Acreage Holdings, Inc. (OTCQX: ACRHF, ACRDF) reported financial results for the fourth quarter and full-year ended December 31, 2020, after the market close on Tuesday. The fourth-quarter revenue for Acreage increased 50% to $31.5 million, while the net loss was $36.9 million. The stock was lately down over 3% to $6.71.
The full-year revenue increased 55% to $114.5 million, while the net loss for the year was a whopping $286 million. The operating expenses for the year fell from $56 million in 2019 to $50 million in 2020. However, the impairment losses were $188 million in 2020. In addition to that, the company spent roughly $91 million in 2020 on equity-based compensation plans according to the company’s presentation. Acreage also laid off 11 employees last week.
“I am pleased Acreage continued to improve its financial and operational fundamentals during the fourth quarter and throughout the entire year of 2020,” said Peter Caldini, Chief Executive Officer of Acreage. “It is clear our refocused efforts on delivering profitability and generating long-term shareholder value are beginning to pay off. I am excited to continue this journey with an energized team that I am confident will reestablish Acreage as a leading, and profitable, MSO in the U.S. cannabis industry.”
The company said it began adult-use sales at its medical dispensary in Worcester MA and opened a new adult-use store in Shrewsbury MA. The company also began ault-use sales in South Portland ME and began consolidating those results. Acreage also said it completed the initial 10,000 sq. ft. expansion of a cultivation facility in PA.
The Acreage-owned same-store sales grew 27%, marking the eighth consecutive quarter of double-digit same-store sales improvements. Same-store sales growth for managed entities rose by 71% during the fourth quarter.
Geographically, in the fourth-quarter Acreage sales increased 18% in the New England market, 91% in the Mid-Atlantic, 124% in the Midwest, but fell 18% in the West.
Last month Acreage announced its subsidiary, High Street Capital Partners was selling Acreage Florida, Inc. to Red White and Bloom Brands, Inc. (OTCQX: RWBYF) for $60 million.