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Gross Revenue increased 16.2% quarter-over-quarter and increased 20.7% year-over-year, to $117.7 million. Net revenue, which excludes intercompany sale of wholesale products, increased 14.6% quarter-over-quarter and 17.0% year-over-year, to $97.5 million. Retail revenue grew 19.4% quarter-over-quarter to $75.6 million. Gross wholesale revenue grew 11.0% quarter-over-quarter to $42.1 million and wholesale, net of intercompany sales, grew 0.7% to $21.9 million. Net loss decreased to $21.2 million during the quarter, compared to a net loss of $27.8 million in Q1 2022. Adjusted EBITDA1 was $20.9 million, representing a 21.4% margin, a ~220 basis point margin expansion quarter-over-quarter. As of June 30, 2022, cash and cash equivalents were $140.6 million, and net debt2 was $152.7 million.
NEWS: AAWH to Hold Second Quarter 2022 Earnings Conference Call on Monday, August 15, 2022
NEW YORK, July 14, 2022 /PRNewswire/ - Ascend Wellness Holdings, Inc. ("AWH" or the "Company") (CSE: AAWH.U), (OTCQX: AAWH), a leading multi-state, vertically integrated cannabis operator, today announced that it will hold a conference call on Monday, August 15, 2022, at 5:00 PM ET following the release of its second quarter 2022 financial results after market close.
The earnings conference call may be accessed by dialing 1 (888) 390-0605 with conference ID: 06364687. A live audio webcast will also be available on the Investor Relations section of AWH website at https://awholdings.com/investors-overview and will be archived for replay.
NEWS: Seaport Global touts discounted cannabis stocks as a recession play
By Steve Gelsi
Seaport's Sonny Randhawa says 'a commodity never smelled so sweet' as he launches coverage of eight U.S. cannabis names.
Seaport Global Securities LLC analyst Sonny Randhawa on Friday launched coverage of eight U.S. cannabis companies and assigned buy ratings to all of them as an undervalued group.
He predicted consumers could turn to cannabis as a lower-priced alternative to alcohol in a potential recession.
"With budgets constrained, we believe new customer penetration rates could accelerate as consumers spend more time at home and the bang-per-buck for cannabis vs alcohol keeps moving higher," Randhawa said.
Summing up his ratings move, Randhawa said, "a commodity never smelled so sweet" because cannabis stocks are going through a bottoming process and will be higher six months from now, both on an absolute basis and relative to the S&P 500 .
Ascend Wellness Holdings Inc. (AAWH) ($7 price target), Ayr Wellness Inc. ($13 price target), Curaleaf Holdings Inc. ($9 price target) and Green Thumb Industries Inc. ($15 price target) all drew buy ratings.
Jushi Holdings Inc. ($3 price target), Terrascend Corp. ($4 price target), Trulieve Cannabis Corp. ($23 price target), and Verano Holdings Corp. also received buy ratings.
"If there was ever a time to buy over the last 18 months, we believe it's today," Randhawa said.
The view by Seaport Global remains contrarian relative to the steep losses in the sector in 2022. Dim prospects for a new cannabis bill introduced this week by Sen. Chuck Schumer marked the latest in a series of disappointments for investors hoping to cash in on federal legalization.
The AdvisorShares Pure U.S. Cannabis ETF (MSOS) has lost 51.9% of its value in 2022, including a drop of 2.7% on Friday. By contrast, the Nasdaq is down 24.3% in 2022. The S&P 500 has lost 16.8%.
Still, Seaport Global's Randhawa argues that prospects for the group over the next three to five years remain more bullish now than ever.
During the current time of high inflation and rising interest rates, value names in a sector typically outperform, he said.
Cannabis stocks fit in this value bucket after steep losses in stock prices, even as the cannabis sector grows at a projected compound annual growth rate of 17%, Randhawa said.
Volume has substantially increased in the last month, leading to the rise from the $2 curve, which I consider the bottom. PPS decreased steadily over the past year but that's not uncommon for a newly listed company. Combination of manufacturing/distributing their own product over a variety of states with dozens of retail storefronts (opening new ones constantly) leads me to think this is a solid entry point for a company with massive upside.
Ascend Wellness Holdings owns, manages, and operates cannabis cultivation facilities and dispensaries in several states across the United States, including Illinois, Massachusetts, Michigan, New Jersey, and Ohio. Its product portfolio consists of approximately 199 stock keeping units (SKUs), across a range of cannabis product categories, including flower, pre-rolls, concentrates, vapes, edibles, and other cannabis-related products. The Company has around 19 operating retail locations. It produces consumer-packaged goods in five manufacturing facilities.
Ascend Wellness Holdings, Inc. is a vertically integrated multi-state operator focused on adult-use cannabis states in limited license markets. The Company is principally focused on cultivating, manufacturing and distributing of cannabis consumer packaged goods, which AWH sells through its retail stores and to third-party licensed cannabis retail stores. The Company owns, manages, and operates cannabis cultivation facilities and dispensaries in several states across the United States, including Illinois, Massachusetts, Michigan, New Jersey, Ohio, and Pennsylvania. Its product portfolio consists of approximately 199 stock keeping units (SKUs), across a range of cannabis product categories, including flower, pre-rolls, concentrates, vapes, edibles, and other cannabis-related products.In-house brands include Simply Herb, Ozone, and Ozone Reserve.
21 operating retail dispensary locations across 6 states 5 manufacturing facilities producing consumer-packaged goods 3 in-house brands More than 40,000 poundsof cannabis produced annually
PREMIER RETAIL LOCATIONS ACROSS THE NORTHEAST AND MIDWEST