Revenue Increases 106% Year-Over-Year
NEWPORT BEACH, Calif., Nov. 7, 2011 /PRNewswire/ -- General Cannabis, Inc. (OTCBB: CANA), (OTCQX: CANA), a technology-based Internet marketing services company, today announced financial results for the third quarter ended September 30, 2011. Revenue for the third quarter of 2011 was $4.1 million, a year-over-year increase of 106%, compared with $2.0 million for the third quarter of 2010, and an increase to $10.4 million for the nine months ending September 30, 2011, an increase of 87%, from $5.5 million for nine months ended September 30, 2010. The increase was, in part, as a result of the advancements in our vertical finder website technology which is implemented by WeedMaps Media, the Company's on-line community and finder site for the medicinal cannabis industry focused on patients, dispensaries and medical clinics.
Operating expenses as a percentage of sales decreased by 19% during the three months ended September 30, 2011 as compared to the same period last year. Operating expenses were $3.2 million for the third quarter of 2011, compared to $1.9 million for the third quarter of 2010 and $3.2 million for the second quarter of 2011. The year-over-year increase was due to the expansion of operations which was accompanied by increases in salaries and employee benefits, increases in professional fees, increased general and administrative expenses primarily attributable to non-cash amortization expense associated with recent acquisitions, and moving and leasehold improvement expenses.
Operating income increased by 463% for the third quarter of 2011 compared to the second quarter of 2011. Total operating income was $959,000 for the third quarter of 2011, compared to $170,000 for the second quarter of 2011 and $77,000 for the third quarter of 2010.
EBITDA increased to $2.2 million for the nine months ended 2011 compared to $383,000 for the nine months ending 2010, an increase of 495%. EBITDA increased to $1.4 million for the third quarter of 2011 compared to $78,000 for the third quarter of 2010, an increase of 1,631%.
Net income increased to $430,000 for the third quarter of 2011 compared to $75,000 for the third quarter of 2010, an increase of 473%. Net income was $170,000 for the second quarter of 2011.
"Our strong year-over-year and sequential growth in revenue and EBITDA reflect a solid performance by our broadening technology platform which is leveraged by WeedMaps Media. We continue to increase returns on our investments in our sales and marketing efforts," said Jim Pakulis, CEO of General Cannabis. "We are continuing to manage costs effectively, and with increasing revenue, we are benefiting from significant operating leverage, as evidenced in our EBITDA and operating income."
About General Cannabis
General Cannabis, Inc., a technology-based Internet marketing services company, offers customers an integrated suite of services including media, technology, marketing and information. Founded in 2010, General Cannabis is headquartered in Newport Beach, California. The Company's common stock trades on the OTC market's highest tier, OTCQX, under the ticker symbol "CANA." www.GeneralCannabis.com
Safe Harbor Notice
Certain statements contained herein are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). General Cannabis, Inc. cautions that statements made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. General Cannabis, Inc. undertakes no obligation to revise these statements following the date of this news release.
SOURCE General Cannabis, Inc.