AYR Wellness Q3 Revenue Falls Sequentially
- AYR Wellness Inc. reported its financial results for the third quarter ended September 30, 2024, experiencing macroeconomic pressure and increased competition in select markets.
- Despite lower revenue, the company drove gross margin expansion and operating efficiencies, resulting in improved Adjusted EBITDA.
- Plans for 2025 include expanding presence in Ohio, developing operations in Virginia, and enhancing vertical operations in Florida.
- The Company ended Q3 with $51 million in cash, cash equivalents, and restricted cash, and expects revenue and Adjusted EBITDA to remain flat in the fourth quarter compared to Q3 2024.
MIAMI, Nov. 13, 2024 (GLOBE NEWSWIRE) — AYR Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) (“AYR” or the “Company”), a leading vertically integrated U.S. multi-state cannabis operator, is reporting financial results for the third quarter ended September 30, 2024. Unless otherwise noted, all results are presented in U.S. dollars.
Steven M. Cohen, Interim CEO of AYR, said, “Our third quarter performance reflected ongoing macroeconomic pressure to the consumer wallet and increased competition in select markets, which affected revenue and offset the growth from the launch of adult-use sales in Ohio. However, our team adapted to drive gross margin expansion and operating efficiencies, improving our Adjusted EBITDA despite the lower revenue.
“Notwithstanding the ongoing leadership transition, we remain focused on strengthening execution and are committed to positioning AYR for sustained growth and profitability. Particularly, in 2025, we plan to expand our presence in Ohio, develop an initial footprint in Virginia, and improve our vertical operations in Florida. Although we are disappointed by the result of the Amendment 3 referendum last week in Florida, we continue to maintain strong share in the state’s medical market and see potential for revenue growth as our new indoor cultivation facility comes online next year, which will fill a crucial gap by supplying high-quality indoor flower to our stores. We are well-positioned to navigate the near-term environment as we focus on improving execution in our key markets.”
Third Quarter Financial Summary
Third Quarter and Recent Highlights
Board & Management Changes
Financing and Capital Structure
The Company deployed $6.1 million of capital expenditures in Q3 and remains on target with the Company’s guidance of approximately $20 million for the full year. AYR ended Q3 with aggregate cash, cash equivalents, and a restricted cash balance of $51 million.
As of September 30, 2024, the Company had approximately 116.2 million fully diluted shares outstanding based on a treasury method calculation as of that date (excluding 23 million warrants expiring in February 2026 with an exercise price of $2.12).
Outlook
For the fourth quarter, the Company expects revenue and Adjusted EBITDA to be essentially flat compared to the third quarter of 2024. AYR also continues to expect positive GAAP cash flow from operations for calendar 2024.
Conference Call
AYR management will host a conference call today, followed by a question-and-answer period.
Date: Wednesday, November 13, 2024 Time: 8:30 a.m. ET Toll-free dial-in number: (844) 763-8274 International dial-in number: (647) 484-8814 Webcast: Link
Please dial into the conference call 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Elevate IR at ir@ayrwellness.com.
The conference will be broadcast live and available for replay here.
A telephonic replay of the conference call will also be available for one month until end of day Friday, December 13, 2024.
Toll-free replay number: (855) 669-9658 International replay number: (412) 317-0088 Replay ID: 8552657
Original press release