BMMJ - Earnings call transcript Q1 2021

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Operator

Good afternoon, ladies and gentleman. Thank you for standing by. Welcome to Body and Mind's Financial Results for Fiscal Q1 2021 Conference Call.

During today's call, all parties will be in listen-only mode.

Following the presentation, the conference call will be opened to questions. is today, conference X, This Instructions] being February recorded XXXX. [Operator Mind. call to Relations Graham and turn like over Advisor the Body Investor I'd Access, conference to Harbor Farrell for of Please go ahead, sir.

Graham Farrell

XXXX welcome operator. you, Body fiscal Good and conference Thank everyone call. afternoon, and to Mind's QX

Body highlights the with We cover recent fiscal of goals October XXXX, have along quarter discussion and call to and of beyond. our financial delighted join us ended Mind's are This for XXXX operating a some today. and you will and results for XX,

Hoffman. Following our Chief will be open call conference Operating Mills; the led question-and-answer up Trip the Officer, will Executive a session. prepared remarks, with today Mind's we call Chief along to and Michael by Body Company's The Officer,

our I forward-looking be remind begin the remarks, of some we like that on would this call Before statements everyone with conference to statements. may formal

statements Forward-looking statements necessarily to results Company's actual These other financial significantly but from or intentions. and or uncertainties. statements Mills. matters projections company's expectations not may may those Michael. include, SEC to now differ objectives, or risks certain the involve will the limited filings. forward-looking to of in are which due in ahead, Any suggested. factors, I a variety our over call hand Please are discussed go projected Michael of detail plans,

Michael Mills

to made forward Thanks, everyone look XXXX. and Body at Mind XXXX we've the update an and ending over of progress we fiscal Graham. Thanks, last XX, the for taking for first the on October the quarter quarter time discussing

license second forward consolidate managed Dong Body result Officer. of the revenue into into these into in continued entire earnings financials, Trip we our very US Officer; of reporting myself, the a looking we We're while, consolidation quarter from for we record discussion transfers license a consolidated successful revenue our year call, CEO; roughly XXX% quarter our the Shim, when we for report Mind. We revenues. consolidating We're to the XXX% to and fiscal of to QX, Chief that our revenue recall Chief $X.XX million over that in issuer, and do revenues QX to for triggered this pleased which dollars. entire and a These anticipate for happened and subsidiaries also US one-month our have are please transfers entities forward we million. owned a the our On US$X.XX reporting report as GAAP quarter. Financial Hoffman, To on were looking as preface increase roughly Mills, Operating Michael and transfers income reported reported of a XXXX QX, reminder was operations was

we've focused revenue in expansion, equity definitive developing To roughly sales arrangements been managed regulatory better very in which at considered from is cannabis managed and optimizing call. of in cannot revenue on without be discuss basis, On forma continually management managed a results revenue for run-rate revenue that for operations stewards we'll investments all operations revenue $X.XX revenue both which reminder from the assets of or good in restrictions, conservative the entities Our was A a from pro system-wide consolidated. allowance we've our our a non-consolidated capital. million projects to for from development US$XX or efficiently million. of to agreements BaM quarter, and projects us referred but any puts this which or consolidated is later due consolidate also products cannot sales place, current new increases and are

no to long-term debt. Our balance clean where sheet have focus translates our we

to $XX.X from Our total $XX.XX increased million million. assets

We the from we of million Total start with outstanding, or to $X.X operations. no our in $X.XX to from $X.XX less current million cash this of than convertible the long-term $X.XX with our million January $X.XX ended liabilities Again, current from grew million. increased liabilities the XXth consolidated shares million, total period assets roughly and XXX of million have from total $X.XX Our QX $XX,XXX as million. million year. grew to and period debt roughly finished and roughly $X.XX

and Our we from margin still example of anticipate was QX with the forward. in continued going our revenues XX%, early margin gross San and improvement We're some stage growth an assets as operating Diego metric just cash in are ramp that before narrowing decline of in An additional continue opened the dispensary, the which used operations is from to and beginning QX. the loss. improving

roughly items. QX attributed was $XXX,XXX and net our with net roughly portion QX loss million, net significant $X.XX a loss about loss Our was non-cash to

in continuing to used cash this year. operations get roughly positive turn for quarter in the further cash operations see improved $XXX,XXX into used fiscal was we we Our to as and and

Our we metrics the performance we our forward adjusted EBITDA was quarter for as but roughly infrastructure. more positive, increasing $XX,XXX, to revenue through BaM look our move

of in paper. was friend, of for of of who scheduled general delays talk was filings Arbitrage actually numerous incredibly Blumenauer quote heard another, and Green some it the advances Mind, have short the of fitting voter like milestones US or measures. his challenging. through way and support the is legislative for a financial substances and changes federal weeks. combination legalized And past recognition my legislation positive Earl a cannabis. such and ever paper, this potential written it be in federally quarters. that growth used people One was to regulation. seen federal very Senior Body Joyce last XXXX spoken regarding addition of or put In he a also We've cannabis. over Regulatory the week and quote decriminalization supportive two an In of our the that states' and pride in We've at rescheduling and of cannabis around level our achieving the these sequential state cannabis than will Body David significant from Mind, of this higher read to meaningful certainty over Democrats Wagner, we're is from legalization on into changes to honor quote I'd changes in rights, been quarter-over-quarter from is several of and our in considering I've July David concerns our with actually We XXXX, removal seeing cannabis attitudes late some past expressed ourselves or list industry

and of a the assure I our Some and of future quarters. result firing engaged we next of investors ensure that identified, COVID of and we time year and have are added finance can under-resourced the that will result on consultants for some granted qualified external we in to on finance time delay growth. was quarter was mid-XXXX a staff knock-on last were internal smart delay extensions report

very have the term. we well close pipeline on are applications forward, very and opening as keeping eye are we're the in limited Looking a states near as for license in jurisdiction that current developments opening that

in call are have our outline to go Hoffman, deeper the where to to over and our and opportunities opportunities states. states reviewing I'd Chief operations turn We are like actively various across advances diving Operating current to Trip operations. the we new in Officer

Trip Hoffman

commenced to flower confirm of that XXXX, we facility. facility developments. our a label Starting prior to XX brief with construction operations we operate owned up This the began Mike. and licenses the our canopy can cultivation of continue completed I'd bring foot white in a we the in and new capacity. provides square and construction X,XXX foot assets an operational of our in like square of more from to the produce recent capacity, XX% XXX% production XX,XXX some December converting In we In space production SKU's Thank March we of production XXXX, times provide and so our more manufacturing. summary into approximate Nevada, you, location XXXX. completed increase

carry impact wholesale output Also that and us will out distribution XXXX, which March of allows to break approval, costs. the our we of us received expect increased BXB distribution of We in overhead provide in license in products a December our begin XXXX. to

as dispensary Ohio. of XXX% into In subsidiary, February to the in consolidation managed of allow BaM opening a completed license we a transfer owned dispensary the its Clubhouse, financials Moving The X,XXX since the branded of The we this our construction the for and Currently, under of Mind. three months of XXXX, XXXX. We've quarter. Also September of XXXX, which capacity. about from facilities square Body re-branded in foot about with to to months production two dispensary Clubhouse medical medical in September

We expect April production activities those of in begin to XXXX.

we Moving of opened began was in in of production our to branded California. adult-use Diego. owned about XXXX, XXXX, allowed XXXX, of Long distribution management a In brand we a of San In dispensary the April In then August began ShowGrow began San medical August the ShowGrow agreement dispensary XX% 'XX, and of from products that subsidiary. our BaM dispensary. Beach dispensary We we of unaffiliated Long also this management and And year of an delivery home December licensee. we two a months our In into this own in under medical service that branded of transfer BaM in for Beach. consolidation XXXX, branded adult-use of January And dispensary. current months and quarter. XXX% three license we ShowGrow completed ShowGrow us Diego

operational by began XXXX. as ArkXXX. the management on medical And premises. those that also and we Thank in to In profits. net year limited Arkansas. XX% you. same received delivery in West medical began we Moving month of in October cultivation we agreement and of we XXXX, allows In facility. XXXX, then April share our dispensary our XXXX, setup finally, And Mind Memphis of as for November branded began begin expect production managing Dispensary services in a license the of Arkansas January March Memphis. In this West we provides in cultivation same next well. The Body activities the in home award for XXXX, The cultivation Best the

Michael Mills

our into really EBITDA we time they've Trip. to really align just Thanks move any is can thank to this the think entire the work our much, that start and if company. call to questions. open for assets positive incredible environment And all and exciting very done into territory. for flow I there Trip like the questions, This team adjusted positive us a to cash is

Operator

The gentlemen, with Ladies ahead. and session. Tony Please first question [Operator comes will Bowers begin question-and-answer Instructions] from we Intro-act. now go the

Tony Bowers

solid Hi, Mike a Congratulations and Trip. really on quarter.

very a the XX% than managed substantial is growing. think is which annualized sales possible looking quarter-on-quarter, about higher you to be industries grew significantly What likely rate do Your ahead?

Michael Mills

is a that. -- take This Michael. can that, Tony, is there think I I few there. factors a Yes,

And is, dispensaries One when right is months is a of a going in of of operation, COVID. and cultivation them particularly, number not of opening the or ramp-up. you're whether dispensary production of any the it's to a start you're operation. early There -- middle

And see. to operations growth. going see growth And unreasonable of not to expect time, an that seeing we expectation. continue think that that's jump new that, certainly we expected but sales over these I in You're out becomes don't the sort had stretched to

Tony Bowers

move the the consolidated. that impact for cash going managed And final parts as How your implications is you balance sheet? to into

Michael Mills

going Yes. cash cash, see a With to forward. to we of similar respect level expect

all We have at in this new cash point developing time looking certainly develop of process into. the that we're assets at to we the assets and are in move to

Tony Bowers

been this I peculiar has operational optimal? a what's mean on-premise, between The curbside environment. obviously delivery, mix and very

Trip Hoffman

take this. I'll

your process we'll third order We pickup is time being all curbside operations, growth, well. home into ahead roll strongly, as slow so at as soon. dispensaries expansion well very peers two adopted that everyone the our and a in not are our minimize just the very now beginning you through delivery of store. it's with to at but our scenario, our growing it's COVID And the home plan in just And but knows delivery out coming and

store expect the our further become we operation. in little our So look that of us a to do sales home it and as drive on are turn delivery allows vehicles. as part willing to more actually do current non-distracting -- to to as marketing opportunities we're the significant that at market delivery away our part people of a to We from further

that we another factor. see do significant So as growth

Tony Bowers

Thanks.

Operator

time. this at questions further no are There Instructions] [Operator

You may proceed.

Michael Mills

time again, you another Did -- Tony maybe from to everyone taking for here. one more thanks I Well, the Tony? see question, have

Tony Bowers

need Inevitable, your you and a what of to eaten, you is but what to that hit -- be you level maybe critical view And What be at as do Hunter? it's sort target not imminent. do profitability? the size

Michael Mills

Yes.

what need first, that we cut-off, first the big think think that I to to to positive looking, from can so I believe we're regulations part that just come in. question single adjusted through up add We of what the I Obviously EBITDA we or is, revenue dispensary will putting of and a the become level myself, revenue a company asset we're with through of for how was makes I a that the as sense. we -- asking that, the Obviously can move sort those makes certainly particularly where that in respects but think an you're taxation. acquisition the metric be system sense. we're continue very here form situation to of we've states -- license in well. and nicely that, be That come that cultivation. the in apply understand operating forward. that states the understand It looking ourselves we do We

start last amount think money being a of -- asking that's a year than on you're end level now. think companies the this in with and right we we'll in the I landscape looking do the different is eaten, two this I about raised or very at at cannabis bigger expect familiar and been the when there. month see I everyone we'll very of out largest industry

there really companies a think the lot in is us I other that's this to across or good whether bring a There multiple going think of is either privates our single industry. or I other expertise publics. industry operations operational And on, everyone to operations. into entire for talking right discussions of is opportunity

or looking the look that entire may at that is, other don't four the think came advantages winner, people into opportunities seeing groups license lot a a we're or we control And or of where we'll maybe or license seeing a three one cultivation may asset whether of have a it's production five what dispensary license. opportunities I that we where overlook we're on. we're is

to have want that discussions do, a other feel and by think at as would people developed those want good I part group. work a be industry with. mean, of to be understand the that with the what remain they good we've groups of reputation we'll some to overlooked they're like And of people in larger they companies. I And many I

all those being So else targets. see we attractive

Tony Bowers

that's great again, turn positive. Well, discipline color. great And cash to Thanks. once flow

Michael Mills

much, Thanks very Tony.

continue last is and might out, Cannabis thank on us, please And and like reach you Mind. forward, we're that think everyone be have free I'd be for in any that excited have. moving great call to Body if time I the feel questions joining space. this a we U.S. to to very to the

Operator

this gentlemen, your you Thank your participating. that conference for concludes I today. and ask call please for And Ladies you disconnect lines.

Body and Mind (BMMJ) 4 Feb 212021 Q1 Earnings call transcript