TerrAscend Earnings + Call Notes

U.S. cannabis leader looks to expand.

Terrascend Earnings

$74.4M Revs; est. $71.9M
$15.1M AEBITDA; est. $13.4M
$37.3M GP; est. $35.1M
50.2% GM; est. 48.7%

Q424 Net Revs of $74.4M, up 0.3% from $74.2M in Q324

Q424 Gross Profit Margin of 50.2%, up 140 basis points from 48.8% in Q324

FY24 Net Cash provided by continuing operations of $38M and FCF of $28.6M

10th consecutive quarter of positive Cash Flow from continuing operations.

6th consecutive quarter of positive Free Cash Flow

"The business performed ahead of our expectations in Q4. For the year, we generated $307M in revenue, $61M in AEBITDA from continuing operations, $38M in positive operating cash flow, and $29M in free cash flow.

This performance was driven by our ability to achieve a #1 market share position in New Jersey for all quarters of 2024, growth of our Maryland business from negligible revenue in early 2023 to a Q424 run rate of over $70M, while surpassing 50% gross margin, as well as improved gross margin in Pennsylvania, a state that I am excited about in anticipation of proposed adult-use legislation.

During the year we completed a non-dilutive debt financing, aided by our $150M of owned real estate, extending the vast majority of our debt maturities to late 2028. All of these accomplishments in 2024, including our tenth consecutive quarter of positive operating cash flow and sixth consecutive quarter of positive free cash flow, give us confidence in our ability to drive operational efficiencies and grow our core business while judiciously pursuing greenfield opportunities at increasingly attractive prices.”

Jason G. Wild, Executive Chairman

Bonus Quote, from the end of the earnings call

“At this point, TerrAscend stock has lost so much value, its trading at the value of our owned real estate, plus $27m in cash on top of that. At this point, investors are either getting the real estate for free or the TerrAscend business for free. We believe debt on the company is fully supported by the cash flow of the business, which is why we will aggressively be implementing our buyback when the blackout period ends in 48 hrs or so.” Jason Wild

Call Notes