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Tuesday, Aug 16, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Annual sales up 131% to US$357.6M for Ayr Wellness

The company says it expects revenue from capital expenditure projects to ramp up this year

Annual sales up 131% to US$357.6M for Ayr Wellness
An Ayr Wellness dispensary in Nevada. Photo via Ayr

Multistate cannabis operator Ayr Wellness Inc. (CSE: AYR.A) (OTCQX: AYRWF) is reporting sizable gains in its 2021 earnings report, and says capital projects started over the year will start generating new revenue throughout 2022.

On Thursday, the company released its results for the fourth quarter and fiscal year ended Dec. 31, with annual revenue climbing 131 per cent to US$357.6 million from US$155.1 million the year before.

Annual adjusted earnings before interest, taxes, depreciation and amortization rose 84 per cent to US$98 million from US$53.4 million.

Net loss on the year improved by 31 per cent to negative US$17 million from negative US$24.6 million.

In the fourth quarter, sales rose 16 per cent to US$111.8 million from US$96.2 million in the third quarter.

Quarterly adjusted EBITDA was flat at US$26.1 million.

Net income in the quarter was US$23.8 million, after a US$53-million fair value gain on financial liabilities.

But operational losses jumped 56 per cent to negative US$13.8 million from negative US$8.9 million.

At the end of the year, Ayr had US$154.3 million in cash.

Read more: California weed firm Glass House to go public in US$567M deal

Read more: TerrAscend stock soars on profitable annual earnings

2021 was a transformative year for the company, with outsized revenue growth and an expanded operational footprint to seven from two leading state cannabis markets, founder and CEO Jonathan Sandelman says in a statement.

“We added 62 dispensaries and 8 cultivation facilities, while welcoming more than 1,600 teammates,” he adds.

“Following this transformative year for our operating footprint, we are now squarely focused on making 2022 a transformative year for Ayr’s earnings power. The [capital expenditure] projects we began in 2021 are expected to begin generating revenue for us throughout 2022, leading to our expected significant second half ramp.”

In the fourth quarter, Ayr added dispensary locations in Pennsylvania, while signing acquisition deals to add a retail presence in Illinois.

It also completed construction of a cultivation facility in New Jersey, which is waiting for regulatory approval to open, as well as another facility in Arizona, which the firm expects to begin generating revenue in the second quarter this year.

Over the same period, Ayr spent US$123 million in capital expenditures, and anticipates spending US$70 million this year.

 

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