Acreage Holding Increases Q4 Revenue 21% Sequentially to $58.1 Million
FeaturedTrending Stories March 11, 2022 MJ Shareholders 0
Acreage Holdings Reports Fourth Quarter and Full Year 2021 Financial Results
- Consolidated revenue grew 84% to $58.1 million in the fourth quarter
and 65% to $188.9 million for the full year - Full year gross margin increased to 51%
- Achieved positive Adjusted EBITDA through fiscal 2021, an improvement of $54.1 million over 2020
- Secured $150 million credit facility to accelerate optimized strategy
New York, March 10, 2022 – Acreage Holdings, Inc. (“Acreage”) (CSE:ACRG.A.U, ACRG.B.U), (OTCQX: ACRHF, ACRDF), a vertically integrated, multi-state operator of cannabis cultivation and retailing facilities in the U.S., today reported its financial results for the fourth quarter and full year ended December 31, 2021 (“Q4 2021”).
Fourth Quarter 2021 Financial Highlights
- Consolidated revenue was $58.1 million for Q4 2021, an increase of 84% year-over-year and 21% sequentially.
- Gross margin increased to 48% in Q4 2021 from 46% in Q4 2020.
- Adjusted EBITDA* was $8.5 million in Q4 2021, compared to a loss of $(3.5) million in Q4 2020. Adjusted EBITDA* as a percentage of consolidated revenue was 14.6% for the fourth quarter of 2021.
Full Year 2021 Financial Highlights
- Full year consolidated revenue increased 65% to $188.9 million in 2021 compared to $114.5 million in full year 2020.
- Full year gross margin increased to 51% in 2021 compared to 43% in full year 2020.
- Full year adjusted EBITDA* was $24.6 million in 2021, a $54.1 million improvement compared to a loss of $(29.5) million in full year 2020. Adjusted EBITDA* as a percentage of consolidated revenue was 13.0% for the full year 2021.
Fourth Quarter 2021 Operational Highlights
- Expanded the Company’s strategic footprint with the acquisition of market-leading operations in the state of Ohio, including a 70,000 sq. foot cultivation and processing facility and five operating retail stores.
- Increased cultivation capacity output nearly fourfold at the Egg Harbor facility in New Jersey to support the Company’s own retail network and the rapidly growing wholesale market ahead of the launch of adult-use sales.
- Secured a $150 million long-term debt agreement (“Credit Facility”) on attractive terms to repay existing debt, and fund working capital and future capital projects.
Management Commentary
“Throughout 2021 we focused on transforming our business and I am thrilled with the immense progress and success we achieved,” said Peter Caldini, CEO of Acreage. “Our positive results throughout 2021 were the culmination of our focused efforts to drive profitability, strengthen our balance sheet, and accelerate our growth in our core markets. We have accomplished many key priorities in a short period and are well-positioned to build on this momentum throughout 2022.”
Mr. Caldini continued, “Acreage made significant improvements in profitability during 2021, achieving its first quarter of positive EBITDA and then continuing the trajectory of positive EBITDA each subsequent quarter. In addition to the profitability improvements, Acreage strengthened its balance sheet through the sale of operations in Florida, repaid near-term debt obligations, and secured a $150 million credit facility. Lastly, Acreage accelerated growth in our core markets with the opening of a new retail location in New Jersey, the completion of cultivation expansion projects in Pennsylvania, Illinois, and New Jersey, the opening of an edibles kitchen in Massachusetts, and the acquisition of high-quality operations in California, Maine, and Ohio.”
Over these last twelve months, we have built a solid foundation on which to scale our business in 2022. We will have a full year of operations in Ohio, California, and Maine, and we are very well established in New Jersey, New York, and Connecticut, which have pending adult-use sales that should drive significant growth in 2022 and beyond.
Peter Caldini, CEO of Acreage
2021 was a great year for Acreage and we have set the stage to extend this success with the right footprint, operations, and team to continue to grow our business and further drive value for our shareholders.
Q4 2021 Financial Summary
(in thousands)
- Canada – (833) 950-0062 (toll-free) or (226) 828-7575 (local)
- US – (844) 200-6205 (toll-free) or (646) 904-5544 (local)
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