E Ayr Wellness Q4 Financial Results Lay Groundwork For FY 2021 Growth

Ayr Wellness Inc. (AYRWF), a constituent in the munKNEE.com Pure-Play MSO Pot Stock Sub-Index, reported its Q4 financial results after the market closed on Wednesday for the three months ended December 31, 2020. 

 

Herb, Hemp, Plant, Cab, Cannabinoid

Image Source: Pixabay

Q4 Financial Highlights (Unless otherwise noted, all results are presented in U.S. dollars and compared with the previous quarter.)

  • Revenue: increased 5% to $47.8M
  • Gross Profit: increased 0.36% to $27.5M
  • Adj. Gross Profit: declined 54% to $18.6M
  • Operating Income: declined to $(2.2)M from $20.0M
  • Adj. EBITDA: increased 0.5% to $19.4M
  • Adj. EBITDA Margin: reduced to 40.5% from 42.4%

Management Commentary

Jon Sandelman, CEO, said:

  • "...The Ayr story of 2020 was about building a foundation for a new Ayr Wellness, a bigger and better MSO. We spent the end of 2020 aggressively expanding our footprint and investing in our business to be positioned for exceptional growth in 2021 and 2022. We began 2020 as a 2-state MSO and we begin 2021 as a seven-state, top-5 MSO and we aren’t done yet.
  • ...We enter 2021 with leading scale, talent, and a recently bolstered balance sheet, that currently has more than $236 million of cash.
  • The investments we made in the fourth quarter in additional infrastructure and people will prove critical as our new operations in Pennsylvania, Florida, New Jersey, Arizona and Ohio begin to ramp [up] in 2021.
    • We opened our second dispensary in Pennsylvania a couple [of] weeks ago...[and] our remaining four stores in Pennsylvania will open throughout 2021 and as the cultivation expands further. We expect Pennsylvania to be a meaningful contributor to our top and bottom line in the back half 2021.”
  • We firmly believe that everything we do starts with the plant. We continue to demonstrate our commitment to this belief by investing additional resources in our cultivation facilities and team. These investments will prove to be impactful as we begin the integration efforts in Florida to bring that important asset up to the productivity level we know is achievable. The same will be true when we close on Arizona and Ohio later this month and New Jersey this summer. We expect to realize the benefit of these investments with strong growth as we move through 2021. The full impact will be realized with even stronger growth in 2022.”
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