Many positives to take away from the third-quarter results
Acreage Holdings, Inc. (CSE: ACRG.A.U) today reported financial results for the third quarter of 2020.
THIRD QUARTER FINANCIAL HIGHLIGHTS (UNAUDITED)
- Reported revenue was $31.7 million, a 42% increase compared to the same period in 2019, and a 17% increase compared to the second quarter of 2020.
- Partner revenue was $17.0 million, a 79% increase compared to the same period in 2019, and a 2% increase compared to the second quarter of 2020.
- Company-owned same store sales growth was 36%, marking the seventh consecutive quarter of double-digit same store sales comparisons.
- Same store sales growth for our managed entities was 22%.
- Gross margin was 42.5%, an 80 basis point decrease compared to the same period in 2019, and a 110 basis point increase compared to the second quarter of 2020. The year over year gross margin decline was in large part due to a one-time significant wholesale opportunity in Massachusetts, which did not repeat this year.
- Net loss attributable to Acreage was $35.7 million, while adjusted net loss* attributable to Acreage was $14.3 million.
- Adjusted EBITDA* was a loss of $6.9 million compared to a loss of $11.7 million in the same period in 2019.
- Managed Entities' EBITDA* was $4.7 million compared to a loss of $0.6 million in the same period in 2019.
I am pleased with another solid quarter of improving fundamentalsBill Van Faasen, Interim Chief Executive Officer of Acreage
Mr Van Faasen went on to say "Our refocused strategy continues to work. Operational excellence led to improved financials and a stronger balance sheet. Our core profitability is insight in the first half of 2021. Much work remains, but we are absolutely on the right path both short and long-term, with a team that's as energized and results-focused as it's ever been."
* Due to the Company's transition from IFRS to U.S. GAAP, certain expenses related to leased assets formerly classified as depreciation and interest expense are now included in EBITDA as a general and administrative expense. The Company's lease expenses associated with non-finance leases were $2,499 and $1,935 in Q3'20 and Q3'19, respectively. The Company's lease expenses associated with non-finance leases were $7,620 and $4,317 for FY'20 and FY'19, respectively.
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Disclaimer: Past performance is not an indicator of future performance.
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