AYR Archives - Green Market Report

Adam JacksonAugust 18, 2022


Ayr Wellness Inc. (OTCQX: AYRWF) hiked its outlook for the year on Thursday despite posting results that missed expectations — as sales slip and losses rise. The multi-state operator reported financial results for the first quarter ending June 30, 2022

Ayr reported approximately $110.1 million in revenue during the period, up 20.6% versus the same period last year; and a loss of 1% sequentially — below the Yahoo Finance Average analyst estimate for revenues of $114.81 million.

The company also reported a second-quarter net loss of $40.25 million, up 77% sequentially; versus a net loss of $37.4 million in the same period last year. The earnings were a loss of $0.56 per share versus a loss of $0.11 cents per share in the previous quarter.

“Our second half growth will be slower than previously expected, but the earnings power of the business remains outstanding,” said CEO Jonathan Sandelman. “We continue to make investments in people and processes, while remaining prudent through these turbulent economic times.”

Ayr reported a gross profit of $40.3 million, versus a gross profit of $45.5 million in the first quarter. Adjusted EBITDA was $19.6 million, down 28.5% from $27.4 million in the same period last year.

The company ended the quarter with a cash balance of $116.7 million and closed $81.5 million of real estate financing transactions, bringing the year-to-date total to $108 million with an annualized blended cost of capital of 7.8%.

East of the Mississippi

In May, the New Jersey Cannabis Regulatory Commission approved Ayr for adult-use cannabis sales for all three of its retail locations there — the maximum amount of dispensaries permitted under current state law.

The company since then has seen new revenue stream from both New Jersey and Boston; after Ayr received the green light to sell adult-use cannabis in Boston’s Back Bay, the company’s first adult-use dispensary in the neighborhood.

To the South, Ayr added two more Florida dispensaries to their 50 stores across the state.

Based on the second quarter results, “coupled with an uncertain macroeconomic backdrop,” Ayr also updated their guidance for the rest of the year; expecting revenue, adjusted EBITDA and operating income to grow around 10% sequentially by the third quarter, followed by “an acceleration in the pace of sequential growth in Q4 2022.”

“With our core operating footprint in place, the vast majority of our capex behind us, and a strong, $117 million cash position on our balance sheet,” Sandelman said, “we believe that we are well-placed to weather this economic environment and emerge stronger on the other side.”

Debra BorchardtMay 28, 2019


Cannabis Strategies Acquisition Corp. which will now be known as AYR Strategies Inc. began trading today on the NEO Exchange in Canada under the symbols NEO: AYR.AAYR.RT and AYR.WT. AYR is the first recreational cannabis-focused company with an enterprise value over a billion dollars to list on NEO.

As part of its qualifying transaction to be listed on the NEO Exchange, CSA acquired five distinct cannabis businesses operating in Nevada and Massachusetts consisting of three cannabis cultivation and production facilities and eight dispensaries.

“With today’s five acquisitions, AYR begins its next phase as a vertically integrated Multi-State Operator (M.S.O) and a leader in the U.S. cannabis market,” stated Jonathan Sandelman, CEO, AYR. “AYR will aggressively seek additional growth both organically and through accretive external opportunities.” The company has tapped Wall Street for its C-suite. Sandelman is a former President at Bank of America and Jennifer Drake, the company’s COO is a former Managing Director of Goldman Sachs.

CSA completed its initial public offering as a Special Purpose Acquisition Corporation (SPAC) in December 2017 and said it was the first SPAC to list on NEO. The NEO Exchange is home to over 70 corporate and ETF listings, and consistently facilitates over 10% of all Canadian trading volume.

“We are very happy today to see the full circle completed by CSA, the first special purpose acquisition corporation focused on the cannabis sector and the first special purpose corporation to list on NEO,” said Jos Schmitt, President and CEO, NEO.“Congratulations to AYR on its debut following CSA’s qualifying transaction as a billion-dollar company. As a stock exchange for senior listed companies, we are excited and motivated to be capital-raising partners on the front lines of an exciting industry. We look forward to watching the growth of AYR within the North American cannabis market.”

Investors can trade securities of AYR through their usual investment channels, including discount brokerage platforms and full-service dealers.

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