Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Q1 2024 Earnings Presentation
18 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, May 7, 2024
Slide 1: Ascend Wellness Holdings Q1 2024 Earnings Presentation
Ascend Wellness Holdings Q1 2024 Earnings Presentation CSE: AAWH-U.CN; OTCQX: AAWH
Slide 2: Cautionary Statement Regarding Forward Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This presentation 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 Ascend Wellness Holdings
Slide 3: John Hartmann, Chief Executive Officer
Monaca, PA JOHN HARTMANN CHIEF EXECUTIVE OFFICER 3
Slide 4: Key Market and Business Highlights
KEY MARKET AND BUSINESS HIGHLIGHTS Strong Q1 2024 Financial Results • 25% Y/Y Revenue(1) growth • 39% Y/Y Adjusted EBITDA(2) growth, with 239 bps margin expansion • Positive Cash from Operations for fifth consecutive quarter Federal Catalysts on the Horizon • Historic decision by DEA to agree with H
Slide 5: Retail Update
Monaca, PA RETAIL UPDATE Continued progress despite traditional Q1 seasonality 2 51% STORES OPENED SINCE OF RETAIL SALES FROM THE END OF 4Q23 AWH PRODUCED PRODUCT Retail revenue in line with expectations, up 15% Y/Y and down 2% Q/Q to $95.2M Retail revenue contributes 67% of total net revenue L
Slide 6: Wholesale Update
WHOLESALE UPDATE Brand portfolio jumps another spot in brand rankings 3rd 40% MOVED UP +1 TO 3rd INCREASE IN 3rd PARTY LARGEST BRAND(1) WHOLESALE DOORS Y/Y HOUSE IN IL, MA, NJ Gross wholesale revenue up 35% Y/Y and 4% Q/Q to $79.0M Net wholesale revenue up 50% Y/Y and 10% Q/Q to $47.2M Kitchen
Slide 7: Mark Cassebaum, Chief Financial Officer
Monaca, PA MARK CASSEBAUM CHIEF FINANC IAL OFFICER 7
Slide 8: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS Y/Y: Q1’23 VS. Q1’24 Net Revenue1 Adj. EBITDA / Margin2 US$ Millions Y/Y US$ Millions • Revenue growth driven by 8 store openings, 22.8% acquisition of 4 stores in MD, and gross wholesale growth in 6 markets. 20.4% +39% +25% $142.4 • Adj. EBITDA dollars up driven by contribut
Slide 9: Q1 2024 Balance Sheet and Cash Flow
Q1 2024 BALANCE SHEET AND CASH FLOW 3/31/24 ($ in millions) (in millions) 3.9 Cash & Equivalents $72.9M Fully Diluted Shares Outstanding 230.7M Basic & 12/31/23 Cash inflow Cash Cash 3/31/24 D i l u t e d (1) from (used) in (used) in Operations Investing Financing To t a l D e b t , n e t (2) $310.5
Slide 10: Looking Ahead
LOOKING AHEAD(1) Positioned to execute on key initiatives and deliver a strong 2024 Metric Guidance R e v e n u e (2) $580M - $595M A d j u s t e d E B I T D A (3) $125M - $130M C a s h f r o m O p e r a t i o n s (4) $55M - $65M Capital expenditures $35M - $40M Expect to deliver double digit top an
Slide 11: John Hartmann, Chief Executive Officer
JOHN HARTMANN CHIEF EXECUTIVE OFFICER 11
Slide 12: Solid Investment Thesis
SOLID INVESTMENT THESIS Bullish on the investment thesis and prospects for the Company STRONG BALANCE • Completed first full year of positive Cash from Operations (CFO) and Positive Free Cash Flow (FCF) Expect to generate positive CFO and FCF for 2024 FY(1) SHEET • • Plan to complete refinancing pri
Slide 13: Appendix
APPENDIX 13
Slide 14: 7 States, 36 Operating Dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 7 States MICHIGAN OHIO 36 operating dispensaries ILLINOIS NEW JERSEY MICHIGAN 10 retail 3 retail 8 retail 3 partner retail planned1 1 partner retail planned1 1 cultivation / processing 1 cultivation / processing 1 cultivation / processing PENNSYL
Slide 15: Upside in Today's Portfolio
UPSIDE IN TODAY’S PORTFOLIO 1 Significant upside from assets “turning on”, markets flipping to adult-use, and addition of partner stores Cincinnati, OH Monaca, PA Cranberry, PA Whitehall, PA NJ Partner Dispensary Dispensary Dispensary Dispensary Dispensary IL Partner Wharton, NJ 6th PA Dispensary 1
Slide 16: GAAP Reconciliations
GAAP RECONCILIATIONS Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Adjusted Gross Profit Gross Profit $ 23,447 $ 32,968 $ 36,636 $ 41,512 $ 134,563 $ 35,704 $ 28,319 $ 43,556 $ 47,541 $ 155,120 $ 52,037 Gross Margin 27.6% 33.8% 32.9% 37.0% 33.1% 31.3% 23.0% 3
Slide 17: Use of Non-GAAP Financial Metrics and Additional Information
USE OF NON-GAAP FINANCIAL METRICS AND ADDITIONAL INFORMATION Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and all currency is in U.S. dollars. This presentation includes certain non-GAAP financial measures, as defined by the SEC, including
Slide 18: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com
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