Ascend Wellness Holdings, Inc. (CSE:AAWH) (OTCQX:AAWH), a vertically integrated multi-state cannabis operator, reported its financial results late Tuesday for the fourth quarter and full-year ended December 31, 2021.
"2021 was a year marked by record sales and the achievement of many significant milestones. I am proud of the team for everything we have accomplished throughout the year. We pursued an aggressive expansion plan, opening six stores, acquiring two stores, and adding 100,000 square feet of canopy, which enabled us to achieve annual revenue growth of more than 130%,” said Abner Kurtin, CEO and founder of AWH in a press release.
“Although competitive conditions arose in the fourth quarter, I remain confident in the longer-term potential of the industry. Q4 2021 through the first half of 2022 represent a bit of a pause for Ascend as we bring new assets online. As we enter 2022, we are working to optimize our asset base, improve our market positioning, and prepare for the highly-anticipated New Jersey adult-use market," added the CEO.
Financial Highlights
Gross Revenue:
- Q4 2021: Total revenue of $102.0 million decreased 2.9% quarter-over-quarter and increased 71.0% year-over-year.
- FY 2021: Total revenue of $380.4 million increased 135.8% year-over-year.
Net Revenue:
- Q4 2021: Net revenue, which excludes the intercompany sale of wholesale products, decreased 6.2% quarter-over-quarter to $88.5 million, but increased 63.0% year-over-year.
- FY 2021: Net revenue increased 131.3% year-over-year to $332.4 million.
Net Loss:
- Q4 2021: Net loss of $16.5 million compared to a net loss of $13.0 million in Q3 2021.
- FY 2021: Net loss of $122.7 million during the year was driven down by a $32.0 million non-cash interest expense related to the Company's initial public offering completed in May 2021.
Adjusted EBITDA:
- Q4 2021: Adjusted EBITDA was $19.8 million, a 16.0% decrease quarter-over-quarter and an 82.8% increase year-over-year. Adjusted EBITDA Margin was 22.3%, a 261 basis point decrease compared to the prior quarter, but a 242 basis point increase compared to the prior year.
- FY 2021: Adjusted EBITDA was $79.4 million, a 157.6% increase year-over-year. Adjusted EBITDA Margin was 23.9%, a 245 basis point increase compared to the prior year.
As of December 31, 2021, cash and cash equivalents were $155.5 million, and net debt was $103.3 million.
2021 Business Highlights
Completed an IPO, making AWH the first U.S. multi-state operator to go public via an S-1 with the SEC, rather than through a special purpose acquisition company or reverse takeover;
- Commenced trading on the Canadian Securities Exchange on May 4, 2021, followed by the OTCQX on July 14, 2021;
- Added 100,000 square feet of canopy, more than doubling cultivation capacity;
- Entered the Ohio market and completed three Ohio acquisitions;
- Opened six new dispensaries and acquired two additional dispensaries, bringing the total store count to 20;
- Launched a delivery program in Massachusetts and Michigan;
- A strengthened balance sheet with $210 million of senior debt financing; and
- Launched exclusive partnerships with both Lowell Smokes and Edie Parker.
