16 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, May 11, 2022
Slide 1: Ascend Wellness Holdings Q1 2022 Earnings Presentation
Ascend Wellness Holdings Q1 2022 Earnings 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 the Ascend Wellness Hold
Slide 3: Abner Kurtin, Chairman, Founder and CEO
A BN ER K U R TIN CHAIRMAN, FOUNDER AND CEO 3
Slide 4: Expanding Footprint: 7 States, 34 Dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 5 7 states MICHIGAN (1,2) OHIO NEW YORK 20 34 dispensaries (1,2) ILLINOIS NEW JERSEY PENNSYLVANIA1 8 retail 2 retail 6 planned medical retail 1 cultivation / processing 1 planned retail1 licenses 1 cultivation / processing 1 planned cultivati
Slide 5: The Story of Story
THE STORY OF STORY Completed Roll-Up of Pennsylvania Clinical Registrant, “Story of PA CR, LLC” Pennsylvania Ascend PA • THESIS 155 6 ‒ Consistent with AWH’s limited license, near- recreational strategy ‒ Opportunity to site locations and position in prominent retail corridors, leveraging second- mo
Slide 6: New York Update
NEW YORK UPDATE • Lawsuit & Settlement ‒ Term-sheet to settle the lawsuit for $15M incremental to the original transaction consideration ‒ $11M due when the lawsuit is settled at closing; $4M due at start of adult-use • Revised Transaction Terms ‒ 99.995% controlling interest of MedMen NY for $88M t
Slide 7: Frank Perullo, President, Co-Founder and Chief Strategy Officer
FR A N K P ER U LLO PRESIDENT, CO-FOUNDER AND CHIEF STRATEGY OFFICER 7 7
Slide 8: NJ Update
NJ UPDATE • ROCHELLE PARK DISPENSARY • Started adult-use sales 4/21 • ~1,500 adult-use customers per day by appointment in the first week; ~$135 avg basket size on first day • MONTCLAIR DISPENSARY • Received town resolution on 5/3; submitted complete application to the state on 5/4 • Expect to recei
Slide 9: Business Update
BUSINESS UPDATE 43% $12.7M AWH OR PARTNER AVERAGE REVENUE PRODUCTS PER DISPENSARY 213k 5 SQ. FT CANOPY GROWS 9
Slide 10: Daniel Neville, Chief Financial Officer
DA N IEL N EVILLE C HIEF F IN AN C IAL O F F IC ER 10
Slide 11: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS Q1’21 VS. Q1’22 Net Revenue Growth1 Adj. Gross Profit / Margin2 Adj. EBITDA / Margin2 US$ Millions +28.7% US$ Millions US$ Millions 42.9% 49.3% 23.9% 19.2% $85.1 $66.1 $36.5 $32.6 $15.8 $16.4 Margin: Margin: -635 bps -470 bps Q1 '21 Q1 '22 Q1 '21 Q1 '22 Q1 '21 Q1 '22 Q4’21 VS
Slide 12: Q1 2022 Balance Sheet and Cash Flow
Q1 2022 BALANCE SHEET AND CASH FLOW 3/31/22 ($ in millions) ($ in millions) Cash & Equivalents 143.8 Fully Diluted Shares Outstanding 181.1 Basic & D i l u t e d (1) To t a l D e b t , n e t (2) 233.7 12/31/21 3/31/22 N e t D e b t (3) 89.9 • $10M cash used for operations • $1M cash used for investi
Slide 13: Appendix
A P P EN DIX 13
Slide 14: 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 15: GAAP Reconciliations ($000s)
GAAP RECONCILIATIONS ($000S) FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Adjusted Gross Profit Gross Profit $ 60,914 $ 29,667 $ 34,516 $ 40,954 $ 30,835 $ 135,972 $ 23,447 Gross Margin 42.4% 44.9% 41.4% 43.4% 34.8% 40.9% 27.6% Depreciation and amortization included in cost of goods sold
Slide 16: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com