1Q21 Investor Update
PROFITABILITY TRENDS BY MARKET
Established markets exhibit greater profitability metrics as newer markets ramp towards guidance
Top 5 Markets by Revenue
1Q 2020
1Q 2021
Arizona
California
Colorado
Massachusetts
Massachusetts
New York
Ohio
Ohio
71%
Of Total Combined
Revenue for 1Q 2021
Pennsylvania
Pennsylvania
Note: All figures are Combined metrics. Markets listed alphabetically.
M
Sequential improvement in gross margin
across the portfolio - especially in
California, Florida and Arizona - was
offset by seasonality and decision to
partially take off-line and upgrade largest
indoor grow in preparation for $100 days
of heat' during 2Q and 3Q in Colorado
Top 5 Markets by Adj. Gross Margin
1Q 2021
42%
Arizona
Colorado
Delaware
Massachusetts
New York
Average Adj. Gross Margin by
Length of Market Operations
50%
Average 1Q 2021 Adj.
Gross Margin
32%
24 MONTHS 15-24 MONTHS <15 MONTHS
-33%
*Excludes changes in fair value of biological assets and inventory sold for all periods presented, as well as $1.4 million in Q4 2020 and $0.1 million in Q1 2021
related to the write-up of inventory acquired in The Green Solution, Project Cannabis and The Healing Center San Diego.
Top 5 Markets by Adj. EBITDA Margin
1Q 2021
Arizona
Delaware
Illinois
Massachusetts
Pennsylvania
33%
Average 1Q 2021 Adj.
EBITDA Margin
Gross Margin Improvements On Horizon
10
✓ New Jersey -2 dispensaries and 2 cultivation sites under development for
2021; first significant harvest from Vineland facility expected in 3Q
✓ Virginia - newer market, still ramping and building out dispensaries; Green
Leaf will be margin accretive
✓ Florida - building out cultivation capacity, ongoing improvements at dispensary
level, gross margin increased more than 2,000bps QoQ in 1Q
✓ Massachusetts - adult-use sales on track to begin late 2Q in Boston
✓ California - have not fully utilized our manufacturing capacity; acquisitions are
accretive
✓ Colorado - implementing cultivation improvements to increase yields and
utilization of manufacturing capacity
✓ Utah, Missouri, West Virginia - new markets currently under development,
will open in 2021
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