AWH ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS
Ascend Wellness Holdings (AAWH) reported its Q4 and full-year 2024 financial results, showing mixed performance. Full-year revenue grew 8.3% to $561.6 million, with wholesale revenue up 28.5% to $189.4 million and retail revenue slightly increasing 0.3% to $372.2 million.
The company's Q4 2024 showed sequential declines with total revenue down 4% to $136 million. However, profitability metrics improved with Adjusted EBITDA reaching $30.2 million (22.2% margin) and Free Cash Flow of $30.1 million. The company ended Q4 with $88.3 million in cash.
Key developments include:
- Completion of $30 million annualized cost savings initiatives
- Successful share buyback of 11 million shares (5% of outstanding)
- Launch of new brand 'Effin' with strong performance in edibles category
- Network expansion to 39 dispensaries
- Adult-use sales launch in Ohio locations, tripling previous sales
Ascend Wellness Holdings (AAWH) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, mostrando una performance mista. Il fatturato annuale è cresciuto dell'8,3% a 561,6 milioni di dollari, con un aumento del fatturato all'ingrosso del 28,5% a 189,4 milioni di dollari e un leggero incremento del fatturato al dettaglio dello 0,3% a 372,2 milioni di dollari.
I risultati del Q4 2024 hanno mostrato un calo sequenziale, con un fatturato totale in diminuzione del 4% a 136 milioni di dollari. Tuttavia, i parametri di redditività sono migliorati con un EBITDA rettificato che ha raggiunto i 30,2 milioni di dollari (margine del 22,2%) e un flusso di cassa libero di 30,1 milioni di dollari. L'azienda ha concluso il Q4 con 88,3 milioni di dollari in contante.
Sviluppi chiave includono:
- Completamento delle iniziative di risparmio sui costi annualizzate di 30 milioni di dollari
- Riuscito riacquisto di azioni di 11 milioni di azioni (5% del totale)
- Lancio del nuovo marchio 'Effin' con una forte performance nella categoria degli edibili
- Espansione della rete a 39 dispensari
- Lancio delle vendite per uso adulto in Ohio, triplicando le vendite precedenti
Ascend Wellness Holdings (AAWH) informó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un desempeño mixto. Los ingresos anuales crecieron un 8,3% a 561,6 millones de dólares, con un aumento del 28,5% en los ingresos mayoristas a 189,4 millones de dólares y un leve aumento del 0,3% en los ingresos minoristas a 372,2 millones de dólares.
Los resultados del Q4 2024 mostraron caídas secuenciales, con ingresos totales disminuyendo un 4% a 136 millones de dólares. Sin embargo, los indicadores de rentabilidad mejoraron, con un EBITDA ajustado que alcanzó los 30,2 millones de dólares (margen del 22,2%) y un flujo de caja libre de 30,1 millones de dólares. La empresa terminó el Q4 con 88,3 millones de dólares en efectivo.
Los desarrollos clave incluyen:
- Finalización de iniciativas de ahorro de costos anualizadas por 30 millones de dólares
- Recompra exitosa de 11 millones de acciones (5% de las acciones en circulación)
- Lanzamiento de la nueva marca 'Effin' con un fuerte desempeño en la categoría de comestibles
- Expansión de la red a 39 dispensarios
- Lanzamiento de ventas para uso adulto en ubicaciones de Ohio, triplicando las ventas anteriores
Ascend Wellness Holdings (AAWH)는 2024년 4분기 및 연간 재무 결과를 발표하며 혼합된 실적을 보였습니다. 연간 수익은 8.3% 증가하여 5억 6,160만 달러에 달했습니다, 도매 수익은 28.5% 증가하여 1억 8,940만 달러, 소매 수익은 0.3% 증가하여 3억 7,220만 달러에 이르렀습니다.
회사의 2024년 4분기는 총 수익이 4% 감소하여 1억 3,600만 달러로 감소하는 순차적 감소를 보였습니다. 그러나 조정된 EBITDA는 3,020만 달러(22.2% 마진)에 도달하고 자유 현금 흐름은 3,010만 달러로 개선되어 수익성 지표가 향상되었습니다. 회사는 4분기를 8,830만 달러의 현금으로 마감했습니다.
주요 개발 사항은 다음과 같습니다:
- 3천만 달러 연간 비용 절감 이니셔티브 완료
- 1,100만 주(발행 주식의 5%)의 자사주 매입 성공
- 식품 카테고리에서 강력한 실적을 보인 새로운 브랜드 'Effin' 출시
- 39개의 약국으로 네트워크 확장
- 오하이오 지역에서 성인용 판매 시작, 이전 판매의 세 배로 증가
Ascend Wellness Holdings (AAWH) a publié ses résultats financiers du quatrième trimestre et de l'année complète 2024, montrant une performance mixte. Le chiffre d'affaires annuel a augmenté de 8,3% pour atteindre 561,6 millions de dollars, avec un chiffre d'affaires en gros en hausse de 28,5% à 189,4 millions de dollars et un chiffre d'affaires de détail légèrement en hausse de 0,3% à 372,2 millions de dollars.
Les résultats du Q4 2024 de l'entreprise ont montré des baisses séquentielles, avec un chiffre d'affaires total en baisse de 4% à 136 millions de dollars. Cependant, les indicateurs de rentabilité se sont améliorés, avec un EBITDA ajusté atteignant 30,2 millions de dollars (marge de 22,2%) et un flux de trésorerie libre de 30,1 millions de dollars. L'entreprise a terminé le Q4 avec 88,3 millions de dollars en espèces.
Les développements clés incluent:
- Achèvement d'initiatives d'économies de coûts annualisées de 30 millions de dollars
- Rachat réussi de 11 millions d'actions (5% des actions en circulation)
- Lancement de la nouvelle marque 'Effin' avec de bonnes performances dans la catégorie des produits comestibles
- Expansion du réseau à 39 dispensaires
- Lancement des ventes pour adultes dans des lieux en Ohio, triplant les ventes précédentes
Ascend Wellness Holdings (AAWH) hat seine finanziellen Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die eine gemischte Leistung zeigen. Der Jahresumsatz stieg um 8,3% auf 561,6 Millionen Dollar, während der Großhandelsumsatz um 28,5% auf 189,4 Millionen Dollar zunahm und der Einzelhandelsumsatz leicht um 0,3% auf 372,2 Millionen Dollar anstieg.
Das Q4 2024 des Unternehmens zeigte sequenzielle Rückgänge, wobei der Gesamtumsatz um 4% auf 136 Millionen Dollar sank. Die Rentabilitätskennzahlen verbesserten sich jedoch, wobei das bereinigte EBITDA 30,2 Millionen Dollar (22,2% Marge) erreichte und der freie Cashflow 30,1 Millionen Dollar betrug. Das Unternehmen schloss das Q4 mit 88,3 Millionen Dollar in bar ab.
Wichtige Entwicklungen umfassen:
- Abschluss von 30 Millionen Dollar jährlichen Kostensenkungsinitiativen
- Erfolgreicher Rückkauf von 11 Millionen Aktien (5% der ausstehenden Aktien)
- Einführung der neuen Marke 'Effin' mit starker Leistung in der Kategorie der essbaren Produkte
- Erweiterung des Netzwerks auf 39 Apotheken
- Start des Verkaufs für Erwachsene an Standorten in Ohio, was die vorherigen Verkäufe verdreifachte
- Completed $30 million annualized cost savings initiatives ahead of schedule
- Generated $30.1 million in Free Cash Flow in Q4 2024
- Improved Q4 Adjusted EBITDA margin by 450 basis points to 22.2%
- Wholesale revenue increased 28.5% year-over-year to $189.4 million
- Strong cash position with $88.3 million at year-end
- Q4 revenue declined 4% quarter-over-quarter to $136 million
- Full year 2024 net loss increased to $85.0 million from $48.2 million in 2023
- Retail sales declined in key markets due to pricing pressure and competition
- G&A expenses increased to 32% of revenue in 2024 from 30.6% in 2023
Full Year 2024 Net Revenue Increased
Full Year 2024 Adjusted EBITDA1 Increased
Second Full Year of Positive Cash from Operations and Positive Free Cash Flow2
Company Ended Q4 2024 with
Q4 2024 Business Highlights
- Maintained focus on reducing expenditures in support of the Company's cost savings transformation initiatives, which have positively impacted both Adjusted EBITDA1 of
and Adjusted Gross Margin1 of$30.2 million 41.9% in the quarter, ahead of management's initial expectations. - Demand for AWH's in-house brands, including Common Goods, Simply Herb, Effin', Ozone, and Royale, improved in the quarter and contributed to a
6% sequential increase in vertical sales as well as improved gross margin. - The Company has continued to make solid progress in improving its balance sheet and working capital, highlighted by the
in Free Cash Flow2 that was generated in the quarter.$30.1 million - AWH remains committed to implementing its densification strategy, which is expected to result in a
50% increase in store count in the medium term. The Company continues to maintain its data-backed focus on premier locations in high density population centers in its expansion efforts. Currently, the Company has ten stores in development, including three inOhio , one inPennsylvania , as well as four additional partner stores inIllinois , which would bring the total partners in the state to six, and two partner sites identified inNew Jersey . - Launched Effin', an effect-based brand focused on delivering targeted effects using minor cannabinoids. The brand has been well received, quickly achieving the top spot in the edibles category at Ascend stores where it is available.
- Successfully repurchased 11 million shares of Class A common stock, representing over
5% of the then-outstanding shares. The shares were acquired at a significant discount to the closing price on the Canadian Securities Exchange (CSE) as of December 17, 2024. This strategic move was intended to enhance shareholder value, reduce downward pressure on the stock, and drive long-term returns for shareholders. - Announced a share buyback program, which began in January 2025. Pursuant to a normal course issuer bid ("NCIB"), the Company may repurchase up to the lesser of: (i) 10,215,690 shares of the Company's class A common stock ("Common Shares"), representing approximately
5.0% of AWH's then-outstanding Common Shares; and (ii) worth of Common Shares, in the open market. The NCIB represents another meaningful step in the Company's ongoing efforts to deliver value to shareholders, highlighting the strong confidence of both management and the Board of Directors in the Company's undervalued foundation and its future growth potential. Subsequent to year-end, the Company repurchased 620,500 Common Shares via the NCIB program.$2.25 million
___________________________________ | |
1 | Measure is a non-GAAP financial measure. Please see "Non-GAAP Financial Information" below and "Reconciliations of Non-GAAP Financial Measures (Unaudited)" at the end of this press release. |
2 | Free Cash Flow is a non-GAAP financial measure defined as Cash from Operations of |
3 | Net Debt is a non-GAAP financial measure defined as total debt, net of unamortized deferred financing costs of |
Full Year 2024 Business Highlights
- Opened four dispensaries during 2024, including
Cincinnati, Ohio and three inPennsylvania in Monaca,Cranberry , andWhitehall , and began supporting two partner locations bringing AWH's total network to 39 dispensaries. Subsequent to year-end, in February the Company re-opened theDetroit, Michigan dispensary which was temporarily closed during 2024 to expand for adult-use sales. - Commenced adult-use sales at five dispensaries in
Ohio , achieving an average sales increase of over three times compared to their performance prior to the start of adult-use. - Sold more than 187,000 pounds of wholesale products, on a gross basis, and increased wholesale revenue in each of the Company's key markets compared to the prior year.
- Increased brand recognition across portfolio in various markets, with AWH attaining the top three Brand House in sales and units across our three key markets (IL/MA/NJ combined). The Simply Herb brand rose to the #1 selling brand in
Massachusetts . Ozone holds the #1 spot by units in our three key markets and is #2 in sales. - The Company substantially completed a series of cost savings and transformation initiatives it initiated as part of the Company's commitment to sustainable profitability, pursuant to which the Company aims to streamline operations and reduce expenditures by
on an annualized basis. The Company is focused on continuous improvement and has identified additional cost savings and efficiency opportunities that it plans to implement over the course of 2025.$30 million - Announced the appointment of three key executives to its leadership team as part of its transformation efforts. The Company completed the transition to a tactical, lean leadership team focused on controlling costs while continuing to drive growth, including a reduction of headcount.
Financial Highlights
- Revenue:
- FY 2024:
- Net revenue increased
8.3% year-over-year to .$561.6 million - Retail revenue increased
0.3% year-over-year to .$372.2 million - Wholesale revenue increased
28.5% year-over-year to .$189.4 million
- Net revenue increased
- Q4 2024:
- Total net revenue declined
4.0% quarter-over-quarter to .$136.0 million - Retail revenue decreased
3.5% quarter-over-quarter to .$90.4 million - Wholesale revenue decreased
5.0% quarter-over-quarter to .$45.6 million
- Total net revenue declined
- FY 2024:
- Net Loss:
- FY 2024: Net loss of
compared to net loss of$85.0 million for FY 2023.$48.2 million - Q4 2024: Net loss of
compared to net loss of$16.8 million in Q3 2024.$28.3 million
- FY 2024: Net loss of
- Adjusted EBITDA1:
- FY 2024: Adjusted EBITDA1 was
, a$116.2 million 9.1% increase year-over-year. Adjusted EBITDA Margin1 was20.7% , a 15-basis point increase compared to the prior year. - Q4 2024: Adjusted EBITDA1 was
, representing a$30.2 million 22.2% margin1. Adjusted EBITDA1 increased20.4% and Adjusted EBITDA Margin1 increased 450-basis points quarter-over-quarter.
- FY 2024: Adjusted EBITDA1 was
- Balance Sheet:
- As of December 31, 2024, cash and cash equivalents were
, a sequential increase of$88.3 million . Net Debt3, which equals total debt less unamortized deferred financing costs less cash and cash equivalents, was$23.0 million .$220.2 million
- As of December 31, 2024, cash and cash equivalents were
- Cash Flow:
- FY 2024: Generated
Cash from Operations in the full year, representing the second full year the Company generated Cash from Operations, and generated$73.3 million in Free Cash Flow2.$50.8 million - Q4 2024: Generated
Cash from Operations in the quarter, representing the eighth consecutive quarter of positive operating cash flow, and generated$35.2 million in Free Cash Flow2 in the quarter.$30.1 million
- FY 2024: Generated
Management Commentary
"The fourth quarter marked the first full quarter with our new management team in place, and I am pleased with the initial progress we made on our key initiatives – improving profitability, maximizing asset efficiency, and driving cash flow generation," said Sam Brill, Chief Executive Officer. "This was achieved through our team's success in substantially completing our
Frank Perullo, Co-Founder and President, added, "We are building our business for long-term success and are focused on providing patients and consumers with consistent, high-quality products in an approachable and elevated retail experience. This, together with our densification strategy and transformation initiatives, provides us with confidence that we are well-positioned to thrive in this current market and continue to lead as a premier operator in an increasingly dynamic industry."
Roman Nemchenko, Chief Financial Officer, concluded, "Significant progress has been made in strengthening our balance sheet and improving our margins and profitability. This has resulted in a 450 basis point sequential improvement in Adjusted EBITDA margin and
Q4 2024 Financial Overview
Net revenue decreased by
Q4 2024 gross profit was
Total general and administrative ("G&A") expenses for Q4 2024 were
Net loss attributable to AWH for Q4 2024 was
Adjusted EBITDA1 was
Cash and cash equivalents at the end of Q4 2024 were
Full Year 2024 Financial Overview
Net revenue increased
Full year 2024 gross profit was
Full year 2024 Adjusted Gross Profit1 was
Total G&A expenses for 2024 were
Net loss for 2024 was
Adjusted EBITDA1, was
Non-GAAP Financial Information
This press release includes certain non-GAAP financial measures as defined by the
Adjusted EBITDA/Margin and Adjusted Gross Profit/Margin are non-GAAP financial measures. Please see "Reconciliations of Non-GAAP Financial Measures (Unaudited)" at the end of this release.
We define Free Cash Flow as "Net cash provided by operating activities" net of "Additions to capital assets" which are disclosed in the Company's Selected Condensed Consolidated Cash Flow Information (unaudited) included in the financial schedules attached to this press release. We use Free Cash Flow measures, among other measures, to evaluate the Company's liquidity and its ability to generate cash flow. We believe that this is a meaningful financial measure to investors because it provides a view of the Company's liquidity after deducting capital expenditures, which are considered to be a necessary component of ongoing operations. This non-GAAP financial measure should not be considered in isolation of, or as a substitute for, net cash provided by operating activities and may not be comparable to similarly titled measures provided by other companies.
We define Net Debt as total debt, net of unamortized deferred financing costs, less cash and cash equivalents, which components are disclosed in the Company's Selected Condensed Consolidated Balance Sheet Information (unaudited) included in the financial schedules attached to this press release under the captions "Current portion of debt, net," "Long-term debt, net,", and "Cash and cash equivalents." We believe this measure is an important indicator of the Company's ability to service its long-term debt obligations. This non-GAAP financial measure should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance or liquidity and may not be comparable to similarly titled measures provided by other companies.
Conference Call and Webcast
AWH will host a conference call on March 12, 2025, at 5:00 p.m. ET, to discuss its financial results for the quarter and year ended December 31, 2024. The conference call may be accessed by dialing (888) 699-1199. A live audio webcast of the call will also be available on the Investor Relations section of AWH's website at https://awholdings.com/investors/.
About Ascend Wellness Holdings, Inc.
AWH is a vertically integrated multi-state cannabis operator with licenses and assets in
Additional information relating to the Company's fourth quarter and full year 2024 results is available on the Investor Relations section of AWH's website at https://awholdings.com/investors/, the SEC's Electronic Data Gathering, Analysis and Retrieval System ("EDGAR") at www.sec.gov and
Cautionary Note Regarding Forward-Looking Information
This news release includes forward-looking information and statements (together, "forward-looking statements"), which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as "expects", "continue", "may", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. Without limiting the generality of the preceding statement, all statements in this press release relating to estimated and projected revenue, expectations regarding production capacity, anticipated capital expenditures, expansion, profit, product demand, margins, costs, cash flows, sources of capital, growth rates, potential acquisitions, closing dates for transactions, regulatory approvals, future facility openings, and, enhancing shareholder value, reducing downward pressure on the stock, and future financial and operating results are forward-looking statements.
We caution investors that any such forward-looking statements are based on the Company's current projections and expectations about future events and financial trends, the receipt of all required regulatory approvals, and on certain assumptions and analysis made by the Company in light of the experience of the Company and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate.
Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein. Such factors include, among other, the risks and uncertainties identified in the Company's most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable, and in the Company's other reports and filings with the applicable Canadian securities administrators on its profile on SEDAR+ at www.sedarplus.ca and the SEC on its profile on EDGAR at www.sec.gov. Although the Company believes that any forward-looking statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such statements, there can be no assurance that any such forward-looking statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information. Any forward-looking statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking statements herein, whether as a result of new statements, future events or results, or otherwise, except as required by applicable laws. No securities regulator nor the Canadian Securities Exchange has reviewed, approved or disapproved the content of this press release.
Pre-Released Financial Metrics
This press release contains certain pre-released fourth quarter and full year financial metrics. The fourth quarter and full year financial metrics contained in this press release are preliminary and represent the most current information available to the Company's management, as financial closing procedures for the three months and year ended December 31, 2024 are not yet complete. The Company's actual consolidated audited financial statements for such period will be filed with the applicable Canadian securities administrators on its profile on SEDAR at https://www.sedarplus.ca/and the SEC on its profile on EDGAR at www.sec.gov, and may result in material changes to the financial metrics summarized in this press release (including by any one financial metric, or all of the financial metrics, being below or above the figures indicated) as a result of the completion of normal quarter and year-end accounting procedures and adjustments, and also what one might expect to be in the final consolidated financial statements based on the financial metrics summarized in this press release. Although the Company believes the expectations reflected in this press release are based upon reasonable assumptions, the Company can give no assurance that actual results will not differ materially from these expectations.
ASCEND WELLNESS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION (UNAUDITED)
Three Months Ended | Year Ended | ||||||
(in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||
Revenue, net | $ 136,006 | $ 140,158 | $ 561,599 | $ 518,590 | |||
Cost of goods sold | (89,135) | (92,617) | (377,389) | (363,470) | |||
Gross profit | 46,871 | 47,541 | 184,210 | 155,120 | |||
Operating expenses | |||||||
General and administrative expenses | 40,773 | 46,977 | 179,476 | 158,739 | |||
Operating profit (loss) | 6,098 | 564 | 4,734 | (3,619) | |||
Other (expense) income | |||||||
Interest expense | (11,709) | (8,565) | (45,263) | (36,984) | |||
Other, net | (391) | 632 | 707 | 25,843 | |||
Total other expense | (12,100) | (7,933) | (44,556) | (11,141) | |||
Loss before income taxes | (6,002) | (7,369) | (39,822) | (14,760) | |||
Income tax expense | (10,789) | (11,974) | (45,172) | (33,454) | |||
Net loss | $ (16,791) | $ (19,343) | $ (84,994) | $ (48,214) | |||
Net loss per share attributable to Class A | $ (0.08) | $ (0.09) | $ (0.40) | $ (0.24) | |||
Weighted-average common shares | 213,329 | 206,611 | 212,433 | 199,154 |
ASCEND WELLNESS HOLDINGS, INC.
SELECTED CONDENSED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
Three Months Ended | Year Ended | ||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Net cash provided by operating activities | $ 35,166 | $ 16,668 | $ 73,292 | $ 75,334 | |||
Cash flows from investing activities | |||||||
Additions to capital assets | (5,024) | (8,236) | (22,534) | (24,248) | |||
Investments in notes receivable | — | — | (600) | (15,169) | |||
Collection of notes receivable | 82 | 82 | 8,427 | 327 | |||
Proceeds from sale of assets | — | — | 11 | 15,000 | |||
Acquisition of businesses, net of cash acquired | — | — | (9,800) | (19,857) | |||
Purchases of intangible assets | (2,250) | — | (12,700) | (15,943) | |||
Net cash used in investing activities | (7,192) | (8,154) | (37,196) | (59,890) | |||
Cash flows from financing activities | |||||||
Proceeds from issuance of common stock in | — | — | — | 7,000 | |||
Proceeds from issuance of debt | — | — | 217,413 | — | |||
Repayments of debt | — | — | (215,786) | (23,188) | |||
Repayments under finance leases | (526) | (113) | (892) | (369) | |||
Debt issuance costs | (535) | — | (7,193) | — | |||
Proceeds from exercise of stock options | — | 186 | 175 | 186 | |||
Taxes withheld under equity-based | (1,187) | — | (6,247) | (711) | |||
Repurchase of common shares and warrants | (2,751) | — | (2,751) | — | |||
Payment of contingent consideration | — | — | (4,842) | — | |||
Distributions to non-controlling interests | — | — | (227) | — | |||
Net cash (used in) provided by financing | (4,999) | 73 | (20,350) | (17,082) | |||
Net increase (decrease) in cash, cash | 22,975 | 8,587 | 15,746 | (1,638) | |||
Cash, cash equivalents, and restricted cash | 65,279 | 63,921 | 72,508 | 74,146 | |||
Cash, cash equivalents, and restricted cash | $ 88,254 | $ 72,508 | $ 88,254 | $ 72,508 |
ASCEND WELLNESS HOLDINGS, INC.
SELECTED CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)
December 31, | |||
(in thousands) | 2024 | 2023 | |
Cash and cash equivalents | $ 88,254 | $ 72,508 | |
Inventory | 89,552 | 95,294 | |
Other current assets | 51,570 | 61,058 | |
Property and equipment, net | 260,461 | 268,082 | |
Operating lease right-of-use assets | 139,067 | 130,556 | |
Intangible assets, net | 205,502 | 221,452 | |
Goodwill | 49,599 | 47,538 | |
Other non-current assets | 16,426 | 23,062 | |
Total Assets | $ 900,431 | $ 919,550 | |
Current portion of debt, net | $ 73,881 | $ 11,148 | |
Other current liabilities | 70,660 | 81,538 | |
Long-term debt, net | 234,542 | 297,565 | |
Operating lease liabilities, noncurrent | 267,221 | 261,087 | |
Other non-current liabilities | 182,326 | 125,340 | |
Total stockholders' equity | 71,801 | 142,872 | |
Total Liabilities and Stockholders' Equity | $ 900,431 | $ 919,550 |
ASCEND WELLNESS HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
We define "Adjusted Gross Profit" as gross profit excluding non-cash inventory costs, which include depreciation and amortization included in cost of goods sold, equity-based compensation included in cost of goods sold, start-up costs included in cost of goods sold, and other non-cash inventory adjustments. We define "Adjusted Gross Margin" as Adjusted Gross Profit as a percentage of net revenue. Our "Adjusted EBITDA" is a non-GAAP measure used by management that is not defined by GAAP and may not be comparable to similar measures presented by other companies. We define "Adjusted EBITDA Margin" as Adjusted EBITDA as a percentage of net revenue. Management calculates Adjusted EBITDA as the reported net loss, adjusted to exclude: income tax expense, other (income) expense, interest expense, depreciation and amortization, depreciation and amortization included in cost of goods sold, non-cash inventory adjustments, equity-based compensation, equity-based compensation included in cost of goods sold, start-up costs, start-up costs included in cost of goods sold, transaction-related and other non-recurring expenses, litigation settlement, and gain or loss on sale of assets. Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information, as this measure demonstrates the operating performance of the business. Non-GAAP financial measures may be considered in addition to the results prepared in accordance with GAAP, but they should not be considered a substitute for, or superior to, GAAP results. The Company's presentation of these financial measures may not be comparable to similar non-GAAP measures used by other companies. These financial measures are intended to provide additional information to investors concerning the Company's performance.
The following table presents Adjusted Gross Profit for the fourth quarter and year ended December 31, 2024 and 2023:
Three Months Ended | Year Ended | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Gross Profit | $ 46,871 | $ 47,541 | $ 184,210 | $ 155,120 | ||||
Depreciation and amortization | 8,547 | 7,184 | 31,178 | 29,449 | ||||
Equity-based compensation | 882 | 2,054 | 7,659 | 6,511 | ||||
Start-up costs included in cost of | — | — | — | 1,570 | ||||
Non-cash inventory | 636 | 3,298 | 2,859 | 16,350 | ||||
Adjusted Gross Profit | $ 56,936 | $ 60,077 | $ 225,906 | $ 209,000 | ||||
Adjusted Gross Margin | 41.9 % | 42.9 % | 40.2 % | 40.3 % |
(1) | Incremental expenses associated with the expansion of activities at our cultivation facilities that are not yet operating at scale, including excess overhead expenses resulting in delays from regulatory approvals at certain cultivation facilities. |
(2) | Consists of write-offs of expired products, obsolete packaging, and net realizable value adjustments related to certain inventory items. |
ASCEND WELLNESS HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
The following table presents Adjusted EBITDA for the fourth quarter and year ended December 31, 2024 and 2023:
Three Months Ended December 31, | Year Ended December 31, | |||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||
Net loss | $ (16,791) | $ (19,343) | $ (84,994) | $ (48,214) | ||||
Income tax expense | 10,789 | 11,974 | 45,172 | 33,454 | ||||
Other expense (income), net | 391 | (632) | (707) | (25,843) | ||||
Interest expense | 11,709 | 8,565 | 45,263 | 36,984 | ||||
Depreciation and amortization | 17,468 | 14,791 | 66,157 | 58,983 | ||||
Non-cash inventory adjustments(1) | 636 | 3,298 | 2,859 | 16,350 | ||||
Equity-based compensation | 2,414 | 5,600 | 18,480 | 18,344 | ||||
Start-up costs(2) | 856 | 579 | 3,185 | 3,888 | ||||
Transaction-related and other non- | 2,740 | 7,519 | 20,746 | 12,788 | ||||
Loss (gain) on sale of assets | 27 | — | 16 | (226) | ||||
Adjusted EBITDA | $ 30,239 | $ 32,351 | $ 116,177 | $ 106,508 | ||||
Adjusted EBITDA Margin | 22.2 % | 23.1 % | 20.7 % | 20.5 % |
(1) | Consists of write-offs of expired products, obsolete packaging, and net realizable value adjustments related to certain inventory items. |
(2) | One-time costs associated with acquiring real estate, obtaining licenses and permits, and other costs incurred before commencement of operations at certain locations, as well as incremental expenses associated with the expansion of activities at our cultivation facilities, including excess overhead expenses resulting from delays in regulatory approvals at certain cultivation facilities. Also includes other one-time or non-recurring expenses, as applicable. |
(3) | Other non-recurring expenses including legal and professional fees associated with litigation matters, potential acquisitions, other regulatory matters, and other reserves or one-time expenses. The 2023 amounts also include certain contract termination payments. |
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SOURCE Ascend Wellness Holdings, Inc.