21 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, Aug 5, 2024
Slide 1: Ascend Wellness Holdings Q2 2024 Investor Overview Presentation
Ascend Wellness Holdings Q2 2024 Investor Overview Presentation CSE: AAWH-U.CN; OTCQX: AAWH WWW.AWHOLDINGS.COM/INVESTORS
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: John Hartmann, Chief Executive Officer
Cranberry, PA JO HN HA R TMA NN CHIEF EXECUTIVE OFFICER 3
Slide 4: Key Market and Business Highlights
KEY MARKET AND BUSINESS HIGHLIGHTS Solid Q2 2024 Financial Results • 15% Y/Y Revenue(1) growth; 33% Y/Y Adjusted EBITDA(2) growth • Positive Cash from Operations(3) for sixth consecutive quarter, generating $14M excluding tax refunds in 2Q ‘24 • Positive Free Cash Flow(3) for the quarter, generating
Slide 5: Completed Raise of Senior Secured Notes
COMPLETED RAISE OF SENIOR SECURED NOTES Successfully refinanced term loan over a year prior to maturity at attractive terms relative to industry Refinanced $215M of current August 2025 Term $235M 5.25% Loan RAISED IN SENIOR ORIGINAL ISSUANCE $60M stub piece at previous interest rate ~9.5% SECURE
Slide 6: Retail Update
Cranberry, PA RETAIL UPDATE Competitive markets being partially offset by growth in select states 2 49% STORES(1) OPENED OF RETAIL SALES FROM IN Q2 PLUS 2 PARTNER AWH PRODUCED STORES PRODUCT Retail revenue up 3.6% Y/Y and down 2.2% Q/Q to $93.1M Wharton, NJ Retail revenue contributes 66% of tota
Slide 7: Wholesale Update
WHOLESALE UPDATE Wholesale top-line growth is helping to mitigate the competitive pressures impacting the retail business 3rd 103% INCREASE IN 3rd PARTY LARGEST BRAND(1) WHOLESALE DOORS Y/Y HOUSE IN IL, MA, NJ Gross wholesale revenue up 30.1% Y/Y and 0.8% Q/Q to $79.6M Net wholesale revenue up 4
Slide 8: Mark Cassebaum, Chief Financial Officer
Wharton, NJ MA R K C A SSEBA U M C HIEF F IN AN C IAL O F F IC ER 8
Slide 9: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS Y/Y: Q2’23 VS. Q2’24 Y/Y Net Revenue1 Adj. EBITDA / Margin2 • Revenue growth driven by over 100% increase US$ Millions US$ Millions in third party wholesale door share led by 20.0% growth in NJ, followed by MA and IL; the 17.3% opening of 7 new stores; and the acquisition of
Slide 10: Q2 2024 Balance Sheet and Cash Flow
Q2 2024 BALANCE SHEET AND CASH FLOW Q2 Cash & Equivalents ($ in millions) 6/30/24 100 (in millions) 90 32.3 83.7 Cash & 80 72.9 -16.9 -4.6 Equivalents $83.7 70 60 Fully Diluted 50 Shares 40 Outstanding 230.9 30 20 Basic & 10 D i l u t e d (1) Cash inflow Cash Cash 0 from used in used in To t a l D e
Slide 11: Appendix
A P P EN DIX 11
Slide 12: Densifying Existing Footprint
DENSIFYING EXISTING FOOTPRINT 6 OPERATING OPERATING PLANNED STATE CULTIVATION & DISPENSARIES DISPENSARIES PROCESSING (C&P) 12 recreational 1 C&P ILLINOIS (includes 2 partners1) 108,000 sq. ft canopy2 2 C&P MASSACHUSETTS 3 recreational 67,000 sq. ft canopy2 1 partnership under 1 C&P NEW JERSEY 3 recr
Slide 13: Upside in Today's Portfolio
UPSIDE IN TODAY’S PORTFOLIO 1 Upside from assets “turning on”, markets flipping to adult-use, and addition of partner stores Cincinnati, OH IL Partner Whitehall, PA NJ Partner Dispensary Dispensary 1 Dispensary Dispensary Monaca, PA IL Partner 6th PA Dispensary Dispensary 2 Dispensary OH Non-Medical
Slide 14: Overview
OVERVIEW Vertically integrated operator with assets in Illinois, Massachusetts, Maryland, Michigan, New Jersey, Ohio, and Pennsylvania. Owns and operates state-of-the-art cultivation facilities; grows award-winning strains and produces a curated selection of products. Revenue ($M) Founded 2018 586 6
Slide 15: Solid Investment Thesis
SOLID INVESTMENT THESIS Bullish on the investment thesis and prospects for the Company STRONG BALANCE • Completed first full year of positive Cash from Operations (CFO) and Positive Free Cash Flow (FCF) Expect to generate positive CFO and FCF for 2024 FY(1) SHEET • • Recently refinanced term loan; p
Slide 16: Cannabis Market by the Numbers
CANNABIS MARKET BY THE NUMBERS Unprecedented growth across the emerging industry with room for continued expansion SALES STATES SUPPORT $30Bn 21 68% US LEGAL SALES 1 STATES PLUS DC ACTIVE US CITIZENS IN 2023 RECREATIONAL PROGRAMS 3 SUPPORT LEGALIZATION 4 $58Bn 38 >92% US LEGAL SALES STATES HAVE SCHE
Slide 17: Flagship Locations
FLAGSHIP LOCATIONS Flagship locations driving highest annualized revenue per dispensary1 in the industry Prioritize high-traffic locations Significant parking Optimized retail footprint 17 1) Source: ATB Capital Markets, Inc.,
Slide 18: Strengthening In-House Product Bench
STRENGTHENING IN-HOUSE PRODUCT BENCH Completing the good-better-best spectrum; continue to complement with partner brands #3 in IL1 #1 in MA1 #3 in NJ1 The smoke you smoke Cannabis without Grab n’ Go, Ready to Rip The easy way up when you wanna great Curated fire phenos compromise. smoke IL, MA, NJ,
Slide 19: GAAP Reconciliations
GAAP RECONCILIATIONS Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Adjusted Gross Profit Gross Profit $ 35,704 $ 28,319 $ 43,556 $ 47,541 $ 155,120 $ 52,037 $ 41,573 Gross Margin 31.3% 23.0% 30.8% 33.9% 29.9% 36.5% 29.4% Depreciation and amortization included in cost of goods sold 6,327 8,
Slide 20: Use of Non-GAAP Financial Metrics
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 non-GAAP financial measures, as defined by the SEC, including
Slide 21: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com