Cannabis Sales In New Jersey And Massachusetts Drove Ascend Wellness Net Revenue Growth In 2022

Zinger Key Points
  • Record Q4 and full year revenue and adjusted EBITDA.
  • Company ended Q4 2022 with $74.1 million of cash and cash equivalents.

Ascend Wellness Holdings, Inc. AAWH AAWH net revenue in 2022, which excludes intercompany sale of wholesale products, increased 22.1% year-over-year to $405.9 million, driven by an increase in retail sales, particularly in New Jersey, and an increase in third party wholesale sales in New Jersey and Massachusetts.

Q4 2022 Financial Highlights

  • Net revenue, which excludes intercompany sale of wholesale products, increased 0.8% quarter-over-quarter to $112.1 million, and increased 26.7% year-over year.

  • Gross profit was $41.5 million, or 37.0% of revenue, as compared to $36.6 million, or 32.9% of revenue, in Q3 2022.

  • Net loss of $15.1 million compared to net loss of $16.9 million in Q3 2022.

  • Adjusted EBITDA was $28.2 million, a 1.5% increase quarter-over-quarter and a 42.7% increase year-over-year.

  • Adjusted EBITDA margin was 25.1%, a 18 basis point increase compared to the prior quarter and a 282 basis point increase compared to prior year.

  • As of December 31, 2022, cash and cash equivalents were $74.1 million, and net debt, which equals total debt less unamortized deferred financing costs less cash and cash equivalents, was $256.5 million.

Full Year 2022 Financial Highlights

  • Net loss of $80.9 million compared to net loss of $122.7 million for FY 2021.

  • Gross profit was $134.6 million, or 33.1% of revenue, compared to $136.0 million, or 40.9% of revenue, for the prior year.

  • Adjusted EBITDA was $93.2 million, a 17.4% increase year-over-year.

  • Adjusted EBITDA margin was 23.0%, a 93 basis point decrease compared to the prior year.

Abner Kurtin, executive chair of AWH stated, "We are thrilled to report record-breaking results for fiscal year 2022. Our growth represented leadership in the industry with revenue increasing 22% to $406 million and adjusted EBITDA increasing 17% to $93 million. The team worked hard to achieve several significant accomplishments, including the successful transition of New Jersey to adult-use sales, expansion into a new market in Pennsylvania, and the optimization of our existing retail and wholesale footprints."

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