💸 High Impact

TerrAscend Posts Impressive 2Q Results

The What - TerrAscend Corp. reported impressive Q2 2024 financial results, reflecting robust growth and operational efficiency. Net revenue hit $77.5 million, marking a 7.5% year-over-year increase from $72.1 million. However, the gross profit margin slightly dipped to 48.6%, down from 50.2% in Q2 2023, highlighting some margin pressure amid expansion efforts.

The company recorded a GAAP net loss from continuing operations of $6.2 million, a substantial improvement compared to the $12.9 million net loss in Q2 2023. This reduction in losses indicates better cost management and operational efficiencies. EBITDA from continuing operations skyrocketed by 186% year-over-year, reaching $18.6 million compared to $6.5 million in the prior year. Adjusted EBITDA also saw a healthy increase, growing 21.9% to $15.6 million from $12.8 million in Q2 2023. The adjusted EBITDA margin improved to 20.2%, up from 17.8%, underscoring enhanced profitability.

Cash flow metrics were particularly strong. Net cash provided by continuing operations surged to $13.1 million, a significant rise from $1.8 million in Q2 2023. Free cash flow turned positive at $11.7 million, compared to negative $0.2 million the previous year, indicating strong cash generation capabilities.

Jason Wild, Executive Chairman of TerrAscend, commented, “For the second quarter, revenue and EBITDA increased materially year-over-year, and we delivered another quarter of positive free cash flow.” He highlighted the company’s strategic focus and financial flexibility following the closure of a $140 million term loan, which will fuel future growth initiatives.

Operationally, TerrAscend achieved several milestones. The company maintained its position as the market leader in New Jersey for the first half of 2024, doubled its wholesale revenues in Pennsylvania and New Jersey, and grew Maryland’s wholesale revenue by 117% year-over-year. Notably, the Michigan market maintained a 40% gross margin for the third consecutive quarter, demonstrating consistent profitability.

The company also expanded its retail footprint with the opening of the GAGE 313 dispensary in Detroit and the relocation of its Nottingham, Maryland dispensary. Furthermore, TerrAscend expanded cultivation capacity at its Hagerstown, Maryland facility, aligning with its strategic growth objectives.

These financial and operational highlights reflect TerrAscend’s robust performance and strategic initiatives, positioning the company for continued growth. The company’s ability to generate positive cash flow for the eighth consecutive quarter and its leadership position in key markets underscore its operational excellence and market penetration.

Looking ahead, TerrAscend aims to capitalize on its “wide open map” strategy by entering new markets through accretive deals with top-tier operators. The company is poised for further growth and expansion, driven by a strong financial foundation and strategic execution.

📈 Dog Walkers

Trump Could Support Cannabis Reform

Alright folks, Trump just dropped a bombshell at Mar-a-Lago, hinting he's warming up to the idea of decriminalizing cannabis. He’s acknowledging that as more states legalize it, locking people up for pot makes less sense. With Florida’s cannabis legalization on the ballot this November, he’s promised to reveal his stance soon. This comes as a pivot from his tough anti-drug talk, not slamming the Florida measure despite DeSantis’s opposition. Trump also praised Alice Johnson, whom he pardoned, for her non-violent drug offense, noting the irony given current legalization trends. Stay tuned for his official take!

Planet13 Digesting VidaCann Deal

Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNH) reported a very respectable quarter ladies and gentlemen. They reported a solid Q2 2024 with revenue soaring 20.3% to $31.1 million, beating analyst estimates of $29.75 million. However, net loss widened to $8.1 million from $4.6 million due to the Florida acquisition of VidaCann. Gross profit margin jumped to 50.9% from 46%, thanks to reduced retail sales incentives. The company’s expansion in Florida is promising, adding 26 dispensaries and planning to bring Nevada brands there. With $26.7 million in cash, they're set for further growth despite higher expenses and a $4.1 million tax hit.

The “Year Of The Core” Continues To Work

Here’s the lowdown on Cresco Labs' Q2 2024. They pulled in $184 million in revenue, up 7.5% year-over-year. Gross profit hit $95 million, with an adjusted gross profit of $97 million and a 52% adjusted gross margin—up 570 basis points. Despite a $51 million net loss due to a $61 million one-time tax charge, their adjusted EBITDA soared to $54 million, marking a 33% jump and a 29% margin. They generated $17 million in operating cash flow and $11 million in free cash flow. Cresco remains the top dog in Illinois, Pennsylvania, and Massachusetts. CEO Charles Bachtell’s confident—they're poised for continued growth.

🗞️ The News

TerrAscend Reports Second Quarter 2024 Financial Results

Cresco Labs Reports Consistent Profitability Improvement with Second Quarter 2024 Financial Results

Village Farms International Reports Q2/24 Results

Trump Says He Agrees People Should Not Be Criminalized Over Marijuana As More States Legalize

Colorado Initiative On Marijuana And Concealed Carry Firearm Permits Fails To Qualify For Ballot

Nonpayment is No. 1 reason marijuana firms fail: Q&A with collection expert Brett Gelfand

📭 Research

Initiating Coverage: Green Thumb Industries - Download Here

Reconfirming Buy Rating: MariMed - Download Here

Initiating Coverage Of Verano Holdings Corp. - Download Here

Initiating Coverage: TerrAscend - Download Here

📺 YouTube

Marijuana REIT NewLake Capital Q2 Revenue Up + Jushi Reports Q2

What we covered:

✅ On our latest Trade To Black podcast as earnings season for the cannabis industry continues.

Jim Cacioppo CEO of Jushi Holdings (CSE: JUSH) (OTCQX: JUSHF) joins us to talk about their latest numbers on how the company chopped its losses and improved profit margins for Q2 2024.

The Florida-based multistate operator posted a net loss of $1.9 million for the quarter, versus a $14 million loss in the same period last year.

The podcast will also dive into NewLake Capital Partners (OTC: NLCP) latest numbers as CEO - Anthony Coniglio will share how he was “pleased” with the quarter’s results, highlighting that revenue was up 9.5% year-over-year to $12.5 million from $11.4 million.