AYR Wellness Inc. reported Thursday financial results that revealed mounting losses, missed analyst estimates and a goodwill impairment of $94,000,000 that was attributed by executives to the challenging Florida market.
In 2024, the multistate operator experienced a net loss of $362.4 millions, up from $279.5million in 2023. In the last quarter, net losses were higher than $31 millions.
In the fourth quarter, revenue dropped by 0.7% to $114.30 million. This is slightly lower than analysts’ average estimates of $114.3 millions. The full-year revenue was flat at $463.6 million and matched analyst expectations.
EBITDA adjusted for the quarter fell to $19.1m, down 35.9% compared to $29.8m a few years ago. Margins also declined, falling to 16.7% versus 25.9%. The operating loss for the fourth quarter of this year increased from $9.5 to $133.9, up 35.9%.
While our results for the fourth quarter of 2018 and year-end reflected continuing macroeconomic pressures, and challenges specific to our business that affected our revenue and profitability. We remain confident about our ability to sustain growth and enhance profitability within our footprint.
AYR finished 2024 with cash of $35.5 million, down significantly from the $50.8 million it had at the close of 2023. The company’s operating cash flow was $9.6 millions for the year and capital expenditures were reduced to $17.7million.
George DeNardo, newly promoted President of the company said: “Our vision is to invest in our core brand and streamline operations for cost efficiency and to facilitate faster and better decisions at all levels of our infrastructure.”
AYR plans to open 11 new dispensaries by 2024. The company now has 97 locations in eight states. In Florida, plans are underway for an indoor cultivation facility that will be financed by Innovative Industrial Properties.
In February, AYR extended by two years the maturities of almost $400 million in debt due in 2024, and raised an additional $40 million via new notes.
It is expected that the company’s revenue for first quarter of 2025 will decrease in mid-single figures compared to last quarter. Profit margins are also projected to increase modestly. For 2025, capital expenditures will be reduced to $10 million.