Ayr Strategies Highlights Gains from Nevada Curbside Pick-Up
May 05 2020 - 2:38PM
Vertically-integrated cannabis multi-state operator (MSO), Ayr
Strategies Inc. (CSE: AYR.A, OTCQX: AYRSF) (“Ayr”), is providing an
update on the evolving regulatory response to COVID-19. Unless
otherwise noted, all results are presented in U.S. dollars.
“As the regulatory response to COVID-19 continues to evolve, we
are pleased to have positive developments to share regarding our
business in Nevada,” said Ayr CEO Jon Sandelman. “The introduction
of curbside pick-up on May 1st has enabled daily revenue run rates
that allow us to reach our pre-COVID adjusted EBITDA levels. This
is a huge milestone, and adds to the already strong cash position
on our balance sheet.
“In the first four days of curbside pick-up, our Nevada
dispensaries fulfilled over 5,700 curbside orders. Since curbside
commenced on Friday, May 1st, the pace of weekly revenue growth has
increased to 45% from the 40% we experienced in April. Our flexible
technology has allowed for seamless deployment, with average daily
sales increasing to more than $200k with 2,000 daily transactions
between delivery and pick-up.
“Customers clearly prefer pick-up to delivery – we’ve seen our
mix shift to two-thirds or more at curbside since the start of the
month. Curbside has the added benefit of being significantly more
scalable with lower operating expenses than delivery. For
comparison, we have the ability to fulfill five times as many
orders per hour at pick-up compared to the volumes we’re able to
achieve through delivery.”
Sandelman continued: “We previously estimated
that by achieving $190k in daily sales we would reach our pre-COVID
adjusted EBITDA level for the state, and with curbside we are
pacing comfortably at or above those levels, given we are already
averaging more than $200k. Our team continues to adapt to the
changing business landscape incredibly well, keeping our customers,
our team and our community safe while providing the vital wellness
products our clients need.”
Nevada Curbside Metrics
- Run rate adjusted EBITDA now at pre-COVID levels for
Nevada
- Daily sales averaging more than $200k with curbside pick-up,
with 2,000 average daily transactions
- Currently two thirds of daily transactions are fulfilled at
curbside
- Average tickets remain elevated, most recently $133 for
delivery and $88 for curbside
- Curbside is significantly more scalable than delivery, with the
ability to fulfill five times as many orders per hour at pick-up
compared to delivery
“In late April we began preparing for our stores to reopen –
including the potential for curbside pick-up,” said Sandelman. “We
foresaw potential for a shift in purchasing behavior for buying
cannabis, and we are pleased that our advance preparations have put
us in an advantageous position to capitalize on this dynamic
environment.”
Non-IFRS MeasuresThe Company
reports certain non-IFRS measures that are used to evaluate the
performance of its businesses and the performance of their
respective segments, as well as to manage their capital structures.
As non-IFRS measures generally do not have a standardized meaning,
they may not be comparable to similar measures presented by other
issuers. Securities regulators require such measures to be clearly
defined and reconciled with their most comparable IFRS measure.
The Company references non-IFRS measures and
cannabis industry metrics in this document and elsewhere. Non-IFRS
measures are not recognized measures under IFRS and do not have a
standardized meaning prescribed by IFRS and are therefore unlikely
to be comparable to similar measures presented by other companies.
Rather, these are provided as additional information to complement
those IFRS measures by providing further understanding of the
results of the operations of the Company from management’s
perspective. Accordingly, these measures should not be considered
in isolation, nor as a substitute for analysis of the Company’s
financial information reported under IFRS. Non-IFRS measures used
to analyze the performance of the Company’s businesses include
“Adjusted EBITDA” and “Adjusted Gross Profit”.
For a reconciliation of Adjusted EBITDA to IFRS
measures please see our MD&A for the 3 months and year ended
December 31, 2019.
Forward-looking
statementsCertain information contained in this news
release may be forward-looking statements within the meaning of
applicable securities laws. Forward-looking statements are often,
but not always, identified by the use of words such as “target”,
“expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”,
“goal”, “outlook”, “intend”, “plan”, “seek”, “will”, “may” and
“should” and similar expressions or words suggesting future
outcomes. This news release includes forward-looking information
and statements pertaining to, among other things, Ayr’s future
growth plans. Numerous risks and uncertainties could cause the
actual events and results to differ materially from the estimates,
beliefs and assumptions expressed or implied in the forward-looking
statements, including, but not limited to: the impact of the
COVID-19 virus; anticipated strategic, operational and competitive
benefits may not be realized; events or series of events may cause
business interruptions; required regulatory approvals may not be
obtained; acquisitions may not be able to be completed on
satisfactory terms or at all; and Ayr may not be able to raise
additional capital. Among other things, Ayr has assumed that its
businesses will operate as anticipated, that it will be able to
complete acquisitions on reasonable terms, and that all required
regulatory approvals will be obtained on satisfactory terms and
within expected time frames.
About Ayr StrategiesAyr
Strategies (“Ayr”) is an expanding vertically integrated, U.S.
multi-state cannabis operator, focusing on high-growth markets.
With anchor operations in Massachusetts and Nevada, the company
cultivates and manufactures branded cannabis products for
distribution through its network of retail outlets and through
third-party stores. Ayr strives to enrich and enliven consumers’
experience every day – helping them to live their best lives,
elevated.
Ayr’s leadership team brings proven expertise in
growing successful businesses through disciplined operational and
financial management, and is committed to driving positive impact
for customers, employees and the communities they touch. For more
information, please visit www.ayrstrategies.com.
Company Contact:Jennifer Drake,
COOT: (212) 299-7606
Investor Relations Contact:Sean
Mansouri, CFA or Cody SlachGateway Investor RelationsT: (949)
574-3860Email: ayr@gatewayir.com
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