Exhibit 99.2
Ayr
Wellness Reports Second Quarter 2022 Results
MIAMI, August
18, 2022 – Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) (“Ayr” or the “Company”), a leading vertically
integrated U.S. multi-state cannabis operator (“MSO”), is reporting financial results for the three months ended June 30,
2022. Unless otherwise noted, all results are presented in U.S. dollars.
Jonathan Sandelman,
Founder and CEO of Ayr, said, “Over the past few months, we have achieved many of the key transformational milestones to operationalize
Ayr’s core footprint, and we are now moving to optimize this footprint for substantial growth. We’re doing this in the face
of macro headwinds from the broader economy, but it’s never been clearer that cannabis is a consumer staple that is here to stay.”
“Q2 2022
results were in line with our expectations, and we now look ahead to the second half of 2022. Our second half growth will be slower than
previously expected, but the earnings power of the business remains outstanding. We continue to make investments in people and processes,
while remaining prudent through these turbulent economic times. With our core operating footprint in place, the vast majority of our
capex behind us, and a strong, $117 million cash position on our balance sheet, we believe that we are well-placed to weather this economic
environment and emerge stronger on the other side.”
Second Quarter
Financial Highlights ($ in millions, excl. margin items)
| | |
Q2 2021 | | |
Q1 2022 | | |
Q2 2022 | | |
% Change Q2/Q2 | | |
% Change Q2/Q1 | |
| Revenue | |
$ | 91.3 | | |
$ | 111.2 | | |
$ | 110.1 | | |
| 20.6 | % | |
| -1.0 | % |
| Gross Profit | |
$ | 22.3 | | |
$ | 45.5 | | |
$ | 40.3 | | |
| 80.6 | % | |
| -11.5 | % |
| Adjusted Gross Profit1 | |
$ | 53.1 | | |
$ | 57.9 | | |
$ | 57.2 | | |
| 7.7 | % | |
| -1.2 | % |
| Operating Loss | |
$ | (24.9 | ) | |
$ | (21.1 | ) | |
$ | (24.8 | ) | |
| NA | | |
| NA | |
| Adjusted EBITDA1 | |
$ | 27.4 | | |
$ | 19.5 | | |
$ | 19.6 | | |
| -28.5 | % | |
| 0.5 | % |
| Adjusted EBITDA Margin1 | |
| 30.0 | % | |
| 17.5 | % | |
| 17.8 | % | |
| -1,220 | bps | |
| 30 | bps |
1Adjusted
EBITDA, Adjusted Gross Profit and Adjusted EBITDA Margin are non-GAAP measures, and accordingly are not standardized measures and may
not be comparable to similar measures used by other companies. See Definition and Reconciliation of Non-GAAP Measures below. For a reconciliation
of Operating Loss to Adjusted EBITDA as well as Gross Profit to Adjusted Gross Profit, see the reconciliation table appended to this
release.
Second Quarter
and Recent Highlights
| o | Began
serving adult-use customers at three New Jersey dispensaries in Woodbridge, Union and Eatontown. |
| o | Completed
the first harvest from second New Jersey cultivation facility in August. |
| o | Opened
first adult-use dispensaries, one in Boston’s Back Bay and one in Watertown, in July. |
| o | Received
state regulatory approval to convert Somerville, Massachusetts dispensary to adult use, pending
local approvals. |
| o | Received
state regulatory approval to begin phased production at new cultivation expansion in Massachusetts. |
| o | Launched
the award-winning flower brand, LIT, for wholesale as well as retail purchase in four Ayr
Greater Boston locations. |
| o | Announced
the opening of ninth affiliated medical dispensary in Pennsylvania, AYR Indiana, in July. |
| o | Completed
the first sale from new 80,000 square foot cultivation facility in Phoenix, Arizona. |
| o | Launched
Levia water-soluble tinctures in Arizona and Nevada, representing the first expansion of
Levia outside of Massachusetts, in August. |
| o | Ayr’s
Kynd flower continues to be the #1 selling flower brand in Nevada. |
| o | Opened
three new dispensaries during the second quarter and an additional two stores in July and
August, bringing Ayr’s total footprint to 50 dispensaries across the state.i |
| o | Biomass
yields up 125% during the first half of 2022 when compared to the same period of 2021. |
| o | 37
unique strains being grown at Gainesville cultivation campus, with each store averaging ~16
strains available. |
M&A Highlights
| · | Closed
acquisition of Herbal Remedies Dispensaries, LLC, an operator of two licensed retail dispensaries
in Quincy, Illinois on May 25, 2022. |
Financing and
Capital Structure
| · | Ended
the quarter with a cash balance of $116.7 million. |
| · | Closed
$81.5 million of real estate financing transactions during the quarter, bringing the YTD total to $108 million with an annualized blended
cost of capital of 7.8%. |
| · | Approximately
68.9 million fully diluted shares outstanding based on a treasury method calculation, as of June 30, 2022.ii |
| · | Deployed
$17.9 million of capital expenditures in Q2. |
Outlook
Based on the results
to date coupled with an uncertain macroeconomic backdrop, Ayr is updating its previously issued guidance regarding 2022 financial results.
The Company expects
Revenue, Adjusted EBITDA and Operating Income to grow approximately 10% sequentially from Q2 2022 to Q3 2022, and an acceleration in
the pace of sequential growth in Q4 2022.
The Company’s
expectations for future results are based on the assumptions and risks detailed in its MD&A for the period ended June 30, 2022 as
filed on SEDAR.
i Pending the completed re-location
of Ayr’s Dania Beach store.
ii Includes pending M&A and excludes
Ayr granted but unvested service-based LTIP shares totaling 6.4 million.
Conference Call
Ayr CEO Jonathan
Sandelman, Co-COO Jennifer Drake, and CFO Brad Asher will host a conference call tomorrow, followed by a question-and-answer period.
Conference Call
Date: Thursday, August 18, 2022
Time: 8:30 a.m.
Eastern time
Toll-free dial-in
number: (800) 319-4610
International dial-in
number: (604) 638-5340
Conference ID:
10019872
Please call the
conference telephone number 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 the Company’s investor relations team at AYR@elevate-ir.com.
The conference
call will be broadcast live and available for replay here.
A telephonic replay
of the conference call will also be available for one month beginning at 11:30 a.m. ET on Thursday, August 18, 2022.
Toll-free replay
number: (855) 669-9658
International replay
number: (412) 317-0088
Replay ID: 9258
Financial Statements
Certain financial
information reported in this news release is extracted from Ayr’s Unaudited Interim Condensed Consolidated Financial Statements
and MD&A for the three and six months ended June 30, 2022 and 2021. Ayr files its financial statements and MD&A on SEDAR and
with the SEC. All financial information contained in this news release is qualified in its entirety by reference to such financial statements
and MD&A.
Definition and
Reconciliation of Non-GAAP Measures
The Company reports
certain non-GAAP measures that are used to evaluate the performance of its businesses and the performance of their respective segments,
as well as to manage their capital structures. As non-GAAP measures generally do not have a standardized meaning, they may not be comparable
to similar measures presented by other issuers. Securities regulators require such measures to be clearly defined and reconciled with
their most comparable GAAP measures.
Rather, these are
provided as additional information to complement those GAAP measures by providing further understanding of the results of the operations
of the Company from management’s perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute
for analysis of the Company’s financial information reported under GAAP. Non-GAAP measures used to analyze the performance of the
Company’s businesses include “Adjusted EBITDA” and “Adjusted Gross Profit.”
The Company believes
that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performances and may
be useful to investors because they allow for greater transparency with respect to key metrics used by management in its financial and
operational decision-making. These financial measures are intended to provide investors with supplemental measures of the Company’s
operating performances and thus highlight trends in the Company’s core businesses that may not otherwise be apparent when solely
relying on the GAAP measures.
Adjusted EBITDA
“Adjusted
EBITDA” represents loss from operations, as reported under GAAP, before interest and tax, adjusted to exclude non-core costs, other
non-cash items, including depreciation and amortization, and further adjusted to remove non-cash stock-based compensation, the accounting
for the incremental costs to acquire cannabis inventory in a business combination, acquisition related costs, start-up costs and the
gain on sale of assets.
Adjusted Gross
Profit
“Adjusted
Gross Profit” represents gross profit, as reported, adjusted to exclude the accounting for the incremental costs to acquire cannabis
inventory in a business combination, interest, depreciation and amortization, and start-up costs.
A reconciliation
of how Ayr calculates Adjusted EBITDA and Adjusted Gross Profit is provided in the tables appended below. Additional reconciliations
of Adjusted EBITDA, Adjusted Gross Profit and other disclosures concerning non-GAAP measures are provided in our MD&A for the three
and six months ended June 30, 2022 and 2021.
Forward-Looking
Statements
Certain information
contained in this news release may be forward-looking statements within the meaning of applicable securities laws. Forward-looking statements
are often, but not always, identified by the use of words such as “target”, “expect”, “anticipate”,
“believe”, “foresee”, “could”, “would”, “estimate”, “goal”, “outlook”,
“intend”, “plan”, “seek”, “will”, “may”, “tracking”, “pacing”
and “should” and similar expressions or words suggesting future outcomes. This news release includes forward-looking information
and statements pertaining to, among other things, Ayr’s future growth plans. Numerous risks and uncertainties could cause the actual
events and results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements,
including, but not limited to: anticipated strategic, operational and competitive benefits may not be realized; events or series of events,
including in connection with COVID-19, may cause business interruptions; required regulatory approvals may not be obtained in a timely
manner or at all; inflationary pressures may increase input costs; supply chain issues may hamper production and distribution; and Ayr
may not be able to raise additional debt or equity capital if required. Among other things, Ayr has assumed that its businesses will
operate as anticipated and that all required regulatory approvals will be obtained on satisfactory terms and within expected time frames.
Forward-looking
estimates and assumptions involve known and unknown risks and uncertainties that may cause actual results to differ materially. While
Ayr believes there is a reasonable basis for these assumptions, such estimates may not be met. These estimates represent forward-looking
information. Actual results may vary and differ materially from the estimates.
Assumptions
and Risks
Forward-looking
information in this release is subject to the assumptions and risks as described in our MD&A for the three and six months ended June
30, 2022.
Additional Information
For more information
about the Company’s Q2 2022 operations and outlook, please view Ayr’s corporate presentation posted in the Investors section
of the Company’s website at www.ayrwellness.com.
About Ayr Wellness
Inc.
Ayr
is an expanding vertically integrated, U.S. multi-state cannabis operator. Based on the belief that everything starts with the quality
of the plant, the Company’s mission is to cultivate the finest quality cannabis at scale and deliver remarkable experiences to
its customers every day.
Ayr’s leadership
team brings proven expertise in growing successful businesses through disciplined operational and financial management, and is committed
to driving positive impact for customers, employees and the communities they serve. For more information, please visit www.ayrwellness.com.
Company/Media
Contact:
Robert Vanisko
VP, Corporate Communications
Email: robert.vanisko@ayrwellness.com
Investor Relations
Contact:
Sean Mansouri, CFA
Elevate IR
T: (720) 330-2829
Email: IR@ayrwellness.com
Ayr Wellness
Inc.
Unaudited Interim
Consolidated Balance Sheets
(Expressed in
United States Dollars, in Thousands, Except Share Amounts)
| | |
June 30, 2022 | | |
December 31, 2021 | |
| ASSETS | |
| | | |
| | |
| Current | |
| | | |
| | |
| Cash | |
$ | 116,743 | | |
$ | 154,342 | |
| Accounts receivable, net | |
| 6,974 | | |
| 7,413 | |
| Inventory | |
| 106,471 | | |
| 93,363 | |
| Prepaid expenses, deposits, & other current assets | |
| 8,744 | | |
| 10,949 | |
| Total Current Assets | |
| 238,932 | | |
| 266,067 | |
| Non-current | |
| | | |
| | |
| Property, plant, & equipment, net | |
| 301,861 | | |
| 275,222 | |
| Intangible assets, net | |
| 971,948 | | |
| 978,915 | |
| Right-of-use assets - operating | |
| 133,756 | | |
| 88,721 | |
| Right-of-use assets - finance, net | |
| 39,296 | | |
| 17,527 | |
| Goodwill | |
| 241,972 | | |
| 229,910 | |
| Deposits & other assets | |
| 7,947 | | |
| 3,550 | |
| TOTAL ASSETS | |
$ | 1,935,712 | | |
$ | 1,859,912 | |
| | |
| | | |
| | |
| LIABILITIES & SHAREHOLDERS' EQUITY | |
| | | |
| | |
| Liabilities | |
| | | |
| | |
| Current | |
| | | |
| | |
| Trade payables | |
$ | 24,520 | | |
$ | 26,983 | |
| Accrued liabilities | |
| 21,451 | | |
| 32,724 | |
| Lease liabilities - operating - current portion | |
| 7,275 | | |
| 4,195 | |
| Lease liabilities - finance - current portion | |
| 7,968 | | |
| 3,185 | |
| Contingent consideration - current portion | |
| 4,779 | | |
| 39,868 | |
| Purchase consideration payable | |
| 2,183 | | |
| 812 | |
| Income tax payable | |
| 20,758 | | |
| 28,915 | |
| Debts payable - current portion | |
| 17,063 | | |
| 8,112 | |
| Accrued interest payable - current portion | |
| 2,970 | | |
| 7,542 | |
| Total Current Liabilities | |
| 108,967 | | |
| 152,336 | |
| | |
| | | |
| | |
| Non-current | |
| | | |
| | |
| Deferred tax liabilities | |
| 69,385 | | |
| 70,081 | |
| Lease liabilities - operating - non-current portion | |
| 131,051 | | |
| 87,767 | |
| Lease liabilities - finance - non-current portion | |
| 23,365 | | |
| 9,406 | |
| Construction finance liabilities - non-current portion | |
| 27,779 | | |
| - | |
| Contingent consideration - non-current portion | |
| 116,628 | | |
| 145,654 | |
| Debts payable - non-current portion | |
| 193,448 | | |
| 125,746 | |
| Senior secured notes, net of debt issuance costs - non-current portion | |
| 245,045 | | |
| 245,408 | |
| Accrued interest payable - non-current portion | |
| 4,149 | | |
| 3,451 | |
| TOTAL LIABILITIES | |
| 919,817 | | |
| 839,849 | |
| | |
| | | |
| | |
| Shareholders' equity | |
| | | |
| | |
| | |
| | | |
| | |
| Multiple Voting Shares: no par value, unlimited authorized. Issued & outstanding - 3,696,486 shares | |
| - | | |
| - | |
| Subordinate, Restricted, & Limited Voting Shares: no par value, unlimited authorized. Issued & outstanding - 58,647,169 & 56,337,175 shares, respectively | |
| - | | |
| - | |
| Exchangeable Shares: no par value, unlimited authorized. Issued & outstanding - 7,141,614 & 7,368,285 shares, respectively | |
| - | | |
| - | |
| Additional paid-in capital | |
| 1,324,241 | | |
| 1,289,827 | |
| Treasury stock - 645,300 & 568,300 shares, respectively | |
| (8,987 | ) | |
| (7,828 | ) |
| Accumulated other comprehensive income | |
| 3,266 | | |
| 3,266 | |
| Accumulated Deficit | |
| (311,136 | ) | |
| (265,202 | ) |
| Equity of Ayr Wellness Inc. | |
| 1,007,384 | | |
| 1,020,063 | |
| | |
| | | |
| | |
| Noncontrolling interest | |
| 8,511 | | |
| - | |
| TOTAL SHAREHOLDERS’ EQUITY | |
| 1,015,895 | | |
| 1,020,063 | |
| TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | |
$ | 1,935,712 | | |
$ | 1,859,912 | |
Ayr Wellness
Inc.
Unaudited Interim
Consolidated Statements of Operations
(Expressed in
United States Dollars, in Thousands, Except Share Amounts)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
June 30, 2022 | | |
June 30, 2021 | | |
June 30, 2022 | | |
June 30, 2021 | |
| Revenues, net of discounts | |
$ | 110,131 | | |
$ | 91,251 | | |
$ | 221,356 | | |
$ | 149,650 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cost of goods sold excluding fair value items | |
| 66,624 | | |
| 42,342 | | |
| 129,812 | | |
| 70,483 | |
| Incremental costs to acquire cannabis inventory in a business combination | |
| 3,212 | | |
| 26,596 | | |
| 5,731 | | |
| 32,388 | |
| Cost of goods sold | |
| 69,836 | | |
| 68,938 | | |
| 135,543 | | |
| 102,871 | |
| | |
| | | |
| | | |
| | | |
| | |
| Gross profit | |
| 40,295 | | |
| 22,313 | | |
| 85,813 | | |
| 46,779 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | |
| Selling, general, and administrative | |
| 50,375 | | |
| 34,844 | | |
| 101,925 | | |
| 59,624 | |
| Depreciation and amortization | |
| 13,995 | | |
| 11,065 | | |
| 27,638 | | |
| 15,982 | |
| Acquisition expense | |
| 2,722 | | |
| 1,285 | | |
| 4,173 | | |
| 4,422 | |
| Gain on sale of assets | |
| (2,000 | ) | |
| - | | |
| (2,000 | ) | |
| - | |
| Total operating expenses | |
| 65,092 | | |
| 47,194 | | |
| 131,736 | | |
| 80,028 | |
| | |
| | | |
| | | |
| | | |
| | |
| Loss from operations | |
| (24,797 | ) | |
| (24,881 | ) | |
| (45,923 | ) | |
| (33,249 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Other income (expense) | |
| | | |
| | | |
| | | |
| | |
| Share of loss on equity investments | |
| - | | |
| (6 | ) | |
| - | | |
| (19 | ) |
| Fair value gain (loss) on financial liabilities | |
| 1,701 | | |
| 12,091 | | |
| 31,780 | | |
| 11,545 | |
| Interest expense, net | |
| (7,474 | ) | |
| (3,818 | ) | |
| (14,342 | ) | |
| (6,571 | ) |
| Interest income | |
| 11 | | |
| 65 | | |
| 40 | | |
| 124 | |
| Other, net | |
| - | | |
| 457 | | |
| - | | |
| 437 | |
| Total other income (expense) | |
| (5,762 | ) | |
| 8,789 | | |
| 17,478 | | |
| 5,516 | |
| | |
| | | |
| | | |
| | | |
| | |
| Income (Loss) before taxes & noncontrolling interests | |
| (30,559 | ) | |
| (16,092 | ) | |
| (28,445 | ) | |
| (27,733 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Income Taxes | |
| | | |
| | | |
| | | |
| | |
| Current tax provision | |
| (10,779 | ) | |
| (8,767 | ) | |
| (21,693 | ) | |
| (15,819 | ) |
| Deferred tax benefit | |
| 1,089 | | |
| 4,121 | | |
| 696 | | |
| 6,192 | |
| Total income taxes | |
| (9,690 | ) | |
| (4,646 | ) | |
| (20,997 | ) | |
| (9,627 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net loss before noncontrolling interest | |
| (40,249 | ) | |
| (20,738 | ) | |
| (49,442 | ) | |
| (37,360 | ) |
| Net loss attributable to noncontrolling interest | |
| (1,892 | ) | |
| - | | |
| (3,508 | ) | |
| - | |
| Net loss attributable to Ayr Wellness Inc. | |
$ | (38,357 | ) | |
$ | (20,738 | ) | |
$ | (45,934 | ) | |
$ | (37,360 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Basic and diluted loss per share | |
$ | (0.56 | ) | |
$ | (0.36 | ) | |
$ | (0.67 | ) | |
$ | (0.73 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Weighted average number of shares outstanding (basic and diluted) | |
| 68,625 | | |
| 58,115 | | |
| 68,108 | | |
| 51,091 | |
Ayr Wellness
Inc.
Unaudited Interim
Consolidated Statements of Cash Flows
(Expressed in
United States Dollars, in Thousands)
| | |
Six Months Ended | |
| | |
June 30, 2022 | | |
June 30, 2021 | |
| Operating activities | |
| | | |
| | |
| Net loss before noncontrolling interest | |
| (49,442 | ) | |
| (37,360 | ) |
| Adjustments for: | |
| | | |
| | |
| Fair value (gain) loss on financial liabilities | |
| (31,780 | ) | |
| (11,545 | ) |
| Stock-based compensation | |
| 19,381 | | |
| 15,376 | |
| Stock-based compensation - related parties | |
| 707 | | |
| - | |
| Depreciation and amortization | |
| 8,243 | | |
| 2,887 | |
| Amortization on intangible assets | |
| 35,567 | | |
| 19,177 | |
| Share of loss on equity investments | |
| - | | |
| 19 | |
| Gain on disposal of equity investments | |
| - | | |
| (500 | ) |
| Gain on disposal of property, plant, and equipment | |
| (2,000 | ) | |
| - | |
| Incremental costs to acquire cannabis inventory in a business combination | |
| 5,731 | | |
| 32,388 | |
| Deferred tax (benefit) | |
| (696 | ) | |
| (6,192 | ) |
| Amortization on financing costs | |
| 1,146 | | |
| 817 | |
| Amortization on financing premium | |
| (1,509 | ) | |
| - | |
| Changes in operating assets and liabilities, net of business combinations: | |
| | | |
| | |
| Accounts receivable | |
| 986 | | |
| (3,048 | ) |
| Inventory | |
| (8,577 | ) | |
| (21,618 | ) |
| Prepaid expenses, deposits, and other current assets | |
| 1,513 | | |
| (508 | ) |
| Trade payables | |
| 1,886 | | |
| 3,260 | |
| Accrued liabilities | |
| (5,486 | ) | |
| (1,880 | ) |
| Interest accrued | |
| (3,714 | ) | |
| 560 | |
| Lease liabilities - operating | |
| 1,329 | | |
| 713 | |
| Income tax payable | |
| (8,157 | ) | |
| (14,961 | ) |
| Cash used in operating activities | |
| (34,872 | ) | |
| (22,415 | ) |
| | |
| | | |
| | |
| Investing activities | |
| | | |
| | |
| Purchase of property, plant, and equipment | |
| (50,972 | ) | |
| (27,748 | ) |
| Loss on disposal of property, plant, and equipment | |
| - | | |
| (57 | ) |
| Capitalized interest | |
| (7,366 | ) | |
| - | |
| Proceeds from the sale of assets, net of transaction costs | |
| 27,591 | | |
| (3,851 | ) |
| Cash paid for business combinations and asset acquisitions, net of cash acquired | |
| (11,465 | ) | |
| (17,777 | ) |
| Cash paid for business combinations and asset acquisitions, working capital | |
| (2,812 | ) | |
| (3,275 | ) |
| Payments for interests in equity accounted investments | |
| - | | |
| (46 | ) |
| Cash received in disposal of equity investment | |
| - | | |
| 500 | |
| Advances to related corporation | |
| - | | |
| (42 | ) |
| Purchase of intangible asset | |
| (1,000 | ) | |
| - | |
| Cash received (paid) for bridge financing | |
| 1,258 | | |
| (15,810 | ) |
| Deposits for business combinations, net of cash on hand | |
| (2,825 | ) | |
| (1,700 | ) |
| Cash used in investing activities | |
| (47,591 | ) | |
| (69,806 | ) |
| | |
| | | |
| | |
| Financing activities | |
| | | |
| | |
| Proceeds from exercise of Warrants | |
| - | | |
| 5,346 | |
| Proceeds from exercise of options | |
| 300 | | |
| 86 | |
| Proceeds from financing transaction, net of financing costs | |
| 27,599 | | |
| - | |
| Proceeds from issuance of notes payable, net of financing costs | |
| 51,713 | | |
| 118,052 | |
| Payments of financing costs | |
| - | | |
| (136 | ) |
| Payment for settlement of contingent consideration | |
| (10,000 | ) | |
| - | |
| Deposits received (paid) for financing lease and note payable | |
| (924 | ) | |
| - | |
| Tax withholding on stock-based compensation awards | |
| (3,996 | ) | |
| (28,421 | ) |
| Repayments of debts payable | |
| (6,563 | ) | |
| (4,300 | ) |
| Repayments of lease liabilities - finance (principal portion) | |
| (4,835 | ) | |
| (1,807 | ) |
| Repurchase of Equity Shares | |
| (8,430 | ) | |
| - | |
| Cash provided by financing activities | |
| 44,864 | | |
| 88,820 | |
| | |
| | | |
| | |
| Net (decrease) increase in cash | |
| (37,599 | ) | |
| (3,401 | ) |
| Cash, beginning of the period | |
| 154,342 | | |
| 127,237 | |
| Cash, end of the period | |
| 116,743 | | |
| 123,836 | |
| | |
| | | |
| | |
| Supplemental disclosure of cash flow information: | |
| | | |
| | |
| Interest paid during the period | |
| 26,049 | | |
| 9,501 | |
| Income taxes paid during the period | |
| 30,680 | | |
| 29,780 | |
| Non-cash investing and financing activities: | |
| | | |
| | |
| Recognition of right-of-use assets for operating leases | |
| 23,002 | | |
| 52,047 | |
| Recognition of right-of-use assets for finance leases | |
| 23,342 | | |
| 4,356 | |
| Issuance of Promissory Note related to business combinations | |
| 16,000 | | |
| - | |
| Issuance of Equity Shares related to business combinations and asset acquisitions | |
| 6,352 | | |
| 526,976 | |
| Issuance of Equity Shares related to equity component of debt | |
| - | | |
| 7,429 | |
| Issuance of Equity Shares related to settlement of contingent consideration | |
| 11,748 | | |
| - | |
| Issuance of promissory note related to settlement of contingent consideration | |
| 14,934 | | |
| - | |
| Cancellation of Equity Shares | |
| 78 | | |
| - | |
Ayr Wellness
Inc.
Unaudited Interim
Consolidated Adjusted EBITDA and Gross Profit Reconciliation
(Expressed in
United States Dollars, in Thousands)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
June 30, 2022 | | |
June 30, 2021 | | |
June 30, 2022 | | |
June 30, 2021 | |
| | |
$ | | |
$ | | |
$ | | |
$ | |
| Loss from operations (GAAP) | |
| (24,797 | ) | |
| (24,881 | ) | |
| (45,923 | ) | |
| (33,249 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Non-cash items accounting for inventory | |
| | | |
| | | |
| | | |
| | |
| Incremental costs to acquire cannabis inventory in a business combination | |
| 3,212 | | |
| 26,596 | | |
| 5,731 | | |
| 32,388 | |
| | |
| | | |
| | | |
| | | |
| | |
| Interest (within cost of goods sold "COGS") | |
| 772 | | |
| 213 | | |
| 1,252 | | |
| 457 | |
| Depreciation and amortization (from statement of cash flows) | |
| 22,570 | | |
| 14,587 | | |
| 43,810 | | |
| 22,064 | |
| Acquisition costs | |
| 2,722 | | |
| 1,284 | | |
| 4,173 | | |
| 4,422 | |
| Stock-based compensation, non-cash | |
| 9,727 | | |
| 7,152 | | |
| 20,088 | | |
| 15,376 | |
| Start-up costs1 | |
| 3,862 | | |
| 1,350 | | |
| 6,511 | | |
| 2,973 | |
| Other2 | |
| 3,576 | | |
| 1,122 | | |
| 5,499 | | |
| 1,408 | |
| Gain on sale of assets | |
| (2,000 | ) | |
| - | | |
| (2,000 | ) | |
| - | |
| | |
| 41,229 | | |
| 25,708 | | |
| 79,333 | | |
| 46,700 | |
| | |
| | | |
| | | |
| | | |
| | |
| Adjusted EBITDA (non-GAAP) | |
| 19,644 | | |
| 27,423 | | |
| 39,141 | | |
| 45,839 | |
1 Costs to prepare
a location for its intended use, including facilities not yet operating at scale. Start-up costs are expensed as incurred and are not
indicative of ongoing operations.
2 Other non-core costs including non-operating adjustments and non-cash inventory write-downs
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
June 30, 2022 | | |
June 30, 2021 | | |
June 30, 2022 | | |
June 30, 2021 | |
| | |
$ | | |
$ | | |
$ | | |
$ | |
| Gross profit (GAAP) | |
| 40,295 | | |
| 22,313 | | |
| 85,813 | | |
| 46,779 | |
| | |
| | | |
| | | |
| | | |
| | |
| Incremental costs to acquire cannabis inventory in a business combination | |
| 3,212 | | |
| 26,596 | | |
| 5,731 | | |
| 32,388 | |
| Interest (within COGS) | |
| 772 | | |
| 212 | | |
| 1,252 | | |
| 457 | |
| Depreciation and amortization (within COGS) | |
| 8,574 | | |
| 3,600 | | |
| 16,172 | | |
| 6,100 | |
| Start-up costs (within COGS) | |
| 1,154 | | |
| 400 | | |
| 2,133 | | |
| 1,600 | |
| Other (within COGS) | |
| 3,215 | | |
| - | | |
| 4,052 | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | |
| Adjusted Gross Profit (non-GAAP) | |
| 57,222 | | |
| 53,121 | | |
| 115,153 | | |
| 87,324 | |
