Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Q3 2022 Earnings Presentation
15 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, 2022
Slide 1: Ascend Wellness Holdings Q3 2022 Company Presentation
Ascend Wellness Holdings Q3 2022 Company Presentation 1
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: Overview
OVERVIEW Vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, New Jersey, and Pennsylvania. Owns and operates state-of-the-art cultivation facilities; grows award-winning strains and produces a curated selection of products. Tickers CSE: AAWH.U; OTCQX: AAWH EV1 $573
Slide 4: Expanding Footprint: 24 Operating Dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 6 states 7 states2 MICHIGAN OHIO 24 operating dispensaries ILLINOIS NEW JERSEY MICHIGAN 8 retail 3 retail 7 retail 2 retail pending close2 1 cultivation / processing 1 planned retail1 1 cultivation / processing 1 cultivation / processing PENNSY
Slide 5: Ascend Investment Thesis
ASCEND INVESTMENT THESIS FOCUS: ACHIEVE SCALE IN SELECT LIMITED LICENSE MARKETS KEY FLAGSHIP LOCATIONS IN MARKETS WITH HIGH BARRIERS TO ENTRY DISCIPLINED CAPITAL ALLOCATION; SUCCESSFUL EXECUTION OF M&A MANAGEMENT WITH PROVEN TRACK RECORD OF EXECUTION IN IL CONTINUED MARGIN IMPROVEMENT AS MORE ASSETS
Slide 6: Poised for Continued Success in Next Chapter
POISED FOR CONTINUED SUCCESS IN NEXT CHAPTER Tremendous progress achieving original goals; prepared for success in next chapter with a new leader Net Revenue Growth1 ORIGINAL THESIS TODAY US$ Millions $445 147% CAGR Key flagship locations: $15.3 million location, location, location ANNUALIZED REVENU
Slide 7: 4 of Top 10 Rec Markets and 3 of Top 5 Medical Markets
4 OF TOP 10 REC MARKETS AND 3 OF TOP 5 MEDICAL MARKETS Total Number 2020E Legal plus Population of Dispensaries Population Per Illicit Sales State (2021 in Millions)(1) (2021)(2,3) Dispensary State Rank(4) ($U.S. Billions)(4) RECREATIONAL Illinois 12.7 115 115,000 4 $3.2 Michigan 10.1 448 22,500 5 $
Slide 8: Highly Desirable Flagship Locations
HIGHLY DESIRABLE FLAGSHIP LOCATIONS • Top locations in each state • From strategically located in the retail corridor near St. Louis to minutes from the George Washington Bridge, NJ Turnpike, and NJ Rt. 46 CHICAGO BOSTON NEW JERSEY ST. LOUIS AREA NEW JERSEY River North Boston Garden Fort Lee Collins
Slide 9: Good-Better-Best Brand Strategy
GOOD-BETTER-BEST BRAND STRATEGY 3 in-house brands fill the good-better-best spectrum; coupled with partner brands to target additional demographics AVAILABLE IL, MA, MI, NJ AVAILABLE IL, MA, MI, NJ, OH AVAILABLE IL, MA FORM FACTORS Flower, pre-rolls FORM FACTORS Edibles, vapes, flower, glass FORM FA
Slide 10: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Y/Y: Q3’21 VS. Q3’22 Net Revenue Growth1 Adj. Gross Profit / Margin2 Adj. EBITDA / Margin2 US$ Millions US$ Millions US$ Millions 25.0% 45.5% 46.3% 24.9% +17.9% $111.2 +16% $50.6 +18% $27.8 $94.4 $43.7 $23.5 Margin: Margin: -77 bps +3 bps Q3 '21 Q3 '22 Q3 '21 Q3 '22 Q3 '21 Q3
Slide 11: Q3 2022 Balance Sheet and Cash Flow
Q3 2022 BALANCE SHEET AND CASH FLOW 9/30/22 ($ in millions) ($ in millions) Cash & Equivalents 91.4 Fully Diluted Shares Outstanding 195.1 Basic & D i l u t e d (1) To t a l D e b t , n e t (2) 310.4 6/30/22 9/30/22 N e t D e b t (3) 219.0 • $1.8M net cash used for operations inclusive of a $6M use
Slide 12: Use of Non-GAAP Financial Metrics and Additional Information
USE OF NON-GAAP FINANCIAL METRICS AND ADDITIONAL INFORMATION This presentation includes certain non-GAAP financial measures as defined by the SEC including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Adjusted EBITDA Margin. Reconciliations of these non-GAAP financial measures
Slide 13: Pipeline of Assets
PIPELINE OF ASSETS Significant upside from assets “turning on” Smithfield, PA Grand , MI 3rd PA 10th IL 5th PA Cultivation Phase 1 Dispensary Dispensary- Dispensary- location TBD Dispensary - location TBD location TBD Franklin, NJ Cincinnati, OH 6th PA Cultivation Phase 2 New Bedford, MA Tinley Park
Slide 14: GAAP Reconciliations ($000s)
GAAP RECONCILIATIONS ($000S) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Adjusted Gross Profit Gross Profit $ 29,667 $ 34,516 $ 40,954 $ 30,835 $ 135,972 $ 23,447 $ 32,968 $ 36,636 Gross Margin 44.9% 41.4% 43.4% 34.8% 40.9% 27.6% 33.8% 32.9% Depreciation and amortization included
Slide 15: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com
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