TerrAscend Corp (CSE: TER) this morning reported certain figures from its third quarter financials, although full results have yet to be filed by the company. The firm indicated that it has generated net sale of $51 million in the third quarter, an approximate increase of 8.0% from the $47.2 million in revenues generated in the second quarter. The company however also recorded a net loss of $17.6 million for the three month period.
Few details were actually provided by the company this morning, with the firm focused on its gross margin and adjusted EBITDA figures more than anything. Gross margins are said to have grown to 59% in the quarter before fair value adjustments, compared to 56% in the prior period. Adjusted EBITDA meanwhile grew from $11.4 million in the second quarter to $17.8 million in the third quarter.
General and administrative expenses meanwhile were said to have come in at $13.7 million for the three month period, compared to $15.7 million in the prior quarter. The improvement was said to be due to “tight control of costs.”
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In terms of the net loss posted by the company of $17.6 million, TerrAscend pointed to an increase in the fair value of warrant and derivative liabilities, which were said to have grown by $22.2 million, while a revaluation of contingent consideration of $8.1 million also impacted the figure.
The company also increased its guidance for the full year to that of $196 million in net sales, along with $54 million in adjusted EBITDA. Guidance was also provided for 2021, with the company anticipating net sales between $360 and $380 million, and adjusted EBITDA between $140 and $160 million, indicating that the company is anticipating substantial growth on a go-forward basis.
TerrAscend Corp last traded at $10.50 on the CSE.
Information for this briefing was found via Sedar and TerrAscend Corp. 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.
