TerrAscend Corp (CSE: TER) this morning reported its fourth quarter and full year 2020 financial results. Fourth quarter net revenues amounted to C$65.3 million while the company reported a net loss of C$109.3 million. The full fiscal year meanwhile posted revenues of $198.3 million, and a net loss of $154.3 million.
The fourth quarter saw revenues grow 28% on a quarter over quarter basis, climbing from $51.0 million in the third quarter to $65.3 million in the fourth quarter. Gross profits before biological adjustments amounted to $36.2 million. Notably, the company also recorded a $3 million inventory impairment from the firms Canadian operations that impacted gross margins.
General and administrative expenses for the quarter amounted to $15.1 million, an increase from the $13.7 million recorded in the prior quarter. Despite the improving revenues however, the company posted a net loss of $109.3 million, which is primarily a result of derivative liabilities related to the firms Ilera acquisition. These derivative liabilities amounted to $124 million for the three month period. Adjusted EBITDA for the quarter meanwhile amounted to $25.9 million.
The full fiscal year meanwhile saw net revenues of $198.3 million, an increase of 134% from the $84.9 million in revenues posted for 2019. Gross profits before biological adjustments amounted to $108.2 million, while general and administrative expenses amounted to $59.1 million. The company posted a net loss of $154.3 million for the year, along with adjusted EBITDA of $60.1 million.
The company this morning also raised its full year 2021 guidance, while also changing the currency on guidance to US dollars as a result in the change of reporting standards as of Q1 2021. Full year net sales are now slated to exceed US$290 million, while adjusted EBITDA is guided to exceed US$122.0 million.
TerrAscend Corp last traded at $13.80 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.
