Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Q3 2024 Earnings Presentation
32 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, 2024
Slide 1: Q3 2024 Earnings
OTCQX: AAWH | CSE: AAWH-U.CN | ASCEND WELLNESS HOLDINGS INC. Q3 2024 Earnings Ascend Wellness Holdings WWW.AWHOLDINGS.COM/INVESTORS
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT Regarding Forward-Looking Statements OTCQX: AAWH 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 Welln
Slide 3: Sam Brill, Chief Executive Officer
ASCEND WELLNESS HOLDINGS INC. | CSE: AAWH-U.CN | OTCQX: AAWH Sam Brill Chief Executive Officer
Slide 4: What's Next
What’s next OTCQX: AAWHFireside Chat Realigning focus to put greater emphasis on profits and cash generation Customer| Experience Shift to Optimization & Profitability AAWH-U.CN • Improve profitability and margins Financial Goals • Drive vertical sales through continued densification • Build on sust
Slide 5: Q3 2024 Key Updates
Q3 2024 Key Updates OTCQX: AAWHFireside Chat Customer| Experience Business Updates • Maintained flat revenue Q/Q AAWH-U.CN • Generated positive Cash from Operations for the seventh consecutive quarter • Commenced adult-use sales at 5 dispensaries in Ohio • Opened 5th dispensary in Pennsylvania Shelf
Slide 6: Frank Perullo, President & Co-Founder
ASCEND WELLNESS HOLDINGS INC. | CSE: AAWH-U.CN | OTCQX: AAWH Frank Perullo President & Co-Founder
Slide 7: Optimize Operations and Strengthen Fundamentals
Optimize Operations and Strengthen Fundamentals OTCQX: AAWHFireside Chat Run • Realign incentive structures and controls to match business goals Customer| Experience • Right-size labor to match productivity • Prioritize products towards sales channels with highest profitability profile AAWH-U.CN Run
Slide 8: Retail Update
RETAIL UPDATE OH adult-use helping to offset competition in NJ, IL, and MA OTCQX: AAWH 5 52% | OF RETAIL SALES FROM CSE: AAWH-U.CN STORES FLIPPED TO AWH PRODUCED ADULT-USE IN Q3 PRODUCT1 Retail revenue down 7.6% Y/Y but up 0.6% Q/Q to $94M | Retail revenue contributes 66% of total net revenue AS
Slide 9: Wholesale Update
WHOLESALE UPDATE Focused on SKU and brand rationalization to increase capacity for higher OTCQX: AAWH margin AWH branded supply 3rd 73% | CSE: AAWH-U.CN LARGEST BRAND(1) INCREASE IN 3rd PARTY HOUSE IN IL, MA, NJ WHOLESALE DOORS Y/Y | Third-party wholesale revenue up 20% Y/Y but down 0.8% Q/Q to $4
Slide 10: Roman Nemchenko, Chief Financial Officer
ASCEND WELLNESS HOLDINGS INC. | CSE: AAWH-U.CN | OTCQX: AAWH Chief Financial Officer Roman Nemchenko
Slide 11: Q3 Financial Highlights
Q3 Financial Highlights Y/Y: Q3’23 VS. Q3’24 OTCQX: AAWH Y/Y Net Revenue Adj. EBITDA / Margin1 • Revenue flat driven by third-party wholesale US$ Millions US$ Millions growth in NJ and MA, retail growth in PA and OH from new and existing stores, the 20.9% addition of 3 stores in Illinois, 2 of which
Slide 12: Q3 Balance Sheet & Cash Flow
Q3 Balance Sheet & Cash Flow Q3 Cash & Equivalents ($ in millions) OTCQX: AAWH 9/30/24 100 90 83.7 Cash & 80 Equivalents $65M 70 +2.0 -11.1 65.3 60 -9.3 | Fully Diluted 50 CSE: AAWH-U.CN Shares 40 Outstanding 221.8 30 Basic & 20 D i l u t e d (1) 10 Cash inflow Cash Cash 0 from used in used in To t
Slide 13: Appendix
ASCEND WELLNESS HOLDINGS INC. | CSE: AAWH-U.CN | OTCQX: AAWH Appendix
Slide 14: Our Vision
Our We envision a future where cannabis is a part of everyday life for consumers of all kind to make their life better. Vision Better fun. Better health. Better being. 14 https://vimeo.com/1008828511?share=copy
Slide 15: 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. OTCQX: AAWH Founded 2018 Revenu
Slide 16: Market Overview
Market Overview Fireside Chat Medical: 38 States | Adult Use:2 24 States Legal Cannabis1 • >50% of Americans live in a state with legalized adult use (Billions US) • >75% of Americans live in a state with legalized medical Customer Experience 10% $58B CAGR $36B Seed to Shelf About Welcome Home 2023
Slide 17: Our Timeline
Our Timeline OTCQX: AAWHFireside Chat $519M Adj. EBITDA Revenue (M) $406M $332M Customer| Experience $144M AAWH-U.CN $79M $93M $107M $31M $0M $12M Shelf | toCSE: Founded 2018 2019 2019 2020 2021 2022 2023 2024(E) Seed About INC. 245K 245K 255K Welcome HOLDINGS Number of Canopy in Dispensaries Square
Slide 18: Company Snapshot
Company Snapshot1 39 Operating 5 Brands OTCQX: AAWH Dispensaries 2 | CSE: AAWH-U.CN 255,000 Canopy 2,300 Total Headcount | ASCEND WELLNESS HOLDINGS INC. Sqft $566M Revenue (3Q 24 Annualized) $100M Adj. EBITDA (3Q 24 Annualized) 1) As of current. 2) Includes 2 partner stores.
Slide 19: Footprint by State
Operating Expanding Operating Planned Fireside Chat State Cultivation Dispensaries Dispensaries4 & Processing5 Footprint IL 12 recreational1 1 108,000 sq. ft canopy Customer Experience 2 MA 3 recreational 67,000 sq. ft canopy 1 NJ 3 recreational 1 partnership1 42,000 sq. ft canopy 1 MI 7 recreationa
Slide 20: Market Densification Pipeline
Market Densification Pipeline IL Partner Whitehall, PA Detroit, MI 6th PA OTCQX: AAWH Dispensary 1 Dispensary Dispensary Dispensary Re-Open 1 of 3 OH Licenses IL Partner | Total Number Of Dispensaries Dispensary 2 CSE: AAWH-U.CN 1 of 3 OH Licenses 1 of 3 OH Licenses Cranberry, PA Dispensary NJ Partn
Slide 21: Brand Value Spectrum
Brand Value Spectrum National Portfolio Of Branded Products Satisfying Consumers Across The Value Spectrum OTCQX: AAWH | CSE: AAWH-U.CN #1 Flower in MA1 #3 in IL, NJ, MA1 Grab n’ Go, Gummies for every When You Want a Great The Easy Way Up Curated Fire Phenos Ready to Rip occasion Smoke | ASCEND WE
Slide 22: Right Products, Right Prices, Right Places
Home ASCEND WELLNESS Welcome HOLDINGS About INC. Seed | toCSE: Shelf AAWH-U.CN Customer| Experience OTCQX: AAWHFireside Chat Right Prices Right Places Right Products 22
Slide 23: Just 'effin gummies
OTCQX: AAWHFireside Chat • Just 'effin gummies Products States Gummies IL, MA, NJ • Quality edibles with THC Value impactful affects Gummy $$$ Customer| Experience 5mg-10mg ASCEND Home WELLNESS About INC. Welcome HOLDINGS | toCSE: Seed AAWH-U.CN Shelf 23
Slide 24: Core lifestyle brand: flower and pre-rolls
OTCQX: AAWHFireside Chat • Core lifestyle brand for everyday Products States consumers Flowers, Pre-rolls IL, MA, NJ, OH, PA • Highest quality flowers, THC Terps Value Flower Vape 0.5%-1% $ concentrates, purified oils, resins, Customer| Experience and gummies 15%-20% 70%-80% ASCEND Home WELLNESS Abo
Slide 25: Curated cannabis brand
OTCQX: AAWHFireside Chat • Carefully curated cannabis – Products States both inside and outside the Flowers, Pre-rolls, Vape IL, MA, MI, NJ, OH, PA package THC Terps Value Flower Vape 1%-2% $$ • Premium flower featuring Customer| Experience rich terpenes and high THC 20%-25% 80%-90% levels ASCEND H
Slide 26: Core lifestyle brand: flower, vape, gummies
OTCQX: AAWHFireside Chat • Core lifestyle brand for everyday Products States consumers Flowers, Pre-rolls, Vape IL, MA, MI, NJ, OH, PA, MD • High quality flower, concentrates, THC Terps Value Flower Vape 2.0%+ $$$ purified oils, resins, and gummies Customer| Experience 25%-30% 85%+ ASCEND Home WELLN
Slide 27: Premium flower brand
OTCQX: AAWHFireside Chat • Carefully curated cannabis – both Products States inside and outside the package Flowers, Pre-rolls IL, MA, MI • Premium flower featuring rich THC Terps Value Flower 2.5%+ $$$$$ terpenes and high THC levels Customer| Experience 25%-30% ASCEND Home WELLNESS About INC. Welco
Slide 28: Investment Thesis
Investment Thesis OTCQX: AAWH STRONG BALANCE • Seventh consecutive quarter of positive Cash from Operations Recently refinanced term loan; providing 5 years until maturity on new Senior Secured Note SHEET • | CSE: AAWH-U.CN BUSINESS UPSIDE • Continued upside in existing business as medical markets s
Slide 29: Launched Series of Cost Transformation Initiatives
Launched Series of Cost Transformation Initiatives OTCQX: AAWHFireside Chat Increased finance support to drive profitability improvement actions under the new management Shelf | toCSE: Customer| Experience AAWH-U.CN LABOR EFFICIENCIES OTHER OPEX PRODUCTION IMPROVEMENTS Seed Re-organize corporate m
Slide 30: Non-GAAP Reconciliations
NON-GAAP Reconciliations Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 OTCQX: AAWH Adjusted Gross Profit Gross Profit $ 35,704 $ 28,319 $ 43,556 $ 47,541 $ 155,120 $ 52,037 $ 41,573 $ 43,729 Gross Margin 31.3% 23.0% 30.8% 33.9% 29.9% 36.5% 29.4% 30.9% Depreciation and amortization
Slide 31: Use of Non-GAAP Financial Metrics
Use of Non-GAAP Financial Metrics OTCQX: AAWH 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 Adjusted Gross
Slide 32: Investor Relations Contact
https://awholdings.com/investors IR@awholdings.com
Ascend Wellness Holdings — Q3 2024 Earnings Presentation on 6ix