TerrAscend Corp. (OTCQX: TRSSF), a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, and California, in addition to operating as a licensed producer in Canada, reported financial results for its third quarter ending September 30, 2020, today, as follows:.  

Q3 2020 Financial* Highlights

• Net Sales: increased 7.9% to $51M.
• Gross Profit: increased 13.7% to $30.1M.
• Gross Margin: increased to 59% from 56%.
• SG&A: reduced by 12.5% to $13.7M.
• SG&A as % of Net Sales: reduced to 27% from 33%.
• Adjusted EBITDA: increased 56.1% to $17.8M.
• Adjusted EBITDA Margin: increased to 35% from 24%.
• Net Income (Loss): loss increased by 28.8% to $17.6M.
• Cash/Equiv.: decreased 40% to $45M. 

*(Unless otherwise stated, above results are in Canadian dollars - to convert to other currencies go here - and compared to the previous quarter.)

Management Commentary

Jason Ackerman, CEO and Executive Chairman said:

"We're driving strong revenue growth and continued margin expansion by focusing on operational excellence, controlled SG&A spending, and strategically allocating our capital...and rapidly building scale in growing limited license markets...

I look forward to realizing the full benefit of our substantially larger cultivation and manufacturing capacities across our system, including our recently announced Maryland acquisition, to further accelerate our revenue and adjusted EBITDA growth in Q4 and beyond."

Q3 2020 Operational Highlights

• Completed additional 25% cultivation expansion in Pennsylvania
• Achieved breakeven adjusted EBITDA
• Opened third Pennsylvania Apothecarium dispensary in Thorndale
• Opened fourth California Apothecarium dispensary in Berkeley
• Received approval for, and commenced cultivation in, its 37,000 square foot New Jersey greenhouse, the first approved for medical cannabis cultivation in the state
• Named Jason Marks as new Chief Legal Officer

Guidance

• 2020 full year guidance increased to at least $196M in net sales from $192M and at least $54M of adjusted EBITDA from $45M.
• 2021 full year guidance initiated at $360-380M in net sales and $140-160M of adjusted EBITDA.

Stock Performance

The TerrAscend stock price has gone UP 266% YTD and is UP 38% so far in November as illustrated in the chart below: