Recent MRMD transcripts
Associated MRMD filings
Phil Carlson | MD, IR, KCSA |
Robert Fireman | CEO |
Jon Levine | CFO |
Good day and welcome to the MariMed Inc.
Third Quarter 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Phil Carlson, Managing Director from KCSA. sir. ahead, go Please
and conference everyone. call. operator third to quarter XXXX good you, Welcome morning MariMed's Thank
of visit For provide supporting website are or recording Bob documents of at filed call, copies our on yesterday to press marimedinc.com. With retrieve today's of Investors' page the releases us and this our please call a Fireman, Today, the highlights and the results for business we'll third recent MariMed as a and Jon as MariMed's Levine, update. and of operational review CEO Chief Officer. well quarter Financial and financial developments
we're these formal to Following questions. remarks, prepared answer your
in comments the not we materially and like them discuss with due statements. outlook of by new risks obligation those and limit one reflect filings kindly During differ than today's remind as of Actual portion does laws, the and question applicable I our business events follow-up. predictions or update Q&A during to circumstances. today's will to ask that and we on any forward-looking our to events one could based to call, required to securities make everyone These mentioned the you SEC. results expectations and also or number or would a that yourself made other company including uncertainties assume today of revise as are call,
CEO. Now at this the floor Bob, introduce MariMed's yours. time, pleasure is Fireman, my it is Bob to
recap public, and MariMed excited am opportunity very on This discuss for we XXXX as and general. our of company to call our Thanks Phil we to what is -- a company earnings quarter us communication as improve I we work quarterly have conference to a we to-date. to in which all and first as third joining achieved and so you and for continue our our our to business thank earnings you this shareholders everyone update with intend company call. the to public
earnings very with and a of and sustainable the an operator point business. in businesses to at future inflection now with are products a a on bright with revenues multi-state We build seed-to-sale cannabis which foundation profitable
an history give general give are to I of the we overview about of for business I'll the briefly Before MariMed operations, who are those on and of some new you story. a update talk who our
are Norwood, the MRMD, company public We a symbol OTCQX, trading with headquartered under are Massachusetts. in
Our human health wellness. company power transform believes cannabis has that to the and
standard licenses and read for developed the dedicated years. units. state-of-the-art over regulatory facilities. team over are procedures, purpose MariMed for Nevada, this innovation cultivation, its set genetics, production, these and together has us, XXX,XXX develop has to Rhode cannabis done cannabis formulation, business. This day Delaware, We for XX to these new Illinois, best and feet clients; the states of and training, We product. organically in been six practices We've every XX cannabis created dispensing Massachusetts, team with compliance, manage won The work job, Island. square We and to licensed operating business Maryland,
products. brands developed has addition, In portfolio MariMed proprietary and a of
multiple in fruit Our States. the of named the List top United been to Betty’s in innovative juice brands and LeafLink of product selling cannabis-infused and states, Eddie’s is all-natural cannabis brand has the selling consistently top
sale Puerto partners is and as Baking these with as our and Heritage, develop the manufacturing increasing in that Co. brands brands and are consistency, well. selling flower has shelves brands concentrate share cycle. Bourne that cannabis market hot Caribbean quality Our Fusion our off our markets Pique, our Tropizen in share every Kalm Nature's multiple forged with sauce distribution partnerships MariMed Rico. strategic we such a with
XXXX, do and to patients to by our say multiple with strategy others consolidate The integrated with the with our licensing trade, states. these execute we revenue cannabis In X,XXX cannabis his issued are operate cannabis or our to as operations Massachusetts businesses plant, of Israeli operations medical our we not where financial advisory multi-state successfully in fully an in not to developing to Our under We're Illinois, these only these began formulation statements licensed for To-date, we these were for when Tikun for acquired We Olam, medical essential cannabis report entities. MSO. states began these umbrella ourselves. we licenses back become business being industry developed cannabis seed-to-sale an as operator on popular and public only, provide. in legendary from the profit in and able vertically publicly and brands, they Healer, revenues in consolidated now and distribution other company
As you rapidly as quarter our we are as cannabis results, third generating can revenue branded growing from see assets, consolidate to as products. our our revenues increasing continue well from licensed the
the of For revenues cannabis drivers ended reported here financial the all nine XXth, nearly about months million, we important calendar double more to talk Jon XXXX. few September this just we year growth. $XX.X reported will for the the you are performance of our a in is What's $XX.X million XXXX, minutes. which
and addition expand to meet gain market we continue driving throughout States. the launch some grow to United adult-use of in across consolidation automate production continue working produce equipment markets, locations. more growing products of products capacity and to up infused the to space growing our new our our flowers better consumer In this number of to share to and innovative recognition the To consumer products retail strategy, greater and diligently share faster our of cannabis branded the we're to demand,
building two XXXX varieties XX,XXX continue merriments open of Kalm wholesale under producing balance flower approximately foot will and and Massachusetts had on operation and awarded program, the brands, well adult-use from our just our and into XXXX. and revenue. market, registered license brand this its out The Pique in with our These into building data medical roll Now, boon and into XX,XXX of cannabis MariMed Nature's great selling large center. began CCC, top-selling success for current be licenses Cannabis XX purchased balance to products provisional Tikun dispensary developed quarter, distribution in the Massachusetts announcements ramped cannabis growers XXXX, the of now hot of dispensary are Also square about Olam the the the Rico the up The our Baking other licenses brand. MariMed's first partners, Israel flower pounds In developed in and cannabis Rosin. among December new additional has New Fusion, on plans time, and second In MariMed in solvent-less sativa Massachusetts, secure which has industrial sauce Eddie's harvest Control we XX a now recently marijuana square products which September foot been the fully In open At from locations our Healthcare February in rotating you our provisional Massachusetts. a Massachusetts the the of a Massachusetts entry our approved and a to [Indiscernible], foot actively out hopefully, across call XXXX. state-of-the-art under feet of brands Massachusetts as a production to adult-use the The flowers drive of Bourne in having building XXXX. brand XXXX Infused MariMed company's [Indiscernible] let market this available it, in in we're of X,XXX these this operation. how concentrate these Heritage warehouse wellness Under Middleborough, concentrates, of more dispensaries. dispensary soon. in line in We Puerto on square Betty's month. in includes seeking Massachusetts to also a are and Bedford, future. near opened top XXX,XXX selling brand launched In MariMed's hybrid cultivation foot concentrates other purchased Commission making become state-by-state. revenue depending was Co. Healer, per cannabis operation of square has should Tropizen approved such Live you or cultivation also to provide of client, which ARL we're Bedford, strains for of XX,XXX basic me some New exclusive recreational the facilities growth than and
Just reached wholesale billion the $X prices with record per market retail $X,XXX Massachusetts flower last sales plant. in approximately chemical still week, holding at
be happy that would very number. with Oregon in friends Our
to As financial from the month license of per operations acquire such allowing $X are approval expected we business in these in the million company the to consolidated December cannabis of revenue between and In include statements. generate their million the results units, to our now received revenue us to state our of future. XXXX, we near $X
markets in country. our is about We one the which of most cannabis to progress are Massachusetts, robust excited very the
received the state and Anna for way the cannabis Illinois allowing paving In and adult-use to in adult-use Let's and clients open a right authority two develop of January won of for freestanding open dispensary approval in in acquired in operations recreational statements. our have medical operate square dispensary Mount these a for two cannabis has now co-located this XXXX. and been to the huge to our dispensaries. population our still expectations include we at We developed. Illinois foreseeable two consolidated a Harrisburg We talk units the and companies XXXX. acquire a state We revenues we facilities. future. in foot to co-located land in revenue purchased the of The these supplied, our to has the our Illinois Vernon licenses our September, the program immediately medical October MariMed, million MariMed we property Harrisburg at adult-use third financial for under XXXX, and increased for With about now program in market XXXX, state In its sell results success two fourth XX plan received in adult-use cannabis strong us legislature in X,XXX fivefold. a Illinois, that of We four two dispensaries. dispensaries consolidate an we is KBG approved programs
$X plus location. now Our currently revenue rate is month per million per
projecting we fourth $X be So, when million per million Illinois we could open $X month. our or of revenue location,
As these are in licensed our included stated, statements. I results the businesses of financial consolidated
we Wilmington. program Hagerstown, and Now, this and Delaware XX,XXX XXXX. adult-use secured day developed in and management, includes a property now win be opened in Delaware, under in medical program. dispensary purchased from XXX,XXX facility square medical locations in MariMed awarded built include growth. USA developing from old the facility and the into probably square not-for-profit let's continues to This to our business years. first Only exclusive Wilmington, than our our two statements. revenue [Indiscernible] under four Milford, and dispensary Delaware is has MariMed financial is foot, production consideration. compassion XXXX, for in license to a third property MariMed we other this our Aid when next assisted talk industrial our also demonstrate patients. in remains expanded First permit strategy license is Delaware Therapeutics consolidated The Lewes, more two-year program, which purchased when is purchased to to-date applied developed a under allowed we cannabis medical will try foot fee. foot units Annapolis, thriving. MariMed's get first Maryland, Kind in cultivation with shore. clients' only developing results In cannabis pilot direction and square cannabis expanded Delaware. the revenue most we municipality ramp, Delaware that Chews product adult-use which Dover, will changes, be Maryland, continues MariMed and has In its Fruit two law cannabis statewide. in XXX,XXX in top are the these acquire steady us In cannabis with the to XX,XXX in XXX approximately and building of their opened our has just we've production second licensing in Maryland state's square facility. into this and to MariMed most products is flower top license XXX,XXX to in day. desired management, our it patients a a facility brand guidance Betty's facility brand started Eddie's which opened First center Under program, seed-to-sale which about cultivation business Heritage Delaware. MariMed in manages to the foot dispensary Delaware consumer over XX both state-of-the-art supply X,XXX MariMed now XXXX, which states and on feet cultivation dispensary medical XXXX. We Aid Delaware. The square licenses a in the Nature's an and state production
licensed Our its to business, cannabis consolidate business has expects XXXX. XXXX state approval cannabis MariMed from client licensed business already doubled in subject in management to MariMed XXXX.
transfer State Nevada, upgraded the the adult and applied in dispensary for Clark of XXXX and We continue wholesale market. we wait recently we which is a site, clients at cultivation Las County Looking outside into flower our our Cannabis and of in that name the pending sells cultivation of medical its Commission, we Foundation approval. which did to the the before is client the is license Harvest Vegas, for currently
MariMed and received has Our what cultivation the significantly our MariMed into Nevada launch consolidated operation states Betty's launched a to the presence, reception edibles cannabis In increase is recently are the the state, reported expecting by it throughout Fusion this license the of near adult-use financial strong to approved terms this has cannabis XXXX in similar results. revenue in will once transfer balance expected is Eddie's Betty's into the brand future. be and into another of award-winning Eddie's we market to in Kalm market Nevada the market.
income, MariMed and was done rental As when facilities we the Accordingly, cannabis ago. assets and most and businesses and fees built were deriving streams our fees, I touching earlier, eight which the structures equipment, not-for-profit business by and leased estate, developing its probably consulting or mentioned licensed revenue were the entity. licensed from seven medical-only management from licensed the by licensing years owned of the programs businesses. Real and plant without to began revenue MariMed being
the the reporting which will the Massachusetts company organically public consolidation rolled from will our that we in these plan cannabis as profitable in Illinois. take place is business most have successful informed revenue total the fully are businesses and Once cannabis grew we MSOs and completed, we into one licensed Now, industry. our of and successfully
growing to thrive is acceptance demand and health being As cannabis due benefits to of the industry know, the many mainstream increased the the driven you through of is consumer even continuing by This pandemic. COVID cannabis. of adoption
earlier, growing Heritage develop Nature's I As new products number top-selling and the and are Eddie's such growing brands To continue we across MariMed's demand, Betty's locations. states. of to multiple and the innovative already mentioned meet launch as in retail
in ElderBetty vitamins, released, edible, new the a product Betty's MariMed is states recently Elderberry cannabis in minerals. that Just and first-to-market an is brand, brand under multiple Eddie's rich Chews, with antioxidants,
Maryland, which now We are is excited about this Island, Rhode new and product, Puerto Massachusetts, available Rico. in Nevada,
early [Indiscernible]. and to plan Looking can launch and of particular ahead, to in pre-rolls, infused include for retail sales, that quarter cannabis of cannabis satisfy of products, on vape tastes while both pens, MariMed and innovative types fourth derive and oral additional are we different medical syringe focused capsules RSO offerings a the this as which XXXX needs in consumer, concentrates, discerning year new well the and wholesale of help recreational use, users. These [Indiscernible] as expanding
remarks, maturity and including this XX, of short-term more of developed through XXth, promissory quarter. we million in his some we $X.X I'll and We core reduce during that in to by date continue from this negotiate interest the balance our cannabis have September at we million short-term favorable also during committed John By how of XXXX. December let maximizing the come to sheet costs. $XX In XXXX to more To payment agreements, detail certain and discussed, originally XXXX company businesses we notes discuss we extending down terms our reduced this manage. September at are summarize, its would to Massachusetts to the We end notes addition our using XXXX, debt. quarter. already the proceeds I've pay to what did strengthens the mortgage refinancing our
products expand of to branded new in have license delivery. will intend as to continue operating and not such products. We We do we plan SKUs to successful our the expand them business opportunities, cannabis space into home We businesses.
We improve our to will continue technology.
more patients to patient when want forefront relief conditions. of research with be trials for We provide the of will cannabinoids formulations at treatment new day to to symptoms is and look and mainstream. particular continue cannabis to the support and We
cannabis on execute to continue vertically our integrated consolidating while will expanding also We operations. licensed assets, our
QX, which XXXX. our already brand month our increased of for performance nine consolidation During quarterly benefits our in period successful strategy the substantially results, the of calendar saw we in revenues increased and exceeded all reflected that penetration
we run infrastructure. our cost well-positioned consolidated our efficiency rate of profitability growth Looking in the along ahead, expanded the with our and are and continued revenue XXXX. revenue year product businesses for improved licensed lines, this of continued and remainder growth leveraging include into during drivers of our branded the of from this The
all and We have bringing are great here additions team a time. quality on the
committed keep will If on executing concludes believe continue create we to our and we value. which my shareholder believe continue to we will opening to mission growth are our revenues, we this, We This strategy. drive do remarks.
call Now, I'll Jon, away. it review will who the the on pass financial to take Levine, results. Jon
results. you, Thank three the during nine operation order overview the the have the a good everyone of to the for ended provide to a Today third brief of quarter of I'll that morning our results September periods from months seeds eliminate XXth, I'd results and the purposes remarks, like period-over-period. one-time XXXX Bob financial everyone. impact following comparative you adjusted remind for meaningful in months and present XXXX in to those sale hemp been comparative
third the quarter increase Operating $X.X businesses of Massachusetts in profits we've the revenue keep gross that million semiannual to During the quarter million the of shows of revenue, expansion Gross able revenue significant business The profit XXXX. for operations. MariMed's been quarter states. of XXXX of those in of revenue XXXX. and [ph] company's expenses the steady million compared as third cannabis percentage our cost increased and the compared the increased of growth the the seed-to-build in $XX.X third quarter $X.X $X.X was the primarily same also due cannabis third to results Illinois continued operations. in core period in our of to personnel higher XXX% and of Two of direct with its from transition in were million to operator million in compared quarter licensed adult-use $X.X company's growth for clients and $X.X XXXX, costs The to increase same XXXX. owner increases to XXX% consolidation to
to expect and continue these the XX% percentage costs However, from to as revenue decrease of to going these we efficiencies forward. significantly XX% improve
the compared of $XXX,XXX $X.X quarter of same As the loss for the in million to third EBITDA XXXX the for was result, period XXXX.
revenue XXXX increase, compared was of percentage months XX%, an XXXX. $X.X of $XX.X the months with period to were in to the cannabis XXth, and core of XX% $XX.X cannabis of steady XX%. growth for and September This expenses costs the is increase nine becoming $X.X million $XX.X EBITDA again, of Gross the the million with Illinois $X.X For for for from of profit million $X.X million million significant period increase for profit insurance, an The same in XXXX, percentage EBITDA nine primarily in ended the results million licensed despite of due XXXX, revenue September first XXXX. nine increases MariMed's was operator increase the the as compared to ended compared personnel and was to relatively company's XXth, as and Other the for nine the million previously increased clients period to at months XXXX million was substantially, Operating operations. revenue in the Massachusetts in others. XXXX. XXX% XX% compared the gross respectively. to for same taxes, of the the a business $XX.X months a in startup these same in acquisition
steps discipline capital bolster sheet, Now, turning take and to continue including working liquidity, both we to balance management our of expenses. to short-term our
We both in also considerable weeks short-term and progress during our quarter the debt. subsequent made in restructuring
as promissory Bob million has $X.X XXst, As September XXth, mentioned notes reduced XXXX. XXXX in we $XX of million earlier, short-term successfully December to from
of real million of an years retire five at our mortgage a a debt [ph] Massachusetts X.X%. and we over The a interest were annual term to of replacing These closed used estate, $XX in initial million has mortgage. XX%. First million rate secured at a amortization mortgage $X.X XX refinancing $X.X outstanding by proceeds new short-term
amendment agreements, in XX% million. into interest entered million the promissory of now extension note note. two new XXXX. The an replaced of Second, amounts note repaying principal $X one we note and in an restated $X.XXX annually in It bears on amount senior matures September principal of of
same more million second in in of shared that debt, the to-date long-term to $X.XXX short-term our The to date, confidence would maturity believe terms We approximately debt debt reflects converted be restructuring of favorable support $XX near maturity million as the business and of amount note strategies. as principal in $X $X well We the has essentially million note. terms the success our this our the million appreciate MariMed. continued of as in lenders recognition and progress
financial For cannabis during during financial pleased will our and Despite restructure both been view this months cannabis businesses consolidated is we to short-term challenging managed significantly which very I'm by information the challenges the same and XXXX. of third licensed position. third proud has are and on our success revenue first during and the encourage our of XX-Q and to our teams on executed at time, businesses company's took to filed we you quarter weeks further and our quarter www.sec.gov. our created generated which positioning the summary, the In strengthened actions be recent nine period. several growth available long-term COVID-XX, incredibly has in with focused operating the performance, how I the by At debt, --
closing MariMed of execute for Fireman the turn continue that, on his and strategy, recognize to to will to will I'd continued plans, market the like positive call remarks. back our the Bob? are With revenue over earnings. confident and We momentum that Bob
to our six-state, which rolled we quarter, performance strong quarter. vertically that we and license integrated multi-state to operator. much, our Year-to-date, be revenue in for of successfully our great Jon. can strategy our we're a is the have Illinois, all Massachusetts And we results operations reporting. reflected in up consolidation during In you continue the very execute create Thank third proud closing,
other We continue our to states. to consolidate in move ahead operations with our plans
Additionally, product Complementing earlier unique both this, stronger position year. retail sheet now to and it balance and these the our increased markets both sales drive continued of throughout increasing adult-use each our recognition to brand wholesale have others. and formulations medical at and level than substantially financial these and of performance was the in year, coming balance stronger support us growth. the is giving flexibility continued during MariMed for factors the All for our XXXX
We prospects are and concludes look forward This our progress. prepared excited we our continued our you about remarks. on to updating
like to Now, call the questions. please Operator, I'd for open go ahead.
back appears are I'd there additional the any questions the for like speakers time. It turn no remarks. to or to at this closing conference
you. to corporate how Jon with I'd conversations look having our thank of anyone you and follow-up you continued they to at for and continued your We on and all a safe. If has call to Thank information MariMed. on how you I directly. in everyone know have to Thank reach to remain day everyone, us reach again like on for forward questions, us many updating and progress. today's and joining great interest our
our concludes you your participation. call. Thank for This
disconnect. now may You
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