Ayr Strategies Generates $8.7M From Q2 Operations, Buys Pennsylvania Assets

Cannabis company Ayr Strategies Inc. AYR AYRSF revealed Wednesday its second-quarter revenue amounted to 28.3 million, down by 16% compared to the previous quarter.

The company, which began transitioning to a delivery model in Nevada in March, boasted its best performance in July, which brought revenues of $15.1 million.

“We achieved monthly records for revenue, adjusted EBITDA and operating income in July, and we are currently operating at an exceptional $181 million and $77 million annual run rate for revenue and adjusted EBITDA, respectively,” explained Ayr CEO Jon Sandelman.

Earnings Breakdown

The Toronto-based company posted an operating income of $1 million during the quarter versus an operating loss of $4.9 million, it reported in the prior quarter.

It also disclosed a net loss of $7.5 million during the quarter ended June 30, compared to the net income of $1.6 million it posted in the first quarter of 2020.

Its adjusted EBITDA amounted to $9.1 million. That’s a change of 8% compared to the adjusted EBITDA of $8.4 million in the first three months of the fiscal year.

The company’s gross profit was $23.5 million, up by 16% compared to the previous quarter.

Sandelman said that their monthly revenue increase could be attributed to the retail growth in Nevada.

Pennsylvania Acquisition

Meantime, Ayr said it opted to purchase and develop six Pennsylvania-based retail dispensaries as well as a 143,000 square feet cultivation and production facility from an undisclosed licensed operator for $57 million.

The price tag includes $27 million cash, $15 million stock and $15 million vendor notes.

In addition, most of the acquired dispensaries are located in the Pittsburgh and Philadelphia region, the press release said.

The company noted that three of them would be launched by January 2021.

“Similar to our prior acquisitions, we are bringing on exceptional teams to add to our deep talent pool,” added Sandelman.

The company also deepened its bench by tapping Cushman & Wakefield’s Glenn Isaacson to its board as well as appointing Wall Street veteran Megan Kulick to the role of Head of Investor Relations and Karen Rinaldi to the Head of Human Resources.

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