TerrAscend Q3 Financial Report Reveals Major Declines In Income And EBITDA

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF), a constituent in the munKNEE American Cannabis MSO Stocks Index, reported its financial results for the third quarter ending September 30, 2022, on Monday, November 14th, as follows:
 

Q3 Financial Highlights

(The information below compares Q3 2022 with Q2 2022 and all figures are in U.S. dollars.)

  • Net Revenue: UP 3.4% to $67M.
  • Gross Profit: UP 4.8% to $24.4M.
    • Gross Profit Margin: UP to 36.3% from 35.5%.
  • Adjusted Gross Profit: UP 1.3% to $30.9M.
    • Adjusted Gross Profit Margin: DOWN to 46.1% from 47.1%.
  • SG&A Exp.: DOWN 9.5% to $26.7M.
  • Adjusted EBITDA: DOWN 96.6% to $11.3M.
    • Adjusted EBITDA Margin: UP to 16.9% from 8.9%.
  • Net Income (Loss): UP to $(311)M from $14.2M income.
    • A $331 non-cash impairment charge was recorded against goodwill and intangibles for the Company's Michigan business.
  • Cashflow from Operations: UP to $1.5M from $(16.1)M.
  • Cash and Cash Equivalents: $34.3M.
     

Management Commentary

 Jason Wild, Executive Chairman, said:

  • "We...reduced our operating expenses in the quarter while still generating record sales...driving substantial improvement in adjusted EBITDA margins quarter over quarter and positive cash flow from operations.
  • ...We have established ourselves as a leading operator in New Jersey with three of the top ten flower SKUs, including #1.
  • We plan to deploy our branded strategy in Maryland and Pennsylvania  when these states implement adult use."
     

Q3 Operational Highlights

  • Entered into an agreement to exclusively introduce the Cookies brand to Pennsylvania.
  • Appointed Karim Bouaziz as President of the Northeast Region.
  • Closed on the acquisition of Pinnacle in Michigan, which includes six dispenary licenses, five of which are currently operational.
  • Opened third New Jersey Apothecarium Dispensary in Lodi.
  • Opened "Cookies Corners" at all three Apothecarium locations in New Jersey.
     

Stock Performance

TerrAscend's stock price:

  • declined 44% during Q3 (July, August, and September),
  • advanced 20% during October,
  • remained unchanged leading up to the release of the Q3 financials after the markets closed on November 14th but
  • advanced 14% as of the close of business today but is still
  • down 72% YTD.

More By This Author:

Verano Q3 Financial Report Reveals Major Increase In Net Loss
Trulieve Cannabis Q3 Financials Were Down But Stock Price Jumps
Cresco Labs Q3 Financials Show No Improvement Over Q2 Results

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