Vertically integrated cannabis company Ascend Wellness Holdings, Inc. AAWH AAWH revealed a 236.2% year-over-year and 28.5% sequential pop in gross revenue on Tuesday, which totaled $97.5 million in the second quarter of fiscal 2021, beating estimates by $4.5 million.
According to its latest earnings report, net revenue improved 26.1% sequentially to $83.4 million. For the six months ended June 30, net revenue was $149.5 million, a 4% increase from the same quarter of 2020. GAAP earnings per share were negative $0.30.
"Our business continues to produce impressive quarter-over-quarter revenue and adjusted EBITDA growth as we scale our wholesale and retail operations across the high-quality markets where we operate," Abner Kurtin, founder and CEO of the New York-based company, said.
Here's a breakdown of what the second-quarter earnings report showed:
- Gross profit amounted to $34.5 million, accounting for 41.4% of revenue, versus $29.7 million, or 44.9% of revenue in the prior period.
- Adjusted gross profit, a non-GAAP financial measure, was $39.6 million, or 47.5% of revenue.
- Adjusted Gross Profit margin, a non-GAAP financial measure, declined 174 basis points quarter-over-quarter to 47.5%.
- Total general and administrative expenses totaled $30.6 million, or 36.7% of revenue, compared to $25.1 million in the first quarter of 2021. The total for other expenses was $36.8 million.
- Net loss amounted to $44.9 million, or a loss of $0.30 per basic and diluted common share.
- Adjusted EBITDA, a non-GAAP financial measure, came in positive at $20.3 million, representing a 28.3% increase quarter-over-quarter.
- As of June 30, AWH had $104.2 million in cash and cash equivalents and total debt of $131.6 million.
Operational Milestones And 2021 Revenue Guidance
Over the quarter, the company kicked off cannabis sales in three new stores in Boston, Massachusetts, Rochelle Park, New Jersey and Chicago Ridge, Illinois, bringing its retail footprint to 18 shops nationwide.
In addition, the company's management increased the 2021 full-year annual revenue guidance from a range of $320 million to $340 million to a range of $330 million to $350 million.
"We remain focused on executing, disciplined in our approach to allocating capital, and excited about the trajectory of the company," Kurtin added.
In July, AWH announced its debut on the OTCQX Best Market.
Price Action
AWH's shares were trading 0.07% lower at $11.0 per share at market close Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Click on the image for more info.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry?
Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9.
Get your tickets now before prices surge by following this link.