NASDAQ$XXII

22nd Century Group Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

22nd Century Group's Q2 2022 financial results were reported, with revenue increasing due to higher contract manufacturing volumes and the acquisition of GVB Biopharma.

22nd Century Group reported a 73% increase in net sales to $14.5 million for the second quarter of 2022, driven by increased contract manufacturing volumes and the acquisition of GVB Biopharma. The company's VLN pilot in Chicago exceeded expectations, leading to accelerated expansion plans in Colorado. The acquisition of GVB Biopharma is expected to double the company's total revenue and provide consumers with hemp/cannabis products.

  • Second quarter net sales increased 73% year-over-year to $14.5 million.
  • Successful Chicago pilot of VLN King and VLN Menthol King led to expansion plans in Colorado.
  • Acquisition of GVB Biopharma doubled corporate revenue and expanded hemp/cannabis capabilities.
  • Balance sheet strengthened with $35 million equity offering to support VLN expansion.

Headline financials

Total Revenue

$14.5M

Previous: $8.37M+72.9%
EPS (adj)

-$14.40

Previous: -$7.20-100.0%
Capital Expenditures

-$1.18M

Previous: -$388K-204.6%
Free Cash Flow

-$12.7M

Previous: -$4.56M-177.9%
Net Income

-$11.5M

Previous: -$4.17M-175.5%
Operating Income

-$10.5M

Previous: -$6.64M-57.8%
Gross Profit

-$13.6M

Previous: -$7.79M-74.5%
Cash & Equivalents

$2.67M

Previous: $62.3M-95.7%
Total Assets

$119M

Previous: $97.2M+23.0%
Stock-Based Comp

$1.11M

Previous: $1.12M-1.2%

Revenue & EPS history

22nd Century Group · Revenue · Quarterly

$14.5M

Q2 2022+72.9%vs Q2 2021
Beat estimate in 3 of 10 quarters(30%)
ActualEstimate

Forward guidance

22nd Century Group anticipates decreasing cash requirements, reflecting higher VLN product sales and continued organic growth of GVB's operations, providing adequate liquidity to complete planned strategic initiatives.

Tailwinds

  • Successful Chicago pilot exceeding expectations
  • Plans for expansion of VLN into the Colorado market
  • Advanced discussions with additional channel partners to expand the geographic and regional sales reach of VLN
  • Expansion of existing manufacturing operations to increase capacity 25% nearing completion
  • Actively pursuing business development through GVB’s existing relationships to further accelerate its growth

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-2.9%

Avg return

Earnings day

-3.9%

Avg return

5 days after

-7.7%

Avg return

30 days after

32%

19 / 59 earnings

Positive

+37.4%

Q4 2020

Best reaction

-25.8%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-2.2%-13.2%
Q1 2026-16.6%-33.2%-44.0%
Q3 2025-17.0%-20.0%-32.3%
Q1 2025+1.9%-18.7%-59.3%
Q4 2024-2.6%-12.6%-59.2%
Q3 2024-3.0%-10.7%-28.2%
Q2 2024-14.9%-21.9%-62.8%
Q1 2024-1.9%-9.7%-47.9%
Q4 2023-8.7%-7.7%-18.1%
Q3 2023-15.2%-19.0%-52.5%
Q2 2023-25.8%-23.3%-51.6%
Q1 2023-5.0%-13.8%-16.1%
Q4 2022-0.7%-4.9%-17.9%
Q3 2022-21.0%-13.8%-26.1%
Q2 2022-10.7%-11.2%-32.7%
Q1 2022-8.3%-20.3%-3.1%
Q4 2021-2.1%-9.8%-0.9%
Q3 2021-0.7%+1.7%-22.1%
Q2 2021+18.1%+26.4%+12.4%
Q1 2021+8.4%+10.7%+14.9%
Q4 2020+37.4%+27.0%+62.6%
Q3 2020+13.2%+12.5%+129.0%
Q2 2020-2.1%-4.6%-19.3%
Q1 2020-3.6%-9.9%-7.7%
Q4 2019-5.8%+2.2%-7.7%
Q3 2019-3.6%-10.2%-40.8%
Q2 2019+3.1%+18.9%+31.4%
Q1 2019-11.4%-18.6%-18.1%
Q4 2018+1.6%+7.0%+1.1%
Q3 2018+3.1%+0.8%+9.8%
Q2 2018-1.6%+2.8%+2.4%
Q1 2018+6.8%+23.2%+7.7%
Q4 2017+11.3%+5.8%-10.1%
Q3 2017+0.0%+5.8%+28.6%
Q2 2017-7.9%-10.5%+4.6%
Q1 2017+6.9%+6.9%+40.5%
Q4 2016+0.5%+3.7%+44.4%
Q3 2016+0.8%-0.8%-21.2%
Q2 2016+2.2%+10.9%+17.4%
Q1 2016+2.6%
Q4 2015-4.8%
Q3 2015-9.3%
Q2 2015-7.0%
Q1 2015+21.5%
Q4 2014-16.5%
Q4 2013-16.5%
Q3 2014-9.2%
Q2 2014-1.4%
Q1 2014-2.9%
Q3 2013+4.2%
Q2 2013-18.5%
Q1 2013+0.0%
Q4 2012-9.1%
Q3 2012-20.0%
Q2 2012-7.1%
Q1 2012+1.5%
Q4 2011+1.5%
Q3 2011+0.0%
Q2 2011+0.0%
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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