Acreage Holdings Reports Fiscal Third Quarter 2018 Financial Results
NEW YORK, Nov. 29, 2018 /PRNewswire/ — Acreage Holdings, Inc. (“Acreage” or “we”) (CSE: ACRG.U) reported on behalf of its subsidiary High Street Capital Partners, LLC (d/b/a Acreage Holdings) (“Acreage Holdings”) the unaudited financial results of Acreage Holdings’ fiscal third quarter ended September 30, 2018. Financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”) and management’s discussion and analysis for the period have been filed on Acreage’s SEDAR profile at www.sedar.com.
Third Quarter and YTD Highlights
- Acreage Holdings reported third quarter revenue of $5.5 million, up 160% versus the prior year period, and year-to-date revenue of $10.6 million, up 92% versus the prior year period.
- On a pro-forma basis*, revenue for the third quarter was $19.3 million, and year-to-date was $54.2 million.
- Acreage Holdings reported third quarter gross profit, excluding fair value items, of $1.9 million, up 118% versus the prior year period, and year-to-date gross profit, excluding fair value items, of $3.8 million, up 76% versus the prior year period.
- Net loss for the quarter was $4.0 million, compared to $0.7 million in the prior year period. Net loss year-to-date was $2.1 million, an improvement of 30% versus the prior year period.
- During the three months ended September 30, 2018, Acreage Holdings opened one dispensary, in Baltimore, Maryland, bringing its open and operating dispensaries to a total of 16 as well as on track to have 23 stores opened by January 2019. With the Maryland opening, Acreage began the nationwide roll out of “The Botanist,” its flagship retail brand.
- As of September 30, 2018, Acreage Holdings deployed over $148 million in capital in various strategic transactions.
*Acreage issued a detailed presentation of Acreage Holdings’ fiscal third quarter results, that includes definitions and reconciliations for non-IFRS measures (see note regarding non-IFRS measures below), which can be viewed on our website at http://investors.acreageholdings.com.
We are in the midst of a transformative moment for the U.S. cannabis industry and we have been laying the groundwork to fully leverage our unique strategic advantages – scale, operational depth, and financial strength. Our November public listing and private placement equity raise of approximately $314 million gives us the ability to continue to expand our industry-leading footprint beyond the 18 states that we are in.
Kevin Murphy, Founder, Chairman, and Chief Executive Officer of Acreage
These efforts have laid the foundation for us to roll out the nation’s first truly national brands in the industry. With our operational foundation now in place and the tailwinds of transformational pending legislation that we anticipate will open new cannabis markets in the U.S., we believe we are in a strong position for the future.
Additional Operating Highlights
- On November 28, 2018, we entered into a line of credit agreement with Patient Centric Martha’s Vineyard, Ltd. to establish a management services agreement.
- On November 28, 2018, we entered into an agreement to purchase a third Connecticut dispensary, giving Acreage three of nine dispensary licenses in the state.
- On November 26, 2018, we closed on the acquisition of the real estate assets of Blue Tire Holdings, LLC to begin cultivation, processing, and dispensary operations in Michigan, one of the highest per capita consumption states in the U.S.
- On November 28, 2018, we entered in an agreement to acquire the intellectual property rights to what it believes is the largest, most diverse library of cannabis genetics in the world.
- On November 21, 2018, we acquired one of 22 cultivation and processing licenses in Illinois.
- In October 2018, we were awarded a provisional cultivation and manufacturing license in Oklahoma, with operations expected to begin in late 2019.
- In September 2018, we were awarded the right to receive one of eight total dispensary licenses that will be granted in North Dakota, and have applied to receive additional licenses in North Dakota.
Earnings Call Details
Acreage Holdings will host a conference call with management on Thursday, November 29th at 5:30PM Eastern Standard Time. Please dial in at least 15 minutes ahead of time and an operator will register your information. The call can be accessed using the following dial-in information:
U.S. Toll Free: 888-317-6016
Canada Toll Free: 855-669-9657
About Acreage Holdings
Headquartered in New York City, Acreage Holdings is the largest vertically integrated, multi-state owner of cannabis licenses and assets in U.S. states with respect to number of states with operating licenses. Acreage has operating licenses in 18 states with an aggregate population of more than 165 million Americans and an estimated 2022 total addressable market of $12 billion in legal cannabis sales, according to Arcview Market Research. Acreage is dedicated to building and scaling operations to create a seamless, consumer-focused branded cannabis experience.
The detailed presentation referenced above contains tables that reconcile our results of operations reported in accordance with IFRS to adjusted results that exclude the impact of certain items identified as affecting comparability (non-IFRS). We use pro-forma revenue, among other measures, to evaluate our actual operating performance and for planning and forecasting future periods. We believe that the adjusted results presented provide relevant and useful information for investors because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these measures are not calculated in accordance with IFRS, they should not be considered in isolation of, or as a substitute for, our reported revenue as indicators of our performance, and they may not be comparable to similarly-named measures from other companies.