VRNOF - Earnings call transcript Q1 2022

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

Operator

Good day, and thank you for standing by. Welcome to the Verano Holdings Corporation First Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised, today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Julianna Paterra. Please go ahead.

Julianna Paterra

morning, good and you everyone. Thank first Welcome earnings call. XXXX to Verano's conference quarter Archos, today Officer Officer; Aaron Officer. joined by Chief Chief and Investment Chief I'm George Miles, Financial Summerer, Executive Brett and Founder;

of actual will this or the and known XX, and materially on performance our and results statements within in applicable results, risks management's business for discuss During assumptions MD&A Actual such developments of the to industry cause in factors we our ended mentioned statements outlook that expectations. forward-looking or meaning are and to which laws, from uncertainties forward-looking involve and filings the achievements quarter the unknown on other business differ could events XXXX. may security by current due uncertainties company, differ risks, EDGAR, statements make based considerably the and those March forward-looking including implied and call, financial statements. our Such

In and measures from of measures. financial at and are reconciliation measures. today most substitute have These release ongoing to addition, as investors.verano.com EBITDA throughout should defined press the today's flow. company's that and enhance GAAP, results useful or non-GAAP are the free which the the includes these in standardized to Management in EBITDA, not supplemental available to prescribed any do of be understanding such for comparable considered earlier adjusted are cash isolation but issues refer by measures measures non-GAAP non-GAAP a meaning believes performance, discussion, Verano also will as not GAAP financial to our GAAP earnings

call dollars now George. U.S. over to in unless otherwise Please is ahead. the will currency go noted. turn all I Lastly,

George Archos

of diligently quarter and the joining off able quarter to updates I'm be a capital New position Investment Summerer, to first This of some to you adjusted markets growth. on the proud in I'd deliver kick pressures. margins to thank financials off another work the despite to Officer team with we as us followed Today, on some I'll Julianna, were discuss XX% as industry-wide Officer. important today. continue ahead company things will anticipated which the Chief Financial of EBITDA overview for provide to you, of Chief Thank our for Verano we Miles, Brett was everyone before from detailed Aaron it progress our like were Jersey. passing an we some update by business update, making

existing we will approval the an start the from This of XXx such with of the Shore New in traffic Jersey's of landmarks to off summer the be early during Neptune [ph] coming Boardwalk. dispensary. are anticipated and of season, a the medical continued Zen anticipate adult-use Asbury location program continues state. sales strong develop, expectations. the foot momentum is at in to Jersey as highlighted in We first strongest by only only Park, week and popular the extremely With is anticipate Leaf Neptune coming prior with more state our adult-use our two We as this exceeding miles week other versus sales. than our months New performance sales adult-use

select to currently Jersey ample the are We supply also products and meet have in continue demand to wholesaling state. New throughout

of year. increased the We wholesaling the contribution expect end an towards from

consumers market will our market once to We location the into is further more visibility Jersey and developed. recreational third provide opens the New

Now financial on highlights. to some

pickup will we $XXX a was we by to March on quarter revenue. February, XQ. we saw in seasonality million carry and decline in January that with in driven This As in came at the think effects mid-single-digit call, guided lighter last while our a at through sales

we time lower abilities. deflationary be sales I QX a is the is recall our do grappled prices the also focus inflation. industries extremely this to to legalizing strong to we is are in in of increased X markets for to perhaps the as positioning addition in And demand. CapEx other one vape meet pricing alongside Strikingly, in have share areas so want which believe that best we weeks. pressures not are sweeping we'll best a cannabis the not use substantially inflation in of for alongside headwind fought to our recreational industry-wide and the vape today spend only prioritized actions if our avoiding We was wallet industry few variant These industries. we quarter during Omicron What prepared near course, of our on to future. halted with foresee a first Pennsylvania, The experience that which

Shore. is Jersey a Jersey strongly sales the supply throughout were well. the given anticipate positioned up opening As Neptune the wholesale half ample side on our demand. are location, increased adjacency adult-use We top we drive full the the performing already ramp to for performing year. the given growth alongside wholesaling [technical to expectations significant New in discussed, are company. meet to With And locations, swing operations difficulty] this state We with once we second of greenlight to

thanks partners. in also proven process themselves end CT cultivation expansion. Pharma state, positioning share hold We already of adult-use to very Connecticut which expect the sales we market to the the the and of of this In begin are We year. the members the excellent operators team, preparation, in towards strong internal have

to we a welcome strong adult-use foundation We once customers. off expect build

Additionally, poised legalization. Pennsylvania for is

in progress framework in promising state could adult-use believe seeing be and the in are put forth We the near-term.

square first XX,XXX second feet space, which any and We a manufacturing cultivation legalization our XXX,XXX of planned square would at the are us put feet of total of over phase to cultivation in cultivation site production. of investing ahead of with

in and our namesake Our Verano third the now brand expect quarter. strains growing are begin to wholesaling in we State the Keystone

don't are talk our within see strong it We and steady year. about I now portfolio. an out but Maryland adult-use a we and as often positive hearing things soon as enough, Maryland also state We next believe program of is could

are has in of acquisition market increasing the so facility their foot their In out alongside share building is building Goodness a phases indoor which we come interior good of out partners, program New they Minnesota Growth, we new specs square adult-use York growth. year-to-date, which York, our in in team Minnesota XXX,XXX pending Verano news indoor quality. state of the built a in facilities. the out our process been level time. to they build market of expanding New are at a Our in and and And out And facility

feet. at build facility. to Florida our We X expansion XX,XXX of second square also Phase this continue is up completed

plants to we harvest support will out brought visibility in X we to our into next prepared and adult-use phases serve in the first Florida gain program ground structure. we We facility build as new We at patients. be has in years, locations so legislation potential pass medical the believe as a a have online to will

recall, additional Lastly, measures XXX that as you to dispensaries proactive Illinois, come in we will ahead online. of may took the ultimately enhance capabilities

reaping benefits QX. flower Positioning share our of are importance in the we've made efforts is utmost We us. market of for increase throughout

prepare this demand. ahead reinvesting see our dollar critical prioritizing into as for growth we increased ourselves we a these business, of position tremendous in value We and is for aforementioned markets, CapEx anticipated are the time and spent. So

speak Now capital our taking Aaron, to actions I'll to will market over turn benefit to Officer, the are our we it positioning. Chief Investment who

Aaron Miles

yet uplisting do few given touch we enter actions take as trade especially on fundamentals moments position we our on the and trade are, that across to I'd steps I'm both to engaged be of dialogue. might to volatile Blue Verano are Unfortunately, however, to we space, feel may on U.S taking many includes to not remain to exchanges and exchange, We're NYSC and Verano. are opportunities take groups relationships the instead while advantage prior invest Thanks, these discussions industry surrounding the a continue George. educate U.S having the develop. the in to many my to Managers to This to cannabis capital like place extreme actively limitations sentiment be retail a they also market of on There experience leverage persistent time just be capital from Asset given we to with the Chip at with taking for the proactive yet, the able generally and not a able legislation. we for U.S initiatives, U.S both prepared pressure markets industry. federal in the taking institutions major given to potential

get ensure soon banking to as including While joined there to Verano own the to [ph] goal be Cannabis this key relationships the we our guarantees, investments. effort American the passed. time for on these attached experiences as Hemp advance joined potential is legislation permits continue Trade to that the federal necessary will participants recently fully leveraging my much discussion. regulatory form the as no to and of landscape Safe critical with of story efforts help are markets, educated industry. and advancement capital Association in also Verano of the of devote and for Verano a will

we projects in George of CapEx as earlier, the touched on ROI Lastly, multitude a have pipeline. high

Once success, investing non-fundamental level now and for to option further But always will there now to the based discussed in we're footprint. believe the long-term turn in including company have these ranges run of Brett. on share we investors We growth over areas CapEx value so, trading naive want the from it benefit to numerous are equity projects us while ways table. We're relationships While acknowledging the in the And our what enormous off future. want and that nothing by the market. the investment, is do share evaluating buybacks. we're I value Verano we still CapEx completion, building can't for not the to building and the that into I'll near that drive M&A to is to end business at. in returns which of we buybacks internally, dislocations

Brett Summerer

Today, review first highlights XXXX. Aaron. financial from I the of will quarter Thanks,

financials all reminder, are a GAAP. reported in As now U.S

quarter X% to sequentially. and revenue First $XXX of million, down XXXX first XX% up XXXX quarter compared was the

of the Pennsylvania profit to versus difficulty] to period SG&A XXXX inclusive largest the XX% expenses for and of revenue for As softness year. $XXX first revenue. or was for quarter. drivers first mentioned, we were experienced XX% George of quarter $XX quarter, million million prior same of the due Illinois revenue depreciation Gross the last in the were of amortization compared seasonality or [technical million XX% $XX or XXXX of and

in had depreciation costs. we on be and would to to deal earnouts, M&A basis costs which with conversion X% Sequentially, the same XX% due associated XX% SG&A our and GAAP However, versus and U.S We typically primarily quarter exclude first the increased for 'XX. million prior quarter. or in amortization from the IFRS million was or last loss $X revenue quarter period and loss of the of XX% million of year. same net a million $XX $XX QX in versus of EBITDA the revenue a of XX% of $X Adjusted expenses for

with we projected spend to for Turning the earlier $XX was quarter cash and Cash million CapEx equivalents. sheet operations million $X year for to cash flows, quarter this $XX cash ended balance was track the of for free and quarter million. of $XXX on $XXX million flow was the first $XXX and cash we the flow from year. million the full million,

expansion George As areas Florida Connecticut no discussed, of main cultivation attractive have and investment projects. projects. are both current Pennsylvania, for Aaron shortage Illinois, The we and

our I'll am Now we also back round I into under future allow we about debt slated remain If and are portfolio as to worth higher company extremely out further substantially be we that some financial year, is support capacity, our confident to the growth. selectively projects to thinking for reinvestment for continue versus in acquisitive George markets. our to we debt we attractive our When and EBITDA were levered it's peers look it for than line With set, that debt the standing that, today. Ultimately, will our to a with have it basis. on remarks. to our numerous peer closing strong CapEx be could noting expect pass

George Archos

be we another have Verano, To Thank discussed, XXXX reasons Brett. as to for close, remainder extremely will this the many of excited quarter and about what was you, foundational bring. I

the we're full ahead, Looking progress a throughout with XX% to of year, some margins. the volatility, end likely expecting with but expect for slow year plus margins still

it guidance more We get Operator, second by clarity more quarter, solid Q&A. and in anticipate open other we up second the Jersey giving and moving once New call, into formal growth expect we for pieces. please quarter the

Operator

comes the have Lyon Instructions] [Operator of Camilo line BTIG. We the from first from question

Your line is open.

Camilo Lyon

margins EBITDA that adult-use I drag a Good market sales. on you. to New has Thank you Clearly on has been and this everyone. morning, delay Jersey, wanted in for start a been the George Brett. given

open summer. market in very, the strong really You've talking obviously about online got success start and early had you've the noticeable. third sales coming has a the And to seen you've been the two stores now, in you're very

the been accretive thus help an can would how think market think So overall How you could it's enterprise? market this drag question adult-use be we understand becoming you that about sales? the when us given actually do accretive, EBITDA about far to is, this market the pre

George Archos

Good here. Camilo. George morning,

stores So starting the integration -- We're was accretive the more obviously, There's market that'll bit the a with for within of wholesale. it is third, great and mean accretive before for our I now. also vertical two us it's be quite us.

to the the use, So, XXX,XXX right. we're seeing of It's to full expand. the market benefit expect facility now, coming finally to full plants of we continue and foot

a We're QX see and a half that'll continue the quarter hopefully -- that stronger probably pick a when little of would we wholesale get the as then call store continue be open of think you'll in So the getting, up. bit margin into throughout third that year QX. by pickup and I end

think on. QX I it'd increase a from So gradual be

Camilo Lyon

market shifting any last from And you could Any week. or shed to some there's the full the begin litigation -- about as insights, very on early the that. you if into roadblocks two operating equity reset sort judge talked would overseeing the you if day that market. quarter the George, in interesting? after been perfect. then, that the then the full this those And could perspective insights second over are And That's gains and Maybe and give you news social the issue that legislation just you actually speed? just be color remove really of quarter as licenses share Great. could Illinois, later more did of the second at capacity beginning some progressive and

George Archos

obviously, The I licenses, get the on it's easy all to what with pickup reality it. after a that opening current that's could back that's take hoping significantly back be happen that mean, we're So shelf gone. hearing we're for. It's space viable trying share easier very just stores new will to and of environment. that XXX market the not within versus just

new the stores will we or it's pick we're and short going yes, weeks, within not opening up at Right up opportunity what to new get order. some they If new environment. the end market really So, a very share, it new everything that's year, us. market if, few released next going but stores in get [Technical difficulty] move current are the we're share, with and week, of a these pretty start that of when to like great to slow XXX for this a of sounds markets have just hearing is matter anticipating. that matter and it's happen the

So crossed. fingers

Camilo Lyon

the you facilities? reset And then your of with are licenses that coming existing as where the with just resetting of on product that's your the facilities you out of the irrespective of kind those and stand cultivation, you just did the

George Archos

some work the gross gaining to it. that's it get when that we market ride say current on one-time, again, that to versus margin to it's Yes, right? have There's saw significantly I where a front. new from important be is everyone to the and be a from it's I lot it. feedback you back fantastic again, the reset. going the the of light product, to it share trying pickup most -- everything Customer But share side. -- which is to to a going there, out. that's of and market phenomenal facilities done that obviously for we're for excited But we that's Product mean, just switch. legacy don't is is is look ready piece. XXX back to want favorable But used flip that slow be shelves get us way at easier is for back the

step the slowly is back. now So getting that that's market was share one. -- two step And

Camilo Lyon

I just Great. throw there. more in can And one if

thoughts You a share any if the demand actually first? that about talked can what value rollout for consumer that markets quarter and might a lower price product? you're And timing of in around the sort see you rollout, brand last of seeing

George Archos

product there. We always that price has lower do. just played mean, we been I something demand the in. It's haven't

out rolling value the is Illinois And it the it months. we'll roll we in now for then do out right to priority have first markets Illinois for anticipate So sense. able enough next the over But first, to first few the be target it. where the slowly brand. for it makes where That'll we supply be

Camilo Lyon

it over. turn George. a I'll Thanks Great. lot,

George Archos

a Have Camilo. Thanks, great day.

Operator

comes of from McGinley Needham. Matt line next Our from question the

Your line is open.

Matt McGinley

Great. you. Thank

outlook, How have you in payments? the and the exiting about had Verano much expect quarter quarter. related in deferred in On second to CapEx cash liquidity do the $XXX the tax outflow to cash million consideration cash

Brett Summerer

will other all Well, that M&A, I depending capital that that demands say that we stuff. we a expansion, have perspective from on manage

us. But were bit it [technical of you and that year $XX of within So little Most range around less the than moves regard. but QX our the towards be difficulty] at than in weighted should expect a always to QX. QX first payouts first the million lower half

Matt McGinley

cash tax or And together, that's cash CapEx payments tax that's payments? deferred for just consideration all and

Brett Summerer

That's just deferred payments.

Matt McGinley

Okay.

all a number. good that actually the the on give adjusted sense add And EBITDA, really Okay. way EBITDA in what's the of doesn't back bucket you in us

in probably to I million I step you your adjusted help you I related to think what's us But or related about inventory $X or there's bucket are that understand ups. M&A actually added announcing, can another $XX so the guess back you think $XX million million EBITDA? in so

Brett Summerer

Yes.

equity an did. that we didn't transactions of $XX it's the feel was is million in that results. number to appropriate the gain We -- for had one the the include that specifically our on So we

we this also you of U.S So to the step GAAP The we from and related had point rest the [indiscernible]. inventory and deals lawyers that of up it. amount pay stuff that it's -- earnouts. the excluded already is flip made, to kind money fees the IFRS of It's to for that like the It's right? it's to and we M&A the

Matt McGinley

Thank Okay. you.

Operator

of comes Capital ROTH Scott question the line from from next Partners. Our Fortune

Your line is open.

Scott Fortune

thanks morning the for question. Good and

are approval New Just after for of full tough on Jersey a to quick, on Jersey, limited rolling offering time you are started. that getting Where you that. And new out the far product on products kind color the as real still back as the add products? had shelves just real New you a little availability

George Archos

good Russ [Scott]. (sic) morning, Hey,

So we strains. botanicals, tinctures, have have been we adding infuse, added we we [indiscernible], flower new added

of more adding we're a quite The menu all are to we're it becoming key about et this week new to launch, time We're right or size And to will takes call variety cetera. every to supply add think the concentrates supply state week consumers wholesale just to so out facility. sell-through into those few and just is So proved very going products inventory the things ramp I coming the But full all before the right. add is there our the exciting the only at for the the for up basket facility things of market, all that. add and cultivation ability the and but this we more actually and which throughout pretty and stores, the not continue excited through states.

Scott Fortune

how of basket markets some at big Florida, kind and color stabilization Okay. quarter has seeing the for to size where key shape traffic We the great. we've be quarter the just you're kind Massachusetts Can the price second deflation there. kind a and in know you're you Is states are in of Pennsylvania? off seeing time of states provide key seen those you promotions the me, come second what average due Illinois, And there little of trends up from sort versus and of seeing in would consumer looking pricing? then a here and kind competition of one follow-up

George Archos

and question great the this time. Yes, answered all one we

market. the looking a line. forward stabilized us a premier mid-tier us, the line side only pricing we're we've of introduced our for difference So and to The [indiscernible] is for pretty at is introducing

for just category. attacking So that there. stabilization We're tiers Verano is the different pricing in

right? a overall environment, that we've size, far packet size, throughout make You what the As as decline and macro sense. about what's the is it is, seen X% country look going and basket at on

adding seeing are and an we price to the now results. is different So looking us for these points opportunity forward

Scott Fortune

the Appreciate color. the Thanks. queue. in jump back I'll

Operator

Stanley question from Our comes Beacon next from the of Russell Securities. line

open. line is Your

Russell Stanley

Good my for and morning, taking you question. thank

First around George, indicated adult-use around optimism Florida. some there. you

you of sort action some something do you I that voter of you to Just on you'll expect wondering, -- kind legislative take? what mean driven? assume have see there? of Or path hopes

George Archos

catch That in I state? which was didn't adult-use that.

Russell Stanley

Florida.

George Archos

Florida, they Republican going line voters, those want across vote. the a see right? push all don't can it's I mean, XXXX that to would a to that's it I we're more if just I we approve But And know sense a to be make anticipating and push. to for think that's voters think the know I XXXX more I make don't referendum to be it the we'll most part. if going happen, But going finish going don't legislation, more of usually for voter that are next that's polls. issue. state we year. the Democratic

for we're at Florida. looking So that's what

Russell Stanley

has kind finally staying of cracked dispensaries. the on is open, now for Miami And Florida, expected of or guess, I city guess to I been

be perspective how doing that of on Just is opportunity much an that retail what might wondering a and you buildup front? from

George Archos

market mean, to We're stores at great medical I the in Historically, the area. area. do Miami we're So portfolio. some not in have it's some that we looking adding a

think I more adult-use opportunity. it's an of

make and have access the consumers. that to So sites locations something not that for enough as been we [indiscernible]. we on it's But we've at the get look focusing we'll and different sure there closer XXXX,

Russell Stanley

one And could. if more, just Okay. I

another the there. million, cash operations from Just quarter $XX on strong

from down, [indiscernible] the you Just I wondering much capital break can benefited guess quarter? if how working are

Brett Summerer

for relative as capital to [indiscernible]. working our building up Actually, increase we up our inventories is

actually drag perspective. from working a was capital So it

Russell Stanley

How great. was of It's much drag a it? much? How

Brett Summerer

Sorry.

Russell Stanley

a was of drag it? much How

Brett Summerer

Mid mid-teens. -- mid not double digits double-digit,

Russell Stanley

I'll back much. great. very That's Thank Okay. you queue. in the get

George Archos

Thank you.

Operator

Our from line Andrew Markets. next question from comes Semple Capital Echelon of

open. Your line is

Andrew Semple

Hi, Good first there. results. morning. the Congrats quarter on

just Jersey. question on New here is First

want the your existing the would state. not when sense first trying aren't an what timeline. new stores Just I'm to to is alternative might get centers treatment that seeing But affiliated with to opening pin with get a stores on anticipate the you to of at new state opportunities exact I'm on opening. there trying get when sense expand wholesale down you in in

George Archos

Good good Hey, Andrew. question. morning,

I the from earliest think they probably around difficult. throughout next If [indiscernible] to hold months stores, on if held the to we the they could see X months. then their stores probably and timeframe. it's XX continue That's opening now, on didn't

easy get is location, zoning to a find Jersey New go through not open.

take location. could would to the licenses but they of on a those few it So anticipate I hold longer,

think next partly you'll see some like QX I open. So year, store

Andrew Semple

step approved of the That next question, that big Besides the your internally? drove in behind marketing my what across direction. What pricing you right improved to some seen and back drivers peers fare did the the really better many face were there and other like did in want we've facility was allocate hone then you discuss? that on that. competition product just quarter-over-quarter. that to And just Or more of want markets, the really of Right. improvement? in to sounds the go gross cultivation which And a margins, Illinois

Brett Summerer

Sure.

the dial which are to drivers we've that had excluding depreciation, the historically. where talked up. two is in improvements And with behind basis, back they able So are been we about. our say an also up discounts largely Illinois on our operational to to been margins market, they the relative -- And some flat, but step were that slightly

that margin this things quarter. both our gross us think on get lift helped I those on So a of --

Andrew Semple

Great. taking my Thanks for questions.

George Archos

Thank you.

Operator

next of line comes Our Bottomley Matt from Genuity. the question from Canaccord

Your open. line is

Matt Bottomley

Good Yes. morning, everyone.

to cash to flow Just go want profile. back the

on the touched a timing? or Because $X on So, $XX the acquisitions. flow refresh think little that I that one from contribution of $XXX has a compensation $XX million the pretty but talk just large on is on sheet. -- kind that tax a outflows, on little about payable looking cash? the you on cash limited some What's just the MSOs of back some on free your so has Can of this you the tax quarter, to of of I'm operations, every of at million, just bit bit going specifically? comments that, of balance deferred numbers cash just for million a the And MSO million please? Just QX. get more How curious much obviously, the

Brett Summerer

Sure.

we about think but again. question I So and sheet balance this taxes we a deferred a year certainly we're it to on total year represents The answer think our lot, half. right happy I about answered -- target a and now a

based to it's total think debt debt. you that market there, as we if shareholders to have our So out very It opposed at amount have about the essentially that a low cost. makes for sense

to a in recent intelligently a we of QX. here that we're that. We make the year. cost keep managing right that actually That about funding. have being have providing of to we target payments do Right an internal we're again, we -- So keep made sure now little over said,

So QX. you'll that fall in see

Matt Bottomley

Appreciate forward. be the just to think sort you sort of portfolio? M&A your are done you selectively in And other and meaningful on it. of Pennsylvania side, -- past that look tack have like like on are markets good ones Or programs? these you Is that. Got you've are needed and the in states regulatory more you that going there acquisitive mentioned going any

George Archos

new some in. Verano states opportunities sense. there's that there's vertical culture. market, in and already if if price at attracted, tuck footprint the need, that the look very we are we're point we there us a for every be makes with we And that few operate fit operations we're have. the we happy Listen, in, that states could necessarily said, nothing And in That the being

we to everything, makes on don't transact not if sense afraid at look everything, we us. but we're So something for

Matt Bottomley

Okay, you. thank

George Archos

a Matt. Have Thanks, day. great

Operator

question next Markets. Capital of from Kenric comes from line Our the ATB

is Your open. line

Kenric Tyghe

how just quickly. PA New on I'd morning. stores short-term George, first on seen openings the on also soon, and abilities But just all that more planned capitalize provide on and an announcements sort provide line store coming on we've on confident Jersey's you your relative some to on you six $XX you near-term in Thank the on obviously with of of of major the to new line the broadly later like And the or Jersey, any in of are to insight basis sales in to in stores and give additional potential expansion? ramp absolute pivot that just good Those stores to other additional acceleration year million, new the operators. Jersey New some openings? short-term oxygen online the pace from New market. outside those anything else But the of

George Archos

morning, Kenric. Good

the their we're distances so travel So That people capabilities additional growth more mean, good I and velocity to get has the people the market question. plain product. been simple, with of long right? to to great. market serve going want see needs only But the stores, right? in another far consumers, and line to mean, There's to further want wait

they excited in all for We the well more provides to on stores open, also black our and the market plan open takes the from us wholesaling third the licensees. that in Shore. as to store it state when So get open. stores We're away an the opportunity

and for again, the what yes, but far, earlier, about So there's we a lot great growth so been of expansion. talked room markets

positive a direction another viewed So just as one. in step this that that is

Kenric Tyghe

Thank on call weakness? speak of And you in and of appreciated. factors I’m just that to may may did on be Any been other How just the impacting recall? Pennsylvania, you would sorry, of on or much weakness the much have -- insight can Illinois But PA. was that vape How performance? not broader how market the you, was the George. Pennsylvania much the weakness out and Pennsylvania market that Pennsylvania, broader

George Archos

The market. market vape January significant, weeks in operators an not as ban outlier sales hurt The there. few weaker was of was a no -- and hurt there Obviously, X was far was as was and quite Pennsylvania weakness right. vape it the February.

bit March continues ramp hopefully So back little throughout in it's a year. and come the to

Philadelphia the very as openings region of and we're some have excited well, in regions. some that the We store Pittsburgh about additional

our to be we're for had everything So year. Verano. that'll of the like had, provide we to some we former us we've it that right. mean, I looking sell-through been sell wasn't forward launching facility -- the products, And additional able quality that throughout Verano to to growth

So we're think excited on is much in Pennsylvania in markets there. we adult-use of we think one horizon that is best for And QX. still very the country. the And

So on. over what XX we're really anticipating to that's we're XX next months, focused preparing the and and that

Kenric Tyghe

the Great. Thanks, I George. will pass line.

George Archos

you. Thank

Operator

question comes line of Gilmer Haywood from from the next Securities. Neal Our

Your line open. is

Neal Gilmer

of answered, maybe Is been that to Many on Is the you're Goodness much. questions still at [ph] year? closing update sort going Yes, this thanks process? you Growth year as expecting of an going the but towards the very the end complete to that throughout just of the that divestitures. the happen be RFP

George Archos

be The goal almost -- would simultaneous a to a closing. a of have more --

sure with that regulators the So those end it push to they'll the to their towards make but Obviously, guidelines, end work be have year. we would follow more we of towards the the year. the of

Neal Gilmer

days you just different one. in. Yes, okay. ago, of mobile of XX the launch And About applications across announced number a the you're maybe then a states small

Just that wondering adoption of has the initial and uptake how has been whether been?

George Archos

it that, been reach easier we us have signups you an few a gives a and on to it surprised. When do things We've you shows when loyal customers basis. pleasantly quite an and following, opportunity our like have

The app forward opportunity to side to of tremendous. a -- looking we things There's we're expanding it's it's front. there. only launch. lot is need better. get kind So but tech to that that on it there. But signups of going the we're of good The excited the about improve upon a a And were was good,

Neal Gilmer

Great.

Okay. much. Thanks very

George Archos

Thank you.

Operator

from Spencer We have question Instructions] [Operator from Hanus a Wolfe Research.

Your is open. line

Spencer Hanus

Thank Great. you.

update? So at can store getting versus back an that that peers in your And with maybe to talk seeing the Jersey you $X then the performed AUV New first inventory how your have million have average guys cultivation a bit [ph] you industry you sales, the any about saw less month. are capacity, then issues has just

George Archos

sorry, question. of didn't first part I that the I'm catch

Spencer Hanus

Can state? $X And seeing inventory how sort are the about any volume? industry in then with you at of issues the stores just million That's a talk you your versus performed level? average

George Archos

talking about. in New we just state, this Is catch didn't are you Jersey, your

Spencer Hanus

Jersey. New in Jersey, New

George Archos

for We new don't all stores. we across great to some on program store on front, would openings have play sales. the wait in comment little open, out before So our third doing store the tremendously cultivation rather supply the we ample specific specific sales Obviously, categories. they're see bit, a operations well. get on comment we being That said,

week, is very think variety And market increasing over for menu years to the seeing I be come. us menu basket size to increase side. week due to going expanded strong So in our for Jersey you're a

Spencer Hanus

know then the up accelerate trending are there. And X% on Got And you commented helpful. how don't amount We'll sort starts expecting that quarter-to-date, terms really sales thinking going guess if as you've those here? inflation in could are stay basket. forward? it. you Are How decline I that if you quantify of to That's call to just in pick that? you about XQ, just decline I tuned of that then

Brett Summerer

from perspective, here Yes, QX, think up right we've future. some talked about upcoming I be should so to All a will say is above that guidance can QX provide expect before. the I which in that QX now we you

anything But think don't the we're there. future. more I in So near provide we'll sharing something specific new

George Archos

a the consistent, And that while. would in trend that for would would I I terms size, and pretty basket think follow that of the is that it's trend think

Spencer Hanus

you. Thank it. Got

Operator

this no have You questions further at time.

will over I to turn George. the call Now,

George Archos

soon. for talking everyone look joining Thank today and you to forward

Operator

you today's You conference Thank call. for concludes may disconnect. This participating now

Verano (VRNOF) 25 May 222022 Q1 Earnings call transcript