TerrAscend Preannounces Strong Second Quarter Results
NET SALES OF $47.2 MILLION AND ADJUSTED EBITDA OF $11.4 MILLION
- Net Sales increased 36% quarter-over-quarter and 169% year-over-year
- Adjusted EBITDA increased to $11.4 Million, a 131% improvement quarter-over-quarter
- Adjusted EBITDA Margin expands sequentially to 24% from 14%
- Adjusted Gross Margin expands sequentially to 56% from 45%
NEW YORK and TORONTO, Aug. 6, 2020 /CNW/ – TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) (“TerrAscend” or the “Company”) a leading North American cannabis operator, today announced preliminary financial results for its second quarter ending June 30, 2020. All amounts are in Canadian dollars. Based on a preliminary (unaudited) review, the Company anticipates:
- Net Sales increased 36% sequentially and 169% year over year to $47.2 million
- US operations generated 90% of consolidated Net Sales
- Adjusted EBITDA of $11.4 million, increasing 131% sequentially
- Adjusted Gross Margin of 56% (before gain on fair value of biological assets)
- Cash and Cash equivalents of $75 million as of June 30th, 2020
Our strong top and bottom-line performance reflects our unwavering commitment to achieve best-in-class results from our operations. We have been thoughtful in our approach to expanding our business, primarily focused on the areas of the U.S. market where we see the highest probability of sustained, long-term growth.
Jason Ackerman, CEO and Executive Chairman of TerrAscend
With cultivation at our New Jersey production facility underway and our Pennsylvania operations continuing to track ahead of plan, I am confident we can continue this solid momentum into the second half of the year.
Later today, TerrAscend is scheduled to host an Investor and Analyst Day. The virtual event will include presentations by CEO and Executive Chairman, Jason Ackerman, CFO, Keith Stauffer as well as members of TerrAscend’s senior leadership team who will provide updates on the Company’s U.S. operating divisions. The Company will also host a moderated fireside chat with David Klein, CEO of Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) and Jason Wild, TerrAscend’s Chairman and founder of JW Asset Management. The event will conclude with a Q&A session. The event will be webcast live and all interested parties are invited to join by registering in advance using the below link:
VIRTUAL INVESTOR & ANALYST DAY DETAILS
DATE: Thursday, August 6th, 2020
TIME: 10:00 a.m. Eastern Time
REGISTRATION: Click to Access
REPLAY: A replay will be posted to TerrAscend’s Investor Relations website and will be available until 12:00 midnight Eastern Time Thursday, August 20th, 2020
TerrAscend will publish its Q2 2020 results and host a conference call on August 20, 2020. The Company will issue a press release in advance with the details on how investors can access the call.
TerrAscend provides quality products, brands, and services to the global cannabinoid market. As the first North American Operator (NAO), with scale operations in both Canada and the US, TerrAscend participates in the medical and legal adult use market across Canada and in several US states where cannabis has been legalized for therapeutic or adult use. TerrAscend was the first cannabis company with sales in the US, Canada, and Europe. TerrAscend operates a number of synergistic businesses, including The Apothecarium, an award-winning cannabis dispensary with several retail locations in California; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ilera Healthcare, Pennsylvania’s premier medical marijuana cultivator, processor and dispenser; and Valhalla Confections, a manufacturer of premium cannabis-infused edibles. TerrAscend holds a cultivation permit in the State of New Jersey and is pending approval for a vertically integrated medical cannabis operation with the ability to operate up to 3 Alternative Treatment Centers. Additionally, TerrAscend holds a Medical Cannabis Processor License in the State of Utah. For more information, visit www.terrascend.com.