Ayr Wellness Inc. (OTCQX: AYRWF) reported that revenues rose 133% in the fourth quarter to $111.8 million over last year’s $47.8 million. It was a 16% increase over the third quarter’s revenues of $96.2 million. The company also posted net income of $23 million for the quarter and earnings per share of $0.35. It was also an improvement over the third quarter’s net loss of $3.3 million.
Revenue for the fiscal year of 2021 was $357.6 million versus the previous year’s revenue of $155.1 million. The net loss for the year was trimmed to $17 million versus 2020’s $24.6 million. The company said it expects the first half of the year to be flat, but then gain in momentum for the rest of the year.
Jonathan Sandelman, Founder, Chairman and CEO of Ayr, said, “2021 was a transformative year for Ayr, with outsized revenue and Adjusted EBITDA growth, and an expanded operating footprint bringing us from our two original states to seven leading cannabis markets, with an eighth pending acquisition close. We added 62 dispensaries and 8 cultivation facilities, while welcoming more than 1,600 teammates. Following this transformative year for our operating footprint, we are now squarely focused on making 2022 a transformative year for Ayr’s earnings power. The CapEx projects we began in 2021 are expected to begin generating revenue for us throughout 2022, leading to our expected significant second half ramp. While these projects have been delayed, we are proud of the extensive expansion our team has achieved through this global pandemic and supply chain crisis.”
Ayr Wellness noted that given prior construction delays and uncertain regulatory timelines regarding key revenue-generating initiatives, including regulatory approval for adult-use sales and cultivation expansions in both Massachusetts and New Jersey, the company expects financial results in the first half of 2022 to remain relatively flat, in-line with industry trends, followed by a step-function in growth beginning in Q3 2022 and continuing through Q4 2022.
If all goes well and the company gets approvals in the third quarter, it could have an annualized run-rate of $250 million of Adjusted EBITDA, $100 million of operating income and $800 million of revenue for the fourth quarter of 2022.
The company said it is expecting approximately $250 million of Adjusted EBITDA, $800M of Revenue and $100M of US GAAP Operating Income on an annualized basis, based on the run rate expected to be delivered in the fourth quarter of 2022.