Acreage Reports Positive Fifth Quarter Adjusted EBITDA and Higher First Quarter Net Loss
Vertically Integrated Cannabis Business Acreage Holdings, Inc. ACRDF reported sound first quarter financial results ended March 31, 2022.
“We have reached our fifth consecutive quarter of positive adjusted EBITDA and sequentially improved our gross margin, while continuing to grow our revenues despite industry headwinds and pandemic-related challenges in the first quarter,” Pierre Caldinithe company’s CEO, commented on the first quarter financial results.
First Quarter 2022 Financial Highlights
- Total revenue was $56.9 million, an increase of $18.5 million or 48% compared to Q1 2021.
- Total gross profit was $29.5 millionan increase of $8.9 million or 43% compared to Q1 2021.
- Gross margin of 52% compared to 48% in Q4 2021 and 54% in Q1 2021.
- Total operating expenses increased by $13.4 millionor 71% to $32.2 million, starting in the first quarter of 2021.
- Adjusted EBITDA increased to $8.6 millioncompared to adjusted EBITDA of $1.6 million in the first quarter of 2021 and a slight improvement from adjusted EBITDA of $8.5 million in the fourth quarter of 2021.
- Net loss attributable to acreage was $12.7 millioncompared to ($7.8) million in the first quarter of 2021.
- Ended quarter with $32.6 million in cash and cash equivalents.
First Quarter 2022 Operational Highlights
- Expanded the company’s premier brand portfolio with the launch of Superflux, currently available at dispensaries in Illinois, Massachusetts and Ohio.
- Improved selection and customer experience by introducing a variety of new and innovative products under The Botanist brand in select markets.
- Entered into a licensing agreement with Botanica to manufacture and distribute Mr. Moxey’s top-selling, award-winning THC mints in Acreage’s operating markets as permitted by regulations including Ohio, New Jersey, Pennsylvania, Illinois, New York and Maine.
- Strengthening of the management team with the appointment of Denis Curran as Chief Operating Officer and the addition of Steven Strom to its board of directors.
- Adult-use operations begin in New Jersey as part of an inaugural group of cannabis operators licensed to launch adult-use sales in the state.
- Completed the sale of the company’s cultivation and processing facility in Medford, Oregon, for total consideration of $2.0 million, and closed its dispensary in Powell, Oregon.
- Completed the consolidation and conversion of its dispensary in Brewer, Maine for adult use.
- Appointment of Corey Sheahan as General Counsel.
Shares of Acreage traded down 4.60% to $1.412 per share at market close Thursday afternoon.