CURLF - Earnings call transcript Q4 2020

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Operator

Good afternoon, and welcome to the Curaleaf Fourth Quarter and Fiscal Year-End 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Jakob Feinstein, Vice President of Investor Relations. ahead. go Please

Jakob Feinstein

Joe Sciences and Financial fiscal everyone, by Curaleaf fourth and Vice Holdings' Jordan, Davidson, Officer; Good Operating Earlier Chief XXXX as Relations welcome we today, Group. under acquire year conference and ended full Officer; Chairman; Executive fourth Lusardi, quarter year-end Chairman; Carlotti, issued press joined Chief call. and quarter are to Executive releases releases press Executive the filed Neil intent announcing XX, Chief afternoon, These Mike Joe to our Bayern, SEDAR. Officer. well XXXX, Today, available results Boris we’re EMMAC website Curaleaf’s Life for section the fiscal our on as December on and Investor

including you will or Canadian by forward-looking today's as future by or of material that the whether Before begin, only laws, States estimates, or predictions update such not assumptions we to applied comments undertake certain any required projections, except forward-looking a the events no to revise include meaning forecasts We information, as of as applicable statements events. were date conclusion from of upon acquisitions goals, remind call as relied factors be result or statements, within and the otherwise, on These of future outcomes expressed United to of or nature, law. involve which, a new forward-looking obligation drawing differ call securities and conference uncertainties assumptions, the making I should results and the in would in cause their forecast speak the in a to that forward-looking statements. and could risks on those like successful integration actual plans, subject statements materially are and that statements of this

can Canadian Exchange. on material and factors and the the the found and forward-looking the statements the basis Securities risk SEDAR Additional filings press forming assumptions releases of be and factors in about information company's

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Boris Jordan

the everyone, joining us. This a into intent afternoon, Today, us twice once you enter Good that the makes Europe. quarter for of results fourth is Group, market Sciences exciting acquire platform inflection growth Curaleaf year, and Curaleaf’s first largest point Life long-term well full a strategy. company. thank MSO million provide for record U.S. more independent population cannabis the a strategic the in very The announced EMMAC growth Upon again the we as news Europe’s XXX of closing, for as our acquisition will EMMAC population. meaningfully and breaking and true with to to people, U.S. and European than us

is cannabis $X of size market the will $X years. European current for wellness at three or analysts estimated surpass it indicate the next While the in over medical billion, billion

industry, is reach representing U.S. leadership than global remain we in XX.X%. addition Over cannabis in being another annual believe COVID market market, XX% moment. This moment U.S. sales all our the I grow our testament billion the thank cannabis towards this is in U.S. to position a to breakout total We of based their record we to which Despite behalf and of we brought that seen markets. of This second step our billion our on on the cannabis acquisition quarter increased consumption to team lives want take up the a still team's to and quarter EMMAC and $XXX far more the legal dedication and predicts largest XXXX, opportunity. a XXXX, in BDSA the Europe Curaleaf’s hit a operations, of everyone. U.S., our management to had XXXX, have engaging Board unwavering thank with had $XX in you, by in and first the members of all work, commitment market on patients year. from and of the sales the our Directors, the a market. fourth in According in our world growth We'll a committed communities, to will in long-term is outpacing surge to for a $XX.X the that the will customers, hard player employees, By curve record deal perseverance in addressable year. get more the legal to on BDSA, details habits entire customers. current team challenges impacted billion and

of and Accordingly, both With states level, the countries the around the by at those cannabis scale, transformational investing will cannabis are horizons, is truly encouraging and Curaleaf leverage will in emerging every aggressively where putting benefits businesses positioned in large addressable today momentum use to have markets, of you well up today. for from Congress legalization fresh for believe and near-term. is can and tomorrow. shifts for I I experience growth agenda is ensuring leading paradigm prospects be increasing political are extensive with a year. on houses high-growth XXXX, setting this opportunity that the across before, us the someone where As transformative and today while investing we is federal planning time of multiple across Curaleaf industry and state adult House, the Curaleaf very in White pack. believe legalization support the industry are global The and the who be I I acceleration continues, The and tell in new seen future cannabis won

federal centered capitalize areas; rest the first, and of on look cannabis. upon our leader which are brands; infrastructure we winning extending the ahead, is three the leadership and platform key U.S. our global our out in as build the laser-focused continuing taking rapidly legalization; As to building we second, world the strategy, to by to third, and on strategy executing on foundation national

in to an build and national is top-tier packaged to and Our national newly brand experience by strategy career scale goods led CEO, our on brings track consumer of Bayern, Joe who being it's appointed our extensive building the national global capabilities more our to our will brands, growth expansion. talk and detail moment about go U.S. out helm. on our Joe I'll platform, strategy, a and our support into

of generated the versus XXX% to managed to last larger-than-expected versus All revenue, the record which the XXXX, underscoring revenues outbreak annual In managed XX% we've the revenue in softness, and XXX% we and $XXX demand. million, fourth higher achieved overall forma from strength record due resiliency a quarter. of of $XXX quarter, in industry was Regarding pro XXXX, despite a generated our business financials, up primarily surged as some our this well year fourth million, COVID $XXX million. quarter, as record third

moved achieved in and and To equity adjusted further XXXX aggressively EBITDA in January, operating XXX% drive our to manufacturing in impressive proceeds. and to approximately business record efficiencies the momentum to across we capital research an the by growth support adjusted profitability markets in scale $XXX closing backed and strategy all long-term growing balance by growth building, successfully allowed raise growth science. for our sheet, million. us strengthen our investing rising year-over-year these to EBITDA an leverage from We our $XXX also with distribution, opportunistically to in brand results capital innovation million cultivation and remarkable Our

successfully the completed facility was basis a debt interest of raise we new also just at year a points completed from earlier. million revolving the XXX $XX below We capital cost credit rate an that

million right anticipate those of and the have refinance significant rates We of opportunistically through strategic facilities U.S.-Canada’s at debt we In interest through all position ability lower growth refinance These in leadership further than in our potential our organic initiatives, our aggregate, that $XXX we as much acquisitions. directly net today. fully of we support extend to capital we have to as the well infusions XXXX, return raised January high market will proceeds.

I XXXe Canada, between in increase use. pathway will sector, U.S. companies, long large As cannabis of year, increasing legalization U.S. and will It's way forward, make for the sweep with of be the path to believe leader, strategic I importantly, playing board to bold this recent represented cannabis literally wave noting U.S. Curaleaf to with stock federal accelerating of policy. The management capital adult cannabis opportunities Congress Mexico, and new the and I've need this worth the up tax opening moving of the pave an momentum offering houses up Act for potentially cannabis two relief. passage is potential democratic legalization. that the exchange creating well and use created that will services SAFE the banking potential in most when Perhaps a said liquidity, also before, of toward the green for current for political critical industry listings moves. we presidency game, the the to believe a the of major developments a for cannabis the that now as to U.S. lowering liberalization cost access are liberalizing by positioned as moment well status both the be sandwiched combined countries the seminal of

acquisition reach. position brands as launching our and Regarding for phase establishing our its creating the the our U.S. building global today subordinated peers. to transformational international in our strategy, European with pure the presence cannabis announcement we XX.X further acquire into play an voting and intent growth market differentiating of on highly million market shares, market, $XX EMMAC cannabis the strong Curaleaf and strategic platform European from and leader are leading revenue million for third geographic and a This by growth a operations approximately point the of cash, Curaleaf in provides

presence larger I a than another XXXX, This transaction value. the context, has footprint drive management addressable U.S. For and our bold that potential yet this to moves shareholder EMMAC U.S. time, board at Curaleaf in market into of back mentioned, team twice valuation. to But transaction and is similar representation has the the equal similar at as of a Curaleaf’s to is revenue buying making

provide sweeping between vertical market Portugal. importation jurisdictions, rates steadily world in existing experience with policies, more Switzerland police are being EMMAC all and for brings This XXXX. patients. The to recreational processing, for to that Kingdom, which crimes Europe, renowned with The cannabis has is has across active number reconsider including above production. also are political established by the Italy scientific France introduce over are platform United acquisition partnerships to cannabis cannabis three With medical consuming that and countries. As of the clinical burden than consumer Morocco, of in cannabis also cannabis growing in hold Europe's from prevalence UK Poland team. in programs also is College and cannabis distribution with led larger of pushing reality cannabis governments of Italy, advanced to R&D into more years taking GMP Croatia, largest data legalization. year. rival increasing medical to are reduce of terms and the EMMAC Luxembourg key marketplace in liberalization launch soon cannabis marijuana expansion Europe and planning EU market. European In has market the is the medical enforcing South been Malta, and established June is since its the such acceleration. Imperial their detract Spain, eventually in supply independent to legalize by some pilot in cost I and will become cannabis are for of Africa the taxes are believe has of European medicinal of some our of with London, growing at several projects Europe. in related XX cultivation, to strengthened XXXX. medical million EMMAC legalized Israel support end flower, France increasingly away show in foothold the market. from key entry legalization Netherland month-on-month the is An estimated expected wealth and and initiatives, people Germany, Europe's to designed strong drug unlock countries, patients a U.S. Italy markets, signs Europe cannabis has also a and and a in being not XXXX. Spain, regards combined underpin Germany, grade European leading and forefront place of U.S. in U.S. across political XXXX operations to and the wider XX% trends recreational and production early product best-in-class discussed Ukraine. discussed cases use cannabis company, potential growth Europe's could the cannabis will will cannabis around beginning as full to the it's XXX,XXX and both strategy. want doubled institutions, evolve chain, We that pharmaceutical research The a introducing and XXXX development, provides innovation Eastern laws of multiple It of XX% past efficiency medical in proposals of where largest seen Germany, medical prescriptions into industry well-established this It pays to stress exploring management the future and including has

plenty U.S., member to Curaleaf senior strategy. team continue the the expansion the our the a our company will entity of on EMMAC’s will management of European team. continue have EMMAC become executives management to our we CEO in do and and U.S. lead Founders to Antonio focus Given CEO Costanzo, while

regulatory early expect the of conditions. securing We quarter required second on closing based in EMMAC the and close acquisition normal all to approvals

level partners is this with sheet balance we're at in intensity European strategic the of capital expand potential lower Curaleaf’s EMMAC’s business. fuel comfortably the to our level differentiator further regarding funding European market new European growth. anticipated of transaction, to discussions While subsidiary key provide handle to can A a investment the also

to our in business the European ability the Europe. difference most model country the entire efficiently region across capital-light borders, The center across U.S. With serve two deploy a one or has operate the we for fully quickly and to sites scale ability business cultivation positive cases, EMMAC which implications to enormously one can to with and each vertical requires in state. the compared manufacturing integrated

raising anticipate capital to not our affirmation fund thoughts. of do we outcomes European the the such, As beyond expansion any partnership additional targeted strategic

as be representing versus further revenues, XX% to of of our to higher, couldn't to the rising we With in to XXXX as adjusted over total range XX%. expect $X.X our revenue record-breaking approximately XXXX closing, IFRS progresses XXXX $X.X Joe be year-on-year we with Curaleaf highlighted team opportunities more managed to XXXX that ahead. of me in well XXXX adjusted forward, and year growth pleased performance margins In growth what I achieved scale billion Looking as full EBITDA by XX% with Bayern. performance financial turn lie the EBITDA and in the that, let to continuing billion with reported

Joe Bayern

on lead reasons. progress phase today's due the his most scale people a is to extremely of built unparallel I I'm rest at cannabis. to the the I And to as the of moment at supportive helm better Curaleaf has love to team become a and U.S. cannabis acceleration what motivated good time a we I look build the long-term four, our that have everything to within political with well. announcement, team's a feel global incredibly our an with presence. in in landscape we Curaleaf it's Curaleaf’s management have build part and on out positioned and achieving purpose, fundamental presence products workforce. against of shareholder next management and States. been now it evidence who and first as to would to and in people, build and have the working next believe talented forward focused continuing meet the helping cannabis global we embarking the been share Europe base we'll ambition an highly history to uniquely with to to platform the our to better our over businesses, on four as leader retail Boris, experienced industry the largest our be Two, in to singular international never strategy of the brands, current will team is in encouraged of Antonio with consumers Since an Curaleaf quarters, taking win the speaking growth, we've that build be build ability needs societal afternoon, thought to to I'm of the believe industry. and certainly I as is incredibly I strategy United competitors. the we there's than change Three, to why time you our helpful are to our think we And Like pivotal required CEO, our of execute already be Thanks, everyone. Curaleaf, see We're experience that at paradigms. industry perspective company, I the as and this we've few and XXXX. made thrilled and well tangible One, working. are

manufacturing expertise to on retain efficiencies the national to build to in advantage; a and prepare technology rebranding we forward, build the increase and cultivation, focus in our transaction footprint; analytics five, by is processing out priorities four, footprint; our best and national our platform, and platform and Moving cultivation six marketing including one investment continuing model; to cannabis. build to continue six, to attract, our e-commerce, product drive to three, for retail to our commercialization; talent develop scale world-class train to national competitive distribution sustainable will out research to infrastructure; two, across of and completion of strategic development continue

details take Let we a through on initiatives. these you are how against executing we're me few how So doing?

wholesale serves platform marketing and and a geographic retail build brand distribution to from the This foundation in for States the our continue our as national strategies. presence. footprint strategic both We United robust

XX XX our for increase. move in with This to from patients dispensaries from XXX, seeing average all an XXXX days U.S. available dispensaries XXXX opened the expanding and to an footprint. five today XXXX, to further additional development. ended national approximately XXX,XXX us by of licenses the retail we order unique opening we dispensaries, early across with XXXX In month $XX additional today, per almost additional with have patients an side, XX bringing On to our XXXX, an allowed our to January value In the across we started us total dispensaries XX% we month $XXX. XX,XXX XX anticipate per

of we and invest in million now our our term for covers XXX retail retail nationally at growth. a we and and runway total second size lengthening already nationwide, our expect welcoming distribution of the key now consumer growing to in impressive best-in-class move with our increase, start a XXX% Americans, in our surpass we footprint environment. XXXX, offering lifestyle business, Select XXXX, over from fast brand, of Select, and market, is addressable quarter. is contemporary X,XXX national which includes in supporting the The side of strategy continue locations brand over locations longer driver distributed As the X,XXX XXX and into up experiences more our wholesale more outlets expanding recognized wholesale to

to all chain realizing new Select’s within our cost the into preferred its cannabis remain launching by introducing to preparing infrastructure. integrating we Curaleaf’s launch on consumer factors intensely vast Select build brand, consumers of production segment, and synergies in As markets U.S. cannabis continue new we Europe, and international now attracting form first and supply the focused for

Ohio, Select a of and we Pennsylvania. in states. in February, Illinois in total introduced to available And quarter, XX During Select Utah, coast making we to the launched coast fourth

research of of supports developing seeing data national which product we of Early consumers doing smokable to on with are XX% the adopt the on deep actively highly and our XXX where the of for under Over of forms so roughly And likely front, includes market products, roughly technology the On products. for This the are consumption. penetration XX% and new new categories. bioavailability new flower, commercialization development. formulas time and cultivation systems those of market adoption. beyond to R&D entering we formulated and moving consumer to investment product that's scientists to the development different category from increasing have consumption broad see to wellness and investment new look that basis form health study to medical consumers facility overall body, will to will of future. formulated we customer believe currently into or absorption be offerings first are emulsion segmentation new That's development extraction majority aligns in that our why a XXXX. and working consumers the will and XX of variations, either in XX% development significantly which our drop with XX% technologies, flower increase across the we we're flower proprietary the the in portfolio primary for reasons further flavor where on Massachusetts, related new of focused focus of and our product stages drive R&D as form less This

product time. We are share enable national capturing to the but cannabis will over key other this do. national been to never platform companies large cannabis, the company the that much have look will in typically believe will done year. Launches market that we like be this That's launches CPG only

to we'll months. highly market of breakthrough technologies benefits While products the some start next see over to differentiated and several bringing the

launched consumer gravity their a cartridge. valued week based the portfolio proprietary proprietary blend tasting in in Select we our on selling vape this our top new the Essentials, of great products For category, across strains

new a connoisseur Elite fast believe product we that accessibility and be of in vape we new Nano believe all from Squeeze. emotion-based Fresh, Fresh our Squeeze, to announce launch along consumer product will first occasions. beverage usage in wide a us to product enhancer segments as vape Hardware. called will instrumental the a growth proprietary variety this multitude drive a acting launch discreet, use cannabis accessible nano in of and do the this of later segments a number making our We for consumer system-wide lighter, to around to portable, month, Essentials, enable April, Go product we THC with to the for I'm is existing Flex A Gummies that smoother And a the will a For Like consumer different Select in across changer curious. educations. and Live the cannabis game pleased

products X.X a In investment release THC XXXX use and of But others. driven the feet half currently square result square we R&D of non-THC among demand with both our without of new cannabi formats States. by prepare expect footprint number in Jersey world-class you online to addition, as capacity to feet increase. new Illinois New State square of XXX,XXX capacity number we key as new a nearly cultivation in and cannabis. legalization XXXX, about XX% our can't are adult help obviously of insights. invested a and year-end, in world-class feet in Total In bring to total in develop Pennsylvania, across heavily quality Florida, planning increased in expansions to direct second products of flowering our consumer a XX XXX,XXX In Arizona, for XXXX, we million cultivation key

CRM bolster all to and regarding consistency our team. centralize implementing key cultivation to and readiness overall in our marketing not building and expansion also a teams, front, a help expanding only more our analytics to indoor up processing Expansion costs to the outdoor and national infrastructure. upgrading solution, it's lean-manufacturing of also formation and several change. law capabilities initiatives implementation and our technology a component and will data across We're manage and of quality tools to cultivation manufacturing better. of our continuing our we're are consumers new a and transaction a strategy federal work actively to of needs We across our standards, products And the greenhouse scalability realizing done ramping digital including and commercialize principles, capabilities our outdoor cultivation platform, cultivation our footprint of technical all the we're new including large-scale engineering markets, longer-term where of facilities. analysis reduce meet help understand e-Commerce our to marketing capabilities is footprint ensure efficiencies of scale quality efficiently, product improve team in lot of order we've our manufacturing our to On reporting for

growth we people I'm On level. retaining brought that pleased to to another and X,XXX a in year. we to over and the expect XXXX, in at every talent hire cannabis strategy new the best our say industry recruiting includes X,XXX front, the In this people commitment

You can't quality you high a build develop without quality science high company products world-class without talent. can't world-class and

began from cannabis customers in successful of in second In that dispensaries growth. XXXX. our January dispensary As targeted proud States, new initiatives to I have ninth we're industry key strategic eight initiative. use the adult highlight across thought creating leading With the be opportunities, jobs it quarter following for new with you use quickly be and markets. we know, the a new to and Arizona, XX, On they've but this many serving XX operations moved November ballot to for is opening developments an in-state call, of act few our adult some we a would too helpful exciting

seen have on we Arizona revenues days, our by early to XX% location. the increase it's XXX%, depending in While average

We expect completed to for growth. construction cultivation indoor cannabi this recently on to square prepare and we a the continue will foot year expansion, that double throughout XX,XXX that our

by has market to over exceed most State We the recent and has medical already sales according use share in second which Jersey, a the of X.X Colorado will adult public recently use adult cannabis of X.X We XXXX. saw also approved will in times expect anticipate XX% Colorado the sales data. Curaleaf billion that the for largest New population dispensaries. open the and we the State heavily our expected in demand. meet By investing the are open of licensees. of XXXX dispensaries square only the grow to quarter cannabi ahead and us with capability Giving XX footage current of double help we additional allowance fourth quarter, of two will maximum and launch end the

with to States New New Curaleaf adult of domino all wholesale opportunities likely a new we use create effect XX legalization the XXXX them. MSO Maryland as be projected of an use and cannabis business And opened equitable is Pennsylvania creating across seeing highly York's anticipated, the largest and use establishing the wave a of momentum addressable York, of positive in Northeast Connecticut, January expected, leading on State. market triggering adult XXXX. adult As of the State appears in with New the toward legalize market we're to XXXX. And Jersey proposal in potential represent a and follow suit. very part Governor populated announced have a presence end billion worth program Notably will to the by retail in and and New we only $X of Cuomo These X, a with stores retail York Pennsylvania,

growth of grow new fourth continue we see process the Florida, consumers. year. this key hoophouse where XX,XXX also Illinois, in feet continue productivity additional capacity expand in hitting square we to Homestead in XXX,XXX add and XXXX. In XX,XXX the to of and Massachusetts In to is and market. the our of products to our indoor range our States square recently of completing We capacity XX,XXX a Florida, completed impressive foot offered of our construction the square a of foot indoor late plan on greenhouse quarter we're of by an the our square new Campus foot cultivation We Illinois,

licenses later now of the number for come have we by and operator. with location online final affiliated permitted dispensaries a tenth expected month addition, retail a to In this single maximum nine operational

exciting but address address there this section. call, company I'll to be Q&A too to across our specific on initiatives happy of said, many the I questions part as As are

to Good inclusion, equity platform which on programs made community significant in all launched executive very We've million by offenses. and Through progress industry commitment leading are collateral proud to a social with also underrepresented mentorship and of social in new contribute acceptance. that in at cannabis to committed Finally, responsibility XX% mainstream commitments table communities towards and ecosystem as equity, our of to of by with initiatives. our and I'm which report at all for consequences XXX address suppliers cannabis from programs moves employ our the legislation plays diversity, also our Curaleaf with do increasingly pleased Good, partnership associated directly our social important communities round aims cannabis broader impacted organization previous least to Rooted robust Rooted least I'm these and team some marijuana corporate XXXX X in brands, related have business initiatives, hires advocacy from XXXX. program new

said, industry or I cannabis a Curaleaf. As better there's been the never to time better part be of to be time in a

energized lot of have proud I'm excited great team. to We about a be be and this and to part

the Carlotti. to turn I'll Now call Mike over

Mike Carlotti

quarter, New Fourth of Curaleaf strong remain and fourth the posting the forma million. shareholders. acquired Thanks as that. our Pro as Joe, results XXX.X quarter revenue Michigan, consecutive We start New by growth our for full again, up recently a focus was tremendous quarterly a our adjusted XXX.X sequentially, IFRS last held followed sale Grassroots value well Florida, over million financial as performance revenue generating revenue long-term was of for XXX% year seventh driven Illinois revenue results up York, first a quarter and XXXX net I'll summary record XXXX. Pennsylvania. a for our a our in full which by and quarter for on year posted assets for focused reflects record of Massachusetts, with of record XX% record as we financial Jersey, quarter was assets, once and year all the we growth, includes line strong top on creation EBITDA guidance driving

these growth per in some million, retail year increased own we in from quarter increased Curaleaf XXX% our impacted meaningful an continue the to experienced weakness said COVID-XX, a XXXX. in by by quarter of checks the That to patient markets areas additional resurgence to relative of X% delay with, been spent as negatively related pandemic higher, holiday for and in scale COVID in the a revenue activity, rollouts average vaccine XX%. particularly the shutdowns. that to reduction was record IFRS expectations increase unemployment. of spikes due high the and infection certain supply quarter, patient will in cases the versus disruptions the employee cases COVID-XX experienced rate, up expected chain believe well We revamping short During a have as per leading economic stimulus month the U.S. third versus XXX continued substantial the driven third the that impacts as as be

all we to successfully reporting consolidated IFRS managed metric, no that reporting. which have revenue need there revenue our clarity, into report For the will managed revenue remaining be operations total forward, will now going revenue simplify greatly our

GAAP. us for intend eventual compare results, wholesale XX% to make this believe who an total to further fiscal in will U.S. report that for reporting it and our of accounting understand in companies the accounted change IFRS for position GAAP. We revenue. XX% easier our This for as accounted will other revenue the them in in addition, here step Retail standard listing investors well total quarter as sales In we to to XXXX, fourth from also of

of income For sales of representing the management sales. is with full and XX% XX% is X% year total total fee wholesale retail revenue

charges from was to was million basis the decrease primarily XX.X and basis as calls, online. XX.X% based one-time expect prior quarter on our a was and capital to increase incurred the gross lower compared SG&A moderate margins or to XX.X trend margin gross revenues due facilities upward last IFRS charges fluctuate expand year our while to for and points from on in and time, points we processing to intensity cycle expect of adjusted quarter year. period States. to quarter. in of quarter as will million facilities capacity continue we one-time of the our fluctuation cultivation fourth investments of the continue prior cool. sales mentioned last processing for bring the investments the several as in third was company's quarter-to-quarter compared continue operating XX.X quarter do investment primarily cultivation The and million in in due this quarter the we our to quarter. SG&A Our million it to new previous XX.X in cannabis to Also The compared ramp Over fourth begin cannabis approximately decrease the increased to compared quarter, sales XXX for the prior XXX as the to XX.X in the to to quarter during as XX.X% higher as million

XX.X% profit of identify we continue percentage operations, leverage. our to from particularly decline tax management increase gross and compensation, Grassroots operating stock income, and overall subjected As higher unrecognized was to quarter lower deferred taxes synergies, continue revenue assets, scale Income improvement loss. an XXXX. driven up increased expense ATG[ph], by of as additional on biological SG&A with year-over-year of up the from the additional non-deductible in a EBITDA we fourth associated assets deferred in XXX% tax fee across a resulting increase in expect subsidiary to our reported expense for to in record to million scaling well for We contributions XX.X and year continued was the EBITDA was the several the States, Arizona, New Florida, EBITDA as record and current New and gross due notably of year sequentially. and adjusted quarter XXX% adjusted Adjusted operations primarily Select York in margins higher up million from in Grassroots. The Jersey, XXX.X as

to compared of XX.X% As IFRS in from quarter, primarily managed flat conversion October. anticipated consolidated third to due fourth the adjusted roughly to was entity ATG EBITDA early of as the revenue quarter margin revenue,

corporate impacted are being Grassroots when now closed certain costs that Additionally, overhead harvested fourth synergies. the but we inherited we as quarter, transaction, the

achieve XXXX. depreciation quarter of options the the compensation one-time Due million and X.X grants rolled elevated was XX.X Select from adjusted restricted well comp performance catch to assets, value expense related for stock-based EBITDA attributable XX.X excludes as a to of is quarter. of Curaleaf fair XX.X million still fourth million to our We Holdings our net amortization loss from loss we due believe XXXX. impact increasing cost Grassroots full in as of inquisitive non-cash options during the as incurred during in of the million and the of expect items best of comp in share-based well it synergies to XX Net nature, as as the Stock-based expense stock period, and to up fourth measure over charges of QX to the of million quarter of acquisition. of XXXX compared first was half our related the to the biological

to comp levels to expense our a million have We the EBITDA loss versus Please press in note XX.X year quarter XXXX. expect in for XX.X back return reconciliation of release. the was provided in million we quarter. share-based first loss-to-adjusted Net third net

of XX.X Moving December hand. million on sheet, on to we balance had cash the of as XX, XXXX,

of the fourth to of equity $XX.X year-end to from million in January. quarter, in decreased million cash and completed due $XX.X Our New at million of was operations by recent Cash the cash due not capital the forgiveness debt does note in fiscal raises negatively Jersey from impacted primarily acquisition. balance expenditures the by by reflect fourth receivable early $XX.X the million offset operations. quarter Cash from non-cash $XX

IFRS year-over-year of Moving outlook, XXXX representing the tough to several of markets XX% versus growth expect year on in to to to on of million million total financial Based billion, XXX% to we include XXXX our our not generate XXX first XXX XX% of introducing continued full are revenue pending of range to quarter guidance, also This the revenue. our representing outlook our and we weather guidance of despite fiscal XXX%. $X.X confidence and conditions EMMAC for year-over-year COVID-XX, for managed growth growth total and contributions revenue related guidance the impact the reported our proposed of $X.X in XXXX’s billion any acquisition. does to IFRS in

New and Illinois. full fueled of key States, additional as growth year Our by cultivation capacity drivers Florida, Pennsylvania, in such be key Jersey will online Arizona, number a including coming

of EBITDA and adjusted Jersey, from synergies in a gross driven new improvements Our expanding retail Florida, strong presence cost New improved margins a pipeline in Grassroots expect dispensary margin product additional by increased capacity, we to perspective, XXXX. absorption From remain fixed margins in Pennsylvania, offerings. increased drive particularly cultivation

that reaching during XXXX expect adjusted full EBITDA our improve year quarter with margins We approximately adjusted will EBITDA XX%. each margins

was questions. XXX.X million following XXXX as average weighted to of as and that, as line we of X, million stock With open shares in back million. XXXX, XX, outstanding I'll of announced of shares outstanding the a Our closing result the offering operator turn issued XXX.X it shares March for was our January December, to the approximately previously XX

Operator

Our ahead. Please from Needham. [Operator with go McGinley first Instructions] Matt question comes

Matt McGinley

Thank in productivity you. retail is on My first the question XXXX.

Florida, any Jersey. states color guess in keep like be units like stores look in productivity like in from over expressing grow XXXX? that unit course You'll I much on productivity per upside? can higher new would also Would will I stores give assume New states us what volume what revenue unit but adding mix be much you lower of on your that over the volume

Joe Bayern

Bayern. Yes. Hey, Joe it's Matt,

know, vary you the by state. As metrics

heading out, have you value on seeing the not dispensaries going progression to ticket well. pleased with things the stores order of new potentially stores into one But As from isn't impact our XX of of a only average we're increasing as to our adding We've gone in but XXX we've as New been same pretty Jersey. average number state's the our Florida and patients volume, throughout we're XXXX. pointed in we're is adding

to also values, trading expect only finding our Chicago, are on order we're progression platforms. ticket up like that see and different prices have fully Illinois like of people we Pennsylvania, which So not but average we're continue to adding higher states average because

So vape just buying flower, they're buying then or with instead pre-rolls flower and a they're an edible. buying of

we and So in visit, patient we're adding incremental build to continuing every expect continue to XXXX. our by volume that sales to

Matt McGinley

guidance in sense the the was CapEx years? spend in hear would Great. roughly any CapEx. CapEx a you should CapEx Can that relative year? what CapEx your I to of number didn't what And prior guess dominant growth for have on spending or maintenance you look I for frame I this side, the do more And that then ongoing XXXX – think like be

Mike Carlotti

Yes.

fraction XXXX. spending. We growth roughly I CapEx fiscal is CapEx be is $XXX we're really that Maintenance in a to of million XXXX. in to about this spent number similar would relative in what So CapEx. Mike. It's small expect

CapEx spent that growth we of that will XXXX most initiatives. in XXXX So be for and

Matt McGinley

Thank you.

Joe Bayern

hey pass Matt, the able York we see add try we for is the some and into mean, backend of of is, pull U.S. legislation I'd programs as and projects ahead are can – some started Joe. dictate invest changing use to the to of states But some those might accelerate accelerate XXXX wherever landscape thing that of we to be the get to the only when the parameters Matt And they I growth. in this XXXX. And landscape, the might projects the continue to quickly to investment. what obviously, like how program try will could we'll adult New we'll

Mike Carlotti

January good a running so any may that's reasons opportunities who's the new to hand we advantage in all one that of in did capital Yes, the point, of the And had capital changes that that's country arise in raise Joe. days. we these on XXXX take the sufficient of because

Matt McGinley

Yes.

helpful. Very Thank Okay. you.

Operator

Zuanic The Cantor ahead. with next Pablo question Fitzgerald. is from Please go

Pablo Zuanic

Thank operate have operate described, you. as going trade. Boris, And we – being without it, state island. one question, to every right, going to trade, you’re obviously an you're interstate you're you for interstate the preparing

you. that federal more in get thinking you If the these interstate you for are need can have the ship and you stores? states, once a does crystal allowed legalization how color begin Thank but your So investing question. if trade, and questions, in have that your know awhile, to related get that would people pretty legalization. federal we to trade take and And soon we and thought that, get legalization? opinion, even I as Other the that federal first interstate ball what's stores? is across e-commerce about second, happens is That's something

Boris Jordan

Thank you, Pablo.

me Let the with first question. start

be Republic, on end bigger can a beginning. interstate interstate gain the We the the majority move adult if of Democrats much they'll is in think however administration. probably time, the rather our We are traffic, to though can York just this closer if Pennsylvania. think that current hold in into sorry, going We onto the commerce view than half that though states they're administration think months. I the I their to the to the votes. and have We think we next think That's don't the don't in don't that likely our equity over that the We get the issue telling us. to issues think banking term to XX continued Senate, something able get two full of they and through. legislation we be years. they then the second and get safe address it second to social addressing happens more that popularity, of lobbyists forced what do legalization use New like in majorities period in think this next

that time, And so at that we point would in pass. probably it think

plan starting Now time that is what do takes for is we're process We going this to to because it's that. inevitable, think happen. now, to it's starting we're a

substantially. to to where based can to on what would on tables of our based we're around We're cultivate the based everything. starting down on and cultivation water pick bring pick so And sure that doing cost weather, we locations country we working we're make average genetics on starting also is

so prepare cultivation dramatically on of going over hear to us you'll initiatives, for well to both next be costs focusing from venture as the in we the where on months situation. commerce area are joint order trailing as And interstate acquisitions, that bring those down and

what we're there. that's So doing

to law. We've law will of the On the really will legalize seen that they going it. how to in early the states. us that restrictive seen that only issue know of an the passed medical, quite it's because get get be they're the distribution early in none cannabis we've I think when still stores, of that

to of stores suspect a get distributing it – they they’ll time they into most, that then dispensaries is cannabis the that start because and minors. prevalent the they to do to be going they doesn't they that want control law will liberalize as what it on. be distribute So and pass pass I goes way are the probably restrictive hands

think think role. a places in stores play also And other play and I I will will the like direct-to-consumer still so a role. California

is very And states many direct-to-consumer XXXX model start out that also a going model so building robust roll and Curaleaf into model, that out itself seeing you'll us for in and XXXX. preparing we're during

to will mortar invest. seven both to that five think and we over cannabis next continue that's in we play but years I the fronts, prepared of be why the do So least stores still at want role on a brick and the prevalent distribution to

of obviously can. where product we're onto more to possibly is on definitely wholesale focus to importantly on many distribution investment side we really with going starting part development However, our the as as stores Select, possible bigger and the

the So to capture more a basis. at national obviously stores, by our be in is lot wholesale today but selling distribution do future we on margin going a own

focused. And so that's the where is company

Pablo Zuanic

Thank helpful. very one? last you. one That's squeeze Can I

Boris Jordan

Yes.

Pablo Zuanic

JC, Curaleaf, In more of the Seth we Select we that mean, a point hear whole to and the those are brands, a From my about lot like celebrities, hear view, all you you need I about main seems subject of player. these national Rogen, just right? brands be have. It two

You're Select, you very it. about but brands do of And need what these extensions coming the out That's portfolio? think brands? Thank more interesting do in celebrities’ you with you.

Boris Jordan

mixed that. I double a – have a on I've view

in best some I going et differently of product, that form quality. consumer And dollar the sure cost. What approach do every we're a factors of Pablo, at value thing, but companies to would And to think certain have I think think sells and I company. definitely moment it the but little keeping at spend bit – different eyes the brands we the did. you by and making have it best the open is the other are that, we sold best I that quality, it Apple you I helped talking in if will we be fields are Apple the people the a most And buy whether that innovative, market. celebrities watch wasn't our the product come are was was really any to on world, high sold your right the have there this although certain celebrity, the fact by the some, originally than that that's very brands, cetera, product.

Joe the making we going that that's dollars products quality I is sell and innovative broaden consumer and the that's that are are And and where the B can so really base. today. focused and where sure on best got our And best formulations we've products most

Pablo Zuanic

you. Thank it. Got

Joe Bayern

mean, I on where And who usage today consumer we the is who have believe are just two the you landscape Joe because we are today. that's people are mind, are brands in consuming There market. I'll wellness, consuming Bayern. adult two broadly lifestyle. There is use and people elaborate. occasions for again, don't there and are if and health This

it's two creating the appropriate As number there's the think those we to are But and develops broad of very have those want for today segments simple. each of really the and different changes, that brands brand emerges, we'll landscape it and and about in emerge, segments, as segments just segments. one marketplace,

today cornerstone So have that's why we brands. two

is Grassroots, is brand We what the important doesn't seem develops, another working of concentrates. which the And that point, in to seen taking space. a you'll Boris’ is which to focusing proliferation names is as flowering also have people start without and we've us, on lot market far But obviously to of products seeing be slapping differentiation, celebrity so on brands. our

focused to demand drive very the consumer we're the efficacy of and of quality and because what's product end So at functionality that's the on day. going

Pablo Zuanic

you. Thank

Operator

with is The next Please ahead. Vivien Cowen. Azer from question go

Gerald Pascarelli

much Thanks Pascarelli Vivien. on taking Gerald is the for for this questions. very Hi,

It in going is today. expand EMMAC release question seems like they're the first my press to announcement Portugal. considerably So the on that from

color back that's to provide some of needed you. Thank helpful. CapEx be overall going CapEx Any And can so on could the levels color expansion. would you be this for on there provide just you to going

Boris Jordan

Yes.

We every and operations in – different EMMAC very do have whole and in because federally business. the a unlike not what the to silo throughout country. very the is in we're centralized U.S. is with distribute can business States. dealing continent illegal than business grow European Europe, single United manufacturing We the So it's business build

much at the Europe people because platform it's Terra operations, the market much to grade manufacturing expand model. a European continue as cultivation moment use product built they Spain, a in more So going model. to don't to cannabis product higher or a the Verde because pharmaceutical of demands in capabilities location formulated that well where very the was understand a that Many a we pharmaceutical-grade Portugal much have are as pharmaceutical because

facilities. very very, facilities will we manufacturer of high, standards to those we the and So and those are continue invest be will using in

in to not to And at to our out in Now, build but Europe in our on meaningful. in continue distribution, substantial. in to that M&A we CapEx the the that's are said, It's variety be aggressive an a on negotiations Europe the order companies partnerships very, level products the very M&A we different use We business. but but be are is invest very in something and front will expand market. into basis. partner with because different capital as we of European in both the basis, intend not will working of strategic the a to on in an that both continue area honest that also in And footprint in order also with systems of to distribution that organic wellness on some business mainly strategic

are we're up at all Obviously, not So Curaleaf medical very in about until have a used EMMAC roots grounded medical. – what a company. we're is It's excited the our mean, different a moment. than slightly the cannabis I we But to largely opportunity. – business recently, medical here be today. Curaleaf is distribution

working out. very we're build to this with so And closely them

are don't Curaleaf our to we partnerships announce when be think but into compared platform U.S. in meaningful going a I to the the In in the spending overall it's not what couple we'll of meaningful. particularly So weeks, numbers capital to get the it, we're

Gerald Pascarelli

helpful. a That’s blended I to it. coming your providing going any think was information mean, Boris. weeks, organization the Got but – the good that’s forward I on be guess overall at in you're going margin. in makes guess, the it more Maybe sense. close on that high-level Thanks, how would the XQ segue. If can color XXXX, I does provide be deal margin impacts the I organization you

Boris Jordan

on give will both we this will more will line business There forward. we well. our analyst said what But overall with obviously, be there, Mike the company margin going on. detail be in calls early – for know The pretty

XX% is profitable. So targeting the almost we're a And business EBITDA European margin.

we forget, Europe. but have don't issues in it's So don't varied, XXXe

into in XXXX. to And so breakeven very close to business is and be going net positive that definitely income XXXX

Gerald Pascarelli

helpful Super much. very it. color. you Got Thank

Operator

Canaccord is with Bottomley The go Please Matt question Genuity. next from ahead.

Matt Bottomley

on of business everyone. And more classifications sort afternoon, give out the not. other of trailing there, or I exports description for Portugal? revenues they're Are are sort you question. Good give of just on generated Thanks what taking the on mainly on EMMAC Can ancillary of there to color currently, it just currently how the for units second. wanted any color Is stay anything? a some revenues exists if regardless – a basis? the modest revenues being that

Boris Jordan

in Spain a exports development So program Portugal France. also and England Italy. to selected to for medical EMMAC from They just today Israel, from Germany, in and got to to

All and of distribute. And, these in distributed their basically out They products manufactured has do. countries. that's Portugal, Spain what yes, in they then to grown

facilities expansion to Portugal. markets to of they have Holland to that order Holland, at working market. currently But cultivation use acquire and get So in and market already both EMMAC to obviously Switzerland that both they're on. an use licenses those and markets. both anticipate the agreements models, looking Portugal Switzerland, the use to. and this we certain At year, with the at Spain distributing probably They're adult cultivation continuing is are be those adult facilities the of looking into entering in they’re manufacturing looking able at for in on

Matt Bottomley

just New And for other follow-up Jersey. on Helpful. me Thanks. one

into or week? more flow other range positive color million when factors if you news And So of might you with guidance? kind $XXX there how can guidance have some more give your why if your on been conservative that have you that online, the come any that that's in

Mike Carlotti

the in that our clear $XXX we I not quarters. next QX use into we just is again, not but mean, Well, Jersey, because still factoring range. We're will Jersey range haven't start because over the we're four currently by I yet. we revenues, use guidance mean, crystal to in timing have optimistic adult New million it's New factored that adult see

Matt Bottomley

again. Thanks Okay.

Operator

ahead. from Global is Aaron Grey Please with The question go next Partners. Alliance

Aaron Grey

thanks and evening, good Hi, questions. for the

First expansion one ask recent on on I some state, You cultivation well me, specific retail rollout. some as wanted there guys right? had Florida, as to

ask come you’re additional to that position harvest continue overall overall look of how kind of and So kind within of that kind those of your from kind harvest looking state? of about I Thanks. that expand to as initial at you the kind wanted and to market how market

Joe Bayern

Yes. portfolio. horizon as adult I important we to market the grow. for a big it Florida an It's role in I continues most probably exciting in sometime think XXXX. obviously continues think to And play uses mean, that probably us, our on

to want we adult But to U.S. the most So think make in think capacity until could compelling one be markets is sure up we to then, We've when prepared the XXXX. our – that's continue capacity. we constrained going of that use because we're in for available. build we been

I some I brought through second indoor don't week. XXXX honestly the new we've think as And I of our representation of products, shown launching cultivation. today. fair do the our you was last said, And in round is This of So flower there but can think flower in it's our could say, marketplace. what a that grow. we best-looking new a we We're results we are

quality So phase just starting and of we've more on from gotten our flower across better coming out better phase just see month-over-month a buildings. we're through I the platform, grows to initial of commissioning and basis. And quantity those think startup

the we're looking the innovation products fresh in we about the excited talked change other have marketplace pipeline. the we're innovation product looking And in into the going and XXXX. essentials of launch we're constrained, year. in about because on into through we and the call, a capacity that think that and market squeeze, have and to step bring including been a going lot So we I for of marketplace have the We're to this available all

over forward Florida, news in XX next we're lot we So looking exciting of able have months. the to grab market a to share being substantial

Aaron Grey

All then And for second question Thanks me. for great. that. right,

also disruptions during chain You checks. fourth supply the delay stimulus in in mentioned some quarter,

know where talk your of year the the top, potentially about of or in overall could terms of some kind in of coming in how So ticket? we into some and does it's timing quarter? kind into Thanks. the in terms Obviously forward, of States saw you kind now a low of you stimulus disruption COVID of know, guidance that? high how kind and of lift And into play guidance to habits? of terms then that of your wanted the purchase saw quantify in baked cultivation during how consumer from average terms plays kind Just want going of the specific expansion end that new to last and then of the

Joe Bayern

on don't really talk we that can qualitative, impact. quantifying I Yes. not really but – we're the

quarter, we think think XXXX and in enthusiasm in we was our for see going some did our dampen we but the Aaron. a grow I softness softness, continue it that's to fourth just, seen of XXXX bit business. Even to rebound little though we've doesn't

We the metrics. get better reported the continue of across to operating – as we on our metrics, on all board

to think us supply – harder key I like for supplies people hire chain. get it's our ramp for disruption hire people able be it's it's the to just harder out and States trying Arizona. trucks, we've COVID in supply COVID are to people to and on harder were in us up we're when to chain when And find got

sites, for speed. We on was at our get But we adult body sick. because regulatory badged, to getting to the them spacing because trying we calling XXX are had different think to ready wasn't keep people hire out it and full constraints had hard working people I use. supply we manufacturing in had

industries, going us. in but feel get think to about I a think too – to other and is And XXXX the the I about on good turning front. I that about most not for COVID is really year feel of I level, really behind where XXXX. for pretty good us positive of going I feel So the a good macro be corner lot U.S. but pretty

Neil Davidson

that Well, hard, take definitely I'll had that, States Nevada, particularly a little a you quarter, Arizona, hit just particularly look you'll Joe the Massachusetts. fourth the BDS add numbers, see were unemployment that a California the side. in These analytics say bit on to at if slowdown were

we lot saw slowdowns and businesses I and the but business, not only hit my locations. it definitely it of in for we in lot in these office, and saw So a consumer of our family invest

still And year. bullish a do of I think And that half bit. the check for stimulus check think that second this I'm help going helped to in I a little December quite $XXX is bit. the very the current of

the go plus United of we're think growth potentially year. going to explosive into environment the an with rates going the XX% I in into States growth end

tremendous think, has we're third I do XX I number quarter side still activity to we So think of still, showing, activity think going fourth economic I think the next second, quarter. the got that the strength that more some on the level we’re numbers in into months, see I and vaccinations, consumer first just saw. last much employment the the that COVID and but – with going

of denying we're pretty use unemployment struggling are some there's over with there's thing the part rates happy that this And definitely the all-in-all but first was and lot way and that cannabis. States in are in were So those heading, no that these early these in the is of quarter, XX%. people country question, in a of there fourth no the quarter people

now Illinois be softness, quarters a seems So flat a picking saw some there's no up. we we with saw think in I couple over of of over everything to growth question it couple – months, but

year. bullish this reasonably the about we're So of rest

Aaron Grey

Great, thanks.

Operator

Partners. Fortune with Scott go from ahead. is Please question Capital next The Roth

Scott Fortune

more [indiscernible] Maybe of for potentially? group pharma U.S. about in influence that group, of an Boris model side the pharmacy on into you board of are around Good here? on is that wellness thoughts the a GMP commerce moves of medical address thinking the of the regulated versus with of it consumer Cannabis but as and and segment candy alcohol, far products level, of medical potential the what's as strength lead tobacco as becoming GMP part taking Senate a lobbying your kind X.X of call. GMP kind acquisition the the of U.S., in is coming more afternoon, dealing with the just the cannabis pharma FDA a or you the things interstate on are political discussed kind to the thanks earlier, just as side industry commerce, the –

Boris Jordan

and and is tell think talking you bought to the they out to it's political that I think are a huge first, for are absolutely companies, And are lobbying companies tobacco tobacco want market, that cannabis me companies. cannabis trend. the landscape. can landscape alcohol into They've that alcohol The are out let give for I political companies legalization legalization. it. this talking They you

now together cannabis. lobbies They're the definitely opposition right found there. is pharma to problem Washington. has powerful The synthetic Pharma way in due no not with the pharma, there's is So very real working still cannabis COVID. to manufacture

so And they not necessarily are pro-cannabis.

the can bipartisan legalization the that lot on, polling that place are initiatives trend bulk November. And around head against and of of this in time. that And from that and issue I our is everybody And however strong, the in Senate the they're very they Plus seen the point holding they're fact the have a the so country still on it's as well the era, very the powerful. hold members They about as get of that come legalization XXXXs we have, do there's spent if huge can't war in Congress cannabis. fighting we've certain in of direction, the quickly. agree over you cannabis did, administration ballot do that in a of the and career whole FDA. is think, legalizing in full XXXXs, took here drugs one very the at back their their this country

kind think do commerce I of as we'll legislation end get anticipate. as what probably interstate that So both that's well we the the Biden probably of some at the term banking

Scott Fortune

and that brand then On guess are flower it you'll standpoint. engaged outdoor is, Appreciate get around, one, flower. XX% pharma[ph] is from pretty the that. me brands indoor for it that cannabis. a of are Is seems of like X% you said U.S. you guys premium segments? of to have of Kind formats legal saying guys that for for you from quickly infused moving and Joe, cannabis keep one or that quick up segments the to XX% to address it's And only at real looking category population if the pretty starting option quickly, last can a you cultivation resonate kind really I of high in XX% now the what standpoint? product seeing more kind to that edibles and growing down

Joe Bayern

just flower category. I the big part for future be clear a our this still Yes, foreseeable – for to think is of

I think, over BDS the latest data XX%. it showed

like into important the be very part will but So of it's it's people to still looking products factors But edibles your identified switching in cannabis are and segments a other the segment. people different two easily already consume those form factors and that to segment. how point, of form to part consumer the we're consumers beverages think experience bring declining of I

the boutique-oriented we see I continue category. States And the flower indoor will a material niche-oriented, probably as flower be different So products over to products. consumable that's are of get think think, or consumers as formulated for will and time. used Obviously, into a will specifically to growth that's the to I you your attract we That more and how out raw build will evolving to new way meet flower. outdoor of grown for then products on end, bifurcation need efficacious market be that point, high-end formulated

Scott Fortune

Appreciate color. Great. the Thanks.

Operator

with Andrew question is Stifel next ahead. go Please Partheniou from GMP. The

Andrew Partheniou

softness growth just a any in give in to a of on the growth tickets that about in growth, about the little demand potential details you any the taking bit about metrics traffic, for bit or the bit of little same talk of thanks Hi, sales, sales my organic discuss I mentioned during guys you store but more revamp quarter, and Maybe you questions. could around think call, that, basket spoke considering of XXXX? a little especially kind

Mike Carlotti

is This Sure. Mike.

the Keep QX. of on in the would close $XX managed revenue higher. on it first So look July if XXX.X million $XX so revenues it or though been mind versus XXX have had closed that to about managed QX, the at July, Grassroots QX XX, month in million million was million in you in of

And Florida, of sense several Illinois. where we was kind So really organic bit Pennsylvania, New a in you a growth Nevada, saw Massachusetts, others, that the Connecticut, several and organic York gets States, of little New Jersey, growth. of

we On sales metric the to same front, haven't yet. store gotten that

the the I so X% the But quarter, did future. call, average all do value per patient growth said increased was in think fourth we patient the about we challenges like by will quarter, we the on from third in despite up saw order XX%.

Andrew Partheniou

here, And gears Thanks and constraints. the would market in stage because about, more where third bit little big cannabis for there stage to consumers, capacity we're you of long new you that in that bit, how discuss cannabis. Could in vast bring do build that Basically, of tried a next still you maybe the stage Americans to have majority switching cycle. not compete the be given have life be first picture. that and black already industry bigger essentially out little the color market. the would the think large of contribute starting when think of to every is capacity would the additional bigger last? against that portion that to innovate, going can a obviously talked guys is just stage production would then you growth do previously expansion forward? innovation to a the stage first Then – a need you be We And are yet

Joe Bayern

line a our going the from of evolve to think be kind think time, going Yes, four there's of clear same – times I at the size I today, when the perspective some on to not starts market happening. delineation all transition the think today. the is the by about estimates, market size if marketplace but the the you of legal illicit It's of

like addressable wellness chronic in mean for relief, opioids the drug anxiety, of I grabbing growth is the if a Then from you the use the think the just from things who that in a way market pain consumer for using other consumers consuming long are industry. of currently U.S. the size bringing health the sleep marketplace. U.S. in and in of huge prescription or alcohol products bringing cannabis about illicit market to market in all people are or for segments, going So is share market runway

that share consumer other from might when estimate to I you conservative $XXX about think about you those actually billion growing when stealing – $XX mean, an if of we in large So factor talk segments. billion, be

marketplace. looking So of illicit competitors products, grab We want all by we higher grab marketplace those share intend from to factors quality to existing consumer, smokable to are to to bringing try share only want in as people the things. to continue even into clear it's do move offering to against new other first We legal and and and our not of we our category. form factors national study flower the coming And – and consumers just rather new that did existing form than we consumers our consumer future. in segmentation

bringing without area of flower to distribution So products. growth also that going looking then their but products big needs in to at omnichannel our is we're meet smoke another be having

that may works drug sold and for So for that well we and but national if distributed versions formulating THC and through health version be dispensaries, products in could have we something chains. sleep, also non-THC a have be really might we has that wellness with

paths mind So out clear we our path how building in and against areas we start different of see – the the is multiple across revenue market very our growth segmentation.

to all X So X. X Version delineation across about moved building we're Version be from It's a of, those. again of clear really it Version to capabilities – line won't

consumers into to we're these capture as the them. come marketplace, So able

Andrew Partheniou

just level positioned. a eventually you different guys dynamic sense, I are that were And context another it in if investments why fair meaningful well having that the thinking going talking about minimize you on to more that, the on little your partners EU here U.S. sneak the platform? time Curaleaf be markets do could about for from more Thanks. the that's entire in say obviously a early, footprint up when Is bit markets until the you these of the market. the guys to And strategic EU guys there establishing become being in market, to very one so open are

Boris Jordan

one. take I'll Listen, this

legislation and realized liberalizes is in it studies we every see started XXXX, is if And that to to think were wasn't. is of Europe, demand. where about do then in the going it pickup I do been reviewing to And about than as where's very where Europe country at growth And substantial market look And people in cannabis, not many Italy come users. cannabis excited Europe right XXXX. we United cannabis we I And European at that started in we the realized And usage for Countries I at are Curaleaf as the if use today. States. than the I XXXX, cannabis are starting the Portugal, wouldn't good, looking XXXX, status I've that's Spain like literally we're further now. market growth. growth Europe triple-digit I massive to more how and when a is least and in

person XX realized Germany an it's market. And a market mean is so we and million that person – XXX million I

And market? best And because Europe the in do talking now we're said, in Middle the way get best largest, so ground market. buy East. what I years to operator in the raise no want three pay I partners do a or at capital in did. level, And going want are that's cannot no I billion floor operator the in run Europe. I Curaleaf that run and that we largest I to and company for there's the to to And the no on $X their be the bought best

to where a some that And Curaleaf people is way. million just, And a so we they're a their And at we in to XXXX, you're XXXX. today. acquisition. did the footprint U.S., to near in market investors very with a team, eight at finance it's and seeing have where investment in federal I on think when normal out think cap need anywhere exciting are operate so legal look very have market, Curaleaf, we can that I starting you start legal, strong very with at want not built it on And market into don't a happy bought look much country the have management an really a to there. substantial we if as corporate legal have to do foothold contribution infrastructure going terms CapEx and you think Curaleaf that but we what $XXX it, we

plus it's got what substantial going although to going contribution a supposed bold look you're growth, business to – Curaleaf’s two start see think line. next to bottom acquisition into the the very see is very growth years, be to in this to over our I from to that our meaningful bottom XXXX was that's Europe. for and you're going strategic But we think from and not five supposed XXX% going I as the come seeing where We're years management's do. to XX so out to And and XXXX, growth.

Joe Bayern

consumption just And in in to that. the the driving believe done that Joe, the on because is the preferences compared as we're States Yes. what This U.S. U.S., accelerate we've consumer to ability in have and we need growth I'll basically – behavior add Europe that to also we're Europe well. the in the drive will

other research capability a it those to they able synergies of needs to that take the just we'll deploy take substantial. is move GMP go there perfecting and than our to growth around so U.S., cycle the exploration another So the lot also through innovation across able we're in the that the without business have marketplace. having which to product clinical and growth platform, and right certification, Europe into We're are formulation of meet and in be here

is Now candidly to that act as people to accelerator an advantage can't. opportunity and unique us be way we of in other going take allow a think an

Andrew Partheniou

much for the congrats all on results very color that these and and again Thanks announcements.

Operator

Please Stanley Russell from go with ahead. is Beacon question next Securities. The

Russell Stanley

taking my questions. for thanks And Hello.

The of I your a pose There's passing business first to wondering on legislation to another And effort are underway of just the this to one likelihood your much guess levels. risk thoughts THC relates I'm how legislative content Florida. cab the what time? may there? it

Joe Bayern

of basically lobbying in do bad We there is a first recommended risk working But that couple are of legislation do to to this. always want our against don’t and that industry It's for the seriously. conservatives the the can the attempt it legislation. not regulator that in any the to or be piece of This take every guy this. not – a has same believe this And all and there's we accept it. assembly operators effort

sure sitting We're happen, we're on but it we're of doing it. not making and we're comfortable pretty top that back So won't nothing.

Russell Stanley

Thanks see Great. for around in as you? comments they multiples prior you home to around become point targets the decision this market, way, little attraction there just your your M&A from potential this on market now any too still out targets in valuation it. are how your that. notwithstanding at or timing aggressive And wondering attractively just Does I'm in the U.S. view multiples reflect the European a on U.S.? a What's at priced entered follow-up your in the and you there do outlook of

Neil Davidson

U.S. mean, we multiples buying Well. have ago, store so what million early strategy cheap, on a in a million it's which and let's and in our some is paid the let's but where paying couple did. get We people early reason aggressive $X the people criticism of think we store. a Arizona do become to was in years from in in aggressive Curaleaf were get I are $XX we

I the see very platform important, is a scale, I that it's expensive. is the expensive. see And important. be we of one, is Europe. to consuming the And European scale the part the the barriers in is think rebuild very to market developing. able like I timing are very EMMAC still obviously Antonio huge and And time entry it's opportunity like our with So very, acquisition one the massive. that higher. to mean, I built the fact

And early so higher. get we before the get go a wanted price for to we asset prices to start can one, an the decent

On be the think, U.S. will Curaleaf very from I careful.

to We are changes, new it going that commerce adjust States the ready enhancing they're needs of the structure that. starting year, make during business but to focused law that and/or be on where to Curaleaf to change when our our we're the into the we for bolt-ons working to have those the fact plan just couple a largely existing businesses of in probably interstate

you'll of plays that's and and So lot for bunch them in a see only to We in Virginia we Other can invest to as Georgia than try see cheap you're the of organic get then that, going bidding, bidding on licenses We're we're from us. other places. where thing not for them CapEx applied that a and licenses. as we basis. a

European I even doing footprint us activity in bit of really consolidating European think U.S. and we're on growing a the you'll the do more. see front So that's And sector though, in there the our what from

Russell Stanley

you me. the for all Excellent. Thank color. That's for

Operator

ahead. next is Glenn The with go from Ladenburg Please Mattson Thalmann. question

Glenn Mattson

us are And in particular, at all. will way Governor What the thoughts the there? call, so I'm a sorry timeline of shaping position your terms if be you being at just color great? York, on realize it's curious affect try around potential up New distracted quick. in brief Hi, process I late the all on and the that and weaker in in it's negative in I'll just, can some Question could and how legalization give Thanks. a be

Boris Jordan

address what I issues we're right there this you And get of Look, Governor's going of there, of now. quickly to year legislation can't the moving quite hopeful say that very New can are legislation legalization use in personal but that to I is York. we is for package adult a

could to as I it will or package as June, four it three think use. for get happen of month we that over think So session so, adult could months. happen lasts But during and the this early next legislation the session legislative a next we until

Operator

is with next go The Please from Lyon Camilo BTIG. ahead. question

Camilo Lyon

of investing your a go after right strategy certainly right about talked now, that terms you've the given Thanks. Good be in afternoon. lot and opportunities the to view. to many aggressively seems Boris,

the see or perspective? have does where about and incremental kind put that investment there to margin you EBITDA to going continually As do that to that the at, at going as settle want generation into And you some level, year? you is higher this that revenue? get settle think year's been think revenue offset where getting that margin from a of the need your revenue investment business to out the you're migration to about of out you with context over really Or EBITDA XX%

Boris Jordan

of that matter style it's investing a think Curaleaf. at I Look, of

from years will that that companies. I think say, probably going think margins be EBITDA look CPG cannabis to I out, if probably you're now, most the XX we – as same

costs. higher XX% margins think see for for considered And Curaleaf than well. scale, XX%, scale bigger. be our could XX% higher I variable a I able I margin as So XXXX mean, period, we costs, going could as reduce will EBITDA as pretty into those do think the businesses. healthy a to go you gets they we're EBITDA margin certainly our in interim the

see company think brand I on more getting company and to focused really, awareness stress getting focused into cannabis can really now and So I upward out that's I footprint my to not blow the and the EBITDA investing product and pressure. build having on the the you goal. and my is My product really but that less fact, right listen, is my in XX%, goal stop can't company out tomorrow some cannabis products. margin – good But largest could EBITDA world. goal market

going I so am invest. to And be to continuing

do. think right I thing it's to the

XXXX, have that they're think into margins. margins. XX%, on execute XX%, And think some far around And investors held very going upward But And think pressure see very, work. continue going to most in I'm so think I you been I until it pressure I the level – and EBITDA margins I have we've us companies’ – exercise invested have goods think long-term do will doesn't for strategy I margins think healthy investments working. our is medium-term, have But EBITDA their some had And consumer I to very well. potentially EBITDA that paid out it done could on it. upward We've with

Camilo Lyon

of on with Jersey, you you the Jersey, And color to or the thoughts respect just with what That's will Illinois to users the any XX in with Illinois in Arizona? Thank have that How understand they're or and more issued? going and they your licenses. be Are dispensaries share it. to that color. terms New should facilities have very of to do licenses in you only respect sort to New movement to of that pace information require be respect like adult ramping the up specifically in going curious Got going on unfold? the they use for any sharing specifically helpful. that And color see can status that Any we plan on is helping additional those new would helpful of us get how the to licenses market.

Boris Jordan

like Looks growth. of going Illinois, so to have distances a going that’s I'm have to time, answer. People store. to bit all we're licenses looking what's cannabis additional the to long to we're quickly running today to get a travel because to forward drive out

issued. excited So those those they've out. hold that put being about pretty else we're everything I almost get licenses on can licenses tell to you

up So are on any and held because that done. they approvals and stuff equity getting the M&A like deals very are focused being licenses social

thing. good a probably it's and – So

will the And in we've So distribute think soon. sometime. the to development happen we quarter store will wait and get think that how the fourth Jersey, developed. and launch terms New position the think of on we that see that as And further do current they're probably license its going said, program everything, well, how regs that in I by pretty

Camilo Lyon

and it. Got good Thanks luck.

Boris Jordan

you. Thank

Operator

This concludes Thank concluded. also the has presentation. for session, attending our question-and-answer you now and today's conference

You disconnect. may now

Curaleaf (CURLF) 10 Mar 212020 Q4 Earnings call transcript