It was a strong year for American multistate cannabis operator Acreage Holdings, Inc. (CSE: ACRG.U).
On Friday, the firm released its earnings results for the fourth quarter and fiscal year ended Dec. 31, with annual revenue climbing 65 per cent to US$188.9 million from US$114.5 million in 2020.
Net loss on the year improved by 78 per cent to negative US$63 million from negative US$286.6 million.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved by 183 per cent to US$24.6 million from a loss of US$29.5 million.
In the final three months of the year, Acreage boosted sales by 21 per cent to US$58.1 million from US$48.1 million in the third quarter.
In the fourth quarter, US$42.3 million came was generated by the firm’s retail business, and US$15.6 million from wholesale.
Quarterly net loss rose 21 per cent to negative US$40.4 million from negative US$14.1 million.
Adjusted EBITDA rose slightly to around US$8.5 million from US$7.5 million.
At the end of the period, Acreage had US$43.2 million in cash and cash equivalents.
Read more: Acreage gets US$150M credit facility
CEO Peter Caldini says his company made significant improvements in profitability last, achieving its first quarter of positive EBITDA in Q1 and continuing that trend through 2021.
“In addition to the profitability improvements, Acreage strengthened its balance sheet through the sale of operations in Florida, repaid near-term debt obligations, and secured a $150 million credit facility,” he said in a statement.
“Lastly, Acreage accelerated growth in our core markets with the opening of a new retail location in New Jersey, the completion of cultivation expansion projects in Pennsylvania, Illinois, and New Jersey, the opening of an edibles kitchen in Massachusetts, and the acquisition of high-quality operations in California, Maine, and Ohio.”
In the fourth quarter, the company acquired operations in Ohio, including a cultivation and processing facility as well as five operational stores. It increased cultivation capacity at its Egg Harbor facility in New Jersey ahead of the launch of adult-use sales.
Acreage also secured a US$150-million long-term debt deal with “attractive terms” to repay existing debt, and for working capital to fund future projects.
The firm is slated to be acquired by Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) come federal legalization.
Company stock rose over 1 per cent Friday to US$1.57 on the Canadian Securities Exchange.