Acreage Holdings, Inc. announced the financial results for the first quarter of 2020 with a substantial increase in revenue. Acreage will host earnings call on Friday, June 26th at 8:30 A.M. Eastern Daylight Time.
The cannabis industry faced a significant challenge amid the crisis of COVID-19 pandemic making U.S. the most affected country with millions of cases. New York based cannabis licensing company reported revenue of $24.2 million for the first quarter, which is 88% higher than the same period in 2019. The revenue saw a 15% increase as compared to previous quarter (4th quarter of 2019). The company’s Pro forma revenue increased 65% to $37.6 million as compared to the same quarter in 2019. It was a 17% increase over the fourth quarter of 2019.
However, its Gross margin decreased 10 basis point to 41.1% as compared to the same quarter in 2019, and it increased a 400 basis point as compared to the fourth quarter of 2019. The one-time non-cash pre-tax state charge related to company’s pre-announced scheme to focus its operations again in certain states was seen at $196.0 million and post-taxes as $164.7 million.
Acreage Holdings, Inc. posted a net loss of $172 million on attributable to Acreage, while adjusted attributable to Acreage net income of $14.7 million. Its Pro forma adjusted EBITDA saw a loss of $11.1 million. The company provided the adjusted net loss, Pro forma revenue and pro forma adjusted EBITDA as non-GAAP measures.
Bill Van Faasen, interim Chief Executive Officer of Acreage said that the company’s dispensary and processing and cultivation associates “quickly adapted to these changing dynamics ensuring our patients and customers in need were still served with dignity and respect, while maintaining a safe environment for everyone. Additionally, I am pleased with the reacceleration of our reported and pro forma revenue as our wholesale business continues to ramp and our dispensaries continue to mature.”
Acreage’s earnings conference call being held on Friday will be hosted by management. This call will be webcasted and can be viewed at investors.acreageholdings.com.