16 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, Nov 10, 2022
Slide 1: Ascend Wellness Holdings Q3 2022 Earnings Presentation
Ascend Wellness Holdings Q3 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 Ascend Wellness Holdings
Slide 3: Abner Kurtin, Executive Chairman
ABNER KURTIN EXECUTIVE CHAIRMAN 3 3
Slide 4: 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: $15.3 million location, location, location ANNUALIZED REVENU
Slide 5: A Leading Operator Trading at a Discount to Peers
A Leading Operator Trading at a Discount to Peers Adj EBITDA Adj. EBITDA Growth Margin(3) EV/ 2022E EV/ 2023E EV/ 2022E Adj. EV/ 2023E Adj. 2021A Actual to 2022E Revenue(3,4) Revenue(3,4) EBITDA(3,4) EBITDA(3,4) 2022E Consensus(3) Consensus Estimates Estimates Estimates Estimates Estimates Tier 1 M
Slide 6: Frank Perullo, Interim Co-CEO and President
Franklin, NJ Kitchen FRANK PERULLO INTERIM CO-CEO AND PRESIDENT 6
Slide 7: Northeast Update
Diverse OfferingScranton, ProducedPA in N Opening NORTHEAST UPDATE NJ • Commenced medical operations at Fort Lee dispensary; anticipate adult-use conversion November 17th • Launched adult-use sales at Montclair dispensary • Opened Franklin kitchen, enabling expanded offering PA • Expect 6,000 sq.ft
Slide 8: Midwest Update
MIDWEST UPDATE IL • 9th dispensary license1 under construction in Tinley Park; expected to open in early spring • 10th dispensary license1 currently being sited MI • Retail continues to outperform the state totals • Reset cultivation facility in Lansing Looking for better pics OH • Sandusky, Piqua,
Slide 9: Daniel Neville, Interim Co-CEO and Chief Financial Officer
DANIEL NEVILLE INTERIM CO-CEO AND CHIEF FINANCIAL OFFICER
Slide 10: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Y/Y: Q3’21 VS. Q3’22 Net Revenue Growth1 Adj. Gross Profit / Margin2 Adj. EBITDA / Margin2 US$ 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: Appendix
APPENDIX 12
Slide 13: 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 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: Implied Share Price Calculations
Implied Share Price Calculations AAWH AAWH Implied 2022 Revenue Based on Implied 2022 Adjusted EBITDA Based C o n s e n s u s (1) $402M o n C o n s e n s u s (1,5) $91M F D S O (2) 195.1M F D S O (2) 195.1M Tier 2 2022 EV/ Adjusted EBITDA T i e r 2 2 0 2 2 E V / R e v e n u e M u l t i p l e (3) 2.7
Slide 16: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com