TerrAscend Corp.(OTCQX: TRSSF) announced preliminary financial results for its fourth quarter and full-year ending December 31, 2020. The fourth-quarter net sales grew 28% sequentially to $65 million and 152% year-over-year. TerrAscend said it will host a scheduled conference call to discuss its 2020 results and provide updated 2021 guidance on March 23rd, 2021.
“Our fourth-quarter results demonstrate robust sequential revenue growth and continued expansion of EBITDA margins, which reflect the strong fundamentals of our business,” said Jason Ackerman, CEO and Executive Chairman of TerrAscend. “During the quarter, we realized sales from key expansion projects in Pennsylvania, New Jersey, and California, that together with our pending entrance into the Maryland market, position the company for continued growth in 2021.”
The company is estimating that full-year net sales will be $198 million and adjusted EBITDA will be $60 million. This is more than what the company had guided in November when TerrAscend said it was increasing its full-year 2020 guidance to at least $196 million in net sales and at least $54 million of adjusted EBITDA. At that time, the company said its outlook was driven by its emphasis on organic growth through expansion in high-quality, limited license markets while continuing to maintain tight control on costs. TerrAscend’s sales and profits in Pennsylvania are expected to continue to scale following its recently completed 25% cultivation expansion. In New Jersey, sales from the company’s greenhouse and indoor cultivation facilities began in November and are expected to ramp throughout 2021.
TerrAscend reiterated its 2021 guidance for net sales of $360-380 million and adjusted EBITDA of $140-160 million.
In November Ackerman said, “We continued to build out our footprint in the northeast, including completion of an additional 25% cultivation expansion at our Pennsylvania facility in Q3, which began selling into the market in November. In New Jersey, where I believe we will be a major player, sales from our newly operational cultivation facility and our first retail location in Phillipsburg are expected to begin in the coming days. I look forward to realizing the full benefit of our substantially larger cultivation and manufacturing capacities across our system, including our recently announced Maryland acquisition, to further accelerate our revenue and adjusted EBITDA growth in Q4 and beyond.”