Retail Update and Investment Thesis
AWH
FY 2020
Q1 2021 Q2 2021 Q3 2021
Q4 2021
FY 2021
Q1 2022
$ 60,914 $ 29,667 $ 34,516 $ 40,954 $ 30,835 $ 135,972 $ 23,447
42.4%
44.9%
41.4%
43.4%
34.8%
40.9%
27.6%
3,696
2,162
2,387
2,063
3,000
9,612
2,943
349
2,580
2,929
3,995
3,923
750
2,714
335
1,115
4,914
2,204
GAAP RECONCILIATIONS ($000S)
Adjusted Gross Profit
Gross Profit
Gross Margin
Depreciation and amortization included in cost of goods sold
Equity-based compensation included in cost of goods sold
(1)
Start-up costs included in cost of goods sold
(2)
Non-cash inventory adjustments(2
Adjusted Gross Profit
Adjusted Gross Margin
146
$ 64,756 $ 32,579 $ 39,617 $ 43,701 $ 37,530 $ 153,427 $ 36,512
45.1%
49.3%
47.5%
46.3%
42.4%
46.2%
42.9%
FY 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
FY 2021
Q1 2022
Adjusted EBITDA
Net Income (Loss)
Income tax expense
8,976
11,995
$ (23,841) $ (48,223) $ (44,897) $ (13,026) $ (16,511) $ (122,657) $ (27,815)
18,702
41,720
12,307
8,442
7,107
Other (income) expense
(7)
(80)
(82)
(44)
(50)
(256)
(103)
Interest expense
12,993
7,337
36,888
12,376
7,388
63,989
6,031
Depreciation and amortization
7,914
2,419
2,470
2,520
2,628
10,037
2,732
Depreciation and amortization included in cost of goods sold
3,696
2,162
2,387
2,063
3,000
9,612
2,943
Non-cash inventory adjustments
146
750
2,714
335
1,115
4,914
2,204
Equity-based compensation
680
2,487
1,711
2,587
8,565
15,350
2,504
Equity-based compensation included in cost of goods sold
Start-up costs (3)
349
2,580
2,929
3,995
8,097
1,311
1,716
1,227
1,211
5,465
837
(1)
Start-up costs included in cost of goods sold
3,923
Transaction-related and other non-recurring expenses"
(4)
(Gain) Loss on the sale of assets
2,164
286
2,178
5,406
2,191
649
1,434
11,209
6,194
(44)
Litigation settlement
36,511
Adjusted EBITDA
Adjusted EBITDA Margin
605
36,511
5,000
79,428 $ 16,370
23.9%
19.2%
818
$ 30,830 $ 15,828 $ 20,308 $ 23,534 $ 19,758 $
21.4%
23.9%
24.4% 24.9% 22.3%
(1) Incremental expenses associated with the expansion of activities at our cultivation facilities that are not yet operating at scale, including excess overhead expenses resulting in delays from regulatory approvals at certain cultivation facilities.
(2) Primarily consists of write-offs of expired products and obsolete packaging.
(3) One-time costs associated with acquiring real estate, obtaining licenses and permits, and other costs incurred before commencement of operations at certain locations.
(4) Legal and professional fees associated with litigation matters, potential acquisitions, and other regulatory matters and other non-recurring expenses. The prior year includes expenses related to the Company's Initial Public Offering.
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