NASDAQ$XXII

22nd Century Group Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

22nd Century Group's Q3 2024 financial results were announced, with the company remaining on track to achieve cash-positive operations in Q1 2025 and commencing a growth strategy that leverages both internal and external brand assets across multiple categories.

22nd Century Group reported a decrease in net revenues to $5.9 million, a gross profit loss of $(0.6) million, an increase in operating loss to $3.4 million, and an increase in net loss to $3.6 million for the third quarter of 2024. The company remains focused on achieving EBITDA breakeven results in the first quarter of 2025 and is moving forward with plans to launch additional products, including VLN® SKUs within key customer brand families.

  • Net revenues decreased to $5.9 million compared to $7.9 million in the previous quarter.
  • Gross profit was $(0.6) million, a decrease from $0.6 million in the previous quarter.
  • Operating loss increased to $3.4 million compared to $2.0 million in the previous quarter.
  • The company remains focused on EBITDA breakeven results in the first quarter of 2025.

Headline financials

Total Revenue

$5.95M

Previous: $17.8M-66.6%
EPS

-$0.55

Previous: -$12.48+95.6%
Net Debt

$2.98M

No prior period
Capital Expenditures

-$141K

Previous: -$3.95M+96.4%
Free Cash Flow

-$3.9M

Previous: -$76.7M+94.9%
Net Income

-$3.76M

Previous: -$72.7M+94.8%
Operating Income

-$3.38M

Previous: -$71.5M+95.3%
Gross Profit

-$2.21M

Previous: -$20.5M+89.2%
Cash & Equivalents

$5.34M

Previous: $2.85M+87.4%
Total Assets

$26.2M

Previous: $64.2M-59.2%
R&D Expense

$137K

Previous: $1.43M-90.4%
Stock-Based Comp

-$4K

Previous: $576K-100.7%

Revenue & EPS history

22nd Century Group · Revenue · Quarterly

$5.95M

Q3 2024-66.6%vs Q3 2023
Beat estimate in 3 of 10 quarters(30%)
ActualEstimate

Forward guidance

22nd Century Group is focused on achieving EBITDA breakeven results in the first quarter of 2025 and plans to launch additional products, including VLN® SKUs within key customer brand families, to expand the distribution of reduced nicotine content cigarettes.

Tailwinds

  • Focus on EBITDA breakeven results in Q1 2025.
  • Plans to launch additional products, including VLN® SKUs within key customer brand families.
  • Changes in core CMO business expected to drive revenue growth.
  • Expanding distribution of reduced nicotine content cigarettes.
  • Synchronicity between the CMO business and VLN® is progressing as planned.

Headwinds

  • Third quarter results reflect operational adjustments intended to address underperforming results in the filtered cigar business.
  • Filtered cigars net revenues decreased.
  • VLN® cigarette net revenues were negligible.
  • Sell-through of VLN® products has not yet materialized.
  • Cigarette carton volumes declined 22% due to prior year comparable period stocking orders.

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 Q3 2024

Historical avgQ3 2024

-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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