Acreage Holdings, Inc. (OTCQX:ACRHF) (OTCQX:ACRDF) (CSE:ACRG) (CSE:ACRG) reported its financial results for the fourth quarter and full year ended December 31, 2021.
Fourth Quarter 2021 Financial Highlights
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Consolidated revenue was $58.1 million for Q4 2021, an increase of 84% year-over-year and 21% sequentially.
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Gross margin increased to 48% in Q4 2021 from 46% in Q4 2020.
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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.
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Net loss attributable to Acreage for Q4 2021 was $40.4 million, compared to a net loss of $36.9 million in the fourth quarter of 2020.
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Total gross profit for Q4 2021 was $27.6 million, an increase of $13.1 million or 90% compared to Q4 2020. Growth in revenue and efficiencies achieved at Acreage’s production facilities drove the increase in gross profit.
Full Year 2021 Financial Highlights
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Full year consolidated revenue increased 65% to $188.9 million in 2021 compared to $114.5 million in full year 2020.
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Full year gross margin increased to 51% in 2021 compared to 43% in full year 2020.
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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
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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.
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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.
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Secured a $150 million long-term debt agreement on attractive terms to repay existing debt, and fund working capital and future capital projects.
Acreage ended the year with $44.3 million in cash and cash equivalents and restricted cash.
Peter Caldini, CEO of Acreage stated: “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. "
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