Greenlane Reports Record Core Business Revenue of $125.2 Million in 2020

Greenlane Brands Revenue Grew 46.3% year-over-year

BOCA RATON, Fla., March 31, 2021 (GLOBE NEWSWIRE) — Greenlane Holdings, Inc. (“Greenlane” or “the Company”) (Nasdaq: GNLN), one of the largest global sellers of premium cannabis accessories and specialty vaporization products, today reported financial results for the fourth quarter and year ended December 31, 2020. Note, for the highlights below, core revenue is defined as all non-nicotine revenue and Greenlane Brand revenue is inclusive of Eyce figures.

Full Year 2020 (“FY 2020”) Highlights

  • Total revenue for FY 2020 was $138.3 million compared to $185.0 million for FY 2019;
  • Full year 2020 Core revenue (defined as non-nicotine revenue) grew 12.7% to $125.2 million, compared to $111.1 million in FY 2019;
  • Merchandise Gross Margin (defined as sale price less the cost of merchandise) increased to 28.2% compared for FY 2020 compared to 15.7% for FY 2019;
  • Gross profit was $22.8 million and gross profit margin was 16.5% for FY 2020. Excluding the impact of certain inventory adjustments which were incurred in the year, gross profit would have been $27.6 million or 20.0% of net sales, a 320 basis point year-over-year improvement in gross profit percentage compared to FY 2019’s gross profit margin of 16.8%;
  • Net sales of Greenlane Brands increased to approximately 19.7% of total net sales for FY 2020 from 10.1% for FY 2019;
  • Diversified and expanded Greenlane’s senior leadership team to support the Company’s business transformation plan as well as sales and marketing initiatives in North America and Europe;
  • Restructured our sales team by adding field sales personnel in both the United States and Canada, which will enable us to build stronger customer relationships; additionally, we transitioned to a more streamlined and centralized model with fewer, but larger, more automated distribution facilities, increasing our reach to customers around the United States to ensure that they have the necessary inventory, increasing efficiencies both internally and externally while decreasing costs;
  • Cash was $30.4 million as of December 31, 2020, compared to $47.8 million as of December 31, 2019.

Fourth Quarter 2020 (“Q4 2020”) Highlights

  • Net sales of Greenlane Brands grew approximately 50.5% to $7.8 million, or 21.4% of total net sales in Q4 2020 compared to $5.2, or 13.8% of net sales in the fourth quarter of 2019 (“Q4 2019”);
  • Core revenue grew 11.3% to $33.9 million in Q4 2020, compared to $30.5 million in Q4 2019;
  • Vibes Rolling Papers, Marley Natural, K.Haring Glass Collection, and Aerospaced posted record quarterly sales figures with a quarter-over-quarter growth of $0.7 million or 53.6%, $0.3 million or 68.3%, $0.2 million or 73.1% and $0.1 million or 24.5% respectively.

Management Commentary

“Though this year has been very challenging, I am incredibly proud of how the Greenlane team has aligned to accomplish all we have achieved in 2020,” said Aaron LoCascio, Greenlane’s Chairman and Chief Executive Officer. “Together, we successfully refocused our strategic efforts to grow our portfolio of owned brands, brought in new senior leaders, and took decisive steps to move away from lower margin revenue categories that has positioned us for sustained, long term growth.”

Mr. LoCascio added, “As we enter 2021, Greenlane will continue to innovate and adapt to meet the demands of the rapidly evolving Cannabis industry by executing on our growth strategy. This includes continuing to improve our revenue mix with a focus on Greenlane branded products, further optimizing our organizational structure to reduce costs where appropriate and leveraging our best-in-class global distribution platform to launch innovative new products into the market. We have made great progress thus far, and recently announced our acquisition of the Eyce, the world leader in premium silicone smoking products and a Greenlane partner for over seven years. We have built a robust pipeline of opportunities over the last year and I look forward to continuing to execute on the opportunity ahead of us as we accelerate our acquisition growth strategy to drive value enhancement for our customers, and shareholders.”

Financial Summary

 Quarter Ended December 31,%  Year Ended December 31,%
 20202019Change   20202019Change
Net Sales$36,272  $37,236  (2.6)%  $138,304  $185,006  (25.2)%
Core ( non-nicotine ) Sales$33,890  $30,455  11.3%  $125,208  $111,122  12.7%
% of Net Sales93.4% 81.8%     90.5% 60.1%  
Greenlane Branded Sales$7,754  $5,153  50.5%  $27,212  $18,594  46.3%
% of Net Sales21.4% 13.8%     19.7% 10.1%  
Non-Greenlane Brands$26,136  $25,302  3.3%  $97,996  $92,528  5.9%
% of Net Sales72.1% 68.0%     70.9% 50.0%  
Non-Core Sales$2,382  $6,781  (64.9)%  $13,096  $73,884  (82.3)%
% of Net Sales6.6% 18.2%     9.5% 39.9%  
Cost of Sales$30,120  $30,722  (2.0)%  $115,539  $153,916  (24.9)%
Gross Profit$6,152  $6,514  (5.6)%  $22,765  $31,090  (26.8)%
Gross Margin17.0% 17.5%     16.5% 16.8%  
Salaries, Benefits & Payroll Taxes$7,164  $8,043  (10.9)%  $24,909  $29,716  (16.2)%
% of Net Sales19.8% 21.6%     18.0% 16.1%  
General and Administrative$9,557  $8,044  18.8%  $35,315  $23,593  49.7%
% of Net Sales26.3% 21.6%     25.5% 12.8%  
Net Loss$(10,860) $(9,977) 8.9%  $(47,704) $(39,824) 19.8%
Adjusted Net Loss$(7,493) $(8,019) (6.6)%  $(25,863) $(18,544) 39.5%
Adjusted EBITDA$(7,202) $(7,615) (5.4)%  $(24,352) $(13,424) 81.4%
Cash$30,435  $47,773  (36.3)%  $30,435  $47,773  (36.3)%

Q4 2020 net sales decreased 2.6% to $36.3 compared to $37.2 million in Q4 2019, and FY 2020 decreased 25.2% to $138.3 million compared to $185.0 million in FY 2019. The decrease in sales during FY 2020 was driven by a strategic decision to move away from sales of higher volume, lower margin merchandise to on higher margin revenue opportunities, including the Company’s Greenlane branded products, which accounted for 19.7% of FY 2020 net sales and 21.4% of Q4 2020 net sales, in comparison to 10.1% and 13.8% for FY 2019 and Q4 2019, respectively.

FY 2020 gross profit declined 26.8% to $22.8 million compared to $31.1 million for FY 2019. The year-over-year decline in gross profit is significantly impacted by certain strategic decisions made in the third quarter of 2020, relating to inventory level management and go-forward product lines. As a result of those decisions, the Company recorded write-offs and adjustments of $4.8 million relating to damaged and obsolete inventory. Excluding the impact of these inventory adjustments, FY 2020 gross margin would otherwise have been $27.6 million and gross profit margin would have been 20.0% or 320 basis points higher than FY 2019’s gross profit margin of 16.8%.

 Quarter Ended December 31,%  Year Ended December 31,%
 20202019Change  20202019Change
United States – Net Sales$30,061$31,226(3.9)%  $112,543$160,243(42.0)%
Core Revenue$28,371$25,34710.7%  $106,026$97,9128.0%
Non-Core Revenue$1,690$5,879(247.9)%  $6,517$62,331(856.0)%
         
Canada – Net Sales$3,095$3,367(8.8)%  $15,457$22,120(43.0)%
Core Revenue$2,403$2,465(2.6)%  $8,878$10,569(19.0)%
Non-Core Revenue$692$902(30.3)%  $6,579$11,551(76.0)%
         
Europe – Net Sales$3,116$2,64315.2%  $10,304$2,64374.0%
Core Revenue$3,116$2,64315.2%  $10,304$2,64374.0%
Non-Core Revenue$$N.A   $$N.A 

Our United States segment reported a net sales decrease of $47.7 million in 2020 due to a reduction in non-core nicotine revenue of $55.8 million, while core revenue grew by $8.1 million; $7.6 million of which come from growth in our Greenlane house brands. Our Canada segment reported a sales decrease of $6.7 million, and similar to the United Sates the decrease was driven by a $5.0 million decrease in non-core revenue. As for our European reporting segment, annual sales totaled $10.3 million, with Q4 2020 sales totaling $3.1 million and representing a $0.5 million or 15.2% growth in comparison to Q4 2019, the first quarter post acquisition.

Greenlane continues to actively manage its balance sheet to fund the Company’s growth initiatives and potential M&A opportunities. As of December 31, 2020, cash balance stood at $30.4 million and $54.2 million of working capital, compared to $47.8 million and $88.7 million of cash and working capital as of December 31, 2019, respectively. Non-Cash working capital decreased 41.8% year-over-year.

Conference Call Information

Greenlane will host a conference call Wednesday, March 31, 2021, to discuss these results. Aaron LoCascio, Chief Executive Officer, will host the call starting at 8:30 a.m. Eastern time.

Date:Wednesday, March 31st, 2021
Time:8:30 a.m. Eastern Time
Dial-In Number:(833) 519-1285
Conference ID:1881585
Webcast:Click here to access
Replay:(855) 859-2056 or (404) 537-3406
 Available until 11:30 PM Eastern Time on April 14th, 2021

About Greenlane Holdings, Inc.

Greenlane Holdings, Inc. (NASDAQ: GNLN) is a global house of brands and one of the largest sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products to smoke shops, dispensaries, and specialty retail stores, as well as direct to consumer through its online e-commerce platform, vapor.com. Founded in 2005, Greenlane serves more than 6,000 customers in over 8,000 retail locations and has over 250 employees with operations in 13 cities across the United States, Canada, and Europe. With a strong global footprint, Greenlane has been the partner of choice for many of the industry’s leading brands, who chose to leverage its strong distribution platform, unparalleled customer service, and highly efficient operations and logistics to accelerate their growth. Greenlane’s curated portfolio of house brands includes packaging innovator Pollen Gear™, VIBES™ rolling papers, Marley Natural™ Accessories; K.Haring Glass Collection, Aerospaced grinders, Eyce specialty silicone smoking products, and Higher Standards, which offers both an upscale product line as well as an innovative retail experiences with flagship stores located in Chelsea Market, New York and Malibu, California.

For additional information, please visit: https://gnln.com/.

Presentation of Financial Information

This press release includes historical consolidated results for the periods presented of Greenlane Holdings, LLC, the predecessor of Greenlane Holdings, Inc., for financial reporting purposes. Accordingly, the consolidated financial statements for periods prior to the completion of the IPO on April 23, 2019 have been adjusted to combine the previously separate entities for presentation purposes. Amounts for the period from January 1, 2019 through April 22, 2019 represent the historical operations of Greenlane Holdings, LLC. The amounts for the period from April 23, 2019 through December 31, 2019, and from January 1, 2020 through December 31, 2020 reflect the consolidated operations of Greenlane Holdings, Inc.

Use of Non-GAAP Financial Measures

Greenlane discloses Adjusted Net Loss and Adjusted EBITDA, which are non-GAAP financial measures, because management believes these metrics assist investors and analysts in assessing the Company’s overall operating performance and evaluating how well Greenlane is executing its business strategies. You should not consider Adjusted Net Loss or Adjusted EBITDA as alternatives to net loss determined in accordance with GAAP as indicators of Greenlane’s operating performance. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Accordingly, you should not view Adjusted Net Loss or Adjusted EBITDA in isolation or as a substitute, or superior to, financial information prepared and presented in accordance with GAAP. Furthermore, these non-GAAP measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.

Adjusted Net Loss and Adjusted EBITDA have limitations as an analytical tool. Some of these limitations are:

  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and adjusted EBITDA does not reflect capital expenditure requirements for such replacements or for new capital expenditures;
  • Adjusted EBITDA does not include interest expense, which has been a necessary element of the Company’s costs;
  • Adjusted EBITDA does not reflect income tax payments we may be required to make;
  • Adjusted EBITDA and Adjusted Net Loss do not reflect equity-based compensation;
  • Adjusted EBITDA and Adjusted Net Loss do not reflect transaction and other costs which are generally incremental costs that result from an actual or planned transaction;
  • Other companies, including companies in Greenlane’s industry, may calculate adjusted EBITDA and adjusted net loss differently, which reduces its usefulness as a comparative measure.

For more information on Greenlane’s non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial measures, please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” table in this press release.

Forward Looking Statements

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements. These forward-looking statements include, among others: comments relating to the current and future performance of the Company’s business; the Company’s strategies; the impacts of acquisitions and other similar transactions; the impact of the ongoing COVID-19 pandemic on the Company’s business; growth in demand for the Company’s products; growth in the market for cannabis and nicotine; the Company’s marketing and commercialization efforts; and the Company’s financial outlook and expectations. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2019 and the Company’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Additional information is also set forth in Greenlane’s Annual Report on Form 10-K for the year ended December 31, 2020. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to Greenlane on the date hereof. Greenlane undertakes no duty to update this information unless required by law.

Media Contact

MATTIO Communications
Greenlane@mattio.com

Investor Contact:
Rob Kelly
Investor Relations, MATTIO Communications
Greenlane@mattio.com
1-416-992-4539

GREENLANE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value per share amounts)

 December 31,
2020
 December 31,
2019
 (Unaudited)  
ASSETS   
Current assets   
Cash$30,435  $47,773 
Accounts receivable, net of allowance of $1,268 and $936 at December 31, 2020 and 2019, respectively6,330  8,091 
Inventories, net36,064  43,060 
Vendor deposits11,289  11,120 
Assets held for sale1,073   
Other current assets10,892  4,924 
Total current assets96,083  114,968 
    
Property and equipment, net12,201  13,165 
Intangible assets, net5,945  6,301 
Goodwill3,280  11,982 
Operating lease right-of-use assets3,104  4,695 
Other assets2,037  2,091 
Total assets$122,650  $153,202 
    
LIABILITIES   
Current liabilities   
Accounts payable$18,405  $11,310 
Accrued expenses and other current liabilities19,390  $10,422 
Customer deposits2,729  3,152 
Current portion of notes payable182  178 
Current portion of operating leases966  1,084 
Current portion of finance leases184  116 
Total current liabilities41,856  26,262 
    
Notes payable, less current portion and debt issuance costs, net7,844  8,018 
Operating leases, less current portion2,524  3,844 
Finance leases, less current portion205  194 
Other liabilities964  620 
Total long-term liabilities11,537  12,676 
Total liabilities53,393  38,938 
    
Commitments and contingencies   
    
STOCKHOLDERS’ EQUITY   
Preferred stock, $0.0001 par value, 10,000 shares authorized, none issued and outstanding   
Class A common stock, $0.01 par value per share, 125,000 shares authorized; 13,322 shares issued and outstanding as of December 31, 2020; 9,999 shares issued and 9,812 shares outstanding as of December 31, 2019133  98 
Class B common stock, $0.0001 par value per share, 10,000 shares authorized; 3,491 shares issued and outstanding as of December 31, 2020; 5,975 shares issued and outstanding as of December 31, 20191  1 
Class C Common stock, $0.0001 par value per share, 100,000 shares authorized; 76,039 shares issued and outstanding as of December 31, 2020; 77,791 shares issued and outstanding as of December 31, 20198  8 
Additional paid-in capital39,742  32,108 
Accumulated deficit(24,848) (9,727)
Accumulated other comprehensive loss29  (72)
Total stockholders’ equity attributable to Greenlane Holdings, Inc.15,065  22,416 
Non-controlling interest54,192  91,848 
Total stockholders’ equity69,257  114,264 
Total liabilities and stockholders’ equity$122,650  $153,202 
    


GREENLANE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share amounts)

 For the year ended December 31,
 2020 2019
 (Unaudited)  
Net sales$138,304  $185,006 
Cost of sales115,539  153,916 
Gross profit22,765  31,090 
    
Operating expenses:   
Salaries, benefits and payroll taxes24,909  29,716 
General and administrative35,315  23,593 
Goodwill impairment charge8,996   
Depreciation and amortization2,520  2,705 
Total operating expenses71,740  56,014 
Loss from operations(48,975) (24,924)
    
Other income (expense), net:   
Change in fair value of convertible notes  (12,063)
Interest expense(437) (975)
Other income, net1,902  9,073 
Total other income (expense), net1,465  (3,965)
Loss before income taxes(47,510) (28,889)
Provision for income taxes194  10,935 
Net loss(47,704) (39,824)
Less: Net loss attributable to non-controlling interest(33,187) (11,008)
Net loss attributable to Greenlane Holdings, Inc.$(14,517) $(28,816)
    
Net loss attributable to Class A common stock per share – basic and diluted$(1.22) $(0.96)
Weighted-average shares of Class A common stock outstanding – basic and diluted11,947  10,145 
    
Other comprehensive income (loss):   
Foreign currency translation adjustments654  193 
Unrealized loss on derivative instrument(459) (206)
Comprehensive loss(47,509) (39,837)
Less: Comprehensive loss attributable to non-controlling interest(33,092) (11,033)
Comprehensive loss attributable to Greenlane Holdings, Inc.$(14,417) $(28,804)
        


GREENLANE HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 For the year ended December 31,
 2020 2019
 (Unaudited)  
Cash flows from operating activities:   
Net loss (including amounts attributable to non-controlling interest)$(47,704) $(39,824)
Adjustments to reconcile net loss to net cash used in operating activities:   
Depreciation and amortization2,520  2,705 
Reversal of tax receivable agreement liability  (5,721)
Change in deferred tax asset, net  10,894 
Equity-based compensation expense853  8,020 
Unrealized gain on equity investment  (1,537)
Goodwill impairment charge8,996   
Change in fair value of contingent consideration(719)  
Change in fair value of convertible notes  12,063 
Change in provision for doubtful accounts576  352 
Loss on disposal of assets579   
Loss related to indemnification asset not probable of recovery4,464   
Impairment of held-for-sale assets376   
Other75  32 
Changes in operating assets and liabilities, net of the effects of acquisitions:   
Decrease in accounts receivable1,186  635 
Decrease (increase) in inventories6,996  (11,739)
(Increase) in vendor deposits29  (1,503)
Decrease (increase) in deferred offering costs  (1,238)
(Increase) in other current assets(10,194) (1,993)
Increase (decrease) in accounts payable7,095  (11,261)
Increase in accrued expenses13,104  3,132 
(Decrease) increase in customer deposits(534) 80 
Net cash used in operating activities(12,302) (36,903)
Cash flows from investing activities:   
Purchase consideration paid for acquisitions, net of cash acquired(1,841) (1,159)
Purchases of property and equipment, net(1,788) (2,020)
Purchase of intangible assets(515) (53)
Investment in equity securities  (500)
Net cash used in investing activities(4,144) (3,732)
Cash flows from financing activities:   
Proceeds from issuance of convertible notes  8,050 
Proceeds from issuance of Class A common stock sold in initial public offering, net of underwriting costs  83,003 
Payment of debt issuance costs – convertible notes  (1,734)
Deferred offering costs paid  (3,523)
Redemption of Class A and Class B units of Greenlane Holdings, LLC  (3,018)
Member distributions(604) (898)
Other(459) (901)
Net cash (used in) provided by financing activities(1,063) 80,979 
Effects of exchange rate changes on cash171  88 
Net (decrease) increase in cash(17,338) 40,432 
Cash, as of beginning of the period47,773  7,341 
Cash, as of end of the period$30,435  $47,773 
    
Supplemental disclosures of cash flow information   
Cash paid during the period for interest$437  $975 
Cash paid during the period for income taxes$192  $498 
Cash paid for amounts included in the measurement of lease liabilities$1,252  $1,119 
Lease liabilities arising from obtaining finance lease assets$272  $86 
Lease liabilities arising from obtaining operating lease right-of-use assets$793  $5,573 
    
Non-cash investing and financing activities:   
Conversion of convertible debt to Class A common stock$  $60,313 
Redeemable Class B Units issued for acquisition of a subsidiary, net of issuance costs$  $6,514 
Shares of Class A common stock issued for acquisition of Conscious Wholesale$1,988  $ 
Contingent consideration for the Conscious Wholesale acquisition included in “Accrued expenses and other current liabilities”$  $1,609 
Purchase consideration for the Conscious Wholesale acquisition included in “Accrued expenses and other current liabilities”$  $3,029 
Purchases of property, plant, and equipment with unpaid costs accrued in “Other liabilities”$98  $414 
Exchanges of non-controlling interest for Class A common stock$(4,962) $ 



GREENLANE HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

The reconciliation of our net loss to Adjusted Net Loss is as follows:

 Year ended December 31,
(in thousands)2020 2019
Net loss$(47,704) $(39,824)
Debt placement costs for convertible notes (1)  422 
Transition to being a public company (2)  775 
Equity-based compensation expense853  8,020 
Initial consulting costs related to ERP system implementation (3)215   
Restructuring expenses (4)1,229   
Due diligence costs related to acquisition target903   
Goodwill impairment charge8,996   
Adjustments related to the product rationalization to increase inventory turnover of slow-selling products3,222   
Obsolete inventory charges related to management’s strategic initiative (5)1,137   
Allowances for uncollectible vendor deposits incurred in connection with management’s strategic initiative (5)822   
Loss related to indemnification asset not probable of recovery4,464   
Change in fair value of convertible notes  12,063 
Adjusted net loss$(25,863) $(18,544)
        

(1)   Debt placement costs related to the issuance of convertible notes in January 2019.
(2)   Includes certain non-recurring fees and expenses primarily attributable to consulting fees and incremental audit and legal fees incurred in connection with our IPO.
(3)   Includes non-recurring expenses related to the initial project design for our planned ERP system implementation.
(4)   Includes primarily severance payments for employees terminated as part of our transformation plan.
(5)   Includes certain non-recurring charges related to management’s strategic initiative. These adjustments were incurred liquidate inventory on hand and on order, rationalize product offerings, improve inventory turnover of slow-selling products and vacate warehouse space for products with higher margin and marketability.

The reconciliation of our net loss to Adjusted EBITDA Loss is as follows:

 Year ended December 31,
(in thousands)2020 2019
Net loss$(47,704) $(39,824)
Other income, net (1)(1,902) (9,073)
Transition to being a public company (2)  775 
Interest expense437  975 
Provision for (benefit from) income taxes194  10,935 
Depreciation and amortization2,520  2,705 
Equity-based compensation expense853  8,020 
Initial consulting costs related to ERP system implementation (3)215   
Restructuring expenses (4)1,229   
Due diligence costs related to acquisition target903   
Adjustments related to product rationalization to increase inventory turnover of slow-selling products (5)3,222   
One-time early termination fee on operating lease in connection with moving to a centralized distribution center model262   
Goodwill impairment charge8,996   
Inventory charges related to management’s strategic initiative(5)1,137   
Allowances for uncollectible vendor deposits incurred in connection with management’s strategic initiative (5)822   
Loss related to indemnification asset not probable of recovery4,464   
Change in fair value of convertible notes  12,063 
Adjusted EBITDA Loss$(24,352) $(13,424)
        

(1)   Includes rental and interest income, changes in the fair value of contingent consideration, and other miscellaneous income.
(2)   Includes certain non-recurring fees and expenses primarily attributable to consulting fees and incremental audit and legal fees incurred in connection with our IPO.
(3)   Includes non-recurring expenses related to the initial project design for our planned ERP system implementation.
(4)   Includes primarily severance payments for employees terminated as part of our transformation plan.
(5)   Includes certain non-recurring charges related to management’s strategic initiative. These adjustments were incurred liquidate inventory on hand and on order, rationalize product offerings, improve inventory turnover of slow-selling products and vacate warehouse space for products with higher margin and marketability.

SOURCE GLOBENEWSWIRE