The Cannabist Company Holdings Inc. (CBSTF) 14 Aug 232023 Q2 Earnings call transcript

Company Profile

Participants

Lee Evans	SVP of Capital Markets
Nicholas Vita	CEO
Derek Watson	CFO
David Hart	President and COO
Jesse Channon	CCO
Aaron Grey	Alliance Global Partners
Frederico Gomes	ATB Capital Markets
Matt Bottomley	Canaccord Genuity
Andrew Semple	Echelon Capital Markets
Ty Collin	Eight Capital
Glenn Mattson	Ladenburg Thalmann

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and thank you for standing by. Welcome to the Columbia Care Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Evans, conference Capital Senior go like speaker to Markets, now ahead. Lee today, Vice would hand over the your please I President of

Lee Evans

Care's thank operator. Watson, me With our Officer; and our Nicholas Executive Officer; for morning President you, Chief are XXXX Jesse and Chief our Chief David Thank joining conference Financial Good today Commercial Columbia Channon, Derek Officer; second Vita, call. and quarter earnings Operating Officer. you our Hart, Chief

copy reporting release applicable press second for a of access authorities issued we morning, days. able will A Securities with the this results to this XXXX website, file up on on replay also available US Investors our this of we on Canadian to be EDGAR. our a which Exchange the section Earlier quarter regulatory Commission XX call release and SEDAR where also of is and corporate you securities will

of you not Form authorities also forward-looking our be and any Risk today remarks prospects December subsequent differ Factors we filings. Canadian annual in been looking important future securities a should of views the as those of as regarding applicable regulatory that applicable section Actual we our and today company that as such by subsequent which indicated various of year XX-K within remind from meaning result statements relied statements ended disclose may results the the the representing We factors, note in forward-looking detail laws. has for and more date. with in our statements for of Please the make and views materially XX, XXXX, as US filed securities upon plans, represent any forward which expectations, constitute

obligation update may statements the disclaim any by except specifically otherwise required we any do we so, as such applicable in to law. While future, forward-looking

to not we and today's meaning Columbia have considers on EBITDA. measures These that note certain may GAAP companies. do presented EBITDA A measures in by its and measures their non-GAAP be such as call, is results. not addition similar measures for, GAAP reconciliation of adjusted measure financial other performance prescribed not nearest measures of certain by to comparable the financial earlier will such as to please any refer of Also, comparable issued in non-GAAP meaningful Care a to, standardized our to included non-GAAP press GAAP business be substitute but today. indicators release

to us With over Nicholas that, Nick? turn get started. I will the call to Vita

Nicholas Vita

results We're quarter importantly, opportunities and the growth everyone. in you discuss to Thank the the years. and good on excited call you, morning, of and Thank second capitalize expect to today. and Lee, joining quarters more we profitability for our coming exceptional the

start Let's with QX.

in we in will demonstrate our profitability best in continue drive we detail, in growth cash making footprint our to also streamline more geographic plan midst the recent discuss strategic As continued are results operations, the and markets Derek most and further the quarter progress unique drive ongoing efficiencies to the solidify of of flow. executing Simultaneously, our headwinds.

gross in adjusted sequential adjusted the over margin adjusted we EBITDA EBITDA margin, XXX-basis margin, increase a result, quarter. a a sequential and in adjusted increase improvements achieving As and recorded point first significant EBITDA XX% EBITDA in

you income a and free about few focused both hyper statement on will achieving steps flow, are more to implementing moments. We our balance in positive hear and cash improve we are consistently which numerous sheet,

in uniquely to and outline poised the positioned I specifically. Care we significant Columbia is are which growth, industry, for want cannabis

distribution, wholesale sound opportunity the diversity right in industry operators those fragmented, this billion competency retail that $XX strategy a particularly the with and execute those ahead There ability emerging of adequate and are an remains operating for reach yet are companies a a with handful space. only in significant executing markets, reasonably innovation. we First, well of is core to geography, for

With next to industry's lead of to do place the development. capabilities we intend the in team, leg so, assets, the the

among are the base. we geography operators most Second, diversified and in terms of asset

the scaled East one Coast, markets many most driving do are that namely value also the transition, on in are are the a poised in still are to We or now. have the Not Importantly, growing scaled that of most we presence we from markets adult as only but and top New the next, the growing York. country, well such use and that Virginia, as New as in markets, transition such fastest in those markets Jersey medical in also to of Maryland, as markets Delaware the will

standardized systems, We've retail already supported expand loyal best networks across innovative active markets. and network, to cannabis network invested customers. brand one strong the across intend Third, XX by We retail time. fully further capital brand the the operating retail of our we exceptional build a over XX locations with an entire technology, have to

going investment nearly cycle. as We capital requirements forward we've expect low capital completed the investment

Now will the we sweat assets.

capabilities in we efficiency the our growth, shortly. products We David both and Opportunities across quality wholesale to demand. elaborate manufacture us form drive for brands we consumers further our manufacturing and our to which pursue network factors, and drive innovative Fourth, network. to highest that improve remain Jesse continue across and will on build wholesale partnerships

achieve initiatives to and Derek and flow interest balance our maintain reduce we As also cash undertaking will touch strengthen Finally, are upon, and positive sheet, profitability. expense multiple

a it margin relied capital always industry, human expectation So hustle. we upon technology growth is stronger higher as that vastly and the profile, will show we've and frankly, in a innovation, relative others rate, execution to improved my

and growth. the management of significant dissected has laid Over foundation business, year of changes clear aspect implemented for course team our half, a our our past every solidified and action, out

value to Care realigned and bondholders, have to for we services that drive committed community. we (ph) shareholders best growth of every and and organization and the place an point providing screen] our This in profitability. team with to a now that to and [coiled are the is in while propel at success way inflection we it continue ensure products our Columbia We the cannabis

review now will that, With Derek? outlook call in Derek to results and financial detail. more to I turn the our over

Derek Watson

and in comment trends sheet quarter, our Nick, the morning, for I'll the underway. of and balance provide you, a results the Thank discuss management everyone. markets financial key summary good key initiatives second on

second quarter, growth representing quarter $XXX.X QX flat million over the the X% of and XXXX. we in second sequential For versus achieved revenue,

Adjusted an X gross QX increased million gross increase X% over sequentially same $XX.X was to profit quarter up improvement approximately was a a of percentage compared XX% Adjusted over the million, sequentially of to Adjusted XX.X% $XX.X year-over-year. and as QX, decrease in and XXXX. XX% point over QX. EBITDA X% margin

report income XX.X%, basis the Our XXX positive improvement adjusted an of statement QX. profit over for a operating of will points margin Also quarter. was note, EBITDA our

our increased second of Jersey our have we count as in since During quarter, Virginia. an Norfolk, our location Suffolk, In retail Maryland, one additional volume the location today. of growth additional Virginia, QX, revenue XX a opened continued bringing driven markets, Virginia in opened by despite primarily number retail X.X% price in and to store and New sequentially, compression cannabis in

retail compression, of levels participants remains Wholesale compared our focus is price by wholesale to the on challenged across percentage industry own with Wholesale verticalization impacted as the the and activity slightly decreased similarly own as stores. revenue also by industry quarter industry in higher $XX.X their but increasing brands first million.

certain due margin overhead inventory. that at by require our highlighted than is impacted taking the to underutilized to we've reported. approximately X XX.X% unfavorable expense we've costs temporarily assets points sites of our capitalizing QX, percentage adjusted this margin the rationalization us canopy previously, them reduced absorption In gross As rather cultivation gross offline, to into by

continue to markets certain will reduced generate in Our canopy cash savings. net

back canopy it we However, has improve. and also rates impact on unfavorable an turn on margin gross utilization until

At initiatives $XX reduce the the the to retail operations, of corporate to savings. we initiatives, close are with or generate annualized we incremental cultivation on of close from our primarily unprofitable announced some integration acquisition. and track end in gLeaf cost previously Together July, million stores net announced eliminate reduction positions, completing

our ended were growth liquidity. the representing second Gross expenditures million the a in quarter the quarter We with the in an to only. new negative quarter. Cash burn CapEx. $X capital operations cash, supporting store $X.X $XXX,XXX from $XX cash some openings quarter and million was million flow of overall in in On

both flow other generate sheet of improve, initiative to of to balance we're from revenue higher expect reduced cash regardless we continues implementing. operations year, management this debt QX costs, profitability or in positive from As and

convertible In of holders into due, X.X% that to settle $X.X due flow. XXXX regard, our XX% On which announced next in the in of May expect notes we number when our notes debt exchange of maturity million XXXX. become in July we December from note we've is operating a of XXXX cash to received commitments due XXst, and out

the this third conversations We additional with are to exchange still holders ongoing limited quarter. in close and in expect

our two downtown announce Angeles to are We've the in our million. strengthen at addition closed grossing new that early is and Los measures the to August, in balance $X of divestitures pleased mortgages sheet assets of in sale previously down This taken to reduce and additional operations, continue we'll sheet which have target both in that to from interest $XX Missouri these expense. de-lever our of pay activities notes approximately and Proceeds used specifically announced. balance debt, to been seller we million initiatives and

of quarters, you've taking our As a balance and cash operating and to we've improve in this sheet. been incremental previous flow call increase number profitability, on heard strengthen steps

and of focus discipline, preserving optimizing efficiently. our For on deploying asset to cost we cash, the balance continue base, XXXX, capital

achievements and call over to his Hart David? on growth our to let operational that, opportunities. With the thoughts turn our David share me ongoing

David Hart

Jersey, quarter. top QX. Pennsylvania On Thank also Colorado, replaced Maryland, revenue Pennsylvania alphabetically EBITDA New you, basis, and during were will five Ohio, operational second our and were an Virginia, alphabetically a results QX. Jersey, important adjusted Derek. and I New unchanged markets five markets developments the On basis, Virginia. top now from highlight California, in California our Ohio

New strength emerging Jersey of demonstrate our to the remained markets top Virginia which markets. and continued

quarter, QX last began the we cost that we implementing realize from continued During in saving the year. benefit our measures to of

our the On Our we and I'm quarter year. half momentum efficiently, operating of we is excited the are during achieved about into top the results markets. the back the to carrying and business

one our revenue top by California QX. markets of replaced in Pennsylvania as

and We incremental market efforts Colorado, and team's Retail restructuring both focus our the built share. continued by off on strategy we are that take driven our market. In started taking the seeing to took is in drive and in price in innovate wholesale finding of markets. QX stabilization place hold, to ways retail wholesale

and drove opportunistic improve helped dispensaries. flower our our of foot quality operational on efforts implemented the the improve concentrate buying traffic to our pricing our in which strategies, efficiencies. revamping continue Further, into We business

began seen wholesale week and steady since to In on use increase demand then. one in day We saw three weeks increase Maryland, up leading we which X. began locations adult sales in each have retail sales use, an July on the our in at adult

the market will our execute optimizing strategies. facilities, Going forward, new improvements and our to to pricing we and in continue implementing operational brands introducing products on

We the location a have the We're adult in one market cap locations process in additional to better development location of for market before. of use suited also as relocating get one to to retail grows. the our

New Jersey and revenue be top continues for to performer us EBITDA. in a both adjusted

optimized different traffic look wholesale been in drive and demands pricing We've launch we awarded. to retail come foot won locations. Our to wholesale products to Ohio continue the online. are a growing leveraging in as forward incremental Ohio to consumer recently in growth business XX wholesale our as market the to the meet development. dispensaries In and continues of We've is production XX from represent Pennsylvania, growth to retail we opportunity set stores strategy demand location into our open additional have

additional introduced and brand offering from to we year. that of look the quarter, the our the the During to market balance expanding in forward products portfolio national

a our to and EBITDA, Turning Virginia, continued adjusted wholesale and market, saw revenue be continues expand which in product performer will moment. top we which discuss an offering a in to the in increase to in both Jesse

rather As to Virginia two dispensaries just in this three QX. location state. We we two Suffolk -- Derek QX opened in and one QX new a this opened total bringing another month, mentioned, year, in in us in tenant

to we have two development, more which next plan year. open We in

us to months, and of have business XX more that improving on efficiently. will we past operate the allow our fundamentals the focused Over stability

to with matter across an going subject make us enable hyper decisions to able THC supply genetics level our to our and be the will in continue local increase will levels real produce we forward. Specifically, at time chain. experts strong This

We the excited among a improvements they I provide. foundation benefits for am and have these others will for solid

continue to QX, of across efficiencies locations. our So we in all drive far operational

heads our believe company look We I a drive as second we of XXXX, to have and well half efficiencies lot forward the to into growth to our positioned markets. markets are in succeed and mature the in

the turn team for over Chief call their entire will Commercial I additional the execution. Jesse? Thank to you continued for to now commentary. Jesse, Officer, our

Jesse Channon

speaking focused about future wholesale, first In now the even I you today role, Commercial Thanks, newly as of excited overseeing my David. company. and company's with that ways products identifying technology am product more the communications, providing be excellence Columbia I'm and experiences. I'm Care. and complement Officer, Chief experience to I'm develop our supply on optimize expanded and and and to to defining excited what for consumer the Columbia existing retail, entirely technology Care, retail marketing, the our services means to portfolio for customers, that chain, data and to using

infrastructure uninterrupted environment we efficiently. an you operate needs this, our will brands to improve whole This creating As means innovate next exchanged on the Until accelerating information this that where and in upon continue across we industry. to need is recently, to which change, innovation plans examined and between Columbia structure informatively our achieve as in forward To were made This sale can embark our way business the lifted, year, changes meet propel is needed, enhance more we flow developing hold disrupt due and for to on is consumers. a our we chapter. the know, Care to front of conducted to we where as allow look organization technology, organization of in cannabis to a those building and constant transaction. With back-of-house. earlier the that this this critical us the

SKUs product in second of our quarter, new portfolio launched our expanded the markets. we key several and During

As we some our most I'll that within of touch brands upon distributed brands growth continue in during comprehensive widely occurred houses the of this few a quickly one to the in of and SKU of QX. space, expand on examples innovation

one new XX vape the Seed New products multi flower in During lines quarter, gearing varieties vape & tinctures our in in available and markets, Virginia, flavored our is launched carts bring to derived and to up Strain, one York, gram and flower currently packs of of we're of we pre-roll Jersey. New

expansion Illinois, concentrate launched resin our extraction able of offerings line in expand to Amber that quarter. introduction continued method thanks in market. And a we award-winning with live vape and and concentrate badder during were carts new Our Shatter to the Maryland live the resin in launch

World for Cup. best Arizona, isolate first the In won our AMBER at Diamond Dust place XXXX

newest Illinois. markets, Our available tablets, in are our Press X.X tablets Florida Virginia, We market introduced highly dissolvable with and launch. sought to in now and West Virginia Press after targeted nine in oral and Doze being the effect, Shine, Rally, West

across number chocolates used team Care launch, The where markets We for bringing country, launched learning we've total evolve the offerings we've in Hedy company, our across is the three the fast-acting gummies to in our our the future new We've industry. Hedy, us past and into Virginia. New our from and from challenge and interactions cannabis-infused in and markets, flavors late peers year. envisioning the which Since expand with been to Jersey consumers, raspberry-infused additional available help that of introducing providers markets nine. last to expanded six a Columbia but ultimately, service hasn't kept has a year continued opportunities

pause, and We and picture. sight longer are to who us consumers we the together connectedness lost spirit reignite no of our we've will serve. of to on to and the we be We're communities ready redefine collaboratively the bigger never all bring back

the embrace you and and to something of we the intend fully intend pursuit a run. passionately ahead. challenges those chance been know we've believe how a For in you second sense, we to who In given of hard we to fast me, know continue

and about get and we experiences what provide opportunities on look providing customers, our partners updates our We to choose doesn't. resonates story into have colleagues. what from business to lean best-in-class grow tell I incredibly the to to calls. we company, I'm progress how evolve of the excited on future our forward and

Nick to call the over back your that, Nick? I'll questions. turn with to And take

Nicholas Vita

you, Jesse. Thank

and team, the all As improving and markets are cash further expense growth, market Columbia our all country. time interest a for free for reduce in are new in to thank positioned clear entire Columbia proud is for poised I'm profitability, to well share you and you on we exceptionally can exceptionally positive flow, debt who increase now growth tell, path Care. want today. I your best the drive to of Care

And operator, let's questions. open up the line for

Operator

[Operator Global first Our Aaron Instructions] will from question Alliance come Grey with Partners.

line open. Your is

Aaron Grey

the Hi, morning, questions. thank and for you good

focus or that's you to growth you on attractive acquisition. there capabilities question the in capitalize lot -- spirit after canceling opportunities the maybe to been sheet invest a can see? first of some opportunities industry, for opportunities, is the balance where that Obviously, your believe and and the cannabis a growth has won't current plans the capacity on focus pullback Do growth your focus the sheet bypass So in of growth speak the for cash you to me. recently, remaining But to there drive of CapEx maybe you flow lead on to any on you balance Thanks. sufficient growth? the CapEx future the see the or particularly

Nicholas Vita

Sure.

start gaps. of turn and the I'll in over group then to it sort me Let the fill to off

add a Columbia We any CapEx and There Care. nationally, SKUs, for specific the built are is can out infrastructure intensive changes that industry but marginal our we our in make have most product curve cultivation will component right? business manufacturing improve offerings entire for or of done

that coming discretionary And really with of that is and years. in see and it, sort of call retail doubt exceptionally the growth. CapEx three demand is high What setting. those the any basically minds both any wholesale retail forward are are see let's to chain, no There four markets grow is of of us allocating you doing growth the going the our in to the our commensurate markets that capacity next, we supply out have we supply our into

would to relate making opportunities discretionary we're that sitting that sort CapEx business of really to already changes are The in our require the that lab.

these haven't dispensary dispensary example, like location. a capital-intensive. particular or But for very where that's found Jersey, not developing actually another markets we in simply New right a Maryland, So third in are location the we're

to peers, to and us think had unlike scale. scale Aaron, CapEx is quarters the remember, ago, the today the of ago, actually we we which years basically and where want many that pretty time, significant sure, our I'm a we I -- months are have have quite was long in position for So you where markets we and

We have the scale the in as want positioned and one markets largest where to retail suppliers side. the wholesale markets suppliers, scale, both to we we need be the largest where the and in on of we're the

our So nothing deliberately our wasn't existing forward. see that we done about that actually and opportunities limit ability going plan our to on there's CapEx portfolio the capitalize would or

we've spent that I because enhanced. is assets way, money, the are the what by ought the efficiency And leveraged you'll be to the already see time of over those think way

of into the cash fewer of, you. gross if effectively There's utilization. handful free square call bottom manufacturing cultivation reductions of line. let's XXX so to Derek points we a it, use, the would the began fall roughly sort let's and feet or flow, we to into go capacity to the that improve underutilized margin that statistic with made cost back through to When to went there was And consolidate shared trade-off basically we

saying the scale, to and infrastructure reutilize made our statement way is real XXX about CapEx we SG&A perspective XXX do isn't income really is our context margin. that capacity gross that or handle growth. of going talk we everything But absorption Because gross to over has to not longer-term Care impacting refocusing gain The do happens the into roughly the income of happen where begin an accounting to three to about points have capacity underutilized call in back part basis points way it our actually Columbia that I changes of to about efforts the especially think the Columbia what it, -- from enough the we've that that's to once of So of when we capacity finding that's way past, margin, our with overnight. improving see to I'm statement. a underutilized you that quarters. to think Care that's sort That's recapture absorption plan.

our -- then can that's all the And way, quarter-over-quarter. what we've EBITDA by to That's you what to see incremental happened shown.

stop there like Derek David second if me or a to they'd for let have or see that So anything Jesse and add.

Derek Watson

Thanks as for echo we're our Aaron. operations. We've execute capacity which about the actually it’s rather Great. cash question. if sheet been a is last got investment growth We've investment is Nick's company capital efficiently expand said, certainly than improving about as different want This quarters, on deployment to to talking Derek, has years in got the and been geographically. we've what, we've few for And the initiatives objective possible. you it. I as talking comments, flow And than is the just where balance we're last we management. good debt operating few from been

And cultivation in the gotten which markets the that turned as to major Nick in point is new we've off. we've where said, some abundance activity, investment

continue growth up. CapEx capital CapEx, we and we the we'll look there are the the on So the openings continue lined meantime, as we'll that a we And maintenance focus have new need to. can to devote at, opportunities in store to

Nicholas Vita

go David, ahead.

David Hart

only think demand The development or all add, would and as use. David. is that with New I the excess on incremental Ohio, market it Virginia medical Pennsylvania, can have New this program meet Yeah extra York we either comes Jersey, thing adult capacity

So just already under lights that plants that's are putting literally there.

by significant last capacity CapEx incremental which highlighted $XX spent million. we north year, was the that's of So

opportunities. It's with growth utilization up of a markets and So to we're we've just spent the in growth the timing knew going trajectory. the matching we matter have

Nicholas Vita

you add? have to do Jess, like anything you'd

Jesse Channon

we're Obviously, really think markets to it. forward organically to those in opportunity David something that the of sort think expand to. I I looking continue exciting No, that is was covered highlighted

Aaron Grey

At and looking Colorado EBITDA markets, and point, looking but you for top top revenue Colorado California EBITDA. great. a markets not remain markets at market Thanks one are also that a for And two the ago. or West those so about year Coast was in How color. you portfolio within Okay, the at long see I around like own those on fits the turning your cash feel near in to the made how do but cuts terms near in medium you some focus the given markets term? Do current both, of know term. flow? you

just those So markets be Thank outlook on would appreciated. your two you.

Nicholas Vita

sort like market from think before Virginia it David it's of share, a -- Is and the the New markets about Colorado we of over it's I of So the quickly moves not and when hand So, top always you're we've the way improvements to of five the past the top us. are to profile, quarters. -- and have five that I about margin right, seen over about think outside to the haven't markets, Jesse, improvements Colorado for sort statistics to large Jersey, and actual it's show that you not so that dollars aggregate California continued in right? couple of other spectacular California

So I kinds the understand question so as you I I'm I those -- you are quickly profitability. made wouldn't other not and reflects about lines. changes We’ve sort but the Colorado that sort the like lot of Colorado shift relative of of will California the better. a to stats on we they're similar read certainly California they're ask overall highlighted out mature that of saw in changes markets, and asset we of the that -- getting growing what base might sort markets, made in have how to and trend similar sure mean looked in impact the

west remember different the some most every a to the M&A is in in the marketplace. But place. either in Coast, different market to of to typically reasons, maturation on a of for you've seen that's it of over can it Mississippi, David, thoughts see of Colorado, of them, the are stable started the take of West consolidation of then markets me California let's proliferation consolidation his turn think, we've assets And rationalization and consolidation, say, But is or I can improving. we're and thing actual both over terms type through some and through think altogether. I and that to we that important let I share animal he of those Jesse. to requires think turn

David Hart

Both deserves assets the that probably been it Nick Nick. Thanks, of from ton operationally scenes a teams. markets, the that doesn't the exited recognition strategic financial local mentioned. make there's activity didn't sense of get We've those as behind or

have the stability in seen We price market. California

Colorado, to We Colorado retail some changed have third-party buying stores. we stability We've the seen are market, particularly way products way the in in California. Arizona our in similar in do now and the we it

that from so a help does And perspective. margin

be the haul. done But to to the a reposition for we have assets those scenes lot prepared behind long

and not that's and are or have been If you off either renewed, a look at licenses that we think continue. a state like Colorado, there turned going are significant number to cultivation of dormant

and at up into balance outdoor go-forward like opportunistic you them for which you a the look place pricing more aggregate for of of typically year And on has of landscape downside disproportionate look all taking these on growth if impact into QX, so a lack year, that's if us the a this basis. the

to at the perspective. the has changing foot pricing been particular, doing stability level to traffic speak things to the in Colorado, Jesse, from to But think you're still do business. is base want there's operationally at we a team a hopefully and for in with continue I we improved go-forward help asset dynamic you of perspective on basis. sure more just some retail hyperlocal some So maybe and to level rationalized the to more But streamlined, what need improve make seeing a a compete the competitive pricing

Jesse Channon

David. Yeah. Thanks,

that opportunities and things back acquisition SKUs, customer to the and bring of of to of introduction -- point with the improvements think Colorado is from new and is flower, regards quality speak for great people to that to base the helped into have of to like of where a some the some we've able reinvigorate seen architectures example view really brand store. product customer I be back-of-house a

of application, high due I applications mobile loyalty, helped think engagement on seen have delivery of other improvements the that strategies a to the and of Cash obviously set sort the well-informed a better things customer what it retail very of to in emergence notification Stash customer we've also provide like Colorado, and rates is mature, of customer awareness to level owned our number some that push create better like the higher-quality which competitive and communication product selection pricing. base in base we're and sort doing between incredibly at at is that

to things stabilization from led combined all growth opportunity front. So also have those the I but a a think of retail

And in again, on an in we that's to excellent side continue that opportunities. see execution sales market those provided the California,

excited we've Colorado of success number for seen now in the that opportunities of those continued we And we're of have early new sort of So coming initiatives indicators a about market. some engage line with up platform. over with retail and to that with some country across the have the in practices the of quarters the coming it best that platform we bring cannabis

something that's we're looking to. So that forward

Aaron Grey

Great. Cresco jump guys the post could, before color. one, one mentioned the back the termination. you I Thanks I for queue. if I had just that exchange And in Okay. quick know senior

be potential was would it any update Any Just I US the in on appreciated. exchange know on Thanks. prepared that? remarks. mentioned update senior

Lee Evans

it's no additional Lee. on timing. At Aaron, Hey, update present,

the of CSE. seen think we've the delisted you've some I taken, we've measures from

when that much we nothing can. this we forward to at point, add but look So we can updating

Nicholas Vita

interested weren't wait of the for earnings sort bondholders they mean, imagine can I our get to that in those you up came latest being that restricted, financial. to wanted until one Yeah. greatest thing that

that think more I be these to now finally that numbers we'll So out. are once progress able show

Aaron Grey

back get I’ll in Thanks. Great. Okay. queue.

Operator

for question. moment our you. One next Thank

We ATB Capital Markets. Gomes have from Frederico a question from

Your line open. is

Frederico Gomes

my questions. you Thank for morning. good taking Hi,

one of Maryland, EBITDA. there, as state, you. second And to you much ramp business sales profile get biggest margin in about operating we Thank this here guess, just first the benefit Just half in the to more, that contributor adjusted margins that thinking that I could continue your in adult-use in potentially leverage could see on the how year?

Nicholas Vita

the improvements be David, in what several -- the has seen opportunity. I a to the Maryland can but said contributors our that’s biggest significant of EBITDA. in contributor me was but there able was Maryland market were single EBITDA let a that sort clear. you into of adjusted to think we've scale talk how been we bit maybe to and pretty adjusted So infrastructure contributor, little sort about the It don't

David Hart

Sure.

amount So the adult-use saw wholesale side. we the to perspective wholesale continued first robust of a strong, into fair of in activity a opportunity day steady a from buying obviously We've sales. see

Given in we sure and revenue profile optimize can review the to the make we state. we profitability and continue asset both to analyze that of base Maryland, that the have

finished goods and retail and where we're optimizing our both allocating across whole market. doors So three the biomass

is that's We recently throughput needed facility into tremendously a incremental moved been about thinking with for helpful facility essentially co-located larger Maryland, obviously manufacturing our adult-use, in has which cultivation us.

Maryland. what So the the of can continue but balance year to trying to lever optimistic we're we to for do like And and/or about profitability, depending be you on pull, optimize you'd revenue both.

pretty so the is wholesale now. And window for right strong obviously

product the on own highest the that margin us putting of the near gross opportunity mindful fact our We're in shelf results in term. our own for also

but in continue it's in state building for in our being we Maryland, good the recognition as only but doors, we're make to market. be not balanced us to of open brand So wide of in also wholesale problem sure the terms a

Nicholas Vita

it of with only one the be have in ask counties marketplace. to would PG asset mentioned, highest of thoughts, -- in Maryland, a dispensary attractive very I density in The unique that's before very, in Maryland would a and that of sort one we County, David is as add which some wealthiest in development state the thing actually basically other the very I Jesse to weigh in

And so that's process. in

moving of to accommodate that to our location The existing increased larger a volume. is one we're the dispensaries other

And makes drive it just and be better very the having that important Maryland, very, those sort doors sort I it, margins the what's in -- of partner think allow branded and why the a data I mentioned, wholesale a seen let's in to, call demand we've is us effectively market. especially increase will from us important integrated amongst of, reason as credible wholesale more think, two concentrate fully products. so points side, significant are as David But our counterparty by our products a on in our that, more

a perspective be echo partners, of chamber I better perspective. of, business it's we one can of consumer basically it sort basically from So think, and of benefits the an a from that both

turn he me to and it Jesse Let see has add. if to over anything

Jesse Channon

only Nick. weeks we've thanks, that the you add out of over from the organizationally comments both past obviously The is off the Hey, coming coming launched and the few transaction. sort thing I on would that and David of focus strategically wholesale,

already up leadership a of that with the one foundation both of of were. Maryland And built program to where individual team and the sort pick in velocity dedicated integration across members was participate sort from strategic We have able are we from where who being are gLeaf, had that contributors country. sort we good of the of the and team

think already benefits, that starting we're some and the of structure I see And of to that obviously, focus.

has we'll team to continue of members leading be able country. sort I believe the systems pursue we of a we Maryland, indicator what as and as So become that to across see in then think, invest strategy, for continued to productivity a bit

think velocity that be build as in indicative of what I to that market wholesale sort the that country out see the across we we program. seeing we're will So of continue

Frederico Gomes

on that, just the color And the and Thank guess, there. opportunities? you're dynamics there on for Virginia, Thanks you growth I Can of about market also and you. terms what there. demand supply then seeing, price in the comment

David Hart

David. This is

contributor be an a top program. for to So continues us. expanding It's medical Virginia

own Every grow Virginia, they opportunity time there's the of if say any is opportunity probably opens, your third-party an increased patient you state products think the you what shelf, that I market. products operators growth opportunity access presents the in putting a new that door place asked just the only to is of patient own of but put for door on well. take the if think to to an I as not more the shelf and on

doors a the in with for to of the balance is more is move of year. everybody I think diversified something portfolio the trying forward also all So

a it's don't to think think the I gets So great State market and any register patient easier from a become I in perspective. of a now patient Virginia. it

as a us, the we Nick opportunistic And in medical sure making for finding is we're and ideal we're mentioned for accelerate to the use we're call, doors. earlier trying adult So remaining program, can use. being locations the do that not for just only but all

open, marketplace stable is So us. doors but for the Virginia. to two has continue a to more we State us as growth been remain medical price tremendous program. excited for There the And about of in

if innovation, post-harvest local with we basis for new on it’s spending new think any team to the at CapEx, and new a concentrate Jesse continue are incremental products to the into the I side. on for we methodologies some team, look manufacturing technologies, introduce marketplace

the So continue opportunity year. balance in very and that's But for the of for us growth state see about an excited to Virginia the Virginia. of

Frederico Gomes

get Thank you. the Thanks. in I’ll back queue.

Operator

Thank you.

from We have a Bottomley Canaccord Genuity. Matt from question

open. is line Your

Matt Bottomley

Virginia. Yeah. other Thanks everyone. back I the growth key drove Jersey. now quarter appreciate the to just I circle commentary just on New the and wanted Maryland that to markets And in of

and are all have But you new if at be half store to did your second month market can of look how has in So going wondering you to year? Xx New think I'm just Maryland. over in in that month then what might the the bit at openings first it cards over how the operations ability -- what done the I to think to on little done Jersey, prior front in with out least gone at a the in the has the you I and know for which talked any Maryland, respect in have with the speak operational sorted if respect

David Hart

Hey, Matt, David. this is

incremental local the in of a the to of did great stores. We've the will, Maryland. was to stores have Care. going to hit was seen obviously So if transitioned coming I of that legacy Columbia together markets think in did one stores, pre-game, team great think state the Two a that those the job use. adult team were gLeaf And it throughput I number you

was footprint to the that we we to tried lines we have moving. and what balancing So really best get coming technology our knew and the leverage

to a people We the team see disciplined. to were our was traffic your I excited perspective. did at think were in, and pricing great we to job from significant doors. going point, foot knew that, a in increase a We come

we Maryland. I market other So seen markets in expected saw in as think in this We've what we well. the

us. of store and And fourth as out us execution the mentioned, that for third relocated be nothing opened just other one ordinary getting So would for us. Nick than for ideal getting the

Nicholas Vita

safe saw, the what I a it's Yes. growth to that if better. saw say little not market Matt, bit with think, we I mean consistent

Matt Bottomley

Okay, great.

-- Sorry

David Hart

Yes.

obviously we We're customer which are that they're provide doors on levels for to takes the do in state. to place opening in half I we're in a to to us think for Matt, do that the New see New Jersey. for doors I we new looking in are another is door like the third got in build to new And trying the we've we'd think I in marketplace, unique opening. year wholesale. as it's front think well. team expect So, continue Jersey, that sometime all these all monitoring quickly And out of of wholesale into best opening and our going second, first as service to We for next year. But orders the, doors the of have continue our state. dedicated probably state next that the Nothing new sales open

we before of remain opening new try So front the see we're open win getting we opportunistic when can the to to doors in actually their business. doors they them

Matt Bottomley

Got just then me, it. Appreciate other one balance question sheet. that. just the for And on

good any other if of some color low-hanging wondering there's gave in But remarks. some I'm you fruit. So

cash million $X inflow or some quarter. You sorry the raise Obviously, acquisitions dispositions. from had the -- from subsequent about some after of

just of access near would have to category there's guys that if term that else wondering you relatively Just might in needed? be terms anything in something if the

Nicholas Vita

the on that traditional Xs from and the restructuring across through moving moving us pushing think sort to sort sort to Yeah. X.Xs. of the of look, the and senior outstanding to aside the back de-lever board then I going on debt then of go see and I natural those on XXs to mean, have then really the the that we you're that

have sale acquisitions, a and of of market are inherited rates. from sort leasebacks couple We punitive not pretty at those

basis I’m place. that debt XXX points ahead basis that had sale those wrong, traditional guess would Derek, is are north be of XXX if -- if of just but think where our in I structures leasebacks to somewhere points paying we correct me best we

with And are that that consider so for conversations that's, us, right IIPR we've low-hanging those having only had ones I conversations. you now, fruit and those. the can we're And tell we not about

that people very What we're those is hearing lot that with instruments of through unhappy structured. the there way are are are a marketplace the

that a us reached them see a and find how actually out to of find already sense can to of forward continue to market rate structure those make more for sort sort we've would pathway sort so collaborative we And of relationships.

Matt Bottomley

Thanks much Okay. so for that.

Operator

Thank next you. And question. moment for our one

Andrew Echelon from comes question Semple with Capital next Markets. Our

Your line is open.

Andrew Semple

and Hi, there. my question, QX thanks taking for on results. congrats and morning Good the

on timing some just should Just comments of being us unwinding the expect go you drag incorporating want remarks underutilized this back cultivation assets be impacts our models? maybe to of give margins. in headwind to in a those kind the prepared we would Can to you sense about on on When wane. when

Nicholas Vita

be over think our decision really turn to David Jesse, Derek you sort to of and focus it continue focus. and I I reduce make time on the and going before any is capacity to flow, that cash So that to

At taken So flow made profile We've cash to from decision a about our quarters rebuilding drive building this a -- point, EBITDA couple goal to time. way we're over that hit demand ago. of and drive profitability. and operations is the we thinking is that on

gross have margin statement. margin the do wouldn't it any massive through benefit And any structural changes disproportionate I flows income changes in gross that to happen as any changes expect so but a or

two come not The looking reason is this have the we solutions, we've already predictable about as the running business why permanent drives a quarter, runs, right basically now wins. way and that the said looking make quarters I we sort we're overnight fix. that looking as say we're made. it a are sure of again. platform home for investment for going I I'm we're to is markets I to and going profitability. And by-product not the that capital last say ago, looking And of said to solutions for singles. for not long-term in, quick The growth by-product sustainable, is very We're of we're

for we have is we address into of way talk advantage worried find the that that fact the not to and to really be just throughout What an embedded infrastructure about the people intelligent it's to we're sure pricing is headwinds that. the want to we which take and about we built of industry, that upside make paid that do continue that's so already And basically used. out lot a built and waiting headwinds,

we're gross about confident talk excited gross incremental takes I we and But at it cycle, we if because two-year every goes looking line. basis the to about it of that dollar margin longer, the margin And when very cycle. we're longer. So takes points, improvement pretty at it this, right? two-quarter not bottom XXX at can do a literally feel a actually We're right looking like

way me about think it a to an David talk the the turn and Derek eight I because bit little we think they next let important of So strategic aspect and over that's and about Jesse that quarters. can

Derek Watson

just this have on I'll jump the down. turned canopy we Derek. And Right. is in markets where

adult-use number a markets. them So of pre are

We've on. overhead some and turn already So switches we locations, back as will the we've of these use adult got there, capacity the investing. it got

that whereas of got Jesse we've already, there well capacity brands those the initiative increased We've wholesale will that mentioned verticalization some as in of own as we also these the already improving the been So markets that also soon our of to as some wholesale and opportunities markets support that. turn. come as

whittle a margin markets that when X those and point turn those away really we can of it's gross question overhang on quickly how So gradually initiatives percentage markets. on execute and will in

Nicholas Vita

the about we intend of address to add the sort of -- utilization anything about to Jesse, anything capacity? some add Jesse, the to way

Jesse Channon

a we'll fruition. couple those we're as looking opportunities. engaged with couple of I -- No, of forward at to strategic I look think updating But conversations we're think in a come to

Andrew Semple

much maybe helpful -- And color That's dig And for was Excellent. kind the I into setting we just there. just spoken too the what wondering haven't which that update on then expectations. to want state you the since Florida, today. growth of on I Appreciate time in any state Are are attention spending focus markets been that of the is unraveled to has we've some the on? core plans the transaction that turning or other here? the

Nicholas Vita

-- I on. Well, of for lot think have and markets a we're can think Florida I focused to David this. speak that high-growth us, we has,

people majority building our are the on If of now. Florida vast competitors, are you look in that dispensaries the at

analysis, we aggressively have there that enormously a after significant when about perspective, our market. to very, incumbents look our going two It's an just use. -- of transition that the And view competitive at scale. from So is forget you adult one another very sort population have a are that it's

us, for the we have more So to opportunity Florida be but interesting of a is player. niche

different sort market I an of all of targeted say, you're you a at for We the And in, incremental operators play velocity of more open to licensed for The sort a just we many of some before. have purposes, Colorado. to of run reason new amongst doors unregulated play would player. seen market just can as is want. think or no a right? point, other be game that that of it's -- any in something and sheer out demand. And haven't we You Virginia to there's -- I than And like going intents opening as think is have we doors a say, part

Walmart their that differentiate So more ourselves we market that and attention much is of that market. been is containment can but game, which developing our for home decision dominated cost the really really basically and basically to couple it's with a that Florida focused the made be kind have of to the us, we for players to, turned a by play on rather trying products right than

Virginia. answer is If is answer you what me, that our ask to to Our that?

Our to is answer that New York.

that Our answer is right? Colorado, to

growing of stats them. that and the based we add other think significant of maybe say the he you have we're operators can nature some we are It's And but environment. turn in on be So of markets in add some leadership in. we other more Florida creates is some color I that David, where favorable would prioritize have But there sort to well. we won't that ahead to advantage markets not not over one scale. limited for markets that Jesse, of me let type Florida, of license a positions Eric can and it and as

David Hart

and that would We've I base we're up total scaling David. in with which of is actually seeing we is TAC the right just state say we're This comfortable our into three Florida. the important levels asset TAC, third, have an got and in grows. improvement just now. We're

the have relative expense as the count been We've with of Nick thoughtful we very we the there. retail happy down to out our mentioned, costs We're on have asset base. business So about taken management side. work back-of-house that

we're the capital have an into markets Florida where other with share. point, It's have or not be if to opportunity just to assets new state incremental market the in of top an spend CapEx, incremental so top And a dollar top to that's But deployment we going next to player now. we're happy from a perspective. going we're and either of take a the priority right player

Nicholas Vita

Derek, anything is there to add?

Derek Watson

covers That’s it. Nothing.

Andrew Semple

Great. queue. get results. And again Congrats the in I’ll me. the for on all QX that's back

Nicholas Vita

Thank you.

Operator

question next come from Scott Roth. our Fortune And you. from will Thank

Your is open. line

Unidentified Analyst

morning. Hey, Scott. This good for Nick is on

for me, on just question First overall mix. the

just six has high discernible within and consumer any between you in over comment here? mix been You on the potency side quarter on the the value Can about mainstream of And just the the in that strains. shifts mentioned there owning XX category past Thanks. months? premium, flower behavior kind

Nicholas Vita

want take Jess, do you that? to

Jesse Channon

Sure.

like. would sort premium continue flower seen to what set into obviously, benchmarks getting index granularity a shifts percentage because with say to high into to we of upper-mids the too much some of have states without of and facilities in of I think the of of really out cultivation, coming regards the that of we've I looks what in detail, out coming higher that quality number is continued and sort

I in the procurement we is a base third-party that A think strategic Colorado in lot some have that earlier lower-priced of facility. in the product. the example supplement really need to retail that coming we've more categories in where call of advantageous bring to continued necessary out see of sort of we on of to initiatives we've put allowed Colorado great as that's the is mentioned uptick that production our with strategy an that own in the regards in flower to merchandising flower us

So have. all problems these to are great

pricing to industry, cases, Premium good sold great uptick from some in a the of as think even of point more those consumer shelf, velocity behavior climbing -- an when in to of with it. the that that and better, out we've ladder flower it's view, be it and get hits the consumers mids premium. seen best sort selections on that moving in flower I you're definitely into have and going good, an value to know good regards of with we you for going strategy still is something

And experiment promising from that see been spectrum point view. of strengthening different to of continued a markets has the So we've packaging increased side in that's of other with of we number sign the I been is that thing I and consumer of bulk stability a spending think think sort flower. middle the across the as a exciting

Classix larger that a from brands that So not point well Strain very has which & into in view. in Seed are premium, and high seen super category, of better us, format for the done some like but sales necessarily we've

brands those in a and a sort And nationally, of that's the I the here premium led think to of first-party coming increase is higher thanks to individual theme shelf. regards to SOPs to the that and out the own continue have quality market putting that flower without team. been with testing of we're allocation, the overall seeing of an So every speaking going on number facilities, mids into cultivation in our see to concentration and ultimately and implemented

Unidentified Analyst

appreciate I Ohio. just And second you. Thank for then No, that color. me, on

there. capacity enhancing mentioned You

that an for supply-demand adult the timing kind maybe Just looking in on just of coming maybe for state. Thanks. potential update use environment and online

Nicholas Vita

it ops of then first, to on So conversation. comment over can the why we I the sort adult-use turn don't

David Hart

Yeah.

talked I pricing have So been the in challenging. about everybody dynamics think Ohio has

and open, doors I it's we expecting to think slow we but ramp, doors a to will do be expect open. been

I opportunity retail might should as on in state Ohio potential pressure the any number think So you side of of There's non-vertically integrated incumbents, well. see the you see a the for an wholesale players on obviously side.

are you opening door be think finding to integrated the see I the in vertically continue people so thoughtful ways state. to And about opportunities that new

of So obviously been the but same, location, storm, July. I of we management think really a focus the I as the integrated in Ohio. we've seen, weather fifth again, was pricing state location have which seen challenges gLeaf able of the the on have compression and now people the to the think We've expense end

the are actually through capacity. process we teams going right do that And So incremental now. have

count we one So had when plant of Ohio reduction. did is the states down canopy where we take

few develop, one and small new brought as and into side on CapEx in we've probably it's in the products. of some an well new a we the to make lean got bring state we've to back post-service that where products opportunity So some states in to that might that there's

opportunities. us operationally high-quality there. So long for way think concentrates do in just only having there's flower I driving goes to a mix creating right And your wholesale foot a doors, lot mentioned, but Jesse to traffic and of not the as in-demand

Nicholas Vita

very, going categories. to are access that of I that break new perspective. into know are or know. tumors would the a add coming terms two for online There's dispensaries what patients is know it helpful net What be we don't and be to a those we what and In wholesale from political environment, the will different very we

the a that Will same doubling size happen? news. is somewhere do in irrelevant. it almost so change happen people the that Probably Probably. including sort be that legislature referendum perspective, legalization range disregard not. whole things, it everyone of right, Probably it not. an almost is will the certainly the provoke and of call a From great basically dispensary voter the, believes is Ohio of the which perspective, You're legislature. adult-use count, the the where middle? in environment way Will it's referendum the can or the hoping? let's effectively responsible a passage But that of photo are Will that something in

on the what the access today today referendum wholesale happening ultimately the to and market of ability what's the and I to sort going And -- overnight. so because of increase retail meaningful. into focus tangible is and transition everybody decides meaningful access the is It's time. to we something is legislature a the want on be And how voter take more to that's to that front not today why market know size going the

there on a enough keep happen in it It to about first insight Now mean does excited very year. happens process everybody definitive keep means that Maryland, in goes But pathway growing in It a into. looks like Ohio and went that going next but of latter, for like the things it like market have bank that's the multiples? the politicized everybody year. Massachusetts -- does a it calendar long I that to up or wouldn't for Probably future? the doesn't up by market. where you've mean because be got probably Illinois we'll or today sometime more are did But this XXX% it does overnight the meantime. And busy all portend more that that what half something

Unidentified Analyst

for it the I me. appreciate color. Great. That’s

Nicholas Vita

you. Thank

Operator

Thank you. question. One our moment for next

We with have Ty a from question Collin Eight Capital.

Your line open. is

Ty Collin

Hey, Mindful two then for for from contribution could flow here? maybe tax if be great. on little I'm would good morning, capital one. that guys. quarter are you and also waiting impact comment more And cash if looking to to working could you the items operating myself question. on of Thanks to as 'XX, specifically payables of this the the the the here, the those wondering hit, for how balance going Thanks. flow color a just I'll we're limit full cash for time Q provide

Derek Watson

This Yeah. cover is Derek. I'll that.

was So you'll the cash the today, operating as we that outflow. see Q file when in $XXX,XXX a later flow,

we [Technical improvement have So a working are capital from the from Difficulty] And adjusted quarter-over-quarter. that a essentially quarter-over-quarter. to did EBITDA neutral. perspective, contributors The

to talked So a that benefits previous working quarters of and we're being some see to the in reducing about starting we've inventory contributor capital. with

still operating quarter, We've operating taxpayer our drive improvement operating in levers but positive We cash been we a paying really one deferred and that it's continue have towards stated in that a that to essentially that results a the to quarter. at source. and target. cash driving QX but as using we'll as that's we're We've amount that the of flat quarter-over-quarter, flow the major in not continuing be as taxes small

Ty Collin

Thanks for that Derek. Great. color,

Operator

you. Thank

Glenn. a have sorry. I'm We One second. from question

from question a have Ladenburg with Glenn We Mattson Thalmann.

open. is line Your

Glenn Mattson

the thanks for Hi, question.

the that potential there, you're biggest and one happen We've that Nick. far, might change impact something Just for that Pennsylvania. potential have most the that's me, in on should maybe hit and except of like the today markets York two New so and

and but markets how the you there, say, company could are on realize quickly maybe make or those months excited -- like, an give you those like on the So the something. us that I too next, could a XX over going developing two maybe just there's next lot more update two people over about seem markets make

color some that just So on be maybe would great.

Nicholas Vita

without Ironically, two about the the I -- first. easy me frothy. it's take excited But the those With two Pennsylvania. I so company pretty I'm those get think one let markets. Well, markets,

We infrastructure us outside why network scaled a have retail cultivation to in is because in Pennsylvania. we and matters arguably Florida. huge but the most retail and huge manufacturing that have outside obviously, have because of of Pennsylvania, we not And network Pennsylvania a

Pennsylvania very really And for And players. we over-indexed valuable so nationally the all very, MSO become the partner has we as know, larger footprint. a

bipartisan. be I that it first be how use that like And looks it's going adult strategic like it's half especially looks tool to driven It important to us, comes. so think it's legislatively going of becomes a probably for very And next year. it comes, when as it comes, and

And way, that a facilities reduced in, I of other by net than think is So that’s that for more canopy we one positive us. any so the the market.

have cultivation could would Saxton, our me Pennsylvania. single So going right, to if that it it's in facility like on financial manufacturing if you single be facility impact performance, biggest the we ask what get

that's becomes us. so so that for important And why

to York New is talk York, one a about. New fun

and industry, if frankly management dartboard and and that works regulators or they regulations. because the offices team program probably really will I almost you their creating enforcing of could single own program think a done every face around into job I the a out really you New that a on their go have probably York haven't Albany great that's enforcement, and think around find that around rolling law

I which loves and sort regulated is just been that But it the market several to operator sort know have operator of every And years, getting the operators, our state, it especially next it's think only angel generate open, York, that it's the state an like is seem municipality billion perfect. use illicit -- be whatever market functioning grace, where the perplexing beneficiaries the not for euphemism. really city, that's over the the you every to is and is in ultimately, the is doesn't tax and saving have because you a that at $X everybody struggling but I really legacy legacy deserves, to opportunity a as isn't attention -- revenue is And tax look New everyone it's of not environment revenue.

money would translating New actually York. market do obviously that work I mean New a I the think regulators to functioning. We for so New enormous very York -- an what And to invested that's actually best, New into to profound with amount properly York State, something in do the our York and to that is regulated have explain policymakers opportunity the a impact, to of

have locations. We great

increase State. of and excited to we motivated, We have a that's New very and sort with work team the York offering, and to we're improve continue

on. We're missing frankly that and let's out realities a have opportunity of actually just of is open isn't conversation to deaf that that's the real problems is New looking underlying some call based policymaking, hasn't for the addressed something constructive it, that door culminates to that really the in, industry the York of that in

So work that's progress. in a

in think for a the include is program. looking we're to that quarter rollout it's but you New the way now, fourth I see everything York. ROs -- the right heading

Should New We impact? that what XXXX have are So into But York we a not. are It any a is not building in that forecast? where be thinking. place our we're we should. into visibility

rather diversified of to term we just a the And actually we're than this opportunity growth that, grateful show and term us something in becomes ready that relying have so to where improvement us we're or that advantage take we're for for a portfolio real midterm. near long on

Glenn Mattson

Great. Nick. Thanks, great That’s Yeah. color.

Operator

Thank conference you. you call. for This today's participating. Thank concludes

You may now disconnect.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.