19 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, May 9, 2023
Slide 1: Ascend Wellness Holdings Q1 2023 Earnings Presentation
Ascend Wellness Holdings Q1 2023 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
ABNER KURTIN EXECUTIVE CHAIRMAN 3 3
Slide 4: Leadership Transition Update
LEADERSHIP TRANSITION UPDATE Announces CEO Appointment Effective May 15th • Transitioning from founder-led management team to professional management to lead Company through next phase of growth • Appointing John Hartmann as Permanent Chief Executive Officer effective 5/15 • President of BuyBuy Baby
Slide 5: Growth Ahead Despite Challenging Markets
GROWTH AHEAD DESPITE CHALLENGING MARKETS Remain focused on growing and deleveraging the business • Generated Positive Cash from Operations in Q1 2023 CASH • Remain laser focused on generating Cash from Operations for FY 2023 FOCUSED • Strong liquidity position • Opportunities to grow selectively via
Slide 6: Frank Perullo, President and Interim Co-CEO
FRANK PERULLO PRESIDENT AND INTERIM CO-CEO Tinley Park, IL Grand Opening 6
Slide 7: Retail Update
Tinley Park, IL RETAIL UPDATE • 49% of retail revenue generated from products AWH produces • Outlet model resonating with consumers; 5 AWH dispensaries now leverage outlet model • Opened New Bedford, MA dispensary 2/6 to great success • Opened 8th dispensary in MI on 3/24 • Opened 9th dispensary1 in
Slide 8: Wholesale Update
WHOLESALE UPDATE • PA- First harvest at Smithfield, PA cultivation and first sale of AWH product, under Simply Herb brand, at AWH’s Scranton and Wayne dispensaries • IL- Selling into 100% of the 17 new operational social equity licenses in Illinois • MI- Cultivation turnaround proven successful, AWH
Slide 9: New Jersey Cultivation Production Challenges
NEW JERSEY CULTIVATION PRODUCTION CHALLENGES Facing production challenges as we start-up New Jersey cultivation; impacting margins in near-term PROBLEM PLAN • Variety of environmental challenges impacting product • End-to-end cultivation streamlining with focus on quality and yield environmentals •
Slide 10: Daniel Neville, CFO and Interim Co-CEO
DANIEL NEVILLE CHIEF FINANC IAL OFFICER AND INTERIM CO -CEO New Bedford, MA Grand Opening
Slide 11: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS Y/Y: Q1’22 VS. Q1’23 Net Revenue1 Adj. Gross Profit / Margin2 Adj. EBITDA / Margin2 US$ Millions US$ Millions 41.7% US$ Millions 42.9% 20.4% 19.2% +30% $47.6 +42% +34% $114.2 $85.1 $36.5 $23.3 Margin: $16.4 Margin: -123 bps +118 bps Q1 '22 Q1 '23 Q1 '22 Q1 '23 Q1 '22 Q1 '23 Q
Slide 12: Q1 2023 Balance Sheet and Cash Flow
Q1 2023 BALANCE SHEET AND CASH FLOW 3/31/23 ($ in millions) ($ in millions) Cash & Equivalents 73.3 Fully Diluted Shares Outstanding 196.9 Basic & D i l u t e d (1) To t a l D e b t , n e t (2) $324.0 12/31/22 Cash inflow / Cash inflow / Cash inflow / 3/31/23 (use) from (use) from (use) from Operati
Slide 13: Appendix
APPENDIX 13
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: 7 States, 31 Operating Dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 7 States MICHIGAN OHIO 31 operating dispensaries ILLINOIS NEW JERSEY MICHIGAN 9 retail2 3 retail 8 retail 1 retail pending close2 1 cultivation / processing 1 cultivation / processing 1 cultivation / processing PENNSYLVANIA MASSACHUSETTS PENNSYLV
Slide 16: Pipeline of Assets
PIPELINE OF ASSETS Significant upside from assets “turning on” New Bedford, MA Tinley Park, IL Cincinnati, OH Philadelphia, PA Smithfield, PA Pittsburgh, PA Dispensary Dispensary Dispensary* Dispensary Cultivation Phase 1 Dispensary Grand Rapids*, MI Sandusky, OH 5th PA Franklin, NJ Dispensary* Disp
Slide 17: Overview
OVERVIEW Vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, New Jersey, and Pennsylvania. 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: AAWH EV1 $438
Slide 18: GAAP Reconciliations
GAAP RECONCILIATIONS ( $ 0 0 0 S ) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY2022 Q1 2023 Adjusted Gross Profit Gross Profit $ 23,447 $ 32,968 $ 36,636 $ 41,512 $ 134,563 $ 35,704 Gross Margin 27.6% 33.8% 32.9% 37.0% 33.1% 31.3% Depreciation and amortization included in cost of goods sold 2,943 3,953 4,722
Slide 19: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com