TerrAscend Announces Strong Revenue Growth and Margin Improvement for the Third Quarter of 2019 Third quarter revenue of $26.8 million, an increase of 53% from $17.6 million in the second quarter and compared with $1.8 million in the third quarter of 2018 Improved gross profit margin to 26.1% from 12.3% in the second quarter Increasing strategic focus on larger and higher margin U.S. markets Significantly higher revenue and continued improvement in Adjusted EBITDA1 margin anticipated in the fourth quarter
TORONTO, Nov. 20, 2019 /PRNewswire/ – TerrAscend Corp. (CSE: TER;OTCQX: TRSSF) (“TerrAscend” or “the Company”), the first and only global cannabis company licensed for sales in Canada, the U.S., and the EU, today reported financial results for the third quarter ending September 30, 2019. All figures are reported in Canadian dollars, unless otherwise indicated.
Third Quarter 2019 Financial Highlights
Third quarter 2019 revenue increased 53% quarter-over-quarter to $26.8 million from $17.6 million in the second quarter of 2019 and compared with $1.8 million in the third quarter of 2018. Revenue growth was driven by higher overall sales in Canada as well as strong sales in the U.S. Pro forma revenue1 for the third quarter of 2019 was approximately $44 million. Gross profit for the third quarter of 2019 was $7.0 million, compared with $2.2 million in the second quarter of 2019 and ($0.6) million in the third quarter of 2018. Adjusted EBITDA¹ for the third quarter of 2019 was ($6.5) million, compared with ($8.7) million in the second quarter of 2019 and ($6.3) million in the third quarter of 2018. As of September 30, 2019, the Company held $6.9 million in cash and cash equivalents. Subsequent to quarter end, the Company closed on two tranches of the previously announced non-brokered private placement for total proceeds of approximately $18.0 million.