TerrAscend Corp. (TER) (TRSSF), an American multi-state operator (MSO), announced its results for the quarter ended March 31, 2022 (Q1) last Thursday. Results are reported in U.S. dollars unless otherwise indicated and related to the previous quarter.

Q1 Financial Highlights

• Net Revenue: UP 1.0% to $49.7M
• Adj. Gross Profit: DOWN 22.0% to $19.2M
• Adj. Gross Margin: DOWN to 38.4% from 49.8%
• G&A Expense: UP 12.9% to $19.2M
  • As a % of Net Revenue:  UP to 38.7% from 34.5%
• Adj. EBITDA: DOWN 72.3% to $3.3M
  • As a % of Net Revenue: DOWN to 6.6% from 24.2%
• Net Loss: UP 171.2% to $(16.0)M

Q1 Operational Highlights

• Closed on the acquisition of Gage Growth Corp.
• Appointed Ziad Ghanem as President and Chief Operating Officer.
• Appointed Jared Anderson, SVP Finance & Strategy, Charishma Kothari, SVP Marketing, and Charles Oster, SVP Sales.
• Appointed Kara DioGuardi to the Board of Directors.
• Became first major MSO to expand its ecommerce platform via proprietary Apothecarium mobile app, available in the Apple App store, with express pick-up and delivery where permitted. 

Management Commentary:

Jason Wild, Executive Chairman, said:

• "While revenue and margins during the first quarter were impacted by the industry wide vape recall in Pennsylvania and front-loaded operating costs in New Jersey ahead of adult use, we expect revenue and margin to increase materially in the second quarter and beyond.
• The strategic decisions and investments we have made over the last three years position us well for substantial growth in each of our four key markets – New Jersey, Michigan, Maryland and Pennsylvania."

Stock Performance

TerrAscend's stock price has gone DOWN 50.6% since the end of Q1 (March 31st) and is now DOWN 37.1% YTD and DOWN 75.5% from its peak in 2021.