20 slides from Ascend Wellness Holdings Llc Class A's earnings presentation, Nov 7, 2023
Slide 1: Ascend Wellness Holdings Q3 2023 Earnings Presentation
Ascend Wellness Holdings Q3 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
Slide 4: Meaningful Progress Made Across the Board
MEANINGFUL PROGRESS MADE ACROSS THE BOARD KEY HIGHLIGHTS Strong Financial Outcomes • Record net revenue(1) for 6th consecutive quarter, up 15% Q/Q and 27% Y/Y to $141M • Meaningful sequential Adjusted EBITDA(2) and margin improvements; Adjusted EBITDA(2) up 39% Q/Q to $29.5M • Third quarter of posit
Slide 5: John Hartmann, Chief Executive Officer
JOHN HARTMANN CHIEF EXECUTIVE OFFICER
Slide 6: Retail Update
Sandusky, OH Construction RETAIL UPDATE • Retail business grew 13% Q/Q and 22% Y/Y to $101M; 72% of total net revenue • Fourth quarter in a row above 1M transactions; up 17% Q/Q and 54% Y/Y • 2x growth in loyalty members in 5 months • Expect to open 10th dispensary in Illinois (Northlake) and, North
Slide 7: Wholesale Update
WHOLESALE UPDATE • Gross Wholesale revenue grew 12% Q/Q and 33% Y/Y to $69M; net Wholesale revenue grew 21% Q/Q and 41% Y/Y to $40M • Selling into 286 3rd party wholesale customers; up 10% Q/Q • Launched 2 new brands, Royale and Tunnel Vision, as we continue to build product portfolio to meet needs
Slide 8: Daniel Neville, Chief Financial Officer
DANIEL NEVILLE CHIEF FINANC IAL OFFICER 8
Slide 9: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Y/Y: Q3’22 VS. Q3’23 Net Revenue1 Adj. EBITDA / Margin2 Y/Y US$ Millions US$ Millions • Revenue growth driven by opening of 6 new stores; acquisition of 4 MD stores; 25.0% 20.9% expansion in NJ cultivation; and increase +6% in IL, MA, and NJ wholesale. +27% $141.3 $111.2 $27.
Slide 10: Q3 2023 Balance Sheet and Cash Flow
Q3 2023 BALANCE SHEET AND CASH FLOW 9/30/23 ($ in millions) (in millions) Cash & Equivalents $63.9 27.5 Fully Diluted Shares Outstanding 223.3 Basic & D i l u t e d (1) 6/30/23 Cash inflow / Cash inflow / Cash inflow / 9/30/23 To t a l D e b t , n e t (2) $307.4 (use) from Operations (use) from Inve
Slide 11: Appendix
APPENDIX 11
Slide 12: 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 13: 7 States, 31 Operating Dispensaries
ILLINOIS MASSACHUSETTS EXPANDING FOOTPRINT NEW JERSEY 7 States MICHIGAN OHIO 31 operating dispensaries ILLINOIS NEW JERSEY MICHIGAN 9 retail 3 retail 8 retail 1 retail pending close2 1 cultivation / processing 1 cultivation / processing 1 cultivation / processing PENNSYLVANIA MASSACHUSETTS PENNSYLVA
Slide 14: Overview
OVERVIEW Vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, New Jersey, Pennsylvania, and Maryland. 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: AAW
Slide 15: Pipeline of Assets
PIPELINE OF ASSETS Significant upside from assets “turning on” Sandusky, OH New Bedford, MA Tinley Park, IL Dispensary Pittsburgh, PA Smithfield, PA Dispensary Dispensary Dispensary Cultivation Phase 1 Northlake, IL Philadelphia, PA Grand Rapids*, MI Dispensary Dispensary Franklin, NJ Dispensary Cul
Slide 16: GAAP Reconciliations
GAAP RECONCILIATIONS ( $ 0 0 0 S ) Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY2022 Q1 2023 Q2 2023 Q3 2023 Adjusted Gross Profit Gross Profit $ 23,447 $ 32,968 $ 36,636 $ 41,512 $ 134,563 $ 35,704 $ 28,319 $ 43,556 Gross Margin 27.6% 33.8% 32.9% 37.0% 33.1% 31.3% 23.0% 30.8% Depreciation and amortization inc
Slide 17: Ascend Investment Thesis
ASCEND INVESTMENT THESIS FOCUS: ACHIEVE SCALE IN SELECT LIMITED LICENSE MARKETS KEY FLAGSHIP LOCATIONS IN MARKETS WITH HIGH BARRIERS TO ENTRY DISCIPLINED CAPITAL ALLOCATION; SUCCESSFUL EXECUTION OF M&A MANAGEMENT WITH PROVEN TRACK RECORD OF EXECUTION CONTINUED MARGIN IMPROVEMENT AS MORE ASSETS ARE “
Slide 18: Flagship Locations
FLAGSHIP LOCATIONS • Top locations in each state • 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 18
Slide 19: Strengthening In-House Product Bench
STRENGTHENING IN-HOUSE PRODUCT BENCH Completing the good-better-best spectrum; continue to complement with partner brands Putting you in the The smoke you Grab n’ Go, Ready zone to get sh*t Only the finest The easy way up smoke when you Curated fire phenos to Rip Done cannabis products wanna great s
Slide 20: Ascend Wellness Holdings
ASCEND WELLNESS HOLDINGS https://awholdings.com/investors IR@awholdings.com