TerrAscend Preannounces Strong Second Quarter 2023 Revenue and Gross Margins and Provides Full Year Guidance

Record second quarter 2023 Net Revenue of $72.1 million, up 12.7% year-over-year and 3.9% sequentially, representing the 7^th consecutive quarter of sequential growth

Gross Profit Margin increased to 50.2% compared to 48.8% in Q1 2023

Company expects full year 2023 Net Revenue and Adjusted EBITDA from continuing operations¹ of at least $305 million and $58 million, respectively

Second quarter 2023 earnings conference call scheduled for August 10, 2023 at 5 p.m. ET

TORONTO, Aug. 01, 2023 (GLOBE NEWSWIRE) — TerrAscend Corp. (“TerrAscend” or the “Company”) (TSX: TSND) (OTCQX: TSNDF), a leading North American cannabis company, today announced preliminary and unaudited financial results for its second quarter ended June 30, 2023. All amounts are in U.S. dollars.

Based on a preliminary and unaudited review, the Company anticipates:

• Net Revenue of $72.1 million, an increase of 12.7% year-over-year and 3.9% sequentially
• Gross Profit Margin increased to 50.2% compared to 48.8% in Q1 2023 and 37.5% in Q2 2022

Additionally, the Company expects Net Revenue and Adjusted EBITDA from continuing operations¹ for full year 2023 will be at least $305 million and $58 million, respectively, representing year over year growth of 23% in Net Revenue and 49% in Adjusted EBITDA from continuing operations¹.  

“We are pleased to deliver results in the second quarter that exceeded our internal forecasts. This team has accomplished a tremendous amount in recent months. We have significantly improved our margins, transformed our balance sheet, materially lowered our interest expense, achieved positive cashflow, acquired four dispensaries in Maryland, and successfully listed on the TSX, all while driving sector leading revenue growth,” stated Jason Wild, Executive Chairman of TerrAscend. “These achievements bolster our confidence in the remainder of the year. As evidenced by today’s guidance, we expect significant growth in revenue and profitability as we realize the benefit of our now vertically integrated operations in Maryland as well as continued strong execution in our other geographies.”

¹Adjusted EBITDA from continuing operations is a non-GAAP measure. Please see discussion of non-GAAP measures at the end of this press release. TerrAscend is not able, at this time, to provide a reconciliation of Adjusted EBITDA for full year 2023 to net (loss)/income from continuing operations because of the unreasonable effort of estimating on a forward-looking basis certain items that are excluded from Adjusted EBITDA from continuing operations, including, for example, certain material non-cash items such as inventory write downs outside of the normal course of operations, share based compensation expense, impairment charges taken on goodwill, intangible assets and property and equipment, the gain or loss recognized on the revaluation of our contingent consideration liabilities, one-time write off of accounts receivable related to one customer that was deemed uncollectible, loan modification fees related to the modification of debt, the gain recognized on the extinguishment of debt, the gain or loss recognized on the remeasurement of the fair value of the U.S denominated preferred share warrants, one time fees incurred in connection with acquisitions and certain other adjustments management believes are not reflective of the ongoing operations and performance, the effect of which may be significant. The outlook for full year 2023 provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Information” below.

Conference Call Details:
The Company will report its full financial results for the second quarter ended June 30, 2023 on Thursday, August 10, 2023 after market close. Management will host a conference call the same day at 5:00 p.m. Eastern Time to discuss its financial results for the second quarter 2023.