Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Q2 2023 Earnings Presentation
17 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, Aug 8, 2023
Slide 1: Ascend Wellness Holdings Q2 2023 Earnings Presentation
Ascend Wellness Holdings Q2 2023 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
Slide 4: Continued Progress and Focus on Cash Generation
CONTINUED PROGRESS AND FOCUS ON CASH GENERATION KEY HIGHLIGHTS Impressive Financial Results • Record revenue quarter, up 8% Q/Q and 26% Y/Y • Remain on track to generate Cash from Operations for FY 2023 • Second quarter of positive Cash from Operations, generating approximately $8M(1) Capital Market
Slide 5: John Hartmann, Chief Executive Officer
JOHN HARTMANN CHIEF EXECUTIVE OFFICER Laurel, MD
Slide 6: Tour de AWH
Tour de AWH First months at AWH touring facilities, learning operations, and getting to know the team 2 months on Over 6,200 31 dispensaries 6 cultivation 7 states Hundreds of the road miles visited sites toured traveled employees met KE Y O B S E R VAT I ONS N E AR - T ERM P R I ORI TI ES • Incredi
Slide 7: Retail Update
RETAIL UPDATE • Retail business grew 9% Q/Q and 19% Y/Y to $90M; 73% of total revenue • Third quarter in a row above 1M transactions • 48% of retail revenue generated from products AWH Aberdeen, MD produces Crofton, MD • Successful start of adult-use in Maryland; integrated, re-branded, and flipped
Slide 8: Wholesale Update
WHOLESALE UPDATE • Gross wholesale revenue grew 5% Q/Q and 45% Y/Y to $61M; net wholesale revenue grew 5% Q/Q and 51% Y/Y to $33M • Sales into 29 of the 30 social equity licenses in Illinois; launched several Simply Herb products in the quarter • Meaningful revenue growth in Massachusetts driven by
Slide 9: Daniel Neville, Chief Financial Officer
DA NIEL NEVILLE CHIEF F IN AN CIAL OF F ICER Ellicott City, MD Grand Opening
Slide 10: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS Y/Y: Q2’22 VS. Q2’23 Net Revenue1 Adj. Gross Profit / Margin2 Adj. EBITDA / Margin2 US$ Millions US$ Millions 36.5% US$ Millions 45.6% 17.3% 21.4% +1% +2% +26% $123.0 $44.5 $44.9 $97.5 $20.9 $21.3 Margin: Margin: -906 bps -409 bps Q2 '22 Q2 '23 Q2 '22 Q2 '23 Q2 '22 Q2 '23 Q/Q
Slide 11: Q2 2023 Balance Sheet and Cash Flow
Q2 2023 BALANCE SHEET AND CASH FLOW ($ in millions) 6/30/23 ($ in millions) Cash & Equivalents 68.0 Fully Diluted Shares Outstanding 218.8 Basic & D i l u t e d (1) Cash Flows from Cash Flows Cash Flows from 3/31/23 6/30/23 Operations from Investing Financing To t a l D e b t , n e t (2) $309.8 • $2
Slide 12: Appendix
A PPENDIX 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: 7 States, 31 Operating Dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY MICHIGAN 7 States OHIO 31 operating dispensaries ILLINOIS NEW JERSEY MICHIGAN 9 retail 3 retail 8 retail 1 retail pending close2 1 cultivation / processing 1 cultivation / processing 1 cultivation / processing PENNSYLVANIA MASSACHUSETTS PENNSYLVA
Slide 15: Pipeline of Assets
PIPELINE OF ASSETS Significant upside from assets “turning on” New Bedford, MA Tinley Park, IL Piqua, OH Cincinnati, OH Pittsburgh, PA Smithfield, PA Dispensary Dispensary Dispensary* Dispensary* Dispensary Cultivation Phase 1 Sandusky, OH Philadelphia, PA Grand Rapids*, MI Dispensary* Dispensary Fr
Slide 16: GAAP Reconciliations
GAAP RECONCILIATIONS ( $ 0 0 0 S ) (1) Incremental expenses associated with the expansion of activities at our cultivation facilities that are not yet operating at scale, including excess overhead expenses resulting in delays from regulatory approvals at certain cultivation facilities. (2) Consists
Slide 17: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com
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