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TerrAscend () reported its financial results for the third quarter (Q3) ended September 30th, 2024 on November 6th. All financial information is provided in U.S. dollars unless otherwise indicated and compared with the previous quarter.
Q3 Financial Highlights
Net Revenue: DOWN 4.3% to $74.2M
Gross Profit: DOWN 4.0% to $36.2M
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Gross Profit Margin: UP to 48.8% from 48.6%
Gen. & Admin. Exp.: Increased 31.1% to $31.6M
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as a % of Net Revenue: UP to 42.6% from 31.1%
Adj. EBITDA: DOWN 12.2% to $13.7M
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as a % of Net Revenue: DOWN to 18.5% from 20.2%
Net Income (Loss): increased by 245.2% to $(21.4)M
Cash/Equiv. + Restricted on Hand: DOWN 10.8% to $27.2M
Q3 Operational Highlights
Achieved 9th consecutive quarter of positive cash flow provided by continuing operations and 5th consecutive quarter of positive free cash flow.
Maintained #1 market share position in New Jersey through the third quarter of 2024, according to BDSA.
Grew wholesale revenue in Maryland by 26% quarter-over-quarter.
Nearly doubled gross margin in Maryland from 25% at the end of 2023 to nearly 50% in the third quarter of 2024.
Closed on a senior secured term loan for gross proceeds of $140 million carrying an interest rate of 12.75%, maturing in August 2028, and containing no warrants or prepayment penalties.
The Board of Directors authorized the Company to commence a stock repurchase program to repurchase up to $10 million of the Company’s common shares.
Completed a multi-year implementation of an enterprise resource planning (ERP) tech stack, which is designed to establish a solid foundation from which to grow organically and expand through M&A.
Expanded cultivation capacity at Hagerstown, Maryland facility.
Management Commentary
Jason Wild, Executive Chairman, said:
“…Today we announced the signing of a definitive agreement, which enables us to enter Ohio through the acquisition of a well situated and profitable dispensary. Our intention is to assemble a leading retail footprint in Ohio by acquiring high-quality stores, just as we did in Maryland.
From a regulatory perspective, we are looking forward to the upcoming DEA hearing concerning the proposed rescheduling of cannabis, and the upcoming oral arguments in the David Boies lawsuit against U.S. Attorney General Garland seeking equal treatment for legal, state regulated cannabis businesses.”
Stock PerformanceTerrAscend’s stock price was unchanged during Q3 (July, August, September), was DOWN 24.8% as of the end of October and is DOWN a further 25.5% since then and is now DOWN 51.1% YTD. More By This Author:
