Cannabis Co. Acreage Holdings Achieves Positive Adjusted EBITDA For The 'First Time In History,' Reports 58% Spike In Q1 Revenue

Cannabis company Acreage Holdings, Inc. ACRG ACRGF saw consolidated revenue climb to $38.4 million in the first quarter of 2021, marking a 58% spike compared to what the New York-based company reported for the same period of 2020.

Retail revenue grew sequentially by 3% and 47% year-over-year to $25.8 million.

In Acreage's earnings report published Saturday, CEO Peter Caldini credited the growth to the "consolidation of our New Jersey operations in June 2020 and same-store sales growth of 16%."

After months of negotiations, the company wrapped up the $10 million purchase of New Jersey's Compassionate Care Foundation Inc. in June.

Wholesale revenue for the period amounted to $10 million, representing a year-over-year increase of 53%.

Acreage also reported a positive adjusted EBITDA of $1.6 million "for the first time in its history," Caldini continued, versus a $12.3 million loss in the corresponding quarter of 2020 and a loss of $3.5 million in the previous period.

Caldini and the company's management believe that the significant improvement in adjusted EBITDA "validates its refocused strategy."

In addition, the company reported the following (unaudited) quarterly results:

• Company-owned same-store sales increased 16% over the period marking the ninth consecutive quarter of double-digit same-store sales comparisons;
• The gross margin was 53.7%, an annual increase of 12.6 percentage points;
• Net loss totaled $7.8 million, representing another significant improvement – from $172 million in the same quarter of 2020; and
• Some $45.9 million in cash and restricted cash at the quarter-end.

In April, the company finalized a deal to sell its Florida operations to Red White & Bloom Brands, Inc. RWB RWBYF for $60 million.

Photo by Esteban Lopez on Unsplash