Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Q3 2021 Earnings Presentation
18 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, 2021
Slide 1: Ascend Wellness Holdings Q3 2021 Earnings Presentation
Ascend Wellness Holdings Q3 2021 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, which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as “expects”, “continue”, “will”, “antici
Slide 3: Abner Kurtin, Chairman, Founder and CEO
A BN ER K U R TIN CHAIRMAN, FOUNDER AND CEO 3
Slide 4: Quarterly Highlights
QUARTERLY HIGHLIGHTS Continued expansion of retail, wholesale, and product portfolio in Q3 BUSINESS 19 NJ CANOPY OH RETAIL DISPENSARIES 1 EXPNASION EXPANSION 128% 13% $205M FINANCIAL Q3 NET REVENUE Q3 NET REVENUE CASH & GROWTH Y/Y GROWTH Q/Q EQUIVALENTS ON HAND 2 (1) Including pending acquisitions o
Slide 5: Footprint: 6 States, 19 Dispensaries
FOOTPRINT ILLINOIS MASSACHUSETTS NEW JERSEY 6 states1 MICHIGAN NEW YORK 19 dispensaries2 OHIO ILLINOIS2 MICHIGAN NEW JERSEY 8 retail 6 retail 2 retail 1 cultivation / processing 2 planned retail 1 planned retail 1 cultivation / processing 1 cultivation / processing MASSACHUSETTS NEW YORK1 OHIO2 1 re
Slide 6: Canopy Update
CANOPY UPDATE Active Canopy at Canopy Canopy YE21 at YE22 State (ft2) (ft2) (ft2) IL 55,000 113,000 113,000 MI 28,000 28,000 28,000 MA 17,000 17,000 54,000 NJ 16,000 16,000 42,000 OH 2,000 2,000 37,000 Barry, IL Franklin, NJ Total 118,000 176,000 274,000 • Completed & Planted MI • IL greenhouse cons
Slide 7: Ascend at Your Doorstep
ASCEND AT YOUR DOORSTEP 3.6M 60% 22% POPULATION WITHIN 25 CANNABIS USERS HIGHER REVENUE WITH MILES OF NEWTON (1) PREFERRED METHOD (2) DELIVERY OPTION (3) • Launching delivery program in the greater Boston area • 7 days a week, initially a 25-mile radius from Newton, MA (1) Data provided by OpenStree
Slide 8: New Jersey Update
NEW JERSEY UPDATE TODAY Q2 2022 • CONSTRUCTION ‒ Montclair expansion to start in Q4 2021 ‒ Fort Lee expected to be complete by spring 2022 28 68 POINTS OF SALE POINTS OF SALE • REGULATORY ‒ Estimated adult use sales to commence by spring 2022 ~9,000 ~25,000 SQ.FT SQ.FT 8
Slide 9: Daniel Neville, Chief Financial Officer
DA N IEL N EVILLE C HIEF F IN AN C IAL O F F IC ER 9
Slide 10: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Q3’20 VS. Q3’21 Net Revenue Growth Adj. Gross Profit / Margin1 Adj. EBITDA / Margin1 US$ Millions US$ Millions 46.3% US$ Millions 24.9% +127.6% $94.4 Profit: Profit: +124.8% 24.8% $23.5 46.9% $43.7 +129% $41.5 $19.4 $10.3 Margin: Margin: -57 bps +16 bps Q3 '20 Q3 '21 Q3 '20 Q
Slide 11: Q3 Key Operating Metrics
Q3 KEY OPERATING METRICS Q3 REVENUE, NET ($M) 19 $15M Wholesale, net 33% OPEN ANNUALIZED RETAIL Retail DISPENSARIES(1) REVENUE PER DISPENSARY 67% • Total retail revenue increased to $63.5 million for the quarter, representing an 5 118K increase of ~9% quarter-over-quarter • Net wholesale revenue, ex
Slide 12: Closed Oversubscribed Debt Financing
CLOSED OVERSUBSCRIBED DEBT FINANCING $210M $76M 1% TERM LOAN DEBT REPAYMENT OID $65M 9.5% 2X EXPANSION FEATURE INTEREST RATE OVERSUBSCRIBED 12
Slide 13: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW ($ in millions) (in millions)$ 9/30/21 • $210M Term Loan; $76M used to repay debt Fully Diluted Shares Outstanding Basic & 180 D i l u t e d (1) • $15M net Capex in Q3; $71M net Capex YTD Cash & Equivalents $205 • $125M net proceeds from debt raise in Q3, net of fees, Tot
Slide 14: 2021 FY Net Revenue Guidance Range
2021 FY NET REVENUE GUIDANCE RANGE Expect to more than double FY 2020 Net Revenue actuals and meet low-end of previously stated FY 2021 Net Revenue guidance range of $330 to $350M ($ in millions) Actuals Low End High End $350 G ro w t h $330 H igh En d + 1 4 4 % Yo Y $144 L o w En d + 1 3 0 % Yo Y 2
Slide 15: Appendix
A P P EN DIX 15
Slide 16: 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. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP
Slide 17: GAAP Reconciliations
GAAP RECONCILIATIONS $ in thousands FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 YTD 2021 Adjusted Gross Profit Gross Profit $ 3,287 $ 7,492 $ 12,178 $ 18,352 $ 22,892 $ 60,914 $ 29,667 $ 34,516 $ 40,954 $ 105,137 Gross Margin 27.3% 33.2% 48.0% 44.3% 42.2% 42.4% 44.9% 41.4
Slide 18: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors Investor Contact: Rebecca Koar, VP Investor Relations IR@awholdings.com 18
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