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AYR Wellness Inc. (AYRWF), a constituent in the munKNEE American Cannabis MSO Stocks Index, reported financial results for the fourth quarter ended December 31, 2023 today. Unless otherwise noted, all results are presented in U.S. dollars.

Fourth Quarter Financial Summary 

(excludes results from AZ for all periods) ($ in millions, excl. margin items)

Fourth Quarter Highlights

• Opened 2 dispensaries in Florida (now has a total of 64 dispensaries across the state).
• Opened 3 dispensaries in Ohio by entering into options to acquire three licenses there.
• Relaunched the cannabis brand, kynd.

Management Commentary

David Goubert, President & CEO, said,

• “.The conversion from medical-only to adult-use sales is one of the most significant, proven revenue drivers in any given cannabis market and, currently, only 15 of AYR’s [90] dispensaries operate in adult-use markets, and we are positioning our assets in Florida, Pennsylvania, and Ohio to take full advantage of anticipated adult-use transitions... and we expect to generate meaningful operating leverage as revenue growth accelerates in these markets...
• With an improved balance sheet, optimized cost structure, and impending industry catalysts, we believe AYR is well-positioned to drive sustainable, profitable growth for years to come.”

Outlook

• The Company anticipates revenue in Q1 2024 to range from flat to modest growth compared to Q4 2023, with a continuation of achieving the Company’s targets of 25% Adjusted EBITDA margin.
• The Company expects gradual improvement from the residual impact of cultivation challenges in Florida while continuing to build wholesale revenues.
• AYR expects to further ramp revenue, adjusted EBITDA and operating cash flow later this year.

Stock Performance

Ayr's stock price went DOWN 21.4% during Q4 (i.e. between September 31st and December 31st) and was Unchanged as of yesterday but is DOWN 6% as of mid-day, today in response to the release of the Q4 financial report.

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