TerrAscend Corp. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in quarterly revenue and an increase in net losses compared to the same period in the previous year. The company generated revenue of $74.2 million for Q3 2024, down 17% from $89.2 million in Q3 2023. For the nine-month period, revenue increased slightly to $232.3 million from $230.8 million in the prior year. The decline in quarterly revenue was attributed to reduced retail sales in Michigan and increased competition in New Jersey.
Gross profit for Q3 2024 was $36.2 million, down from $47.8 million in Q3 2023, while gross profit for the nine months was $112.6 million, compared to $117.9 million in the previous year. The company reported an operating income of $2.5 million for Q3 2024, a significant decrease from $17.7 million in Q3 2023. Net loss from continuing operations for Q3 2024 was $(21.4) million, compared to $(8.4) million in Q3 2023. For the nine months, the net loss from continuing operations was $(42.5) million, slightly higher than $(40.5) million in the same period last year.
TerrAscend's total assets as of September 30, 2024, were $656.9 million, a decrease from $666.5 million at the end of 2023. Current liabilities significantly decreased to $78.5 million from $207 million, while total liabilities rose to $449.8 million from $425.8 million. The company’s accumulated deficit increased to $(746.7) million from $(704.2) million at year-end 2023.
Strategically, TerrAscend entered into a four-year senior secured term loan of $140 million to refinance existing debt and support working capital. The company also initiated a share repurchase program, allowing for the repurchase of up to $10 million in common shares, with 107,400 shares repurchased for approximately $133,000 during Q3 2024.
In terms of operational changes, TerrAscend has consolidated its Canadian and U.S. cannabis operations and is focused on maintaining liquidity to support ongoing operations. The company has also been involved in various legal proceedings, although management does not expect any material impact on financial statements from these lawsuits.
Overall, while TerrAscend experienced slight revenue growth over nine months, the quarterly performance reflects challenges in the retail market, leading to increased losses and strategic financial maneuvers to stabilize operations.
About TerrAscend Corp.
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