LIFD - Earnings call transcript Q4 2023

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Operator

Welcome to LFTD Partners Fourth Quarter 2023 Earnings Conference Call. This call is being recorded. [Operator Instructions] I will now hand the conference over to Gerry Jacobs, the Chairman and CEO of LFTD Partners, Inc. Please go ahead.

Gerard Jacobs

Good morning, and welcome to LFTD Partners Fourth Quarter 2023 Earnings Conference Call.

be and XXXX for the the will have links some both the release and fourth SEC, at share press website, questions and to year our we our call. full been can annual some earnings comments financial call, of quarterly the statements quarter and www.lftdpartners.com. On on Our today's on and we performance, found end filed answer with will of available replay through time this period will an A our accessible be Investors for of of section the extended call website.

Here's harbor safe the notice.

statements that differ regarding expect, would, believe, the including a materially. and risks involve to should, and that of words that business, performance, statements hope, potentially, project Some number cause we of and will today financial actual and might, results could, uncertainties our similar make such verbiage could may, as forward-looking operations are

-- So should upon undue place investor statements. so such listeners reliance not

$XXX,XXX a loan which were Surety LFTD entered year the potential building another Lifted XX% was company and and being be narrative calendar December, by quarter and even purchase many Made our XX% unprofitable refer filed neighborhood us met XXXX capital more the a SEC. We to available past publicly which at XX-K majority traded had only in Form the X- X.X% profitability XXXX please in discussed Partners another into to and Bank, QX X working of with agreements that interest X-year a interest. obligation in companies or QX million or at year all XXXX. shatter nearly would years, the for most over and profitable loan Unlike of recent rates profitable factors more risk at LFTD to lenders the forward-looking X-year financing loan interest we This with the update with term. Instead, the XXXX, industry, vast For statements. information, these cannabis in with us in the in no debt X $X during undertake to allowed Partners pushed our at

purchase from million week, addition building these several additional February Made, allowing shares. XXXX main pursuant earliest its working to less. dollars deferred in with our loans the Made In received Kenosha, and of $X.XX provided that have of stock Lifted of up buyback Made Nick approvals from us pay employee XXX,XXX our by capital. Last that to to retention buyback of be of private who stock reduced in of use the negotiated are per we consideration Surety to operations Lifted stock taxes to Board same will working $XXX,XXX conduct Lifted or Bank capital obligated year shares of to Directors on income certain number share common of off-the-market they employees, to at up our third our Such acquisition the acquired of from stock agreement by an merger anniversary to his on a contingent

in what currently levels, both the and at being of state so-called is attack regulatory and bill Nick stock such other will farm aware that this in language we very start a be uncertain is reauthorization later federal call, buyback a cannabinoid it are progress this hemp-derived legislation. the this under positive to products the final going D.C., to and is expect week. Notwithstanding developments be to infused Washington, discuss discussed continue We included in that

efforts. money business challenges to adopted in are expense us time, are federal effort continuing been Made's of management material tighter Lifted or of infused and In and in regulation for that have to and states state substantial to cannabinoid addition, risks regard significant markets products Florida. These many to lobbying proposed Lifted, prohibition are or require hemp-derived including regulatory

with difficult Lifted that in faces continues to which by the need consumers. this hemp-derived inventory issue find slow-moving to results. challenge industry, Lifted of be evolve most this product it finds formulations embraced infused like Lifted off, Consequently, XXXX affected later. and Made predict that Made to that Jake provide written SKUs companies industry products more certain rapidly, be cannabinoid to sometimes is materially QX off and our continues product Another will right detail Made on itself financial will adversely

country third-party during has companies Texas by the against players months, to certificates testing suppliers allege of the by and Made's that exact labels did our run whose brands, same doses and individuals lawyer these been stores, particularly plans Along the LFTD are has their in cannabinoids individuals not distributors, the number Lifted major sued many around of lawsuits filed a that lifted few that certain past in indicated with contain many by and from industry labs raw Finally, of lawyer, the including Wisconsin a of of who been businesses. goods certain labs. of the by testing other and received and have products the in analysis these

lawsuits Operations these presentation subsidiary, us meritless, Chief legal continuing wholly Chairman CEO and Vice are to will Warrender, and and we have defend to intend require and us lawsuits and these and management vigorously we effort owned Founder point, Nick expand required over this the While Made. to consider time fees. At to Officer; to be against I substantial our the Lifted of turn our them,

Nicholas Warrender

with very on since LFTD everyone. hemp-derived with emerging milligrams raw and been organically despite rapidly manufacturers been that Made continuing cannabinoids reduced industry's price you, additional numerous of a products but Thank produce with merging due regulatory have way -- by partners, knockoff race per at the morning, put good brands. more pandemic, our access our milligram despite easy the produce continually and went has Lifted despite recipes public we to unit per to challenges Gerry, to growing to arms materials

$XX.X up million in in XXXX. revenue from XXXX, still to $X grown Our has million

other we on have a XX achieving. profitable has traded tell about to some today. or we Our GAAP-based from exciting head less And share companies per And to been have the in last publicly earnings today. of developments something that count for cannabis XX overcome the industry no than grown XXX close basis have quarters, you few employees XX about to

derived into collaboration of an Made First, large cannabis popular with launched Lifted and one distribution. cannabinoid publicly most a exciting bringing brands the product has traded award-winning multi-state Cans company, national

Melos. the brand planning of power products Melos the first the and our launch will well-known to with market other focused LFTD of focused relaxation. is new fleet, a on soon terpenes Second, diversify ingredients. called health is focus products and non-hemp be botanical with operations wellness fitness, brand around Melos natural leveraging nutraceutical gummy to

LFTD which while Hemp process operational additional efficiencies flower Mexico the drug Flower in end is two its of THCA Third, at expand the Fourth and industry, to temp of its to is the division in cans space give square without the this came lifted New additional move penalty Kenosha, an lease in division Aztec moving space to a March, division meaningfully. law. expand to Hemp XX,XXX also reconfigured Flower to agreement will allowing LFTD space area in leases from of an under another Durango, feet existing space Colorado we cancel of expect of in legal existing lease Lifted by into Colorado. This with larger Made improve lease landlord to

to herb extremely brand. continues its company's greatest and ] be strength well-known popular[ Our high-quality

spent turn those products the over believe focus Jake channels exhilarated loyalty. At we and to months level as new We to sales and market. are continuing a Financial channels sales our marketing and next to Officer. presentation direct-to-consumer the are have on and to brand higher technologies often I direct-to-store exhibit on point, herb Jacobs, will President are working Chief this generation we the next bring with of Consequently,

William Jacobs

Nick. be to based I of comparisons Thank state comments My otherwise. will you, year-over-year on unless XXXX, XXXX

competing greater Our with number for consolidated competition due distributors $XX.X entered distributors of in products Diamond brands Co. unit net approximately branded wholesalers and in million sales. their with marketplace low cannabinoids paying and per were products sales a their milligrams hemp-derived ] more in containing brands, sales prices, and these for agreements manufacturing, price headwinds, for and psychoactive into the Cali and valuable Sweets, contributed at lower XX% headwinds Supply and $X.X down marketing selling products, space. Partially competition Cheder the shelf to increased [ we creating own more own a million, other net offsetting XXXX of point

Our $X.X total to compared sold of decreased Written-off XXXX. was goods cost $XX.X down inventory million, XXXX $X in in million XX%. million to

excluding decreased Cost XX% our X%. goods sold, net goods of inventory sales of XXXX Excluding and sales written-off represents written-off in XXXX. in of XX% sold net cost inventory, of

and operating investment as to royalty of increased previously marketing expenses primarily costs. $X.X of in and result, up which CRS, primarily than labor goods Payroll by sales and Our million net support XXXX or XXXX approximately XX%. third-party expenses into and acquired expenses worked contractor of had manufacturing of our third-party faster expenses manufacturing, was the increase deferred sales sold stock to in cost $XX.X million sales due were of in labor $X.X $X.X contingent The commission production our million, in XXXX agreements. Operating and driven by XXXX. lifted increased Oculus related and result assets the marketing cost for as we independent that agreements expense the of the a and to entered April million absorbing in in XX% a staff rose

at $X.X of months, approximately includes approximately few margin settlements, Other $X.X XXXX XXXX offset per by recognized million, last of employees. was down our which Other organization income $XXX,XXX GAAP-based by basic of we of rightsized earnings income to Operating expense XX%. or $X.XX stabilized primarily XXX $XX,XXX. Net share. X%, in compared expenses down $XXX,XXX the income We was million, income And $X.XX bad annual achieved financing in debt [ Operating are interest of in to down is XX%. $XXX,XXX and income $XXX,XXX. in increased earnings currently XXXX other diluted litigation and $XXX,XXX ]. XXX%. During share income per was debt have related X.X% of was

XX%. our expense of $X.XX, XX.X contingent quarter million to per weighted million, the were $XX.X by XX%. ended Excluding Basic million, the for deferred the revenues XX.X and average for respectively. EBITDA and XXXX, shares Comparing were ended XX, outstanding and $X earnings year up respectively. million million, the December quarter diluted have $X.X share XX, and income XXXX December full the been would consolidated the our greater year for basic net million, down XXXX, $X.X was stock year

weighted price XX% features. increased up would exercise cashless million. had options $XXX,XXX on weighted from goods Working income of $XXX,XXX up diluted total debt compared in total million, Operating in QX XX%. $XX,XXX, down XX% net-GAAP of billion, to XXXX, compared up $XXX,XXX at and average increased to XXXX. Other $XX.X million, were vested outstanding shares and million. Inventory generate XX% diluted XXXX. XX.X million, We if compared achieved $X.X in XX, basic up $X.X Operating was XX, hand $X.X outstanding operating proceeds of respectively. EBITDA down up we XX%. XX% were XX%. any based $X.X December XXXX of million, $X and from $X.X for $X We to of exercise million, XXXX. expenses $XXX,XXX margin exercised, payable XX, from Surety and $XX.X $XX.X outstanding Cash million to sold X% assets Net from of increased million, $X.X $XX.X million, XX, Our were up were December of million. Current increased XXXX, and $X.X million to balance X.X sheet. to was income cost all our At $XX.X income million our $XX,XXX, per exercisable to million income which, outstanding In of no sheet compared to with ratio an Current to XX.X XXXX. Thank operating you. there December loss $X.X regards XX% $X.XX, for and was basic increased other notes negative XXXX, a capital X% to average of to million, earnings balance compared Bank had to warrants ignoring QX XX%. was share, December from XXXX was

Gerard Jacobs

to answer may now participation. to Thank have early guess at submitted of will us. Instructions] no call. have you in [Operator questions today. time. We I this We greatly this up conference, we This your everybody been and questions appreciate concludes some disconnect you for who the that today's participating Well, got

LFTD Partners (LIFD) 1 Apr 242023 Q4 Earnings call transcript