Ayr Strategies Q1 Revenue Increases 74% to $58.4 Million
Ayr Strategies Inc. (OTC: AYRZF) announced today that its May 28, 2018 financial results for the three months ended May 31, 2018 reflects Q1 revenue of $58.4 million, a 74% increase from the $35.5 million for the same period last year.
Ayr Strategies, Inc. (OTC: AYRB), a developer and marketer of cannabis technologies, announced today its financial results for the period ended March 31, 2018. As a result of the Company’s continued focus on the development of its technology platforms, Ayr Strategies’ revenue for the first quarter of 2018 increased 74% from $17.6 million reported in the first quarter of 2017 to $35.4 million for the first quarter of 2018. The Company’s revenue included $14.0 million in revenue recognized for the sale of its Medi-Check Biosciences division. In addition, the Company’s net loss for the first quarter of 2018 was $22.7 million, or
Ayr Wellness announces first quarter results 2021
First quarter revenue increased 74% to $58.4 million compared to the same period last year.
Adjusted EBITDA for the first quarter was $20.0 million under IFRS and $18.4 million under U.S. GAAP, an increase of 136% over the prior year.
U.S. GAAP operating loss of $8.4 million. Includes $26.5 million in non-cash and non-recurring costs.
With the completion of its acquisition of Liberty Health Sciences, the company acquires 42 pharmacies, making it the fourth largest in Florida
Completed acquisitions in Arizona and Ohio, bringing the company’s total presence to six states; a seventh state (New Jersey) is expected to be completed this summer.
The company gave an outlook for the second quarter. The company is expected to generate revenues of approximately $90 million in the third quarter of 2011, up over 218% year-on-year and over 54% quarter-on-quarter, while adjusted EBITDA margin will be approximately 30%.
TORONTO, May 26, 2021 (GLOBE NEWSWIRE) – Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) (Ayr or the Company), a vertically integrated multi-state cannabis operator (MSO), announces its financial results for the three months ended December 31. March 2021. All results are expressed in US dollars unless otherwise stated. Beginning in the first quarter of 2021, the Company will report under U.S. GAAP. The first quarter of 2021 represents the beginning of our strategic transformation as we completed our announced acquisitions on schedule, beginning with the completion of the Liberty Health Sciences acquisition on February 25, adding the fourth largest retail chain in Florida, said Jonathan Sandelman, CEO of Ayr Wellness. In late March, we completed our acquisition in Arizona, adding three pharmacies and significant acreage in the newest adult consumer market that is beginning to develop in the West. Then we quickly closed our acquisitions in Ohio and picked our first flower in Pennsylvania, which arrived on our store shelves earlier this month. We also opened our sixth store in Nevada, the closest pharmacy to the Las Vegas airport, just in time for the return of tourism to the state. The result of our success in achieving this goal is evident in our monthly income for April, which almost doubled from January. We expect staggered functional growth in the second, third and especially fourth quarters of 2021, with additional milestones following the commissioning of additional growth projects and the completion of the New Jersey acquisition in late summer.
Jonathan Sandelman, managing director of Ayr Wellness
We have always invested in building a solid foundation for our business. As we expand to seven states, that means 2021 will be the year we invest in our brands. Particularly in the adult markets, where merchandising, quality and choice drive consumer behaviour, we invest significant resources in improving and developing the Ayr Wellness brand. We partnered with a leading branding company to lay the groundwork for our national brand strategy – cultivating wellness and creating miracles through the use of the highest quality flowers and reshaping the pharmacy’s design and customer experience. These investments are expected to generate additional revenue growth in the second half of 2021, 2022 and beyond, Sandelman concluded. First quarter financial highlights (in million US dollar, excluding margin effects; US GAAP) Outlook: Based on the results so far, management expects a positive development in the second quarter. Revenue for Q21 was approximately $90 million, representing growth of more than 54% for the quarter and 218% for the year. U.S. GAAP adjusted EBITDA margin is expected to remain around 30% in the second quarter, reflecting investments in new markets and growth projects that are expected to generate higher revenues in the second half of 2021 and into 2022. The company reaffirms its 2022 revenue target of at least $725 million. On a U.S. GAAP basis, the company also reaffirmed its EBITDA guidance for 2022 of $300 million, which is equivalent to $325 million on an IFRSi basis. The Company’s outlook for the second quarter of Q4 21 and 2022 is based on U.S. GAAP reporting and the assumptions set forth in the March 12, 2021 press release, which is attached for your information. Wellness footprint in Ayr (Pro-Forma) Production figures for the first quarter Nevada results: egg
Average daily retail sales in the first quarter exceeded $306,000; daily transaction volume was 4,944 and average receipt per transaction was $62.
Retail sales increased 24% year-on-year, driven by a ~26% increase in transaction volume and a ~2% decrease in average ticket.
Opening of the sixth clinic in Nevada, the closest one to the Las Vegas airport.
Significant increase in volume in the Nevada market as tourism begins to return to the state.
The expansion of a 20,000 square foot processing plant outside of Las Vegas is nearing completion, which will increase capacity for products such as dietary supplements, concentrates and vapes.
Results for the state of Massachusetts
Average daily retail sales (medical only) increased to nearly $64,000 in the first quarter; daily transaction volume was approximately 405, with an average note of $157 per transaction.
Retail sales rose 77% year-on-year, driven by a rise in the number of transactions of around 65% and in the average ticket of around 7%.
Ayr is sold in 93 of the 128 adult pharmacies in the state and remains the largest wholesaler in the state with the second largest retail share of the Sira Naturals brand, according to the BDSA.
Wholesale revenues were $13.8 million in the quarter, up 88% year-over-year, reflecting increased capacity brought online in May 2020.
Construction is underway on a new 100,000 square foot growing and production facility in Milford, Massachusetts. This facility will have an additional capacity of 75,000 square feet, allowing Ayr to reach the maximum capacity of its state permit.
Ayr has successfully secured its first harvest in Pennsylvania and began selling flowers under the Revel brand in May.
Sales at Ayr’s two newly opened Wellness dispensaries continue to grow, reaching over $700,000 per month in April; the average ticket is $135.
Three more clinics are expected to open this summer and a fourth by the end of the year, bringing the total number to six.
Ayr completed the acquisition of assets in Arizona on 23. March 2021 from
Construction of the new 80,000 square foot indoor cultural facility is progressing toward the end of the year.
Renewal in Florida
Ayr completes acquisition of Liberty Health Sciences at 25. From February 2021
Since its closure, the company has opened three additional stores, bringing its total number of stores to 35, the fourth-largest retail store in Florida.
Seven more stores are expected to open by the end of the year, bringing the total number to at least 42.
Work is underway to remodel and improve the 300,000 square foot greenhouse; yields in the previously remodeled flower rooms have increased by 60%.
The company has begun construction on a 10-acre open space, which is scheduled to be completed in the third quarter of 2021.
i Under U.S. GAAP, most leases are considered operating leases and are recorded as rental expense in general and administrative expenses or capitalized in other comprehensive income. Under IFRS, all capitalized leases were treated as finance leases and recorded as depreciation and interest. In 2022, the Company estimates that this lease adjustment will be approximately $25 million. ii Ayr provides operating services under service and operating agreements to licensed facilities in Nevada. Conference call Ayr CEO Jonathan Sandelman, Managing Director Jennifer Drake and CFO Brad Asher will host a conference call followed by a question and answer session. The date of the conference call: Wednesday, 26. May 2021, time : 17:00. Eastern Time Toll Free Phone Number : (800) 319-4610 International Number : (604) 638-5340 Call the conference phone number 5-10 minutes before the start time. The operator will register your name and organization. If you are having trouble connecting to the conference call, please contact MATTIO Investor Relations at [email protected] The conference call is broadcast live and can be recorded here. A replay of the conference call will be available from 8pm. Eastern time on the same day until the 26th. June 2021. A free callback number: (855) 669-9658 International game number : (412) 317-0088 Repeat ID: 6971 Financial Information Certain financial information contained in this press release has been extracted from Ayr’s consolidated financial statements for the three months ended 31 December. March 2021 and 2020. Ayr files its financial statements on SEDAR and with the SEC. All financial information in this press release is qualified in its entirety by reference to these financial statements. Definition and reconciliation of non-GAAP measures The Company discloses certain non-GAAP measures used to evaluate the performance of its business segments and their respective performance and to manage its capital structure. Since non-GAAP performance is generally not standardized, it may not be comparable to that of other issuers. Securities regulators require that these measures be clearly defined and reconciled to the most comparable measure within GAAP. Rather, they are provided as supplemental information to these GAAP measures to provide greater insight into the company’s performance from a management perspective. Accordingly, these measures should not be considered in isolation or as a substitute for an analysis of the Company’s financial information prepared in accordance with GAAP. Non-GAAP measures used to analyze the performance of business units include adjusted EBITDA and adjusted gross margin. The Company believes that these non-GAAP financial measures provide meaningful additional information about the Company’s performance and may be useful to investors by providing greater transparency into the key measures used by management to make financial and operational decisions. These financial measures are designed to provide investors with additional measures of the company’s operating performance, highlighting trends in the company’s core business that may not be apparent when using GAAP measures alone. Adjusted EBITDA Adjusted EBITDA represents reported loss from operations before interest and taxes, adjusted for non-recurring items, other non-cash items, including depreciation and amortization, and further adjusted for non-cash share-based compensation, inclusion of additional costs to acquire cannabis stock in a business combination, acquisition-related costs and start-up costs. Adjusted gross profit Adjusted gross profit is reported gross profit adjusted for the additional cost of purchasing cannabis stock in business combinations and start-up costs. A reconciliation of how Ayr calculates Adjusted EBITDA and Adjusted Gross Profit is set out in the following tables. A further reconciliation of adjusted EBITDA, adjusted gross margin and other non-GAAP information is provided in our MD&A for the three months ended December 31. March 2021 expected. Assumptions The forward-looking information in this document is subject to the assumptions and risks set forth in our MD&A dated March 31, 2021. More information More information on the Company’s operations and its outlook for the first half of the year is available on the Company’s website. For the second quarter of 2021, please refer to Ayr’s corporate presentation which can be found in the Investors section of the Company’s website at www.ayrwellness.com. About Ayr Wellness Inc. Ayr is an emerging, vertically integrated cannabis operator in the United States focused on providing the highest quality cannabis products and customer service throughout its service area. Based on the principle that everything starts with the quality of the plant, the company focuses on superior cultivation to grow high-quality branded cannabis products. Ayr is committed to enriching the consumer experience with the benefits and wonders of cannabis every day. Ayr’s management team has a proven track record of building successful businesses through disciplined operational and financial management and is committed to making a positive impact on the customers, employees and communities in which it operates. For more information, see www.ayrwellness.com. Original press release For factual information about Ayr Wellness, visit the company’s sponsored investor panel. 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Ayr Strategies, Inc., a publicly traded, specialty agricultural and real estate company, announced today that it had increased its revenue by a significant 74% to $58.4 million for the first quarter of 2014.. Read more about ayr strategies stock forecast and let us know what you think.