The following is a summary of the TerrAscend Corp. (TSNDF) Q3 2024 Earnings Call Transcript:
Financial Performance:
TerrAscend reported Q3 2024 net revenue of $74.2 million, a slight decrease from $77.5 million in Q2 2024.
The company maintained a strong gross profit margin of 48.8%.
Adjusted EBITDA from continuing operations was $13.7 million, with net loss from continuing operations at $21.4 million mainly due to one-time non-cash accounting items.
Business Progress:
TerrAscend continues to dominate market share in New Jersey and plans expansion in Ohio with the acquisition of a high-performing dispensary.
The company completed its ninth consecutive quarter of positive cash flow and fifth of positive free cash flow.
Following M&A interests, TerrAscend is pursuing acquisitions and operational expansions in Maryland, Pennsylvania, and Ohio.
Opportunities:
The company aims to capitalize on new market opportunities such as Ohio and enhance operations and profitability by leveraging its existing Midwest infrastructure.
Regulatory reforms and potential cannabis rescheduling could further enhance business operations.
Risks:
TerrAscend faces risks from increased market competition in key states, which affects wholesale and retail revenues.
Regulatory outcomes, such as the pending DEA hearing on cannabis rescheduling, could impact operations.
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