2020 was a good year for many cannabis companies. While the US industry is still waiting for nationwide acceptance, more states are approving their own legislation, which is helping to fuel better growth. 2021, by virtually all estimates, appears to be on the cusp of a massive breakout, and possibly federal cannabis regulation, but one company isn’t waiting. TerrAscend is about to release its latest financial report and predicts that it will be able to show incredible growth for last year.
TerrAscend issued a statement last Friday, releasing its preliminary financial results for 2020. These still have to be confirmed, but the company asserts that it saw full-year net sales of $198 million, with $65 million occurring in the fourth quarter. That represents a year-on-year increase of 152% and a quarter-over-quarter improvement of 28%.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) improved, as well last year. TerrAscend indicates that the preliminary calculation is $60 Million, of which $26 million was seen in the last quarter. That is a quarter-over-quarter climb of 46%, and the adjusted EBITDA margin climbed with it. In the second quarter of last year, the margin was 24%, which increased to 35% in the third quarter before expanding to 40% in the fourth quarter.
TerrAscend CEO and Executive Chairman Jason Ackerman said of the performance, “Our fourth quarter results demonstrate robust sequential revenue growth and continued expansion of EBITDA margins, which reflect the strong fundamentals of our business. During the quarter, we realized sales from key expansion projects in Pennsylvania, New Jersey, and California, that together with our pending entrance into the Maryland market, position the company for continued growth in 2021.”
As a result of the company’s growth last year, TerrAscend is confident of its abilities for 2021. It expects to see net sales of $360-$380 million, along with an adjusted EBITDA of $140-$160 million. The final financial results will be shared with investors in a conference call on March 23, preceded by a public release of the final data.