Terrascend Corp. · TSX:TSND
Terrascend — Q4 2024 Earnings Presentation
31 slides from Terrascend's earnings presentation, Mar 6, 2025
Slide 1: 2024 Fourth Quarter and Full Year Financial Results
2024 Fourth Quarter and Full Year Financial Results March 6, 2025 Terrascend.com TSX: TSND | OTCQX: TSNDF
Slide 2: Executive Leadership Speakers
Executive Leadership Speakers Jason Wild Ziad Ghanem Keith Stauffer Executive Chairman President & Chief Financial Officer Chief Executive Officer p. 2
Slide 3: Disclaimer: Forward-Looking Information
Disclaimer Forward-Looking Information This presentation contains “forward-looking information” within the meaning of applicable securities laws, including the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of
Slide 4: Disclaimer: Definition and Reconciliation of Non-GAAP Measures
Disclaimer Definition and Reconciliation of Non-GAAP Measures In addition to reporting the financial results in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP
Slide 5: Overview
Overview Jason Wild, Executive Chairman terrascend.com
Slide 6: FY and Q4 2024 Financial Highlights
FY and Q4 2024 Financial Highlights Full Year 2024 Q4 2024 $306.7 M $74.4 M 10th Consecutive Quarter Net Revenue Net Revenue of Positive Cash Flow from Continuing Operations 48.9% 50.2% Gross Profit Margin Gross Profit Margin $60.7 M $15.1 M Adjusted EBITDA from Adjusted EBITDA* 6th Consecutive Quar
Slide 7: Maintaining Leading Positions Across our Core Markets
Maintaining Leading Positions Across our Core Markets Northeast Midwest PA NJ California MD MI OH OH CA NEW JERSEY: #1 market share all 4 quarters in 2024 • Population: 9 Million CALIFORNIA: • Scaled vertical operation with 3 dispensaries. MICHIGAN: • Population: 40 Million • Population:10 Million P
Slide 8: ERP System
ERP System • Late 2024 implemented a company-wide ERP system. • Enhancing efficiency across departments and providing improved data visibility and control. • Allowed us to zero in further on non-revenue impacting expense reductions. • G&A, excluding stock-based compensation* decreased $1.3 million i
Slide 9: Signed Definitive Agreement to Enter Ohio through Acquisition
Signed Definitive Agreement to Enter Ohio through the Acquisition of a Well Situated and Profitable Dispensary • Ohio, early days of implementing adult-use. • Upon closing, TerrAscend’s first entry into 6th state. • Intention is to assemble a leading retail footprint in Ohio by acquiring high-qualit
Slide 10: Active Pursuit of Greenfield Expansion Opportunities
Active Pursuit of Greenfield Expansion Opportunities Uniquely positioned to enter new markets through attractive M&A, such as Ohio Population: 12 Adult-use commenced on August 6th MI OHIO MILLION PA NJ • Targeted approach puts us in a differentiated position OH to invest in the best geographies and
Slide 11: Expanding Retail Footprint in New Jersey
Expanding Retail Footprint in New Jersey • Intend to expand our retail footprint in New Jersey under the state’s social equity focused legislation. • Retail expansion would potentially further increase our New leadership in the state, provide additional scale, and Jersey lead to improved margins and
Slide 12: Strengthening Balance Sheet is a Priority
Strengthening Balance Sheet is a Priority • Closed on a $140 million non-dilutive debt financing. • Enabled by $150 million of owned real estate and virtually no sale leasebacks. • Matures in August 2028. • Non-dilutive financing bears a coupon of 12.75%. • No warrants or prepayment penalties. • Vas
Slide 13: Monitoring Regulatory Cannabis Reform
Monitoring Regulatory Cannabis Reform • In December 2024, the US Court of Appeals in the First Circuit held oral arguments in the David Boies lawsuit against US Attorney General Garland, which seeks equal treatment for legal, state regulated cannabis businesses. • PA Governor Shapiro recently presen
Slide 14: First-Ever Share Repurchase Program for Up to $10 Million
First-Ever Share Repurchase Program for Up to $10 Million • Demonstrating our confidence in the Company’s future and commitment to enhancing shareholder value. Summary • Improved performance of our existing business. • Strengthened balance sheet. • $150 million dollars of owned real estate with no m
Slide 15: State-by-State Overview
State-by-State Overview Ziad Ghanem, President & Chief Executive Officer terrascend.com
Slide 16: New Jersey
#1 New Jersey Market 4Q ’24 Highlights Share • Largest and most profitable market. • According to BDSA, TerrAscend maintained the #1 market share for all quarters of 2024. Lodi (Dispensary) • Brands hold the top 3 positions in flower, vapes, edibles and concentrates. • 2024 retail revenue remained h
Slide 17: Maryland
Maryland 4Q ’24 Highlights • At the end of 2024 on a $70 million dollar revenue run rate. • Delivered sequential revenue growth and gross margin expansion for all four quarters of 2024. • Retail revenue increased 7% sequentially while Burtonsville wholesale increased 18% for the same period. (Dispen
Slide 18: Pennsylvania
Pennsylvania 4Q ’24 Highlights • Retail revenue stable quarter-over-quarter while productivity per store remained healthy. • Wholesale revenue stable quarter-over-quarter driven by value-oriented Legend brand and expansion into edibles with Valhalla. • Pennsylvania will be a significant growth lever
Slide 19: Michigan
Michigan 4Q ’24 Highlights • Priorities constant on improving operational efficiency and driving gross margin to establish Harrison a solid foundation from which to expand. (Cultivation / Processing & Distribution) • Currently operating 20 dispensaries. Monitor (Cultivation / Processing) • Expect to
Slide 20: Financial Overview
Financial Overview Keith Stauffer, Chief Financial Officer terrascend.com
Slide 21: Fourth Quarter and Full Year Net Revenue
Fourth Quarter2023 Third Quarter and Financial Full Year 2024 Net Revenue Results QoQ growth driven by #1 market share position in New Jersey combined with sequential revenue growth in Maryland for fourth consecutive quarter, partially offset by retail decline in Michigan Wholesale Retail FY Net Rev
Slide 22: Gross Profit Margin
Gross Profit Margin Expansion during all four quarters of 2024 driven by improvements in Maryland and Pennsylvania, while New Jersey remained relatively flat QoQ FY Gross Profit Margin Gross Profit Margin +140 bps QoQ 50.3% 48.9% 48.8% 50.2% FY 2023 FY 2024 Q3 2024 Q4 2024 p. 22
Slide 23: General & Administrative Expenses
General & Administrative General & Administrative Expenses Expenses* QoQ decline driven by reduction in share-based compensation expense and operating expense reductions FY General & Administrative Expenses Quarterly General & Administrative Expenses (in millions, US$) (in millions, US$) $115.2 $111
Slide 24: Net Loss
Net Loss FY GAAP Net Loss GAAP Net Loss from continuing operations (in millions, US$) (in millions, US$) ($72.7) ($21.4) ($30.2) ($72.7) ($82.3) Q3 2024 Q4 2024 FY 2023 FY 2024 FY GAAP Net Loss: Q4 GAAP Net Loss: • $72.7 million net loss, inclusive of $47.8 million of non-cash • $30.2 million net lo
Slide 25: Adjusted EBITDA
Adjusted EBITDA* Sequential increase primarily driven by gross margin expansion and lower G&A expenses FY Adj EBITDA from Continuing Adj EBITDA* Operations* (in millions, US$) (in millions, US$) $68.8 $60.7 $60.7 $15.1 $13.7 FY 2023 FY 2024 Q3 2024 Q4 2024 % Rev 21.7% 19.8% % Rev 18.5% 20.3% * Adjus
Slide 26: Balance Sheet, Cash Flow & Stock Repurchase Program
Balance Sheet, Cash Flow & Stock Repurchase Program • Cash, and cash equivalents, including $600,000 of • $140 million senior secured term loan: restricted cash: • Coupon rate of 12.75% and a four-year term • $27.0 million (12/31/24), compared to $27.2 million with no prepayment penalties and no war
Slide 27: First Quarter 2025 Expectations
First Quarter 2025 Expectations • Expect revenue to be down low- to mid-single digits due to seasonality. • Gross margin to remain around 50%. • Further G&A expense reduction quarter-over-quarter. • Continue to realize G&A savings from actions taken, which we expect to lead to $10 million in savings
Slide 28: Thank You
Thank You terrascend.com
Slide 29: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures The table below reconciles net loss from continuing operations to EBITDA from continuing operations and Adjusted EBITDA from continuing operations for the quarters ended December 31, 2024 and December 31, 2023, and the years ended December 31, 2024 and
Slide 30: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures The table below reconciles Net cash provided by operating activities - continuing operations to Free Cash Flow for the quarters ended December 31, 2024 and December 31, 2023 and the years ended December 31, 2024 and December 31, 2023. For the Three Mont
Slide 31: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures The table below reconciles General & administrative expenses to General & administrative expenses, excluding stock-based compensation for the quarters ended December 31, 2024 and December 31, 2023 and the years ended December 31, 2024 and December 31, 2