Q3 2021 Financial Highlights

For the three months ended September 30, 2021. (Unless otherwise noted, all results are presented in U.S. dollars and compared with the previous quarter.)

• Revenue: increased 5.4% to $96.2M
• Operating Loss: declined to $(8.9)M from $(24.9)M
• Adj. EBITDA: declined 5% to $26.0M
• Adj. EBITDA Margin: reduced to 27.0% from 30.0%

Q3 2021 & Recent Business Highlights

• Finalized acquisition of Garden State Dispensary, adding New Jersey to Ayr’s growing footprint, including three open dispensaries and 24,000 square feet of operational cultivation and production facilities, with an additional 75,000 square feet of cultivation under development coming online with sales in the second quarter of 2022.
• Completed combination with PA Natures Medicine, adding three dispensaries in central Pennsylvania, including the college towns of Bloomsburg and State College.
• Hired 300+ new employees across all levels.
• Plans to acquire Gentle Ventures, LLC, which is doing business as Dispensary 33, and certain of its affiliates that collectively own and operate two licensed retail dispensaries in Chicago, Illinois, in the first half of 2023.
• Expects its previously announced acquisitions of Levia and Nevada-based Tahoe Hydro to close in the first quarter of 2022.

Management Guidance

Management is forecasting revenue growth of over 10% sequentially in the fourth quarter, while adjusted EBITDA is expected to remain roughly flat sequentially and revised its 2022 Adjusted EBITDA guidance to a range of $250 million to $300 million. It also reiterated its target for 2022 revenue of $800 million.

Stock Performance

The market did not like what was reported by AYRWF today declining -11.9% on the day. The stock is now DOWN -35.5% since the end of September and is now DOWN -27.4% YTD.