AWH ANNOUNCES Q1 2024 FINANCIAL RESULTS
- Achieved $142.4M Net Revenue in Q1 2024, a 25% Increase Year-Over-Year and 2% Increase Quarter-Over-Quarter
- Reported $32.5 million in Adjusted EBITDA, a 39% Increase Year-Over-Year
- Generated Positive Cash from Operations
NEW YORK, May 7, 2024 /PRNewswire/ – Ascend Wellness Holdings, Inc. (“AWH,” or the “Company” or “Ascend”) (CSE: AAWH.U) (OTCQX: AAWH), a vertically integrated multi-state cannabis operator focused on bettering lives through cannabis, today reported its financial results for the three months ended March 31, 2024 (“Q1 2024”). Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and all currency is in U.S. dollars.
Q1 2024 Financial Highlights
- Gross revenue increased 23.4% year-over-year and 0.6% quarter-over-quarter to $174.2 million.
- Net revenue, which excludes intercompany sales of wholesale products, increased 24.7% year-over-year and 1.6% quarter-over-quarter to $142.4 million.
- Retail revenue increased 15.1% year-over-year and decreased 2.2% quarter-over-quarter to $95.2 million.
- Gross wholesale revenue increased 35.2% year-over-year and 4.2% quarter-over-quarter to $79.0 million. Wholesale revenue, net of intercompany sales, increased 50.2% year-over-year and 10.2% quarter-over-quarter to $47.2 million.
- Net loss of $18.2 million during the quarter compared to $18.5 million in Q1 2023.
- Adjusted EBITDA¹ was $32.5 million, representing a 22.8% margin. Adjusted EBITDA increased 39% and margin improved 239 basis points year-over-year. Adjusted EBITDA improved 0.4% quarter-over-quarter and Adjusted EBITDA margin was largely flat sequentially.
- As of March 31, 2024, cash and cash equivalents were $72.9 million and net debt² was $237.6 million.
- Generated $3.9 million of cash flows from operations, representing the fifth consecutive quarter of positive operating cash flow.
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¹Adjusted EBITDA/margin and Adjusted Gross Profit/margin are a non-GAAP financial measures. Please see the “GAAP Reconciliations” at the end of this release.
²Total debt less cash and cash equivalents less unamortized deferred financing costs.
Business Highlights
Opened two dispensaries in Q1 2024, in Cincinnati, Ohio and Monaca, Pennsylvania, bringing the total number of operating dispensaries across the network to 36.
Secured operating agreements with two additional partner dispensaries, bringing total number of partner stores in the pipeline to four.
Operationalized second cultivation and manufacturing facility in Massachusetts, bringing total number of facilities to seven with 255,000 sq. ft of active canopy. Further development at this facility is underway with plans to expand total cultivation across the portfolio to 260,000 sq. ft.
Entered into two long-term supply agreements in Maryland, providing both AWH and third-party branded products to serve retail and wholesale customers in the state.
Management Commentary
I want to extend my gratitude to all of our stakeholders for their dedicated efforts in delivering a solid first quarter. We’ve seen tremendous 25% year-over-year growth in revenue and a 39% increase in adjusted EBITDA, complemented by a 239-basis point expansion in our Adjusted EBITDA margin compared to the prior year.
John Hartmann, Chief Executive Officer
This quarter also marks our fifth consecutive period of gross wholesale growth. These achievements reflect the hard work of our team, and they underscore our commitment to sustained operational excellence and financial health.
“We had a strong first quarter to start the year, highlighted by our generation of cash from operations for the fifth consecutive quarter. This consistent performance is a testament to our strong execution across multiple markets. Looking ahead to the rest of the year, we are optimistic about our financial outlook. We project revenue growth between approximately 12% and 15%, and an adjusted EBITDA increase of approximately 17% to 22% compared to 2023. Additionally, we are targeting cash from operations generation for the full year between $55 million and $65 million,” said Mark Cassebaum, Chief Financial Officer.
