E Cannabis Central: TerrAscend Q2 Financial Report Shows Further Improvement In All Aspect Of Operation

TerrAscend Corp. (OTCQX: TRSSF), a Multi-State Operator, reported financial results for its second quarter ending June 30, 2020, today, and they did not disappoint showing marketed improvement in all aspects of their business which is expected from one of the industry's continuing success stories.

Second Quarter 2020 Financial Highlights
(All currency is in Canadian dollars - go here to convert into USD - and all comparisons are made between Fiscal Q2 2020 and Q1 2020 results unless otherwise specified)

  • Net Sales: increased 36% to $47.2M
  • Gross Profit: increased 70% to $26.5M
  • Gross Margin: increased to 56% from 45%%
  • Gen. & Admin. Expense: increased 7.6% to $15.7M
  • G&A as % of Net Sales: reduced to 33% from 42%
  • Adjusted EBITDA: increased 131% to $11.4M 
  • Adj. EBITDA as % of Net Sales: improved to 24% from 14%
  • Positive Cashflow from Operations: turned positive for the very first time to $10.4 million
  • Cash & equivalents (including restricted cash): increased 142% to $75M

Management Commentary

Jason Ackerman, CEO and Executive Chairman, had the following (in part) to say about  TerrAscend's Q2 results:

"...After achieving our first quarter of positive EBITDA in Q1, we have now achieved another significant milestone of positive cashflow from operations in Q2."

2020 Outlook

TerrAscend anticipates:

  • full year net sales of at least $192 million driven by
    • second half 2020 net sales growth of at least 34% versus the first half of 2020 and 109% year over year. 
  • Adjusted EBITDA for the year is expected to be at least $45 million. 

Stock Performance

The munKNEE.com Pot Stock Index consists of 25 pure-play cannabis companies that trade in excess of $US1/share and it is DOWN 12.3% YTD but, while the American Multi-State Operators (MSOs) sector within the index is UP 29.7% YTD, TerrAscend, an MSO itself, is UP 89.0% YTD which demonstrates:

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