NASDAQ$XXII

22nd Century Group Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

22nd Century Group's Q4 2020 financial results were announced, with net sales revenue consistent with the prior-year period and gross profit improving.

22nd Century Group reported net sales revenue of $7.3 million for Q4 2020, consistent with the prior-year period. The company's gross profit improved, while the net loss increased. The company is focused on securing Modified Risk Tobacco Product (MRTP) authorization for VLN® and advancing its hemp/cannabis strategy.

  • Net sales revenue for the fourth quarter was $7.3 million, consistent with the prior-year period.
  • Gross profit for the fourth quarter improved by $364 thousand.
  • Net loss increased by $207 thousand for the fourth quarter.
  • The company's balance sheet is well funded with $22.3 million at the end of the year.

Headline financials

Total Revenue

$7.3M

Previous: $7.3M+0.0%
EPS (adj)

-$12.00

Previous: -$12.00+0.0%
Adjusted EBITDA

-$5.38M

No prior period
Capital Expenditures

$21K

Previous: $527K-96.0%
Free Cash Flow

-$3.02M

Previous: -$3.42M+11.7%
Net Income

-$6.4M

Previous: -$6.2M-3.3%
Operating Income

-$696K

Previous: -$5.55M+87.5%
Gross Profit

$588K

Previous: $225K+161.6%
Cash & Equivalents

$22.3M

Previous: $485K+4497.9%
Total Assets

$51.7M

Previous: $69M-25.0%
Stock-Based Comp

$492K

Previous: $1.13M-56.6%

Revenue & EPS history

22nd Century Group · Revenue · Quarterly

$7.3M

Q4 2020+0%vs Q4 2019
Beat estimate in 8 of 11 quarters(73%)
ActualEstimate

Forward guidance

22nd Century Group is focused on securing FDA authorization for VLN®, supporting the FDA’s plan to require all cigarettes sold in the U.S. to be made “minimally or non-addictive”, targeting the upstream segment of the cannabinoid value chain, developing a third, plant-based franchise after securing MRTP authorization for VLN®, and maintaining diligent financial execution.

Tailwinds

  • Securing FDA authorization for VLN®.
  • Supporting the FDA’s plan to require all cigarettes sold in the U.S. be made “minimally or non-addictive”.
  • Targeting the upstream segment of the cannabinoid value chain.
  • Creating proprietary, commercially valuable new plant lines and related intellectual property with stabilized genetics to harness and optimize hemp/cannabis plant potential.
  • The Company expects to monetize a portion of its existing hemp/cannabis IP in 2021 and will continue to bring disruptive technology forward.

Headwinds

  • No specific negative guidance was provided in the document.
  • Forward-looking statements are subject to risks and uncertainties.
  • Actual results might differ materially from those explicit or implicit in forward-looking statements.
  • Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Form 10-K filed on March 11, 2021.
  • The Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.

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 Q4 2020

Historical avgQ4 2020

-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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