Fire & Flower Announce Fiscal First Quarter Financial and Operational Results

Published: June 16, 2021

Fire & Flower Announce Fiscal First Quarter Financial and Operational Results

ire & Flower Holdings Corp. announced its financial and operational results for the fiscal first quarter ended May 1, 2021.

Trevor Fencott, Chief Executive Officer of Fire & Flower commented, “We started 2021 off strong by delivering our fourth consecutive quarter of positive Adjusted EBITDA, while posting record quarterly revenues. Despite the challenges produced by the COVID-19 pandemic, our retail business continued to drive strong sales growth as we expanded our retail footprint by bringing Fire & Flower to British Columbia, opening two new stores in Vancouver and bringing our total store count to 83 licensed cannabis stores. Our wholesale division continued to grow in Saskatchewan as more retailers look to our Open Fields Distribution businss to supply their inventory. And last, driving our leadership position in Canada, and now emerging in the U.S., is the ongoing success of our proprietary Hifyre business, as it becomes increasingly recognized as one of the industry’s most advanced digital retail and data analytics platforms.”

Consolidated Financial Highlights

Thirteen Weeks Ended

(In millions of Canadian dollars,
except per share amounts)

May 1,

May 2,

Total Revenue



Gross Profit



Gross Profit Percentage



Adjusted EBITDA (1)



Net Loss



Basic-Diluted loss per share



Segment Revenue

Thirteen Weeks Ended

(In thousands of Canadian dollars unaudited)

May 1,

May 2,










Digital Platform



Total Revenue



Financial Highlights for the First Quarter period ended May 1, 2021

  • Total revenue of $44.1 million compared to revenue of $23.1 million for the first quarter of 2020, an increase of 90.7%;
  • Gross profit percentage of 37.5% compared to 32.6% for the same period in 2020;
  • Fourth consecutive quarter of positive Adjusted EBITDA of $2.3 million as compared to an Adjusted EBITDA loss of $1.4 million for the first quarter of 2020;
  • Completed a $15 million at-the-market equity offering which positions Fire & Flower for future growth;
  • Strengthened the Company’s balance sheet with a $53 million debt-to-equity conversion helping to further reduce interest costs. A wholly-owned indirect subsidiary of Circle K owner, Alimentation Couche-Tard Inc. converted approximately $24 million principal amount of debentures, which increased their equity stake in the Company to 19.9%;
  • Total debt was reduced from $37.5 million at January 30, 2021 to $7.2 million;
  • The net loss of $61.6 million in the quarter was primarily attributable to the $54.1 million  loss on revaluation of derivative liabilities in the current quarter;
  • Cash balances of $32.7 million as compared to $30.6 million at January 30, 2021.

“We are strategically leveraging the significant growth opportunities that exist within each of our business segments and continue working towards listing our shares on the Nasdaq. We expect this upcoming listing will help generate additional exposure for our common stock in the U.S. while providing additional liquidity to our shareholders. As we head into the second half of the year with strong momentum from the reopening of provinces and consumers coming back into the stores, we are confident we are positioned to deliver sustainable growth throughout 2021 and beyond,” concluded Fencott.

Operational Highlights for the First Quarter ended May 1, 2021

  • Entered the U.S. market through strategic licensing partnership and acquisition option with American Acres Managers, gaining access to licensing opportunities in the CaliforniaArizona and Nevada markets;
  • Hifyre subsidiary entered into a strategic agreement with U.S. analytics company BDSA;
  • Submitted an application to list its common shares on the Nasdaq exchange;
  • Same-store retail sales of the 43 stores with operations in both 13 week periods of Q1 2020 and Q1 2021 increased by 18% due to increased customer engagement through the Sparks membership base, improved merchandise planning and assortment and multiple purchase channels, such as in-store, curbside pick-up, delivery and kiosk;
  • Entered into a consulting agreement and an agreement to acquire the assets for a cannabis retail store and its operations located in Sarnia, Ontario;
  • Strong revenue growth from Open Fields Distribution due to the opening of the Saskatchewan market following COVID-19 lockdowns was driven by increased orders from legacy customers and new vendor partnerships;
  • Increased the number of operated and owned retail stores to 79 as of May 1, 2021, under four banners across the provinces of AlbertaSaskatchewanManitoba and Ontario and the Yukon territory;
  • Strenghtened our executive management bench strength and alignment with the appointment of Judy Adam as Chief Financial Officer, Nadia Vattovaz as Chief Operating Officer and Matthew Hollingshead as Chief Innovation Officer.

Subsequent Operational Highlights post May 1, 2021

  • Entered the British Columbia market with two retail stores opened in Vancouver bringing total stores to 83 licensed cannabis retail stores;
  • Increased Spark PerksTM members to 270,000 across the Fire & Flower retail network;
  • As of June 11, 2021, the key cannabis market of Ontario opened up from lockdown due to COVID-19, allowing for foot traffic into all Fire and Flower retail stores;
  • Fire & Flower entered into a definitive agreement to acquire all of the assets of Satica Cannabis in Orangeville, Ontario as well as a consulting services agreement, subject to customary conditions including TSX and regulatory approvals.

About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 85 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams.
tTo learn more about Fire & Flower, visit