AYR Wellness Q1 Revenue Grows 18.3% YoY, What About Adjusted EBITDA?
7:29 am ET May 16, 2023 (Benzinga) Print
AYR Wellness Inc. (OTCQX: AYRWF) (CSE:AYR.A) released its financial results for the first quarter ended March 31, 2023. The following financial measures are reported as results from continuing operations due to the sale of the company’s business in Arizona, which are reported as discontinued operations. All historical comparisons have been restated accordingly.
Q1 2023 Financial Highlights
Revenue was $117.7 million, an increase of 18.3% compared to $99.5 million in Q1 2022.
Gross profit was $48.3 million, an increase of 19.7% compared to $40.3 million in Q1 2022.
Adjusted EBITDA was $26.3 million, an increase of 64% compared to $16.1 million in Q1 2022.
Operating loss was $21.7 million, compared to loss of $21 million in Q1 2022.
The company deployed $7.2 million of capital expenditures in Q1 and ended the quarter with a cash balance of $96.5 million.
David Goubert, president & CEO of AYR, stated, “I’m excited to share our strong profitability improvements during the quarter, as we began to execute on our financial and operational goals. Revenue and adjusted EBITDA each modestly beat our expectations, and respectively grew quarter over quarter by 3% and 9%. We grew revenue by 18% year-over-year and adjusted EBITDA over 60% year-over-year with significantly expanded adjusted EBITDA margin, while generating positive operating cash flow for the third consecutive quarter.
Outlook
The company anticipates second quarter revenue and Adjusted EBITDA to grow in-line with Q1 sequential growth trends. AYR reiterated its expectation of generating positive cash flow from operations for the full year 2023 although operating cash flow trends will not be linear given the timing of tax payments.
