Ayr Wellness (CSE: AYR.a) this evening reported its first quarter 2021 financial results, reporting revenues of $58.4 million along with a net loss of $16.6 million.
Revenues were up 22.7% on a quarter over quarter basis from the $47.8 million reported in Q4 2020. Notably, this quarter marks the first quarter under which the company is reporting in US GAAP terms rather than IFRS. Follows costs of good sold of $33.9 million, which includes a $5.8 million charge related to acquiring cannabis inventory in a business combination, the company reported a gross profit of $24.5 million.
Operating expenses meanwhile amounted to $32.8 million for the quarter, which were lead by general and administrative expenses of $15.8 million and stock based compensation of $8.2 million. As a result, the company posted a loss from operations of $8.4 million.
Other expenses added further to the losses recorded by the company to the tune of $3.3 million. The largest expense here consists of interest expenses of $2.8 million. As a result, the company after taxes posted a net loss of $16.6 million for the quarter. The company meanwhile saw $18.4 million on an adjusted EBITDA basis.
Looking to the balance sheet, the company significantly strengthened its working capital position on a quarter over quarter basis, with cash climbing from $127.2 million to $195.6 million. Total current assets meanwhile rose from $159.0 million to $297.7 million during the quarter. Total current liabilities meanwhile rose from $57.5 million to $57.7 million, resulting in working capital climbing to $235.0 million.
In terms of outlook, the company revealed that it is expecting revenues of $90.0 million for the second quarter of 2021, while adjusted EBITDA is expected to be in the range of 30%. For 2022, the company reiterated its target of revenues of at least $725 million, and adjusted EBITDA of $300 million.
Ayr Wellness last traded at $36.20 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.