Signs agreements to be the sole cultivator and manufacturer of COOKIES branded products in New Jersey and bring COOKIES corners to TerrAscend's three dispensaries in New Jersey
Unveils location of third New Jersey dispensary in highly trafficked Lodi, which is scheduled to open during the fourth quarter of 2021
Reports cash balance of $154 million providing strong support for future growth initiatives
Withdraws 2021 guidance due to temporary yield declines in Pennsylvania related to on-going construction and expansion and a decision to allocate more of the Company's branded products to its own stores in New Jersey
NEW YORK and TORONTO, Aug. 19, 2021 /CNW/ - TerrAscend Corp. ("TerrAscend" or the "Company") (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today reported its financial results for the second quarter period ending June 30, 2021. All amounts are expressed in U.S. dollars unless indicated otherwise and are prepared under International Financial Reporting Standards ("IFRS").
TerrAscend has also announced the signing of an agreement with COOKIES, one of the country's most recognized and highest-grossing lifestyle brands, to bring its products to New Jersey.
Second Quarter 2021 Financial Highlights
(Unless otherwise stated, all results are in U.S. dollars)2
- Net Sales increased 72% year over year to $58.7 million and 10% sequentially.
- Adjusted Gross Profit Margin3 of 61% compared to 56% in Q2 2020 and 65% in Q1 2021.
- Adjusted EBITDA of $24.3 million compared to $8.4 million in Q2 2020 and $22.6 million in Q1 2021.
- Adjusted EBITDA Margin1 of 41% compared to 25% in Q2 2020 and 42% in Q1 2021.
- Cash Flow from Operations was positive for the third consecutive quarter.
- Cash balance of $154 million at quarter end to support future growth initiatives.
"We are excited to announce our agreement with COOKIES to be the sole cultivator and manufacturer in New Jersey for one of the country's most recognized cannabis brands and the planned opening of 'COOKIES Corners', a store-in-store concept, within each of our three retail locations, subject to certain conditions and regulatory approval. New Jersey is an important market for us and this agreement with COOKIES will enable us to further solidify our leading position as the state is expected to implement adult-use by the end of this year," stated Jason Wild, Executive Chairman of TerrAscend.
Commenting on the Company's financial results and outlook for 2021, Mr. Wild said, "During the second quarter, we continued to deliver year-over-year and sequential revenue growth while maintaining industry-leading Adjusted EBITDA margins above 40%. Due to expansion related yield reduction in Pennsylvania, which I believe to be temporary, and a decision to prioritize allocation of our branded products to our own New Jersey dispensaries, I felt it was appropriate to withdraw guidance for 2021. Looking ahead, 2022 will be a breakout year as we benefit from investment in cultivation capacity expansions and best-in-class retail experiences. I expect Pennsylvania to show substantial growth benefitting from the current expansion, while in New Jersey we will have our Maplewood, Phillipsburg, and Lodi stores opened along with our 140,000 square foot cultivation and processing facility, which is fully operational and prepared to supply an adult use New Jersey market."
https://www.newswire.ca/news-releases/terrascend-reports-second-quarter-net-sales-of-58-7-million-adjusted-ebitda1-of-24-3-million-and-adjusted-ebitda1-margin-of-41--866450149.html