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 TerrAscend (TSNDF) has reported its financial results for the first quarter (Q1) ended March 31, 2024. All financial information is provided in U.S. dollars unless otherwise indicated and compared with the previous quarter.
 Q1 Financial Highlights

  • Net Revenue: DOWN 6.9% to $80.6M
  • Gross Profit: DOWN 7.4% to $38.7M

    • Gross Profit Margin: Down to 48.0% from 48.2%
  • Gen. & Admin. Exp.: Increased 1.1% to $28.0M

    • as a % of Net Revenue: UP to 34.7% from 32.0%
  • Adj. EBITDA: Declined 17.3% to $16.2M

    • as a % of Net Revenue: Reduced to 20.1% from 27.1%
  • Net Income (Loss): Improved by 64.4% to $(14.9)M
  • Cash/Equiv. + Restricted: UP 1.6% to $25.7M
     

    • Q1 Operational Highlights

  • Seventh consecutive quarter of positive cash flow provided by continuing operations.
  • Paid down $9.8 million in debt.
  • Grew Pennsylvania wholesale sales 80% year-over-year.
  • Michigan achieved 40% gross margin for the second consecutive quarter.
  • Acquired the remaining 50.1% equity in State Flower and three Apothecarium dispensaries in California, all of which were already previously consolidated into financial results.
  • Expanded Valhalla product lineup to include one of the first 100mg edibles in Pennsylvania resulting in Valhalla brand growth of 54% sequentially.
  • Won two Cannademix Community Awards for New Jersey Best Flower and New Jersey Best Extract.
     

    • Management CommentaryJason Wild, Executive Chairman, said:

  • “…Independent of reform, we enter this exciting stretch with the right team and high-performing assets. There are also multiple catalysts on the horizon that would further amplify our results going forward.
    • In Pennsylvania, adult use appears to be closer than ever given recent legislative activities and comments from the Governor.
    • At the federal level, the recent news around DEA rescheduling is encouraging and, if implemented, would dramatically improve our balance sheet and profitability.  
    • Finally, one of TerrAscend’s major differentiators is our ‘wide open map’. This enables us to strike extremely accretive deals to enter additional attractive states via best in breed operators…”
       

    • Stock PerformanceTerrAscend’s stock has only gone UP 4.3% YTD compared to the 37.8% average of the 7 constituents in the American Cannabis MSO Stocks Portfolio and well behind Cresco Labs (CRLBF) which is UP 54.8% YTD and Trulieve Cannabis (TCNNF) which is UP 116.3% YTD, for example. More By This Author:Curaleaf Reports 16% Reduction In Net Loss In Q1 Financial Report
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