StaffMultistate operator TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) reported revenue for 2023 of $317.3 million, a year-over-year sales increase of 28% in 2023, driven in large part by Maryland and New Jersey.
That figure is just slightly below Yahoo Finance’s average analyst estimate of $320.2 million.
For the fourth quarter, which ended Dec. 31, 2023, revenue was up 25.5% from the same period a year ago, clocking in at $86.6 million.
Despite the solid revenue growth, the company recorded a net loss from continuing operations for both the fourth quarter and full year of $41.8 million and $82.3 million, respectively. The fourth-quarter’s loss was a significant increase from the prior-year period’s $2 million, which the company attributed to non-cash impairment charges related to its operations in California and Michigan.
The full-year loss, however, was a significant improvement over the $299.4 million reported in 2022.
Fourth-quarter details
Gross profit margin for the fourth quarter of 2023 was 48.2%, compared to 44.6% in the fourth quarter 2022. The company attributed the improvement to:
- Yield improvements in New Jersey
- Margin optimization in Michigan
- Commencement of adult-use sales in Maryland
Despite the strength of Maryland overall, the gross margin in the quarter was down sequentially after equipment malfunctioned that led to a crop failure.
In New Jersey, retail sales reportedly declined, however, that was offset by a “more than doubling” of wholesale sales in that state.
Free cash flow was $7.9 million, compared to $3.9 million in the fourth quarter of 2022. During the quarter, payments were made related to $4.1 million of debt paydown and $4.7 million of cash distributions to the company’s New Jersey partners.
Full-year results
For all of 2023, TerrAscend’s gross margin climbed 9.3 percentage points to 50.3%, once again driven by revenue gains in Maryland and New Jersey. Optimization efforts in Michigan and Pennsylvania also gave the margin a boost for the year.
At the end of the year, the company reported having cash and cash equivalents of $25.3 million. That’s down slightly from the $26.8 million on hand as of Dec. 31, 2022.
