Q2 2024 Terrascend Corp Earnings Call Transcript
Key Points
- TerrAscend Corp (TSNDF) reported a year-over-year net revenue increase of 7.5% to $77.5 million and a 21.9% increase in adjusted EBITDA to $15.6 million.
- The company achieved its eighth consecutive quarter of positive cash flow from continuing operations, totaling $13.1 million.
- TerrAscend Corp (TSNDF) successfully refinanced its debt with a $140 million senior secured loan, providing financial flexibility and no material debt maturing until late 2027.
- The company holds the number one market share position in New Jersey, with top three positions in flower, vapes, edibles, and concentrates.
- TerrAscend Corp (TSNDF) is actively pursuing expansion opportunities in Ohio, aiming to leverage existing infrastructure in the Midwest for increased profitability.
- Retail revenue declined by 8.7% year-over-year, primarily due to new store openings in New Jersey and reductions in unprofitable revenue in Michigan.
- Gross profit margin decreased to 48.6% from 50.2% year-over-year, driven by channel mix shift and price compression in New Jersey.
- The company expects flat to slightly down performance across the P&L sequentially in Q3 2024.
- Despite positive financial performance, TerrAscend Corp (TSNDF)'s stock price remains significantly lower than five years ago, down 75% from its pre-revenue days in the US.
- Wholesale revenue in New Jersey was below internal expectations, despite a 100% year-over-year increase.
Good afternoon. My name is Chris, and I'll be your conference operator today. At this time, I would like to welcome everyone to TerrAscend's second-quarter 2024 financial results conference call. Joining us for today's call is Jason Wild, Executive Chairman; and Ziad Ghanem, President and Chief Executive Officer; and Keith Stauffer, Chief Financial Officer.
Our remarks today include forward-looking statements, including statements with respect to the company's outlook, including the company's expected financial results for the third quarter of 2024 and estimates and assumptions relating thereto and the company's expectations regarding its new market opportunities such as Ohio, the likelihood and benefits of the company's tax refund claims for past years, the expectations regarding regulatory reform, and the potential benefits thereof.
Each forward-looking statement discussed in today's call is subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Actual results and the timing of certain events may differ
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