of YSS's
website at: https://ysscorp.ca/investors.
Selected financial and operational information is outlined in
this press release and should be read in conjunction with YSS's
condensed interim consolidated financial statements for the quarter
ended June 30, 2020 and the related
management's discussion and analysis ("MD&A"), each of
which is filed under the Company's profile on SEDAR at
www.sedar.com and posted to the Company's website at
www.ysscorp.ca/.
For information on store locations, updates on promotions, store
openings and to access the Company's click and collect service
please visit www.ysscorp.ca, www.sweettreecannabis.com and follow
us on social media.
For additional information regarding YSS Corp., please see the
Company's website at www.ysscorp.ca/investors and filings available
under the Company's profile on SEDAR at www.sedar.com.
1 Non-IFRS
measure. Store-level EBITDA is defined as revenue less cost of
goods sold and operating costs before corporate general &
administrative expenses. Corporate EBITDA is defined as store-level
EBITDA less corporate general & administrative
costs.
|
About YSS Corp.
With retail operations under the YSS™ and
Sweet Tree™ brands, YSS Corp. is a premium
cannabis retailer and the trusted destination to explore and
discover cannabis in Canada. YSS
operates 18 stores across Alberta
and in Saskatchewan under the YSS
and Sweet Tree brands. In addition, YSS maintains a strategic
portfolio of under construction, secured and prospective locations
that represent future organic growth potential for the Company. YSS
management brings proven expertise across capital markets, retail
operations, hospitality, cannabis, financial management and a
strong commitment to deliver shareholder value by leveraging
high-quality opportunities within this exciting new industry. The
YSS retail experience is built on our five fundamental pillars:
convenience, value, selection, team, and above all else, trust.
This news release may include forward-looking statements
including opinions, assumptions, estimates, the Company's
assessment of future plans and operations, and, more
particularly, statements concerning: YSS' retail cannabis business
strategy, including organic growth and strategic activities; the
Company's operations and retail experience; the
construction of the Company's next two stores in Waterloo and
Edmonton; the Company
having ample capital to support ongoing existing store growth and
its planned new store growth while maintaining the financial
flexibility to evaluate and pursue strategic opportunities;
the Company's projection and objective to exit 2020 with
positive run-rate corporate EBITDA; the Company's participation in
the Canadian Cannabis Retail Conference and the location and timing
thereof; and information relating to future promotions, store
openings and the Company's click-and-collect service.
When used in this press release, the words "will,"
"anticipate," "believe," "estimate," "expect," "intent," "may,"
"project," "should," and similar expressions are intended to be
among the statements that identify forward-looking
statements.
The forward-looking statements are founded on the basis of
expectations and assumptions made by the Company. Forward-looking
statements are subject to a wide range of risks and uncertainties
and, although the Company believes that the expectations
represented by such forward-looking statements are reasonable,
there can be no assurance that such expectations will be realized.
Any number of important factors could cause actual results to
differ materially from those in the forward-looking statements
including, but not limited to: risks relating to the COVID-19
pandemic, governmental responses thereto, measures taken by the
Company in response thereto and the impact thereof on the global
economy, capital markets, the cannabis retail industry and the
Company; the success of the Company's operations; ability to
execute its business strategy and future plans of operations; risks
relating to acquisitions; third party credit risks; accuracy and
reliability of data analytics relied on by the Company; ability to
obtain, amend or renew necessary licences, permits and
authorizations for the Company's operations in a timely and
cost-efficient manner; ability to obtain and maintain liability
insurance on acceptable terms; development of new stores including
construction delays; increased competition; ability to locate and
secure acceptable store sites and maintain retail leases on
acceptable terms; ability to obtain quality and diversified
cannabis products and cannabis accessories; ability to attract and
retain key personnel and customers; dependence on key personnel;
labour costs, shortages and labour relations; supply interruption
or delays; dependence on suppliers; intellectual property and
cybersecurity risks; risks related to product recalls, product
liability and health and safety; unfavourable publicity and
consumer perception with respect to cannabis, cannabis products and
cannabis accessories; industry conditions and events; the size of
the recreational cannabis market; changing customer habits; the
state of the economy including general economic conditions in
Canada, the U.S. and globally; the
unpredictability and volatility of the price of the common shares;
restrictions on potential growth; availability of sufficient
financial resources to fund the Company's capital expenditures;
changes in tax rates and government mark-ups; the state of domestic
capital markets; the ability to obtain financing on satisfactory
terms; changes in general market conditions; and other factors more
fully described from time to time in the reports and filings made
by the Company with securities regulatory authorities. Please refer
to the Company's management's discussion and analysis for the year
ended December 31, 2019 and the
Company's annual information form for the year ended December 31, 2019 for additional risk factors
relating to the Company, which can be accessed under the Company's
profile on www.sedar.com.
Except as required by applicable laws, the Company does not
undertake any obligation to publicly update or revise any
forward-looking statements.
This news release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about the Company's EBITDA, which is subject to the same
assumptions, risk factors, limitations, and qualifications as set
forth in the above paragraphs. FOFI contained in this press release
was approved by management as of the date of this press release and
was provided for the purpose of providing further information about
YSS' future business operations. YSS disclaims any
intention or obligation to update or revise any FOFI contained in
this press release, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the FOFI contained in this press release
should not be used for purposes other than for which it is
disclosed herein.
Store-level EBITDA (Earnings Before Interest Tax Depreciation
Amortization) and Corporate EBITDA are not measures recognized by
International Financial Reporting Standards ("IFRS") and do not
have standardized meanings prescribed by IFRS. Investors are
cautioned that these measures should not be relied on as an
indicator of the Company's financial performance, of its cash flows
from operating, investing and financing activities or be relied on
as measures of its liquidity and cash flows. The Company's method
of calculating the aforementioned non-IFRS financial measures, may
differ from the methods used by other issuers. Therefore, these
measures may not be comparable to similar measures presented by
other issuers. Please refer to the MD&A for additional
information relating to non-IFRS measures.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
SOURCE YSS Corp.