FY 2023 Revenue up 10% to $463.6 Million, Excluding Discontinued Operations

FY 2023 GAAP Loss from Operations Improved to $37.2 Million, Excluding Discontinued Operations

FY 2023 Adjusted EBITDA¹up 51% to $114.0 Million, with Adjusted EBITDA Margin of 25%

Completed Plan of Arrangement Transactions, Including Extending the Maturity of all of its Senior Notes and Certain Other Debt by Two Years, in February 2024

MIAMI, March 13, 2024 (GLOBE NEWSWIRE) — AYR Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) (“AYR” or the “Company”), a leading vertically integrated U.S. multi-state cannabis operator, is reporting financial results for the fourth quarter and full year ended December 31, 2023. Unless otherwise noted, all results are presented in U.S. dollars.

David Goubert, President & CEO of AYR, said, “2023 was a transformational year for AYR as we executed on our financial and operational goals — growing revenue, enhancing profitability, and strengthening our balance sheet. We grew revenue 10%, grew Adjusted EBITDA by 51%, expanded Adjusted EBITDA margins to 25%, and generated positive cash flow from operations for 2023. Additionally, in February 2024, we completed the deferral or retirement of nearly $400 million of debt maturities and now have a clear financial runway to focus on our optimization efforts as we look to capitalize on multiple industry catalysts ahead.

“The conversion from medical-only to adult-use sales is one of the most significant, proven revenue drivers in any given cannabis market. Currently, only 15 of AYR’s 91 dispensaries operate in adult-use markets, and we are positioning our assets in Florida, Pennsylvania and Ohio to take full advantage of anticipated adult-use transitions. We will not need to materially increase our fixed cost base in these states and expect to generate meaningful operating leverage as revenue growth accelerates in these markets. We remain focused on improving our product quality and consistency, along with our CPG brand portfolio, as we further establish the AYR retail brand and build customer loyalty. With an improved balance sheet, optimized cost structure and impending industry catalysts, we believe AYR is well-positioned to drive sustainable, profitable growth for years to come.”

Fourth Quarter Financial Summary (excludes results from AZ for all periods) ($ in millions, excl. margin items)

	Q4 2022			Q3 2023			Q4 2023			% Change Q4/Q4		% Change Q4/Q3
Revenue	$114.3			$114.4			$114.8			0.4	%	0.3	%
Gross Profit	$53.0			$48.1			$49.4			-6.8	%	2.7	%
Adjusted Gross Profit1	$66.6			$60.5			$62.0			-6.9	%	2.5	%
Operating Loss	$(143.1)2			$(1.5		)	$(9.5		)	NA		NA
Adjusted EBITDA1	$24.2			$28.4			$29.8			23.1	%	4.9	%
Adjusted EBITDA Margin1		21.2	%		24.8	%		25.9	%	470bps		110bps

Full Year 2023 Financial Summary (excludes results from AZ for all periods) ($ in millions, excl. margin items)

	FY 2022			FY 2023			% Change Y/Y
Revenue	$421.4			$463.6			10.0	%
Gross Profit	$175.0			$202.4			15.7	%
Adjusted Gross Profit1	$227.6			$256.9			12.9	%
Operating Loss	$(207.3) 2			$(37.2		)	NA
Adjusted EBITDA1	$75.4			$114.0			51.2	%
Adjusted EBITDA Margin1		17.9	%		24.6	%	670bps

^{1Adjusted EBITDA, Adjusted Gross Profit and Adjusted EBITDA Margin are non-GAAP measures, and accordingly are not standardized measures and may not be comparable to similar measures used by other companies. See Definition and Reconciliation of Non-GAAP Measures below. For a reconciliation of Operating Loss to Adjusted EBITDA as well as Gross Profit to Adjusted Gross Profit, see the reconciliation tables appended to this release.
2Based on market conditionsat the time, including the impact of price compression, the Company incurred a non-cash goodwill impairment chargein 2022of $118M (excludes AZ), reducing the carrying value of goodwill across all reporting units.}

Fourth Quarter and Recent Highlights

• Retail/Brand Updates
  • Opened two new dispensaries in Florida during the fourth quarter, bringing AYR’s total footprint to 64 dispensaries across the state.
  • Opened three dispensaries in Ohio in the Cleveland, Cincinnati, and Dayton metropolitan areas via the Company’s support relationship. AYR has the future rights to ownership of all three dispensaries, subject to regulatory approval.
  • Relaunched our flagship cannabis brand, kynd, through the ‘Season of Kyndness’ initiative, a campaign designed to spread positive impact and connection during the holiday season through hyperlocal charitable giving.
• Corporate Updates
  • In February 2024, we completed the plan of arrangement transactions, including the retirement or deferral of the maturity of all of the Company’s Senior Notes due 2024 and certain other debt totaling nearly $400 million by two years to 2026.
  • Raised approximately $40 million of gross proceeds in new capital through the issuance of $50 million of additional Senior Notes maturing in December 2026.
  • Issued approximately 29 million SVS Shares to 2024 Senior Noteholders, approximately 5 million SVS Shares to the party backstopping the new $40M capital raise, and approximately 23 million Anti-Dilutive Warrants (CSE: AYR.WT.U). These warrants, which are exercisable at $2.12 per share, have two years to expiration and their exercise is expected to result in approximately $50 million in proceeds for the Company.
  • Announced that Jared Cohen will be joining AYR’s board of directors subject to the receipt of state cannabis regulatory approvals.

Full Year 2023 Highlights

• Added 10 dispensaries across AYR’s footprint, bringing the Company’s total dispensary count to 90 stores.
• Established a vertical presence in Ohio by entering into options to acquire three Ohio dispensary licenses.
• Announced mutual termination of AYR’s proposed acquisition of the equity interests of Gentle Ventures, LLC d/b/a Dispensary 33, and certain of its affiliates that collectively own and operate two licensed retail dispensaries in Chicago, Illinois.
• Closed the sale of Blue Camo, LLC which comprised the Company’s Arizona business, to AZ Goat, LLC, a group consisting primarily of the former owners of Blue Camo, which included $20 million in cash, and an elimination of $22.5 million in seller notes.
• Appointed David Goubert as Chief Executive Officer and George DeNardo as Chief Operating Officer.
• Closed the acquisition of Tahoe Hydroponics, an award-winning cultivator and one of Nevada’s top producers of high-quality cannabis flower.
• Completed re-brand of full fleet of Florida stores to AYR Cannabis Dispensary.
• Generated $24.4 million of operating cash flow from continuing operations in 2023.

Financing and Capital Structure

The Company deployed $7.5 million of capital expenditures in Q4 and approximately $28 million for FY 2023, which was an improvement from the Company’s guidance of $30 million for the full year.

AYR ended the year with a cash balance of $50.8 million. Subsequent to the plan of arrangement transactions which closed on February 7, 2024 and including the pro-forma addition of $40 million in gross proceeds of new capital, the Company had a pro-forma working capital position as of year-end of $30 million.

As of February 28, 2024, the Company had approximately 136 million fully diluted shares outstanding based on a treasury method calculation as of that date (excluding the 2.9 million out of the money warrants expiring in May 2024 and treasury shares).ⁱ

Outlook

The Company anticipates revenue in Q1 2024 to range from flat to modest growth compared to Q4 2023, with a continuation of achieving the Company’s targets of 25% Adjusted EBITDA margin. The Company expects gradual improvement from the residual impact of cultivation challenges in Florida, while continuing to build wholesale revenues. AYR expects to further ramp revenue, adjusted EBITDA and operating cash flow later this year.

Conference Call

Ayr management will host a conference call, followed by a question-and-answer period.

Date: Wednesday, March 13, 2024
Time: 8:30 a.m. ET
Toll-free dial-in number: (800) 319-4610
International dial-in number: (604) 638-5340
Conference ID: 10023064
Webcast: https://services.choruscall.ca/links/ayrwellness2023q4.html

Please dial into the conference call 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact the Company’s investor relations team at [email protected].

The conference will be broadcast live and available for replay here.

A telephonic replay of the conference call will also be available for one month until end of day Saturday, April 13, 2024.

Toll-free replay number: (855) 669-9658
International replay number: (412) 317-0088
Replay ID: 0710

________________________
ⁱ Includes pending M&A and excludes Ayr granted but unvested service-based LTIP shares totaling 5.2 million.

Financial Statements

Certain financial information reported in this news release is extracted from AYR’s Consolidated Financial Statements and MD&A for the year ended December 31, 2023. Ayr files its financial statements and MD&A on SEDAR+ and with the SEC. All financial information contained in this news release is qualified in its entirety by reference to such financial statements and MD&A.

Definition and Reconciliation of Non-GAAP Measures

The Company reports certain non-GAAP measures that are used to evaluate the performance of its businesses and the performance of their respective segments, as well as to manage their capital structures. As non-GAAP measures generally do not have a standardized meaning, they may not be comparable to similar measures presented by other issuers. Securities regulators require such measures to be clearly defined and reconciled with their most comparable GAAP measures.

Rather, these are provided as additional information to complement those GAAP measures by providing further understanding of the results of the operations of the Company from management’s perspective. Accordingly, these measures should not be considered in isolation, nor as a substitute for analysis of the Company’s financial information reported under GAAP. Non-GAAP measures used to analyze the performance of the Company’s businesses include “Adjusted EBITDA” and “Adjusted Gross Profit.”

The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performances and may be useful to investors because they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. These financial measures are intended to provide investors with supplemental measures of the Company’s operating performances and thus highlight trends in the Company’s core businesses that may not otherwise be apparent when solely relying on the GAAP measures.

Adjusted EBITDA

“Adjusted EBITDA” represents (loss) income from operations, as reported under GAAP, before interest and tax, adjusted to exclude non-core costs, other non-cash items, including depreciation and amortization, and further adjusted to remove non-cash stock-based compensation, impairment expense, the accounting for the incremental costs to acquire cannabis inventory in a business combination, acquisition related costs, and start up costs.

Adjusted Gross Profit

“Adjusted Gross Profit” represents gross profit, as reported, adjusted to exclude the accounting for the incremental costs to acquire cannabis inventory in a business combination, interest, depreciation and amortization and start-up costs.

A reconciliation of how Ayr calculates Adjusted EBITDA and Adjusted Gross Profit is provided in the tables appended below. Additional reconciliations of Adjusted EBITDA, Adjusted Gross Profit and other disclosures concerning non-GAAP measures are provided in our MD&A for the three and twelve months ended December 31, 2023.

Forward-Looking Statements

Certain statements in this MD&A are forward-looking statements within the meaning of applicable securities laws, including, but not limited to, those statements relating to the Company and its financial capacity and availability of capital and other statements that are not historical facts. These statements are based upon certain material factors, assumptions, and analyses that were applied in drawing a conclusion or making a forecast or projection, including experience of the Company, as applicable, and perception of historical trends, current conditions, and expected future developments, as well as other factors that are believed to be reasonable in the circumstances. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, and outlook of the Company. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “project”, “expect”, “target”, “continue”, “forecast”, “design”, “goal” or negative versions thereof and other similar expressions.

Forward-looking estimates and assumptions involve known and unknown risks and uncertainties that may cause actual results to differ materially. While Ayr believes there is a reasonable basis for these assumptions, such estimates may not be met. These estimates represent forward-looking information. Actual results may vary and differ materially from the estimates.

Assumptions and Risks

Forward-looking information in this release is subject to the assumptions and risks as described in our MD&A for the year ended December 31, 2023.

Additional Information

For more information about the Company’s Q4 and full year 2023 operations and outlook, please view AYR’s corporate presentation posted in the Investors section of the Company’s website at www.ayrwellness.com.

About AYR Wellness Inc.

AYR Wellness is a vertically integrated, U.S. multi-state cannabis business. The Company operates simultaneously as a retailer with 90+ licensed dispensaries and a house of cannabis CPG brands.

AYR is committed to delivering high-quality cannabis products to its patients and customers while acting as a Force for Good for its team members and the communities that the Company serves. For more information, please visit www.ayrwellness.com.

Company Contact:

Jon DeCourcey
Head of Investor Relations
T: (786) 885-0397
Email: [email protected]

Media Contact:

Robert Vanisko
VP, Public Engagement
T: (786) 885-0397
Email: [email protected]

Investor Relations Contact:

Sean Mansouri, CFA
Elevate IR
T: (786) 885-0397
Email: [email protected]

Ayr Wellness Inc. Unaudited Consolidated Balance Sheets (Expressed in United States Dollars, in thousands, except share amounts)
		As of
		December 31, 2023			December 31, 2022
ASSETS
Current
	Cash and cash equivalents	$	50,766		$	76,827
	Accounts receivable, net		13,491			7,738
	Inventory		106,363			99,810
	Prepaid expenses, deposits, and other current assets		22,600			8,702
	Assets held-for-sale		–			260,625
	Total Current Assets		193,220			453,702
Non-current
	Property, plant, and equipment, net		310,615			302,680
	Intangible assets, net		687,988			744,709
	Right-of-use assets – operating, net		127,024			121,340
	Right-of-use assets – finance, net		40,671			43,222
	Goodwill		94,108			94,108
	Deposits and other assets		6,229			8,009
TOTAL ASSETS		$	1,459,855		$	1,767,770
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Current
	Trade payables		24,786			26,671
	Accrued liabilities		40,918			25,470
	Lease liabilities – operating – current portion		9,776			7,906
	Lease liabilities – finance – current portion		9,789			9,529
	Contingent consideration – current portion		–			63,429
	Purchase consideration payable		–			2,849
	Income tax payable		90,074			46,006
	Debts payable – current portion		23,152			40,523
	Liabilities held-for-sale		–			43,841
	Accrued interest payable – current portion		1,983			2,581
	Total Current Liabilities		200,478			268,805
Non-current
	Deferred tax liabilities, net		64,965			72,413
	Lease liabilities – operating – non-current portion		125,739			118,086
	Lease liabilities – finance – non-current portion		18,007			24,016
	Construction finance liabilities		38,205			36,181
	Contingent consideration – non-current portion		–			26,661
	Debts payable – non-current portion		167,351			136,315
	Senior secured notes, net of debt issuance costs		243,955			244,682
	Accrued interest payable – non-current portion		5,530			4,763
	Other long-term liabilities		24,973			524
TOTAL LIABILITIES			889,203			932,446
Commitments and contingencies
Shareholders’ equity
	Multiple Voting Shares – no par value, unlimited authorized. Issued and outstanding – 3,696,486 shares		–			–
	Subordinate, Restricted, and Limited Voting Shares – no par value, unlimited authorized. Issued and outstanding – 64,574,077 and 60,909,492 shares, respectively		–			–
	Exchangeable Shares: no par value, unlimited authorized. Issued and outstanding – 9,645,016 and 6,044,339 shares, respectively		–			–
	Additional paid-in capital		1,370,600			1,349,713
	Treasury stock – 645,300 shares		(8,987	)		(8,987	)
	Accumulated other comprehensive income		3,266			3,266
	Accumulated deficit		(783,101	)		(510,668	)
	Equity of Ayr Wellness Inc.		581,778			833,324
	Noncontrolling interests		(11,126	)		2,000
TOTAL SHAREHOLDERS’ EQUITY			570,652			835,324
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,459,855		$	1,767,770

Ayr Wellness Inc. Unaudited Consolidated Statements of Operations (Expressed in United States Dollars, in thousands, except per share amounts)
		Three Months Ended							Year Ended
		December 31, 2023			December 31, 2022				December 31, 2023			December 31, 2022
Revenues, net of discounts		$	114,835		$	114,279			$	463,630		$	421,435
													0
Cost of goods sold excluding fair value items			65,453			61,268				261,188			240,252
Incremental costs to acquire cannabis inventory in business combinations			–			–				–			6,217
Cost of goods sold			65,453			61,268				261,188			246,469
Gross profit			49,382			53,011				202,442			174,966
Operating expenses
	Selling, general, and administrative		39,988			65,109				177,800			212,525
	Impairment of goodwill and other assets		6,320			117,950				6,320			117,950
	Depreciation and amortization		11,974			12,010				51,364			45,801
	Acquisition and transaction costs		619			853				4,080			5,986
	Loss (gain) on sale of assets		25			182				91			(8	)
Total operating expenses			58,926			196,104				239,655			382,254
Loss from continuing operations			(9,544	)		(143,093	)			(37,213	)		(207,288	)
Other income (expense), net
	Fair value gain on financial liabilities		(707	)		29,650				23,023			63,088
	Interest expense, net		(10,571	)		(7,833	)			(39,403	)		(28,323	)
	Interest income		153			223				743			275
	Other income, net		159			107				7,094			120
Total other (expense) income, net			(10,966	)		22,147				(8,543	)		35,160
Loss from continuing operations before income taxes and noncontrolling interest			(20,510	)		(120,946	)			(45,756	)		(172,128	)
Income taxes
	Current tax provision		(17,230	)		(12,855	)			(54,839	)		(43,161	)
	Deferred tax benefit (expense)		7,448			(3,717	)			7,448			(1,588	)
Total income taxes			(9,782	)		(16,572	)			(47,391	)		(44,749	)
Net loss from continuing operations			(30,292	)		(137,518	)			(93,147	)		(216,877	)
Discontinued operations
	Loss from discontinued operations, net of taxes (including loss on disposal of $182,464 for the year ended December 31, 2023)		(670	)		(31,098	)			(186,353	)		(38,608	)
Loss from discontinued operations			(670	)		(31,098	)			(186,353	)		(38,608	)
Net loss			(30,962	)		(168,616	)			(279,500	)		(255,485	)
	Net loss attributable to noncontrolling interests		(2,687	)		(5,201	)			(7,067	)		(10,019	)
	Net loss attributable to Ayr Wellness Inc.	$	(28,275	)	$	(163,415	)		$	(272,433	)	$	(245,466	)
Basic and diluted net loss per share
	Continuing operations	$	(0.36	)	$	(1.92	)		$	(1.16	)	$	(3.01	)
	Discontinued operations		(0.01	)		(0.45	)			(2.52	)		(0.56	)
	Total (basic and diluted) net loss per share	$	(0.37	)	$	(2.37	)		$	(3.68	)	$	(3.58	)
Weighted average number of shares outstanding (basic and diluted)			76,952			68,948				74,096			68,635

Ayr Wellness Inc. Unaudited Consolidated Statements of Cash Flows (Expressed in United States Dollars, in thousands)
	Year Ended
	December 31, 2023			December 31, 2022
Operating activities
Consolidated net loss	$	(279,500	)	$	(255,485	)
Less: Loss from discontinued operations		(3,889	)		(38,608	)
Net loss from continuing operations before noncontrolling interest		(275,611	)		(216,877	)
Adjustments for:
Fair value gain on financial liabilities		(23,023	)		(63,088	)
Stock-based compensation		16,412			46,115
Stock-based compensation – related party		–			707
Shares issued for consulting services		79			–
Depreciation and amortization		32,303			19,028
Amortization on intangible assets		58,646			57,122
Impairment of goodwill and other assets		6,320			117,950
Incremental costs to acquire cannabis inventory in a business combination		–			6,217
Deferred tax (benefit) expense		(7,448	)		1,588
Amortization on financing costs		2,341			2,292
Amortization on financing premium		(3,018	)		(3,018	)
Employee retention credits recorded in other income		(5,238	)		–
Loss (gain) on disposal of property, plant, and equipment		91			(8	)
Loss on the disposal of Arizona business		182,464			–
Changes in operating assets and liabilities, net of business combinations:
Accounts receivable		(6,053	)		63
Inventory		(6,252	)		(12,536	)
Prepaid expenses, deposits, and other current assets		(657	)		1,360
Trade payables		(296	)		(6,548	)
Accrued liabilities		2,804			1,199
Accrued interest payable		(42	)		(2,686	)
Lease liabilities – operating		2,712			1,799
Income tax payable		47,848			16,689
Cash provided by (used in) continuing operations		24,382			(32,632	)
Cash provided by (used in) discontinued operations		2,783			(1,533	)
Cash provided by (used in) operating activities		27,165			(34,165	)
Investing activities
Purchase of property, plant, and equipment		(27,697	)		(58,830	)
Capitalized interest		(9,981	)		(14,490	)
Cash paid for business combinations and asset acquisitions, net of cash acquired		(1,500	)		(11,546	)
Cash paid for business combinations and asset acquisitions, working capital		(2,600	)		(2,205	)
Proceeds from the sale of assets, net of transaction costs		–			31,433
Cash received (paid) for bridge financing		(73	)		70
Advances to related entities		–			(6,148	)
Deposits for business combinations, net of cash on hand		–			(2,825	)
Purchase of intangible asset		(1,925	)		(4,000	)
Cash used in investing activities from continuing operations		(43,776	)		(68,541	)
Proceeds from sale of Arizona – discontinued operation		18,084			–
Cash received for working capital – discontinued operations		1,583			–
Cash (paid) received for investing activities – discontinued operations		(44	)		2,044
Cash provided by investing activities of discontinued operations		19,623			2,044
Cash used in investing activities		(24,153	)		(66,497	)
Financing activities
Proceeds from exercise of options		–			300
Proceeds from notes payable, net of financing costs		10,665			51,713
Proceeds from financing transaction, net of financing costs		39,100			27,600
Debt issuance costs paid		(9,049	)
Payment for settlement of contingent consideration		(10,475	)		(10,000	)
Deposits paid for financing lease and note payable		–			(924	)
Tax withholding on stock-based compensation awards		(366	)		(5,258	)
Repayments of debts payable		(52,029	)		(17,923	)
Repayments of lease liabilities – finance (principal portion)		(10,608	)		(9,596	)
Repurchase of Equity Shares		–			(8,430	)
Cash (used in) provided by financing activities by continuing operations		(32,762	)		27,482
Cash used in financing activities from discontinued operations		(124	)		(522	)
Cash (used in) provided by financing activities		(32,886	)		26,960
Net decrease in cash and cash equivalents and restricted cash		(29,874	)		(73,702	)
Cash, cash equivalents and restricted cash beginning of the period		76,827			150,142
Cash included in assets held-for-sale		3,813			4,200
Cash, cash equivalents and restricted cash end of the period	$	50,766		$	80,640
Supplemental disclosure of cash flow information:
Interest paid during the period, net	$	49,914		$	49,231
Income taxes paid during the period		7,078			30,915
Non-cash investing and financing activities:
Recognition of right-of-use assets for operating leases		19,184			54,396
Recognition of right-of-use assets for finance leases		5,470			32,444
Issuance of promissory note related to business combination		1,580			16,000
Conversion of convertible note related to business combination		2,800			–
Issuance of Equity Shares related to business combinations and asset acquisitions		115			6,352
Issuance of Equity Shares related to settlement of contingent consideration		4,647			11,748
Issuance of promissory note related to settlement of contingent consideration		14,000			14,934
Settlement of contingent consideration		38,420			–
Capital expenditure disbursements for cultivation facility		2,024			8,402
Cancellation of Equity Shares		–			78
Extinguishment of note payable related to sale of Arizona business		22,505			–
Extinguishment of accrued interest payable related to sale of Arizona business		1,165			–
Reduction of lease liabilities related to sale of Arizona business		16,734			–
Reduction of right-of-use assets related to sale of Arizona business		16,739			–

Ayr Wellness Inc. Unaudited Consolidated Adjusted EBITDA and Gross Profit Reconciliation (Expressed in United States Dollars, in thousands)
	Three Months Ended				Year Ended
	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
	$		$		$		$
Loss from continuing operations (GAAP)	(9,544	)	(143,093	)	(37,213	)	(207,288	)
Incremental costs to acquire cannabis inventory in a business combination	–		–		–		6,217
Interest (within cost of goods sold “COGS”)	727		1,196		3,017		4,094
Depreciation and amortization (from statement of cash flows)	22,137		21,074		90,949		76,150
Acquisition and transaction costs	619		852		4,080		5,985
Stock-based compensation, non-cash	3,074		17,375		16,491		46,822
Impairment of goodwill and other assets	6,320		117,950		6,320		117,950
Start-up costs1	2,915		3,016		11,786		13,052
Loss (gain) on sale of assets	25		182		91		(8	)
Other2	3,489		5,616		18,450		12,419
	39,306		167,261		151,184		282,681
Adjusted EBITDA from continuing operations (non-GAAP)	29,762		24,168		113,971		75,393
1 These are set-up costs to prepare a location for its intended use. Start-up costs are expensed as incurred and are not indicative of ongoing operations
2 Other non-core costs including non-operating adjustments, severance costs and non-cash inventory write-downs
	Three Months Ended				Year Ended
	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
	$		$		$		$
Gross profit (GAAP)	49,382		53,011		202,442		174,966
Incremental costs to acquire cannabis inventory in a business combination	–		–		–		6,217
Interest (within COGS)	727		1,196		3,017		4,094
Depreciation and amortization (within COGS)	10,163		9,064		39,585		30,349
Start-up costs (within COGS)	1,164		747		5,469		4,519
Other (within COGS)	565		2,541		6,337		7,423
Adjusted Gross Profit from continuing operations (non-GAAP)	62,001		66,559		256,850		227,568

 

Bay Street News