TerrAscend Reports Fourth Quarter and Full Year 2024 Financial Results

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Fourth Quarter Web Income of $74.4 million, up 0.3% from $74.2 million within the third quarter of 2024

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Fourth Quarter Gross Revenue Margin of fifty.2%, up 140 foundation factors from 48.8% within the third quarter of 2024

Full Yr 2024 Web Money offered by persevering with operations of $38.0 million and Free Money Move¹ of $28.6 million

10^th consecutive quarter of constructive Money Move from persevering with operations and 6^th consecutive quarter of constructive Free Money Move¹

TORONTO, March 06, 2025 (GLOBE NEWSWIRE) — TerrAscend Corp. (“TerrAscend” or the “Firm”) (TSX: TSND) (OTCQX: TSNDF), a number one North American hashish firm, right now reported its monetary outcomes for the fourth quarter and full yr ended December 31, 2024. All quantities are expressed in U.S. {dollars} and are ready underneath U.S. Usually Accepted Accounting Ideas (GAAP), until indicated in any other case.

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The next monetary measures with respect to full yr 2024 are reported as outcomes from persevering with operations because of the shutdown of the licensed producer enterprise in Canada, which is reported as discontinued operations by September 30, 2023. All historic durations have been restated accordingly.

Fourth Quarter 2024 Monetary Highlights

• Web Income was $74.4 million, in comparison with $74.2 million in Q3 2024, a rise of 0.3% quarter-over-quarter.
• Gross Revenue Margin was 50.2%, up 140 foundation factors in comparison with 48.8% in Q3 2024.
• GAAP Web loss was $30.2 million, in comparison with a web lack of $21.4 million in Q3 2024; This autumn 2024 web loss included a $45.4 million non-cash impairment cost associated to the Firm’s Michigan enterprise.
• EBITDA¹ loss was $30.6 million, in comparison with $6.6 million in Q3 2024; This autumn 2024 loss included a $45.4 million non-cash impairment cost primarily associated to the Firm’s Michigan enterprise.
• Adjusted EBITDA¹ was $15.1 million, in comparison with $13.7 million in Q3 2024.
• Adjusted EBITDA Margin¹ was 20.3%, in comparison with 18.5% in Q3 2024.
• Web Money offered by working actions was $9.7 million, in comparison with $1.8 million in Q3 2024.
• Free Money Move¹ was $5.0 million, in comparison with $1.5 million in Q3 2024.

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Full Yr 2024 Monetary Highlights

• Web Income was $306.7 million, in comparison with $317.3 million in 2023, a decline of three.3% year-over-year.
• Gross Revenue Margin was 48.9%, in comparison with 50.3% in 2023.
• GAAP Web loss from persevering with operations was $72.7 million, in comparison with a web loss from persevering with operations of $82.3 million in 2023; Web loss included $47.8 million and $58.1 million of non-cash impairment costs for 2024 and 2023, respectively, primarily associated to intangible and stuck property within the Firm’s Michigan enterprise unit.
• EBITDA from persevering with operations¹ was $3.3 million, in comparison with ($3.3) million in 2023.
• Adjusted EBITDA from persevering with operations¹ was $60.7 million, in comparison with $68.8 million in 2023.
• Adjusted EBITDA Margin from persevering with operations¹ was 19.8% in comparison with 21.7% in 2023.
• Web Money offered by persevering with operations was $38.0 million in comparison with $31.1 million in 2023.
• Free Money Move¹ was $28.6 million in comparison with $23.4 million in 2023.  

“The enterprise carried out forward of our expectations within the fourth quarter. For 2024, we generated $307 million in income, $61 million in Adjusted EBITDA from persevering with operations, $38 million in constructive working money move, and $29 million in free money move. This efficiency was pushed by our potential to attain a #1 market share place in New Jersey for all quarters of 2024, progress of our enterprise in Maryland from negligible income in early 2023 to a fourth quarter 2024 run fee of over $70 million, whereas surpassing 50% gross margin, in addition to improved gross margin in Pennsylvania, a state that I’m notably enthusiastic about in anticipation of proposed adult-use laws,” said Jason Wild, Govt Chairman of TerrAscend. “Through the yr we accomplished a non-dilutive debt financing, aided by our $150 million of owned actual property, extending the overwhelming majority of our debt maturities to late 2028. All of those accomplishments in 2024, together with reaching our tenth consecutive quarter of constructive working money move and sixth consecutive quarter of constructive free money move, give us confidence in our potential to drive operational efficiencies and progress of our core enterprise whereas judiciously pursuing a number of greenfield growth alternatives at more and more enticing costs.”

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Monetary Abstract This autumn 2024, Full Yr 2024 and Comparative Durations

All comparative figures have been restated to replicate the classification of the Canadian enterprise as discontinued operations by the third quarter of 2023. Monetary outcomes from the fourth quarter of 2023 onward replicate solely persevering with operations.

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1. EBITDA loss, EBITDA from persevering with operations, Adjusted EBITDA, Adjusted EBITDA from persevering with operations, Adjusted EBITDA margin, Adjusted EBITDA margin from persevering with operations, and Free Money Move are non-GAAP measures outlined within the part titled “Definition and Reconciliation of Non-GAAP Measures” under and reconciled to probably the most immediately comparable GAAP measure, on the finish of this launch.

2024 Enterprise and Operational Highlights

• Achieved 10^th consecutive quarter of constructive working money move and 6^th consecutive quarter of constructive free money move within the fourth quarter of 2024.
• Signed definitive settlement to enter the Firm’s sixth state with the acquisition of Ohio Ratio Hashish, a effectively located and at present worthwhile dispensary in Ohio. The transaction is anticipated to shut within the coming weeks, topic to regulatory approval.
• Maintained #1 market share place in New Jersey each quarter in 2024, in line with BDSA.
• All three New Jersey Apothecarium retail places have been ranked within the high 10 out of roughly 200 places within the state, in line with Lit Alerts².
• Commenced growth of cultivation and manufacturing in Boonton, New Jersey to assist innovation and allow a broader product portfolio to satisfy shopper demand.
• Income grew sequentially in Maryland for all 4 quarters of 2024 whereas increasing gross margin from 25% to over 50%.
• Elevated market share place in Maryland from #13 within the fourth quarter of 2023 to #6 within the fourth quarter of 2024, in line with BDSA. The Firm is now only one.9 market share factors away from a #2 place within the state.
• Initiated growth of Maryland cultivation facility by including 4 extra develop rooms with first harvest anticipated throughout the second quarter of 2025.
• Commenced preparation for anticipated Pennsylvania adult-use implementation, leveraging the Firm’s 150 thousand sq. foot cultivation and manufacturing facility and Apothecarium retail community of six dispensaries.
• Closed on a senior secured time period mortgage for gross proceeds of $140 million, carrying an rate of interest of 12.75%, maturing in August 2028 and containing no warrants or prepayment penalties. The phrases of the mortgage have been aided by the Firm’s roughly $150 million of owned actual property.
• Initiated first-ever share repurchase program in August 2024.
• Applied company-wide ERP system, enhancing effectivity throughout departments and offering improved information visibility and management.
• Accomplished a collection of initiatives which can be anticipated to scale back Basic & Administrative bills year-over-year in 2025 by not less than $10 million.
• Appointed Lynn Gefen, TerrAscend’s Chief Authorized Officer, to an expanded position as Chief Individuals and Authorized Officer, and Company Secretary.

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2. Knowledge primarily based on complete items offered throughout the fourth quarter of 2024.

Fourth Quarter 2024 Monetary Outcomes

Web income for the fourth quarter of 2024 was $74.4 million as in comparison with $74.2 million for the third quarter of 2024, representing quarter-over-quarter progress of 0.3%. This progress was pushed by the Firm’s #1 market share place in New Jersey mixed with sequential income progress in Maryland for the fourth consecutive quarter, partially offset by retail decline in Michigan.

Gross revenue margin for the fourth quarter of 2024 was 50.2% as in comparison with 48.8% within the third quarter of 2024. The quarter-over-quarter 140 basis-point growth was pushed by enhancements in Maryland and Pennsylvania whereas New Jersey remained comparatively flat quarter-over-quarter.

Basic & Administrative bills (G&A) for the fourth quarter of 2024 have been $28.0 million as in comparison with $31.6 million within the third quarter of 2024. The $3.6 million sequential decline in G&A bills was pushed by a $2.3 million discount in share-based compensation expense and $1.3 million of working expense reductions.

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GAAP Web Loss was $30.2 million, inclusive of $45.4 million of non-cash impairment costs associated to the Firm’s Michigan enterprise, in comparison with a web lack of $21.4 million within the third quarter of 2024.

Adjusted EBITDA, a non-GAAP measure, was $15.1 million, a 20.3% Adjusted EBITDA margin, as in comparison with $13.7 million, a 18.5% Adjusted EBITDA margin, within the third quarter of 2024. The quarter-over-quarter improve was pushed by gross margin growth and G&A expense discount.

Full Yr 2024 Monetary Outcomes 

Web income for the complete yr 2024 was $306.7 million, in comparison with $317.3 million for full yr 2023. The year-over-year decline was primarily pushed by a decline in retail gross sales in Michigan and New Jersey. The decline in retail gross sales in Michigan was pushed by diminished foot site visitors associated to reductions in discounting and promotions pushed by the Firm’s ongoing efforts to increase gross margin. The decline in New Jersey was pushed by a rise in retail competitors associated to retailer openings throughout the state. These declines have been partially offset by wholesale income progress in New Jersey and Pennsylvania and each retail and wholesale income progress in Maryland attributable to a full yr of adult-use gross sales and market share positive aspects in that state.

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Gross revenue margin for the complete yr 2024 was 48.9% as in comparison with 50.3% for the complete yr 2023. The decline in gross margin was pushed by value compression in New Jersey and Pennsylvania, partially offset by margin enchancment in Maryland associated to the Firm’s growth and continued productiveness positive aspects and value reductions in that market.

G&A bills for the complete yr 2024 have been $111.6 million in comparison with $115.2 million in 2023, representing a 3% decline in G&A bills year-over-year. This discount in G&A expense was associated to the Firm’s on-going initiatives to optimize its G&A bills. G&A as a p.c of income was unchanged versus the prior yr at 36.3%.

Web loss from persevering with operations for the complete yr 2024 was $72.7 million in comparison with a web lack of $82.3 million in 2023. Each 2024 and 2023 included $47.8 million and $58.1 million, respectively, of non-cash impairment costs primarily associated to intangible and stuck property within the Firm’s Michigan enterprise unit.

Full yr 2024 Adjusted EBITDA from persevering with operations, a non-GAAP measure, was $60.7 million in comparison with $68.8 million in 2023. The year-over-year change in Adjusted EBITDA from persevering with operations was pushed by decrease income and gross revenue margin, partially offset by decrease G&A bills year-over-year. Adjusted EBITDA margin from persevering with operations for the complete yr was 19.8% as in comparison with 21.7% in 2023.

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Stability Sheet and Money Move

Money and money equivalents, together with $600,000 of restricted money, have been $27.0 million as of December 31, 2024, in comparison with $27.2 million as of September 30, 2024. Web money offered by working actions was $9.7 million for the fourth quarter of 2024 in comparison with $1.8 million within the third quarter of 2024. This represented the Firm’s tenth consecutive quarter of constructive money move from persevering with operations. Capex spending was $4.7 million within the fourth quarter of 2024, primarily associated to the Firm’s expansions at its amenities in New Jersey and Maryland. Free money move was $5.0 million in comparison with $1.5 million within the third quarter of 2024, representing the Firm’s sixth consecutive quarter of constructive free money move. Through the quarter, the Firm distributed $2.9 million to its New Jersey companions and made $1.4 million of principal funds on its debt.

As of March 5, 2025, there have been roughly 369 million primary shares of the Firm issued and excellent, together with 292 million widespread shares, 13 million most popular shares as transformed, and 63 million exchangeable shares. Moreover, there have been 43.1 million warrants and choices excellent at a weighted common value of $3.90.

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Convention Name Particulars
TerrAscend will host a convention name right now, March 6, 2025, to debate these outcomes. Jason Wild, Govt Chairman, Ziad Ghanem, President and Chief Govt Officer, and Keith Stauffer, Chief Monetary Officer, will host the decision beginning at 5:00 p.m. Jap time. An issue-and-answer session will observe administration’s presentation.

About TerrAscend
TerrAscend is a number one TSX-listed hashish firm with pursuits throughout the North American hashish sector, together with vertically built-in operations in Pennsylvania, New Jersey, Maryland, Michigan and California by TerrAscend Progress Corp. and retail operations in Canada, TerrAscend operates The Apothecarium, Gage and different dispensary retail places in addition to scaled cultivation, processing, and manufacturing amenities in its core markets. TerrAscend’s cultivation and manufacturing practices yield constant, high-quality hashish, offering industry-leading product choice to each the medical and authorized adult-use markets. The Firm owns or licenses a number of synergistic companies and types together with Gage Hashish, The Apothecarium, Cookies, Lemonnade, Ilera Healthcare, Form Tree, Legend, State Flower, Wana, and Valhalla Confections. For extra data go to www.terrascend.com.

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Warning Concerning Hashish Operations in the USA

Traders ought to notice that there are vital authorized restrictions and rules that govern the hashish {industry} in the USA. Hashish stays a Schedule I drug underneath the U.S. Managed Substances Act, making it unlawful underneath federal regulation in the USA to, amongst different issues, domesticate, distribute or possess hashish in the USA. Monetary transactions involving proceeds generated by, or supposed to advertise, cannabis-related enterprise actions in the USA might type the idea for prosecution underneath relevant US federal cash laundering laws.

Whereas the strategy to enforcement of such legal guidelines by the federal authorities in the USA has trended towards non-enforcement in opposition to people and companies that adjust to medical or adult-use hashish applications in states the place such applications are authorized, strict compliance with state legal guidelines with respect to hashish will neither absolve TerrAscend of legal responsibility underneath U.S. federal regulation, nor will it present a protection to any federal continuing which can be introduced in opposition to TerrAscend. The enforcement of federal legal guidelines in the USA is a major threat to the enterprise of TerrAscend and any proceedings introduced in opposition to TerrAscend thereunder might adversely have an effect on TerrAscend’s operations and monetary efficiency.

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Ahead-Trying Data

This press launch incorporates “forward-looking data” throughout the that means of relevant securities legal guidelines. Ahead-looking data contained on this press launch could also be recognized by means of phrases comparable to, “might”, “would”, “may”, “will”, “possible”, “count on”, “anticipate”, “imagine, “intend”, “plan”, “forecast”, “venture”, “estimate”, “outlook” and different comparable expressions, and embody, however not restricted to, statements with respect to the Firm’s expectations for its total operational enhancements, progress and growth alternatives; the anticipated closing of signed acquisitions and the anticipated profitability of acquired dispensaries; the potential advantages of facility expansions; and the result of value discount initiatives. Ahead-looking data will not be a assure of future efficiency and relies upon quite a few estimates and assumptions of administration in mild of administration’s expertise and notion of tendencies, present circumstances and anticipated developments, in addition to different elements related within the circumstances, together with assumptions in respect of present and future market circumstances, the present and future regulatory surroundings, and the supply of licenses, approvals and permits.

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Though the Firm believes that the expectations and assumptions on which such forward-looking data relies are affordable, undue reliance shouldn’t be positioned on the forward-looking data as a result of the Firm can provide no assurance that they are going to show to be right. Precise outcomes and developments might differ materially from these contemplated by these statements. Ahead-looking data is topic to a wide range of dangers and uncertainties that might trigger precise occasions or outcomes to vary materially from these projected within the forward-looking data. Such dangers and uncertainties embody, however aren’t restricted to, present and future market circumstances; dangers associated to federal, state, provincial, territorial, native and international authorities legal guidelines, guidelines and rules, together with federal and state legal guidelines in the USA referring to hashish operations in the USA; and the danger elements set out within the Firm’s most lately filed MD&A, filed with the Canadian securities regulators and out there underneath the Firm’s profile on SEDAR+ at www.sedarplus.ca and within the part titled “Danger Components” within the Firm’s Annual Report for the yr ended December 31, 2024 filed with the Securities and Change Fee on March 6, 2025.

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The statements on this press launch are made as of the date of this launch. The Firm disclaims any intent or obligation to replace any forward-looking data, whether or not, because of new data, future occasions, or outcomes or in any other case, aside from as required by relevant securities legal guidelines.

Definition and Reconciliation of Non-GAAP Measures

Along with reporting the monetary leads to accordance with GAAP, the Firm reviews sure monetary outcomes that differ from what’s reported underneath GAAP. Non-GAAP measures utilized by administration would not have any standardized that means prescribed by GAAP and will not be akin to comparable measures offered by different corporations. The Firm believes that sure traders and analysts use these measures to measure an organization’s potential to satisfy different fee obligations or as a typical measurement to worth corporations within the hashish {industry}, and the Firm calculates: (i) Free money move from web money offered by working actions from persevering with operations much less capital expenditures for property and gear, which administration believes is a crucial measurement of the Firm’s potential to generate more money from its enterprise operations, (ii) EBITDA loss, EBITDA from persevering with operations, Adjusted EBITDA and Adjusted EBITDA from persevering with operations as web loss, adjusted to exclude provision for earnings taxes, finance bills, depreciation and amortization, share-based compensation, loss on extinguishment of debt, acquire (loss) from revaluation of contingent consideration, acquire (loss) on disposal of mounted property, Impairment of goodwill and intangible property, impairment of property and gear and proper of use property, dangerous debt restoration, unrealized and realized loss on investments, (acquire) loss on lease termination and derecognition of finance lease, unrealized and realized international change, acquire on truthful worth of spinoff liabilities and buy choice spinoff property, restructuring and government severance, authorized settlements and sure different objects, which administration believes will not be reflective of the continued operations and efficiency of the Firm , and (iii) Basic & Administration expense, excluding stock-based compensation, which administration believes gives a clearer view of the Firm’s core working value construction by eradicating the impression of non-cash, equity-based compensation bills.. Such data is meant to offer extra data and shouldn’t be thought of in isolation or as an alternative choice to measures of efficiency ready in accordance with GAAP.

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For extra data concerning TerrAscend:
Keith Stauffer
Chief Monetary Officer
ir@terrascend.com 
717-343-5386

Investor Relations Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
Valter@KCSA.com 
212-896-1254

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