Ascend Wellness Holdings Llc Class A · CSE:AAWH.U
Ascend Wellness Holdings Llc Class A — Q1 2024 Earnings Presentation
18 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, May 2024
Slide 1: Ascend Wellness Holdings Q1 2024 Investor Overview Presentation
Ascend Wellness Holdings Q1 2024 Investor Overview Presentation CSE: AAWH-U.CN; OTCQX: AAWH WWW.AWHOLDINGS.COM/INVESTORS
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: 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. Revenue ($M) Founded 2018 577 6
Slide 4: 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 5: 7 States, 37 Operating Dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 7 States MICHIGAN OHIO 37 operating dispensaries ILLINOIS NEW JERSEY MICHIGAN 10 retail 3 retail 8 retail 3 partner retail planned1 1 partner retail planned1 1 cultivation / processing 1 cultivation / processing 1 cultivation / processing PENNSYL
Slide 6: Flagship Locations
FLAGSHIP LOCATIONS 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 6
Slide 7: Retail Update
Monaca, PA RETAIL UPDATE Continued progress despite traditional Q1 seasonality 2 51% STORES OPENED SINCE OF RETAIL SALES FROM THE END OF 4Q23 AWH PRODUCED PRODUCT Retail revenue in line with expectations, up 15% Y/Y and down 2% Q/Q to $95.2M Retail revenue contributes 67% of total net revenue L
Slide 8: Strengthening In-House Product Bench
STRENGTHENING IN-HOUSE PRODUCT BENCH Completing the good-better-best spectrum; continue to complement with partner brands #1 in MA1 #3 in IL1 #3 in NJ1 The smoke you Putting you in the Grab n’ Go, Ready Only the finest The easy way up smoke when you zone to get sh*t Curated fire phenos to Rip cannab
Slide 9: Wholesale Update
WHOLESALE UPDATE Brand portfolio jumps another spot in brand rankings 3rd 40% MOVED UP +1 TO 3rd INCREASE IN 3rd PARTY LARGEST BRAND(1) WHOLESALE DOORS Y/Y HOUSE IN IL, MA, NJ Gross wholesale revenue up 35% Y/Y and 4% Q/Q to $79.0M Net wholesale revenue up 50% Y/Y and 10% Q/Q to $47.2M Kitchen
Slide 10: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS Y/Y: Q1’23 VS. Q1’24 Net Revenue1 Adj. EBITDA / Margin2 US$ Millions Y/Y US$ Millions • Revenue growth driven by 8 store openings, 22.8% acquisition of 4 stores in MD, and gross wholesale growth in 6 markets. 20.4% +39% +25% $142.4 • Adj. EBITDA dollars up driven by contribut
Slide 11: Q1 2024 Balance Sheet and Cash Flow
Q1 2024 BALANCE SHEET AND CASH FLOW 3/31/24 ($ in millions) (in millions) 3.9 Cash & Equivalents $72.9M Fully Diluted Shares Outstanding 230.7M Basic & 12/31/23 Cash inflow Cash Cash 3/31/24 D i l u t e d (1) from (used) in (used) in Operations Investing Financing To t a l D e b t , n e t (2) $310.5
Slide 12: Looking Ahead
LOOKING AHEAD(1) Positioned to execute on key initiatives and deliver a strong 2024 Metric Guidance Re v e n u e (2) $580M - $595M A d j u s t e d E B I T D A (3) $125M - $130M C a s h f r o m O p e r a t i o n s (4) $55M - $65M Capital expenditures $35M - $40M Expect to deliver double digit top and
Slide 13: Solid Investment Thesis
SOLID INVESTMENT THESIS Bullish on the investment thesis and prospects for the Company STRONG BALANCE • Completed first full year of positive Cash from Operations (CFO) and Positive Free Cash Flow (FCF) Expect to generate positive CFO and FCF for 2024 FY(1) SHEET • • Plan to complete refinancing pri
Slide 14: Appendix
APPENDIX 14
Slide 15: Upside in Today's Portfolio
UPSIDE IN TODAY’S PORTFOLIO 1 Significant upside from assets “turning on”, markets flipping to adult-use, and addition of partner stores Cincinnati, OH Monaca, PA Cranberry, PA Whitehall, PA NJ Partner Dispensary Dispensary Dispensary Dispensary Dispensary IL Partner Wharton, NJ 6th PA Dispensary 1
Slide 16: GAAP Reconciliations
GAAP RECONCILIATIONS Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Adjusted Gross Profit Gross Profit $ 23,447 $ 32,968 $ 36,636 $ 41,512 $ 134,563 $ 35,704 $ 28,319 $ 43,556 $ 47,541 $ 155,120 $ 52,037 Gross Margin 27.6% 33.8% 32.9% 37.0% 33.1% 31.3% 23.0% 3
Slide 17: Use of Non-GAAP Financial Metrics and Additional Information
USE OF NON-GAAP FINANCIAL METRICS AND ADDITIONAL INFORMATION 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
Slide 18: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com
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