Ayr Strategies Inc. (OTCQX: AYRSF) reported that its revenue increased 4% sequentially in the first-quarter ending in March to $33.6 million. The company did note that sales began to decline in March due to the COVID-19 related closures. The company also reported a net income of $3.3 million after a foreign currency translation. The earnings per share were $0.06 basic and $0.05 diluted.
Ayr also made improvements on its loss from operations as it trimmed that number from a loss of $16.9 million in the fourth quarter to a loss of $4.9 million in the first quarter. The adjusted EBITDA was $8.4 million, which dropped from the fourth quarter’s $9.2 million due to the COVID closures.
Jonathan Sandelman, CEO of Ayr Strategies said, “Although cannabis has been deemed an ‘essential business’, the regulators in Massachusetts and Nevada, where we currently operate, were among the few nationwide to place material restrictions on cannabis sales. So unlike many cannabis companies in the U.S., our business faced headwinds.”
Ayr said in a statement that prior to the closures, sales through early March in Massachusetts and Nevada had been higher. In Massachusetts, the company redirected wholesale capacity into its retail stores, increased available inventory and average spend, promoted incentive programs to increase penetration of medical cards, and increased medical patient count. Nevada was subject to the disappearing tourist crowd. Ayr said it retooled its technology, rapidly implemented new software and an e-commerce oriented website, and launched digital marketing campaigns to support online sales in the state.
“Despite these limitations, in the first quarter we produced sequentially higher revenue and substantial adjusted EBITDA, and added material cash from operations to our balance sheet,” continued Sandelman. “Since then, we have successfully accelerated our digital transformation initiatives, and we expect to exit the challenges presented by COVID