NASDAQ$XXII

22nd Century Group Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

22nd Century Group reported a net revenue of $7.4 million and exited its hemp/cannabis operations to focus on tobacco harm reduction and contract manufacturing.

22nd Century Group reported a net revenue of $7.4 million for Q4 2023, a decrease from $10.0 million in the prior year period. The company exited its hemp/cannabis operations to focus on tobacco harm reduction and contract manufacturing. Operating loss was $14.2 million, and net loss was $22.1 million, or $0.66 per share.

  • Net revenue from continuing operations in Q4 2023 was $7.4 million.
  • Exited hemp/cannabis operations to fully focus on tobacco harm reduction and contract manufacturing activities.
  • Operating costs substantially reduced through efficiency initiatives and the hemp/cannabis business sale.
  • Initiatives commenced to increase sales, improve gross margin, and increase operating profit in 2024.

Headline financials

Total Revenue

$7.36M

Previous: $19.2M-61.7%
EPS (adj)

-$10.56

Previous: -$28.80+63.3%
Capital Expenditures

$705K

Previous: $1.16M-39.0%
Net Income

-$22.1M

Previous: -$26.3M+15.9%
Operating Income

-$14.2M

Previous: -$23.2M+38.7%
Gross Profit

-$7.83M

Previous: -$646K-1111.9%
R&D Expense

$493K

No prior period
Stock-Based Comp

-$558K

Previous: $923K-160.5%

Revenue & EPS history

22nd Century Group · Revenue · Quarterly

$7.36M

Q4 2023-61.7%vs Q4 2022
Beat estimate in 3 of 10 quarters(30%)
ActualEstimate

Forward guidance

22nd Century Group expects continued sequential improvement in each quarter throughout 2024 and aims to break even by the first quarter 2025.

Tailwinds

  • Cash use has declined rapidly, from a peak run rate of approximately $15 million a quarter last year to less than $4 million projected in the first quarter of 2024
  • Evaluate and profitably grow our contract manufacturing business to cover our operating expenses and mission critical initiatives around 22nd Century’s very low nicotine content cigarette technology.
  • Invest in and grow the VLN® brand through sales and customer awareness.
  • Capitalize on a positive regulatory and social environment.
  • Believe that 22nd Century can break even by the first quarter 2025

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 2023

Historical avgQ4 2023

-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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