Ayr Wellness Records Q4 2020 Revenues Of $47.8 Million, Net Loss Of $143.6 Million
Ayr Wellness (CSE: AYR.a) this evening reported its fourth quarter financial results, posting revenues of $47.8 million along with a significant net loss of $143.6 million as a result of a fair value loss on financial liabilities. For the full fiscal year, the firm posted revenues of $155.1 million, along with a net loss of $176.3 million.
On a quarter over quarter basis, the company saw revenues improve by 5%, up from $45.5 million in the prior quarter. The company failed to meet consensus estimates, which was pegged at $48.57 million. The full year meanwhile saw a 25% increase year over year to $155.1 million, but still missed consensus estimates of $155.77 million.
The company managed to post a gross profit before fair value adjustments of $27.5 million for the quarter, a marginal improvement on the $27.4 million posted in the third quarter. Operating expenses meanwhile climbed from $18.7 million to $20.7 million, with general and administrative expenses being the large cost center at $9.3 million, which was flat quarter over quarter. Next in terms of expenses was stock based compensation, which climbed from $4.7 million in the third quarter to that of $5.2 million.
Overall, Ayr posted a loss from operations of $2.1 million once biological adjustments are factored in for the quarter, compared to operational income of $22.0 million in the third quarter.
Total other income is where the company saw its losses get out of control, with a fair value loss on financial liabilities amounting to $134.7 million being recorded for the quarter, which compares to a loss of $38.2 million in the prior quarter. The loss is believed to relate to earn-out provisions the company is required to account for, which is impacted by a rising share price.
Looking to the balance sheet, Ayr saw its cash and cash equivalents rise from $23.2 million in the third quarter to $127.2 million in the fourth quarter, while receivables rose from $2.9 million to $3.5 million. Inventory however fell from $33.0 million to $28.3 million, while prepaid expenses moved from $3.8 million to $5.3 million. Total current assets overall rose from $75.7 million to $176.4 million.
Trade payables meanwhile rose slightly, climbing from $7.5 million to $8.9 million, while accrued liabilities rose from $7.2 million to $8.7 million. Income tax payable also rose, climbing from $19.1 million to $21.6 million. Current liabilities overall rose from $49.5 million to $57.8 million.
Ayr Wellness last traded at $41.00 on the CSE.
Information for this briefing was found via Sedar and Ayr Strategies. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
