22 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, Mar 12, 2024
Slide 1: Q4 & FY 2023 Earnings Presentation
Ascend Wellness Holdings Q4 & FY 2023 Earnings Presentation CSE: AAWH.U; OTCQX: AAWH 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: Abner Kurtin, Executive Chairman
A BN ER K U R TIN EXECUTIVE CHAIRMAN 3
Slide 4: Positive Momentum Across Market and AWH
POSITIVE MOMENTUM ACROSS MARKET AND AWH1 Federal reform on the horizon • Hopeful for rescheduling ahead of general election • Historic mention of cannabis at State of the Union address • Continue to pursue DOJ lawsuit Adult-use approaching in Ohio • Expect adult-use by Q3 • Anticipate ability to add
Slide 5: Positive Momentum Across Market and AWH: AWH Highlights
POSITIVE MOMENTUM ACROSS MARKET AND AWH AWH Highlights First full-year generating positive Cash from Operations and positive Free Cash Flow 2021 ADJ. EBITDA(1) Proactively addressing Term Loan Re-financing Illinois Aggressive strategy to grow and protect larger mature markets 2023 ADJ. EBITDA(
Slide 6: John Hartmann, Chief Executive Officer
JO HN HA R TMA NN CHIEF EXECUTIVE OFFICER 6
Slide 7: Year of Notable Growth Across Key Metrics
YEAR OF NOTABLE GROWTH ACROSS KEY METRICS 2022 YE 3/12/24 Net Revenue(1) US$ Millions Open Dispensaries 24 35(3) +28% % Retail Revenue from AWH $519 44% 49% $406 Manufactured Products Lbs Sold 68,000 146,000 2022 2023 Medical States PA, OH PA, OH(4) Adj. EBITDA(2) US$ Millions Recreational States NJ
Slide 8: Retail Update
RETAIL UPDATE Meaningful expansion achieved across the retail business 4 $11M AVERAGE ANNUALIZED STORES OPENED SINCE REVENUE PER THE END OF 3Q23 DISPENSARY Cincinnati, OH Piqua, OH Q4: Retail revenue down 4% Q/Q but up 15% Y/Y to $97M FY: Retail revenue up 21% Y/Y to $371M; 72% of total net reve
Slide 9: Wholesale Update
WHOLESALE UPDATE Stand-out gross and third-party wholesale growth 2X 125% GROSS WHOLESALE INCREASE IN 3rd PARTY POUNDS SOLD Y/Y WHOLESALE ORDERS Y/Y Q4: Gross wholesale revenue up 10% Q/Q and 51% Y/Y to $76M #1 in Net wholesale revenue up 7% Q/Q and 54% Y/Y to $43M MA1 FY: Gross wholesale reve
Slide 10: Mark Casebaum, Chief Financial Officer
MA R K C A SSEBA U M C HIEF F IN AN C IAL O F F IC ER 10
Slide 11: Q4 Financial Highlights
Q4 FINANCIAL HIGHLIGHTS Y/Y: Q4’22 VS. Q4’23 Y/Y Net Revenue1 Adj. EBITDA / Margin2 US$ Millions • Revenue growth driven by opening of 6 new US$ Millions stores; acquisition of 4 MD stores; increases in 23.1% 25.1% third party wholesale sales in NJ, MA, and IL and increase in intercompany sales in M
Slide 12: Q4 2023 Balance Sheet and Cash Flow
Q4 2023 BALANCE SHEET AND CASH FLOW 12/31/23 ($ in millions) (in millions) Cash & Equivalents $72.5 16.7 Fully Diluted Shares Outstanding 222.9 Basic & 9/30/23 Cash inflow / Cash inflow / Cash inflow / 12/31/23 D i l u t e d (1) (use) from (use) from (use) from Operations Investing Financing To t a
Slide 13: Appendix
A P P EN DIX 13
Slide 14: Ascend Investment Thesis
ASCEND INVESTMENT THESIS ENTERING PERIOD OF SIGNIFICANT CASH FLOW GENERATION FOCUS ON ACHIEVING SCALE IN SELECT LIMITED LICENSE MARKETS AND FURTHER DENSIFYING EXISTING MARKETS KEY FLAGSHIP LOCATIONS IN MARKETS WITH HIGH BARRIERS TO ENTRY PROVEN BY HIGHEST REVENUE PER DISPENSARY IN THE INDUSTRY DISCI
Slide 15: Overview
OVERVIEW Vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, New Jersey, Pennsylvania, and Maryland. Owns and operates state-of-the-art cultivation facilities; grows award-winning strains and produces a curated selection of products. Revenue ($M) Founded 2018 576 6
Slide 16: 7 States, 35 Operating Dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 7 States MICHIGAN OHIO 35 operating dispensaries ILLINOIS NEW JERSEY MICHIGAN 10 retail 3 retail 8 retail 1 partner retail planned1 1 partner retail planned1 1 cultivation / processing 1 cultivation / processing 1 cultivation / processing PENNSYL
Slide 17: Upside in Today's Portfolio
UPSIDE IN TODAY’S PORTFOLIO 1 Significant upside from assets “turning on” and Markets flipping to adult-use Cranberry, PA 6th PA Cincinnati, OH Monaca, PA NJ Partner Dispensary Dispensary - location TBD Dispensary Dispensary Dispensary Whitehall, PA IL Partner Dispensary Dispensary Wharton, NJ Dispe
Slide 18: Strengthening In-House Product Bench
STRENGTHENING IN-HOUSE PRODUCT BENCH Completing the good-better-best spectrum; continue to complement with partner brands #1 in #3 in IL1 MA1 #3 in NJ1 Putting you in the The smoke you Grab n’ Go, Ready zone to get sh*t Only the finest The easy way up smoke when you Curated fire phenos to Rip Done c
Slide 19: Flagship Locations
FLAGSHIP LOCATIONS From strategically located in the retail corridor near St. Louis to minutes from the George Washington Bridge, NJ Turnpike, and NJ Rt. 46 Prioritize high-traffic locations Significant parking Optimized retail footprint 19
Slide 20: Use of Non-GAAP Financial Metrics and Additional Information
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 n
Slide 21: GAAP Reconciliations
GAAP RECONCILIATIONS Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 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 Gross Margin 27.6% 33.8% 32.9% 37.0% 33.1% 31.3% 23.0% 30.8% 33.9% 29.9%
Slide 22: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com