Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Q4 2022 Earnings Presentation
17 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, Mar 14, 2023
Slide 1: Ascend Wellness Holdings Q4 & FY 2022 Earnings Presentation
Ascend Wellness Holdings Q4 & FY 2022 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 (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: Abner Kurtin, Executive Chairman
A BN ER K U R TIN EXECUTIVE CHAIRMAN 3 3
Slide 4: 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 Fort Lee, NJ 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
Slide 5: Frank Perullo, President and Interim Co-CEO
Fort Lee, NJ Grand AU Opening FR A N K P ER U LLO PRESIDENT AND INTERIM CO-CEO 5
Slide 6: East Coast Update
Scranton, PA Grand Opening EAST COAST UPDATE New Jersey • Commenced adult use sales at Fort Lee dispensary in mid 4Q22 • Doubled canopy; 42,000 sq. ft now online • Launched key brand partnerships • Miss Grass, mini pre-rolls in 4Q22 • 1906, effects-based fast-acting dosing in 1Q23 Pennsylvania • Pla
Slide 7: Midwest Update
Launched Ozone Vapes in OH MIDWEST UPDATE Illinois • 20 social equity licenses expected to be online in the state by 2Q23; focused on wholesale sales and supply partnerships • 9th dispensary1 in Tinley Park, IL expected to open by end of 2Q23 Michigan • Moderate sequential wholesale sales increases
Slide 8: Daniel Neville, CFO and Interim Co-CEO
DA N IEL N EVILLE C H IEF F IN AN C IAL O F F IC ER A N D IN T ER IM C O -C EO 1906 Packaging in Franklin, NJ
Slide 9: 2022 Full Year Financial Highlights
2022 FULL YEAR FINANCIAL HIGHLIGHTS Net Revenue1 • Retail: Total retail increased by 32% Y/Y to $306M driven by opening of US$ Millions $406 4 dispensaries (East Lansing, MI; Fort Lee, NJ; Scranton, PA; and Wayne, $332 PA), conversion of 3 NJ dispensaries to adult-use, and full year benefit + 22% fr
Slide 10: Q4 Financial Highlights
Q4 FINANCIAL HIGHLIGHTS Y/Y: Q4’21 VS. Q4’22 Net Revenue1 Adj. Gross Profit / Margin2 Adj. EBITDA / Margin2 US$ Millions US$ Millions US$ Millions 25.1% 47.7% 42.4% 22.3% +43% +43% +27% $112.1 $53.5 $28.2 $88.5 $37.5 $19.8 Margin: Margin: +529 bps +282 bps Q4 '21 Q4 '22 Q4 '21 Q4 '22 Q4 '21 Q4 '22 Q
Slide 11: Q4 2022 Balance Sheet and Cash Flow
Q4 2022 BALANCE SHEET AND CASH FLOW 12/31/22 ($ in millions) ($ in millions) Cash & Equivalents 74.1 Fully Diluted Shares Outstanding 195.1 Basic & D i l u t e d (1) To t a l D e b t , n e t (2) 330.6 9/30/22 Cash used for Cash used Cash in for 12/31/22 Operations for Investing Financing N e t D e b
Slide 12: Appendix
A P P EN DIX 12
Slide 13: 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 14: Expanding Footprint
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 6 States 7 States3 MICHIGAN OHIO 26 operating dispensaries4 ILLINOIS NEW JERSEY MICHIGAN 8 retail 3 retail 8 retail4 2 retail pending close2 1 cultivation / processing 1 cultivation / processing 1 cultivation / processing PENNSYLVANIA MASSACHUS
Slide 15: Pipeline of Assets
PIPELINE OF ASSETS Significant upside from assets “turning on” New Bedford, MA Tinley Park, IL Athol, MA Philadelphia, PA Smithfield, PA Pittsburgh, PA Dispensary Dispensary* Kitchen Dispensary Cultivation Phase 1 Dispensary Grand Rapids*, MI Cincinnati, OH 5th PA Franklin, NJ Dispensary - location
Slide 16: GAAP Reconciliations
GAAP RECONCILIATIONS ( $ 0 0 0 S ) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY2022 Adjusted Gross Profit Gross Profit $ 29,667 $ 34,516 $ 40,954 $ 30,835 $ 135,972 $ 23,447 $ 32,968 $ 36,636 $ 41,512 $ 134,563 Gross Margin 44.9% 41.4% 43.4% 34.8% 40.9% 27.6% 33.8% 32.9
Slide 17: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com
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