05:18:45 EDT Tue 22 Oct 2024
Enter Symbol
or Name
USA
CA



Terrascend Corp
Symbol TSND
Shares Issued 291,507,430
Close 2024-05-09 C$ 2.31
Market Cap C$ 673,382,163
Recent Sedar Documents

Terrascend loses $14.85-million (U.S.) in Q1

2024-05-09 16:33 ET - News Release

Mr. Jason Wild reports

TERRASCEND REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS

Terrascend Corp. has released its financial results for the first quarter ended March 31, 2024. All amounts are expressed in U.S. dollars and are prepared under U.S. generally accepted accounting principles unless indicated otherwise.

The following financial measures are reported as results from continuing operations due to the shutdown of the licensed producer business in Canada, which is reported as discontinued operations through Sept. 30, 2023. All historical periods have been restated accordingly.

First quarter 2024 financial highlights:

  • Net revenue was $80.6-million, an increase of 16.1 per cent year over year.
  • Gross profit margin was 48.0 per cent, compared with 48.8 per cent in Q1 2023.
  • Net loss from continuing operations was $14.9-million, compared with a net loss of $19.2-million in Q1 2023.
  • EBITDA (earnings before interest, taxes, depreciation and amortization) from continuing operations was $8.7-million, compared with $6.1-million in Q1 2023.
  • Adjusted EBITDA from continuing operations was $16.2-million, compared with $12.2-million in Q1 2023, an increase of 33.0 per cent year over year.
  • Adjusted EBITDA margin from continuing operations was 20.1 per cent, compared with 17.6 per cent in Q1 2023.
  • Cash flow provided by operating activities from continuing operations was $13.3-million compared with $10.5-million in Q1 2023.
  • Free cash flow was $10.5-million compared with $8.0-million in Q1 2023.

"For the first quarter, revenue and adjusted EBITDA increased materially year over year, and we delivered another quarter of strong positive free cash flow," stated Jason Wild, executive chairman of Terrascend. "Independent of reform, we enter this exciting stretch with the right team and high performing assets. There are also multiple catalysts on the horizon that would further amplify our results going forward. In Pennsylvania, adult use appears to be closer than ever given recent legislative activities and comments from the governor. At the federal level, the recent news around DEA rescheduling is encouraging, and, if implemented, would dramatically improve our balance sheet and profitability. Finally, one of Terrascend's major differentiators is our wide open map. This enables us to strike extremely accretive deals to enter additional attractive states via best-in-breed operators. We can't wait to share more details on this front when appropriate."

First quarter 2024 business and operational highlights:

  • Seventh consecutive quarter of positive cash flow provided by continuing operations;
  • Paid down $9.8-million in debt;
  • Grew Pennsylvania wholesale sales 80 per cent year over year;
  • Michigan achieved 40-per-cent gross margin for the second consecutive quarter;
  • Acquired the remaining 50.1-per-cent equity in State Flower and three Apothecarium dispensaries in California, all of which were already previously consolidated into financial results;
  • Expanded Valhalla product lineup to include one of the first 100-milligram edibles in Pennsylvania, resulting in Valhalla brand growth of 54 per cent sequentially;
  • Won two Cannademix community awards for New Jersey best flower and New Jersey best extract.

Conference call

Terrascend will host a conference call today, May 9, 2024, to discuss these results. Mr. Wild, Ziad Ghanem, president and chief operating officer, and Keith Stauffer, chief financial officer, will host the call starting at 5 p.m. Eastern Time. A question-and-answer session will follow management's presentation.

Date:  Thursday, May 9, 2024

Time:  5 p.m. Eastern Time

Webcast:  at the Terrascend website

Dial-in number:  1-888-664-6392

Replay:  416-764-8677 or 1-888-390-0541; available until 12 a.m. midnight Eastern Time on Thursday, May 23, 2024

Replay entry code:  100922 followed by the number sign

Financial results and analyses are available on the company's website and SEDAR+.

About Terrascend Corp.

Terrascend is a leading Toronto Stock Exchange-listed cannabis company with interests across the North American cannabis sector, including vertically integrated operations in Pennsylvania, New Jersey, Maryland, Michigan and California through Terrascend Growth Corp. and retail operations in Canada through Terrascend Canada Inc. Terrascend operates the Apothecarium, Gage and other dispensary retail locations, as well as scaled cultivation, processing and manufacturing facilities in its core markets. Terrascend's cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The company owns or licenses several synergistic businesses and brands, including Gage Cannabis, the Apothecarium, Cookies, Lemonnade, Ilera Healthcare, Kind Tree, Legend, State Flower, Wana and Valhalla Confections.

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