Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Q3 2023 Earnings Presentation
16 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, November 2023
Slide 1: Ascend Wellness Holdings Full Investor Overview Presentation
Ascend Wellness Holdings Full Investor Overview Presentation November 2023 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: 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 20 68% US LEGAL SALES 1 STATES PLUS DC US CITIZENS IN 2022 RECREATIONAL PROGRAMS SUPPORT LEGALIZATION 3 $48Bn 38 Multiple US LEGAL SALES STATES HAVE BILLS IN-
Slide 4: 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. Tickers CSE: AAWH.U; OTCQX: AAW
Slide 5: Leapfrogged Competition in 4 Years
Franklin, NJ Cultivation LEAPFROGGED COMPETITION IN 4 YEARS Executed to become a top tier operator in only 4 years #1 #1 Crofton, MD Dispensary HIGHEST AVG REVENUE HIGHEST ANNUAL 141% CAGR PER DISPENSARY 3 ADJ. EBITDA GROWTH 2 (17% Y/Y) #6 #3 LARGEST BY WHOLESALE BRAND Rochelle Park, NJ Dispensary A
Slide 6: 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 cultivation / processing 1 cultivation / processing 1 cultivation / processing PENNSYLVANIA MASSACHUSETTS PENNSYLVANIA 3 retail OHIO 2 ret
Slide 7: Flagship Locations
FLAGSHIP LOCATIONS • Top locations in each state • 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 7
Slide 8: Pipeline of Assets
PIPELINE OF ASSETS Significant upside from assets “turning on” New Bedford, MA Tinley Park, IL Northlake, IL Pittsburgh, PA Smithfield, PA Dispensary Dispensary Dispensary Dispensary Cultivation Phase 1 Sandusky, OH Philadelphia, PA Grand Rapids*, MI Dispensary Dispensary Franklin, NJ Dispensary Cul
Slide 9: Strengthening In-House Product Bench
STRENGTHENING IN-HOUSE PRODUCT BENCH Completing the good-better-best spectrum; continue to complement with partner brands 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 cannabis products wanna great s
Slide 10: Ascend Investment Thesis
ASCEND INVESTMENT THESIS FOCUS: ACHIEVE SCALE IN SELECT LIMITED LICENSE MARKETS KEY FLAGSHIP LOCATIONS IN MARKETS WITH HIGH BARRIERS TO ENTRY DISCIPLINED CAPITAL ALLOCATION; SUCCESSFUL EXECUTION OF M&A MANAGEMENT WITH PROVEN TRACK RECORD OF EXECUTION CONTINUED MARGIN IMPROVEMENT AS MORE ASSETS ARE “
Slide 11: Meaningful Progress Made Across the Board
MEANINGFUL PROGRESS MADE ACROSS THE BOARD KEY HIGHLIGHTS Strong Financial Outcomes • Record net revenue(1) for 6th consecutive quarter, up 15% Q/Q and 27% Y/Y to $141M • Meaningful sequential Adjusted EBITDA(2) and margin improvements; Adjusted EBITDA(2) up 39% Q/Q to $29.5M • Third quarter of posit
Slide 12: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Y/Y: Q3’22 VS. Q3’23 Net Revenue1 Adj. EBITDA / Margin2 Y/Y US$ Millions US$ Millions • Revenue growth driven by opening of 6 new stores; acquisition of 4 MD stores; 25.0% 20.9% expansion in NJ cultivation; and increase +6% in IL, MA, and NJ wholesale. +27% $141.3 $111.2 $27.
Slide 13: Q3 2023 Balance Sheet and Cash Flow
Q3 2023 BALANCE SHEET AND CASH FLOW 9/30/23 ($ in millions) (in millions) Cash & Equivalents $63.9 27.5 Fully Diluted Shares Outstanding 223.3 Basic & D i l u t e d (1) 6/30/23 Cash inflow / Cash inflow / Cash inflow / 9/30/23 To t a l D e b t , n e t (2) $307.4 (use) from Operations (use) from Inve
Slide 14: 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 15: GAAP Reconciliations
GAAP RECONCILIATIONS ( $ 0 0 0 S ) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY2022 Q1 2023 Q2 2023 Q3 2023 Adjusted Gross Profit Gross Profit $ 23,447 $ 32,968 $ 36,636 $ 41,512 $ 134,563 $ 35,704 $ 28,319 $ 43,556 Gross Margin 27.6% 33.8% 32.9% 37.0% 33.1% 31.3% 23.0% 30.8% Depreciation and amortization inc
Slide 16: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com
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