TerrAscend Reports Q4 Revenues of $65.3 Million, Net Loss Of $109.3 Million
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.
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.
