AWH ANNOUNCES Q2 2024 FINANCIAL RESULTS
Ascend Wellness Holdings (AAWH) reported its Q2 2024 financial results, showing 15.1% year-over-year growth in net revenue to $141.5 million. The company achieved a 32.9% increase in Adjusted EBITDA to $28.3 million, representing a 20.0% margin. AWH generated positive cash flow from operations for the sixth consecutive quarter, with approximately $32 million in Q2. However, the company faced challenges, including retail headwinds in some markets. As a result, AWH revised its full-year guidance, now anticipating net revenue growth between 11-13% and Adjusted EBITDA growth between 5-10% for 2024 compared to the previous year. The company also successfully refinanced $215 million of its existing term loan and opened new dispensaries in Pennsylvania and New Jersey.
Ascend Wellness Holdings (AAWH) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando una crescita del 15,1% su base annua nel fatturato netto, raggiungendo i 141,5 milioni di dollari. L'azienda ha registrato un aumento del 32,9% dell'EBITDA rettificato, arrivando a 28,3 milioni di dollari, con un margine del 20,0%. AWH ha generato flussi di cassa operativi positivi per il sesto trimestre consecutivo, con circa 32 milioni di dollari nel Q2. Tuttavia, l'azienda ha affrontato alcune difficoltà, inclusi venti contrari nel commercio al dettaglio in alcuni mercati. Di conseguenza, AWH ha rivisto le sue previsioni per l'intero anno, ora aspettandosi una crescita del fatturato netto compresa tra l'11% e il 13% e una crescita dell'EBITDA rettificato tra il 5% e il 10% per il 2024 rispetto all'anno precedente. L'azienda ha anche rifinanziato con successo 215 milioni di dollari del suo prestito a termine esistente e ha aperto nuovi dispensari in Pennsylvania e nel New Jersey.
Ascend Wellness Holdings (AAWH) reportó sus resultados financieros del segundo trimestre de 2024, mostrando un crecimiento del 15.1% interanual en ingresos netos, alcanzando los 141.5 millones de dólares. La compañía logró un aumento del 32.9% en EBITDA ajustado, ascendiendo a 28.3 millones de dólares, lo que representa un margen del 20.0%. AWH generó flujos de efectivo positivos de operaciones por sexto trimestre consecutivo, con aproximadamente 32 millones de dólares en el segundo trimestre. Sin embargo, la empresa enfrentó desafíos, incluidos vientos en contra en el comercio minorista en algunos mercados. Como resultado, AWH revisó su guía para el año completo, anticipando ahora un crecimiento de ingresos netos entre el 11% y el 13% y un crecimiento de EBITDA ajustado entre el 5% y el 10% para 2024 en comparación con el año anterior. La empresa también refinanció con éxito 215 millones de dólares de su préstamo a plazo existente y abrió nuevos dispensarios en Pennsylvania y Nueva Jersey.
Ascend Wellness Holdings (AAWH)는 2024년 2분기 재무 결과를 발표하며 순매출이 전년 대비 15.1% 증가하여 1억 4천 1백 5십만 달러에 달했다고 밝혔다. 회사는 조정된 EBITDA가 32.9% 증가하여 2천 8백 3십만 달러에 달했다, 이는 20.0%의 마진을 나타낸다. AWH는 6분기 연속으로 운영으로부터 긍정적인 현금 흐름을 생성했다, 2분기 동안 약 3천 2백만 달러 규모다. 그러나 회사는 일부 시장에서 소매 부진을 포함한 어려움에 직면했다. 이 결과로 AWH는 연간 가이드를 수정하여 이제 전년 대비 2024년 순매출 증가를 11-13%로, 조정된 EBITDA 증가를 5-10%로 예상하고 있다. 회사는 또한 기존 기간 대출의 2억 1천 5백만 달러를 성공적으로 재금융하고 펜실베이니아와 뉴저지에서 새로 dispensaries를 열었다.
Ascend Wellness Holdings (AAWH) a publié ses résultats financiers pour le deuxième trimestre 2024, montrant une croissance de 15,1 % des revenus nets par rapport à l'année précédente, atteignant 141,5 millions de dollars. L'entreprise a réalisé une augmentation de 32,9 % de l'EBITDA ajusté, s'élevant à 28,3 millions de dollars, représentant une marge de 20,0 %. AWH a généré des flux de trésorerie positifs provenant des opérations pour le sixième trimestre consécutif, avec environ 32 millions de dollars au Q2. Cependant, l'entreprise a fait face à des défis, y compris des vents contraires dans certains marchés de détail. En conséquence, AWH a revu ses prévisions pour l'année entière, anticipant désormais une croissance des revenus nets comprise entre 11 % et 13 % et une croissance de l'EBITDA ajusté comprise entre 5 % et 10 % pour 2024 par rapport à l'année précédente. L'entreprise a également réussi à refinancer 215 millions de dollars de son prêt à terme existant et a ouvert de nouveaux dispensaires en Pennsylvanie et au New Jersey.
Ascend Wellness Holdings (AAWH) hat seine Finanz-ergebnisse für das zweite Quartal 2024 veröffentlicht und ein Jahreswachstum von 15,1 % beim Nettoumsatz auf 141,5 Millionen Dollar vermeldet. Das Unternehmen erzielte ein Wachstum des bereinigten EBITDA um 32,9 % auf 28,3 Millionen Dollar, was einer Marge von 20,0 % entspricht. AWH generierte seit sechs aufeinanderfolgenden Quartalen einen positiven Cashflow aus dem operativen Geschäft, mit etwa 32 Millionen Dollar im zweiten Quartal. Das Unternehmen sah sich jedoch Herausforderungen gegenüber, darunter Gegenwinde im Einzelhandel in einigen Märkten. Infolgedessen hat AWH seine Umsatzprognose für das Gesamtjahr angepasst und erwartet jetzt ein Umsatzwachstum von 11-13 % und ein EBITDA-Wachstum von 5-10 % für 2024 im Vergleich zum Vorjahr. Das Unternehmen hat außerdem 215 Millionen Dollar seines bestehenden Terminkredits erfolgreich umgeschuldet und neue Apotheken in Pennsylvania und New Jersey eröffnet.
- 15.1% year-over-year increase in net revenue to $141.5 million
- 32.9% year-over-year increase in Adjusted EBITDA to $28.3 million
- Generated $32 million in cash flow from operations
- Successfully refinanced $215 million of existing term loan
- Opened new dispensaries in Pennsylvania and New Jersey
- Began selling AWH brands in Maryland through production partner
- Received dual-use certificates for stores in Ohio, enabling non-medical sales
- Net loss of $21.8 million in Q2 2024 compared to net income of $0.8 million in Q2 2023
- 0.6% quarter-over-quarter decrease in net revenue
- 12.7% quarter-over-quarter decline in Adjusted EBITDA
- Revised full-year guidance downward due to increased retail competition and wholesale profitability trends
- Retail revenue decreased 2.2% quarter-over-quarter
- Gross profit margin declined from 36.5% to 29.4% quarter-over-quarter
Achieved
Reported
Generated Positive Cash from Operations and Free Cash Flow
Q2 2024 Financial Highlights
- Gross revenue increased
14.3% year-over-year and decreased0.9% quarter-over-quarter to .$172.7 million - Net revenue, which excludes intercompany sales of wholesale products, increased
15.1% year-over-year and decreased0.6% quarter-over-quarter to .$141.5 million - Retail revenue increased
3.6% year-over-year and decreased2.2% quarter-over-quarter to .$93.1 million - Gross wholesale revenue increased
30.1% year-over-year and0.8% quarter-over-quarter to . Wholesale revenue, net of intercompany sales, increased$79.6 million 46.2% year-over-year and2.7% quarter-over-quarter to .$48.5 million - Net loss of
during the quarter compared to net income of$21.8 million in Q2 2023.$0.8 million - Adjusted EBITDA1 was
, representing a$28.3 million 20.0% margin. Adjusted EBITDA1 increased32.9% and Adjusted EBITDA Margin1 improved 269 basis points year-over-year. Adjusted EBITDA1 declined12.7% quarter-over-quarter and Adjusted EBITDA Margin1 was down 278 basis points sequentially. - As of June 30, 2024, cash and cash equivalents were
and net debt2 was$83.7 million .$225.6 million - Generated approximately
of cash flows from operations, representing the sixth consecutive quarter of positive operating cash flow. Excluding approximately$32 million in state and federal tax refunds, cash flow from operations was approximately$18 million .$14 million - Generated approximately
of free cash flow3, or$27 million excluding state and federal tax refunds.$9 million
- Successfully refinanced
of the existing term loan with a new, oversubscribed Senior Secured Note facility.$215 million - Opened two dispensaries in Q2 2024, including
Cranberry, Pennsylvania andWharton, New Jersey (a relocation fromMontclair, New Jersey ). - Two partner stores were opened in the
Greater Chicago area, bringing total number of consolidated and operating dispensaries to 38. - Began selling AWH brands of products in
Maryland , produced by our production partner. - Enhanced governance practices with the appointment of Julie Francis as a new Independent Director.
- Subsequent to the quarter, AWH received dual-use certificates of operation for the stores that AWH operates in
Ohio , enabling the start of non-medical customer sales.
"As I reflect on the quarter, I am grateful to our stakeholders, including our valued patients and customers, our dedicated employees, and our supportive lenders and investors. In Q2, we achieved robust year-over-year growth for several of our key metrics, including a
"Although we delivered solid growth compared to last year, our performance this quarter did not meet our expectations. Consequently, we are actively managing costs and optimizing business functions to address this shortfall. In light of increased retail competition in select markets and the recent profitability trends of our wholesale business, we are revising our full-year guidance. We now anticipate net revenue to increase between 11 and
Net revenue increased
Total retail revenue in the second quarter of 2024 was
Gross wholesale revenue was
Q2 2024 gross profit was
Total Q2 2024 general and administrative ("G&A") expenses were
Net loss for the second quarter of 2024 was
Adjusted EBITDA1, which adjusts for tax, interest, depreciation, amortization, equity-based compensation, and other items deemed one-time or non-recurring in nature, was
This press release includes certain non-GAAP financial measures as defined by the United States Securities and Exchange Commission ("SEC"), including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Adjusted EBITDA Margin. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.
AWH will host a conference call on August 5, 2024 at 8:30 a.m. ET to discuss its financial results for the quarter ended June 30, 2024. The conference call may be accessed by dialing (888) 390-0605. A live audio webcast of the call will also be available on the Investor Relations section of AWH's website at https://www.awholdings.com/investors and will be archived for replay.
About Ascend Wellness Holdings, Inc.
AWH is a vertically integrated operator with assets in
Additional information relating to the Company's second quarter 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
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", "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, 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 others, the risks and uncertainties identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's other reports and filings with the applicable Canadian securities regulators on its profile on SEDAR+ at www.sedarplus.ca and with the SEC on its profile on EDGAR at www.sec.gov. Although the Company believes that any forward-looking information 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 statements. 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 forwardlooking statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws. The Canadian Securities Exchange has not reviewed, approved, or disapproved the content of this news release.
____________________________________________ | |
1 | Adjusted EBITDA/Margin and Adjusted Gross Profit/Margin are non-GAAP financial measures. Please see the "GAAP Reconciliations" at the end of this release. |
2 | Total debt is net of unamortized deferred financing costs. Net debt is equal to Total Debt net less Cash & Equivalents. |
3 | Free cash flow is defined as Cash from Operations less additions to capital assets. |
4 | Includes pending acquisition of Ohio Patient Access, LLC. |
ASCEND WELLNESS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION (UNAUDITED)
Three Months Ended | Six Months Ended | ||||||||
(in thousands, except per share amounts) | 2024 2023 | 2024 2023 | |||||||
Revenue, net | $ | 141,536 | $ | 122,988 | $ | 283,946 | $ | 237,164 | |
Cost of goods sold | (99,963) | (94,669) | (190,336) | (173,141) | |||||
Gross profit | 41,573 | 28,319 | 93,610 | 64,023 | |||||
Operating expenses | |||||||||
General and administrative expenses | 43,095 | 36,304 | 92,557 | 71,753 | |||||
Operating (loss) profit | (1,522) | (7,985) | 1,053 | (7,730) | |||||
Other (expense) income | |||||||||
Interest expense | (8,535) | (10,481) | (17,073) | (19,456) | |||||
Other, net | 379 | 24,044 | 689 | 24,309 | |||||
Total other (expense) income | (8,156) | 13,563 | (16,384) | 4,853 | |||||
(Loss) income before income taxes | (9,678) | 5,578 | (15,331) | (2,877) | |||||
Income tax expense | (12,106) | (4,737) | (24,616) | (14,754) | |||||
Net (loss) income | $ | (21,784) | $ | 841 | $ | (39,947) | $ | (17,631) | |
Net (loss) income per share attributable to Class A and Class B common stockholders — basic and diluted | $ | (0.10) | $ | — | $ | (0.19) | $ | (0.09) | |
Weighted-average common shares outstanding — basic and diluted | 213,160 | 195,650 | 211,057 | 192,068 | |||||
ASCEND WELLNESS HOLDINGS, INC.
SELECTED CONDENSED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
Three Months Ended | Six Months Ended | ||||||||
(in thousands) | 2024 2023 | 2024 2023 | |||||||
Net cash provided by operating activities | $ | 32,254 | $ | 25,397 | $ | 36,154 | $ | 31,175 | |
Cash flows from investing activities | |||||||||
Additions to capital assets | (5,357) | (8,157) | (12,538) | (4,715) | |||||
Investments in notes receivable | (600) | (13,854) | (600) | (14,585) | |||||
Collection of notes receivable | 82 | 82 | 8,264 | 164 | |||||
Proceeds from sale of assets | — | 15,000 | 11 | 15,000 | |||||
Acquisition of businesses, net of cash acquired | (8,500) | (11,857) | (10,000) | (19,857) | |||||
Purchases of intangible assets | (2,500) | (471) | (4,000) | (943) | |||||
Net cash used in investing activities | (16,875) | (19,257) | (18,863) | (24,936) | |||||
Cash flows from financing activities | |||||||||
Proceeds from issuance of common stock in private placement, net of offering expenses | — | 7,000 | — | 7,000 | |||||
Repayments of debt | — | (18,306) | (786) | (19,092) | |||||
Repayments under finance leases | (122) | (84) | (240) | (147) | |||||
Taxes withheld under equity-based compensation plans, net | (4,448) | — | (5,060) | (100) | |||||
Net cash used in financing activities | (4,570) | (11,390) | (6,086) | (12,339) | |||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 10,809 | (5,250) | 11,205 | (6,100) | |||||
Cash, cash equivalents, and restricted cash at beginning of period | 72,904 | 73,296 | 72,508 | 74,146 | |||||
Cash, cash equivalents, and restricted cash at end of period | $ | 83,713 | $ | 68,046 | $ | 83,713 | $ | 68,046 | |
ASCEND WELLNESS HOLDINGS, INC.
SELECTED CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)
(in thousands) | June 30, 2024 | December 31, 2023 | ||
Cash and cash equivalents | $ | 83,713 | $ | 72,508 |
Inventory | 103,829 | 95,294 | ||
Other current assets | 48,722 | 61,058 | ||
Property and equipment, net | 269,699 | 268,082 | ||
Operating lease right-of-use assets | 137,324 | 130,556 | ||
Intangible assets, net | 216,153 | 221,452 | ||
Goodwill | 50,032 | 47,538 | ||
Other noncurrent assets | 19,891 | 23,062 | ||
Total Assets | $ | 929,363 | $ | 919,550 |
Total current liabilities | $ | 103,056 | $ | 92,686 |
Long-term debt, net | 289,530 | 297,565 | ||
Operating lease liabilities, noncurrent | 266,499 | 261,087 | ||
Other noncurrent liabilities | 152,735 | 125,340 | ||
Total stockholders' equity | 117,543 | 142,872 | ||
Total Liabilities and Stockholders' Equity | $ | 929,363 | $ | 919,550 |
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
The following table presents Adjusted Gross Profit for the three and six months ended June 30, 2024 and 2023:
Three Months Ended | Six Months Ended | ||||||||
($ in thousands) | 2024 2023 | 2024 2023 | |||||||
Gross Profit | $ | 41,573 | $ | 28,319 | $ | 93,610 | $ | 64,023 | |
Depreciation and amortization included in cost of goods sold | 7,105 | 8,503 | 14,767 | 14,830 | |||||
Equity-based compensation included in cost of goods sold | 4,336 | 1,931 | 6,547 | 1,981 | |||||
Start-up costs included in cost of goods sold(1) | — | — | — | 1,570 | |||||
Non-cash inventory adjustments(2) | — | 6,172 | 474 | 10,114 | |||||
Adjusted Gross Profit | $ | 53,014 | $ | 44,925 | $ | 115,398 | $ | 92,518 | |
Adjusted Gross Margin | 37.5 % | 36.5 % | 40.6 % | 39.0 % | |||||
(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 from delays in 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. |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
The following table presents Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023:
Three Months Ended | Six Months Ended | |||||||||
($ in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||
Net (loss) income | $ | (21,784) | $ | 841 | $ | (39,947) | $ | (17,631) | ||
Income tax expense | 12,106 | 4,737 | 24,616 | 14,754 | ||||||
Other, net | (379) | (24,044) | (689) | (24,309) | ||||||
Interest expense | 8,535 | 10,481 | 17,073 | 19,456 | ||||||
Depreciation and amortization | 15,681 | 15,543 | 32,061 | 29,262 | ||||||
Non-cash inventory adjustments(1) | — | 6,172 | 474 | 10,114 | ||||||
Equity-based compensation | 7,515 | 4,129 | 16,195 | 7,134 | ||||||
Start-up costs(2) | 951 | 278 | 1,445 | 2,805 | ||||||
Transaction-related and other nonrecurring expenses(3) | 5,721 | 2,971 | 9,604 | 3,273 | ||||||
Loss (gain) on sale of assets | — | 216 | (11) | (226) | ||||||
Adjusted EBITDA | $ | 28,346 | $ | 21,324 | $ | 60,821 | $ | 44,632 | ||
Adjusted EBITDA Margin | 20.0 % | 17.3 % | 21.4 % | 18.8 % | ||||||
(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 that are not yet operating at scale, 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) | Legal and professional fees associated with litigation matters, potential acquisitions, other regulatory matters, and other nonrecurring expenses. The three and six months ended June 30, 2024 include a fair value adjustment related to an acquisition earn-out of |
View original content to download multimedia:https://www.prnewswire.com/news-releases/awh-announces-q2-2024-financial-results-302213755.html
SOURCE Ascend Wellness Holdings, Inc.
FAQ
What was Ascend Wellness Holdings' (AAWH) net revenue for Q2 2024?
How much Adjusted EBITDA did AAWH generate in Q2 2024?
Did Ascend Wellness Holdings (AAWH) revise its 2024 guidance?
How many new dispensaries did AAWH open in Q2 2024?