Ayr Wellness (CSE: AYR.a) is the latest cannabis operator to announce its third quarter financial results. The company this morning reported Q3 revenues of $96.2 million, along with a net loss of $3.4 million.
Revenues improved 5.4% on a quarter over quarter basis, climbing from $91.3 million in the second quarter of 2021, while revenues were up 111.4% on a year over year basis.
Gross profits for the quarter came in at $40.1 million for the quarter, while operating expenses totaled $49.0 million, resulting in the firm posting an operational loss of $8.9 million for the quarter. The largest expenses for the period was general and administrative at $30.4 million, followed by amortization of $10.4 million.
The company however did see a boost from other income, primarily driven by a fair value gain of $19.3 million on financial liabilities, which was partially offset by interest expenses of $4.3 million. The result is an improved loss of $3.4 million for the quarter, as well as an adjusted EBITDA figure of $26.0 million for the quarter.
In terms of outlook, the company has reduced its 2022 adjusted EBITDA guidance to between $250 to 300 million, while its revenue guidance of $800 million for 2022 remains unchanged.
Separately, the company also announced this morning it is acquired Gentle Ventures of Chicago, Illinois, whom operates as Dispensary 33. The firm currently operates two dispensaries in the city. The firm is being acquired for $55.0 million, of which $12 million is in cash, $3.0 million is via a sellers note, and $40 million is to be paid in stock.
Ayr Wellness last traded at $24.70 on the CSE.
Information for this briefing was found via Sedar and Ayr Wellness. 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.
