Following the market close on Wednesday, Ayr Wellness Inc. (OTCQX: AYRWF) delivered financial results for the quarter and full-year ending December 31, 2020. Revenue rose 48% in the fourth quarter to $47.8 million versus last year’s $32.3 million and an increase of 5% sequentially. Ayr Wellness also trimmed the operating loss to $2.2 million from last year’s operating loss of $16.9 million. The stock was trading slightly higher to lately sell at $33.10.
For the full year, the company delivered revenue of $155.1 million, which rose 25% over 2019’s annualized revenue of $124 million. The operating income for the year was $16 million versus 2019’s operating loss of $37.5 million.
“2020 was a year of transformation for Ayr,” said Jon Sandelman, CEO of Ayr Wellness. “We are excited to report a strong finish to the year with fourth-quarter revenues up 48% year-over-year and adjusted EBITDA up over 100% and we continue to maintain margins at the high end of the industry. And while we continued to deliver strong operating results throughout the year at our market-leading operations in Massachusetts and Nevada, the Ayr story of 2020 was about building a foundation for a new Ayr Wellness, a bigger and better MSO. We spent the end of 2020 aggressively expanding our footprint and investing in our business to be positioned for exceptional growth in 2021 and 2022. We began 2020 as a 2-state MSO and we begin 2021 as a seven-state, top-5 MSO and we aren’t done yet.”
The company released the following highlights in its statement:
- Average daily retail revenues were over $290,000 in the fourth quarter; daily transaction volumes of 4,685, with an average ticket of $62 per transaction
- Sales increased 21% year-over-year, driven by a 15% increase in transaction volumes and 6% increase in average ticket
- Recently opened sixth dispensary in Nevada, in Clark County
- Increased market share despite increased competition in the locals’ market and difficult economic environment due to COVID-19
- Average daily retail revenues (medical only) increased to over $64,000 in the fourth quarter; daily transaction volumes of ~410, with an average ticket of $157 per transaction
- Retail sales increased 136% year-over-year, driven by a ~90% increase in transactions and ~45% increase in average ticket
- Selling to 78 of the state’s 110 adult-use dispensaries, and Ayr remains one of the market share leaders in flower, vapes and concentrates according to BDS Analytics
- Wholesale revenues ramped to over $13.4 million in the quarter, growth of 109% y/y reflecting the increase in capacity brought on in May 2020
- Ayr closed its two acquisitions in Pennsylvania during the fourth quarter
- The completed first phase of cultivation construction; 15,000ft2 of canopy due for the first harvest this spring
- 21,000 ft2 of additional space approved for cultivation in February and first harvest expected in early summer
- Two dispensaries recently opened under the Ayr Wellness banner, in New Castle and Plymouth Meeting