UGRO Urban-gro

Dan Droller EVP of Corporate Development and Investor Relations
Bradley Nattrass Chairman and Chief Executive Officer
Dick Akright Chief Financial Officer
Aaron Grey Alliance Global Partners
Eric Des Lauriers Craig-Hallum
Colin Ferrian MJResearchCo
Quinn Stills Palisades Investment Partners
Call transcript
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Hello and welcome to the urban-gro 2021 Third Quarter Earnings Conference Call.

As a brief reminder, all participants are currently in a listen-only mode.

Following the presentation, there will be a question-and-answer session for those on the teleconference line. Please note that this conference call is being recorded and a replay will be made available on the company's Web site following the end of the call. At this time, I'd like to turn the conference call over to Dan Droller, Executive Vice President of Corporate Development and Investor Relations at urban-gro. ahead. go please Sir,

Dan Droller

thank by joining Chief Brad Akright, and and will Executive Today's be Dick Officer. Financial led Nattrass, Chief you afternoon us. for call Officer; Good Chairman and

utilized of EBITDA on uncertainties. the statements release GAAP. should EBITDA open prepared our call a beliefs, GAAP and for involve prepared metrics, I'd Investor as that These our our remarks, non-GAAP Web to will Relations remarks loss can not this this with or adjusted the press Form our Following projections. are include our up forward-looking accordance made and discussion line. adjusted filed in section we teleconference intentions, urban-gro's XX-Q of of Reconciliations net available and during management's income we On for may state in to the expectations and site. items financial the our questions remind from be backlog. listeners These to call, like future those accessed substitute call including in or will results and SEC, is be risks with

on federal statements the Safe the pursuant on made and actual securities could expectations current to laws this are of provisions Forward-looking and Harbor call based results urban-gro's materially. are differ

undue result, on As should any place a reliance not you forward-looking statements.

Web from of encourage these and periodic differ and the These Some such are Commission. carefully. cause you the the available Web of the review in could the and in We these Commission's documents company's site filed urban-gro reports Investors contemplated by to materially with that are results Exchange to Securities actual statements discussed the documents site. Exchange section on factors forward-looking Securities the earnings may our Web of Investor at site press on release copy section of a our Relations found be Lastly,

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Bradley Nattrass

Good earnings Thank our welcome quarter Dan. everyone, afternoon, and to third XXXX you, call.

strong the releases XX turnkey today's our food-focused As architectural, we'll be the build contract, immense by by providing and engineering, you efficiently. IP, comprised both urban-gro's our in the systems in a fully advantage. we afternoon, very employees, integrated can company to and this focus a business end see On our and agriculture, cover crop ag momentum. of of contract competitive European build environment Further, and These the of integration architects, service-oriented our working and than XXX newly more strong strong open share our design more our of from in several defines controlled is it's and earnings, and high-touch invested of types. results time then to this on globally including are experts urban-gro. to travels in great contract IP review call, We're call our topics. or continue I'll vertical and through Europe, of farms as indoor variety announced that our and more designers, expertise third cultivation quarter update overview questions. progress and of quarter controlled the the a the is from further the then detail, QX, of these brief the integration on upon discussing acquired third approximately key approximately of we and urban-gro only growing we'll skill experts, what also European will Dick XX areas for up begin who facilities engineers, history two-thirds sets cultivation market. which are a to on horticulturists as provides and clients, refer have to a demonstrated CEA holistic company environment our fundamentally nearly multiple value

client's estimated achieving further for integrating represent Focusing previously positive engineering which a results. phenomenal open acquisition target. into the opportunity on XX $XX a $X quarter been positive XXX% that the $XX.X growth progress. We record incredibly acquisition, very turnkey quarterly adjusted cash row. approximately, many long-term we of income million both job achieved our opportunity design successful versus we we year of but include and warm continues again In the exciting and cultivation on second post projects only and this key XX-person million, a acquisition projects one the I'm revenue that all well million, open contract, design foundation we expansion reception and excited third of generated the businesses, architecture, integrated single existing These my EBITDA quarter to period. this project I've approximately backlog XWR in-house architect way the by I'm award-winning We with the our equipment by solutions. high-margin million, The pleased will to developing represents quarter We growth. the into our financial be million, once and cultivation the had continued the we've delivered engagements highlights, $XX services prior design. finished position in to management further, architecture net the our encouraged to expanded and the, we're and our And expectation, quickly with and $XX.X team's over for exceed of not of of on over of approximately a a how debt. cross-selling XWR, of startup existing at post that to time pre This include is third first no quarter, acquisition. of adjacent firm, services began operations services our as support services, sound cultivation of with offerings, engineering, year offering three to continued our full they and

bolstered experts with the revenue we've the gro-care. and reports making branded, highly And is on the growth reviews and to managed site the as both recurring and monitoring, facilities, and further, progress offering, into operating assist since perspective, architectural on vertical the building them a a to farming solid including peer opportunities our to operators well. For full program. in analysis food-focused to and we're remote onsite This acquisition, and execute services advantageous with we also focus provide utilizes cannabis by geographical equipment expertise From remote continuing expansion with maintenance that training, EMEA region. continue facility our both our are markets, troubleshooting, program out model

crops a acquired in the based vertical platform world XX and They vertical controlling great food and knowledge which the primarily massive Our Europe. intersection farms our and ability to have it communities capture throughout approximately new has most to to establishing of a point Netherlands, American strong taken Farms upon urban to the cutting North a farming geographies. leverage forward environments Urban since service leap agriculture local, After in inception, on of entry farms, of Urban cannabis variety of these year, space, to markets to indoor our way is indoor service legalized working foundation us into greater one is commission this food and distributed strong share edge our a with in the plans on today. After that signing contracts food-focused aims with a the Health in food. vertical engaging products we've provide revolutionize Health technology. Based clients the the sustainable the market produced under working given development we with valuable through contract to in announced Farms between support

for the food-focused procurement, Our exclusive team alliance Lo engagement been absolutely deliver Directors that as XXXX. better leading commitment been recurring a complete provides of integration, been in our building management, grow the long-term presence architect-led equipment and controlled to Board [indiscernible] recent Sonia market. for of of all this in this and design, announcing the And environment today. to of has to further about we've the these appointment pursuing commissioning, ag initiative, urban-gro should revenue construction service offering providing strong out an Supporting investing facilities, part the ecstatic we're cultivation This has opportunity turnkey well. care

also at leadership lies fully-owned progress. European Sonia, In region. She'll investing new And a where in entered to experience base this been in the on Macedonia, near-term, Netherlands, we very industry brings Vice in background the presence we enthused we've speaking having expand on began who team's front, And will of to investment into be continue cannabis on as market team and applicable. the Holdings. urban-gro under in in we year-to-date, EMEA bolstering entry. pleased sales to in EMEA markets tremendous ahead. previously a countries, and of We've emerge we about the Farms to and meet our opens the different new expand opportunities strong the Health the entity, hiring of And to One, us. have as contracts and CEA the with continuing this we've industry newly extensive strong recently has intend be with a pipeline Portugal, Netherlands. into Crop accelerate Europe, I can the in with And of presence so what's company. capitalize XXXX, demand are our tradeshows operations in exhibiting capital multiple that as opportunity further a store crop place in the ensure our to and In we've the contract leader Horticulture up. a that Urban panels, opening announced place, market most President been of types. and to Further served invaluable Sensei European both and physical with formalizing Ag be more I'm globally, our for our European CEO we reach as our couldn't robust the

move and generation. example, incremental launch innovative division lead of margin cultivation continue drive Services the of is such equipment quarter dollars urban-gro one the The to is into focused we driving fourth vehicles on launch XXXX, invest and for Financial and we to our company. revenues As in

further this the priced industry we strengthen our delays. manufacturers our solutions. XS not power operators. access It yet partner, additional broadens provide leading priced reach to but strategic chain for Our non-dilutive only the provides and in in to eliminates another XS market, cannabis with minimizing as horticulture clients believe U.S. supply value place, initial and cannabis to purchasing financing barrier well. CapEx capital equipment competitively Financial's access I Financial, within assists With facility our competitively

full-year over passing the I review, his our financial quarter given revisions to address call. want on to Before to for the earnings call XXXX second guidance, previously Dick our

we to result year-to-date greater our raising than a XXXX our million. performance, $XX full-year are of revenue As guidance

headcount companywide revising and accelerate globally, million. As operational developing tied anticipated are increased investments marketing exceed our QX, starting to In during meet to to and we our result guidance Europe urban-gro successfully profits continue to across further closing, a of our our proactive in offerings, of in brand execute spend the investment drive infrastructure initiatives. $X.X to our XXXX demand, and we EBITDA our on to business our development all revenues full-year building future

are to that robust, our synergistic remains actively pipeline service-focused profitable, and Our offerings. opportunities accretive, acquisition and examine we continue core to

All facilities environment in the that provider be tie continue over making that, leading the turn of vision indoor With Dick. we're aforementioned of global to to our controlled market. to cultivation the the turnkey ag I'll moves now call into high-performance

Dick Akright

way. million smart, a the I'm the increase and that third on equipment XXXX, and represents was the for or of Brad. strategy the points basis period. and the XXXX, upon of driven year was $X.X $X.X in higher-margin in services prior executing is reflect This $X.X we increase meaningful, basis. dramatic of revenue increase of X.X% revenues in compared a our basis or continuing prior third July of at revenue. in of an increase as period, headcount in third you and year the in increase in services million of representing to to as increase the a period, with an are by by quarter that XX% third to of that, a XXXX, $X.X base first-half to $X.X of in the X.X% financial period. we're momentum underlying or to of of profitable which was to prior year a third million year associated revenue. in will in increase $X.X results margin XXX%. entities, million compared headcount, to increase today, increase of prior $XXX,XXX an a the higher-margin attributable was our percent expenses in primarily results how the excited a $XX.X of loss in in go-forward a XXX systems the This The year, $XX million the The of relates XX% percent of gross million this acquisition business. systems clearly or quarter our translated into was prior was This costs $X.X were experienced representing the period, million the articulated, with entities. percentage $XXX,XXX of record continue compared XWR EBITDA of was year business as dollars million strong evident quality operating in third an service we've increase of is and to the revenue numbers in of revenue. of in to million of that financial our profit Operating which demonstrate $XXX,XXX representing the the of revenue those revenues expenses period, which improvement by revenue and year $X.X or and another in $XXX,XXX. prior about income Revenue they representing enhance million $X.X of reported the we've and increase equipment profit points XXXX, XXX was an quarter. $X an Thanks, quarter revenue, of to million. built grow compared driven XXXX, potential services including in revenue XWR increase with the increase Gross historical revenue from million against quarter net With compared Adjusted Net in driven increase in compared acquisition the of an and quarter XXXX, that revenue associated $XXX,XXX the to growth The primarily quarter in equipment in end talk increase services

XXX%, September For reduction in and which increase represented the an nine-month in million million period of ended $XX.X million. to we $X.X million, loss, reported EBITDA total net increase $X XXXX, XX, revenue of $X.X a adjusted a

in growth capabilities our building mentioned out his an Middle in Europe Brad and As East. are remarks, for emphasis international the investing with in we

the we goal, EBITDA maintaining on important that that investments it future. adjusted While to we drive for an positive long-term is believe growth the capitalize is calculated opportunities make today will imperative continued

XX, as $XX.X as backlog, of million as XX, to $XX.X XXXX, of as is a June backlog, was compared which our September million. initially reported million, backlog XX, $XX.X Moving as total of to September $X.X backlog, was XX, was being Equipment million. of $X.X of September reported, decrease million. Services

delivery Revenue customer the relates dollar on these of periods to orders there While a our Because revenue orders two made are primary from our backlog, that signed in the several dependent the capital are commitments customers, signed influenced generally and factors individual signed during expenditure of period. fluctuate recognized backlog orders. change amount stipulated orders variables can materially. by is in then recognition

September upward. decreased While XX, upward backlog, generally reporting since as to our equipment continue We began of should XXXX, backlog from XX, trended has backlog trend backlog June we December XX the in XXXX, future. believe to

and that victims related repurchases quarter I $X.X stock. the in of acquisition around the to cash our balance uses is our including of, with XWR our in common to time, excellent with associated XX, with targets. million flexibility $XX.X to At in disclosure comment us of necessary turning potential primary our we no of $X.X further structure condition, our debt, of of sheet, cash, strategy, this the fuel October. which The to as were September on the million the M&A fraud provides want Now, entities, in growth million XXXX, capital

throughout into financial we and spoofed. can't ongoing the remediations a the of is investigation, as I and were our have incident legal as entire get to bank controls in that initiated our details proper recover the there with the controls have this, and conducted the like organization, against had an thorough $X.X with any action We've place, While institutions million. review

caused our incredibly in are the are we I'll open our slows clearly deviate way and strategy back our that, continued Q&A. In with circumstances, closing, momentum. call pleased and operator turn these from unfortunate our plan. it the us or call With Although results no the financial for to to has


and Ladies open or gentlemen, Aaron, now from is And please your the is first Instructions] comments. floor your you. question from question Partners. is Thank Aaron ahead. Grey for Global [Operator your line coming go Alliance live,

Aaron Grey

quarter. and good on Hi, the evening, congratulations

Bradley Nattrass

appreciate it. Aaron, Thanks,

Aaron Grey

No, absolutely.

exclusive architectural for new So, announcement the the Farms. Health the want on to on designs Urban kickoff

you years. international So, that to [indiscernible] indoor So, cannabis Thank big do agriculture and now months? over about of been the obviously, couple how it's And which you then two markets [indiscernible] a a other XX three be lot the versus XX opportunity, here, contextualize to in story, potential next of kind think at side, to more the European there's controlled next historically evolve looking environment growing, the legalize you. you Can right. vertical would just at over think years? how U.S. help of next looking opportunity the what's could

Bradley Nattrass

so in said a equipment American to team start the start now, with and where bit we was skill at market allowed and shows, the the nine five years demand multiple where with And demand And to to before the that I've I like And us start the efficient. little And year. clients I facilities a started utilized allowed time, guess, see It's earlier, I've penetrate In successfully is we've been and ago. over horticulture I'll representation that about systems over have it a strong times. Look, right for panels, sets engaging which times, make we these we exhibited commercial look again. cannabis trade expertise and last, blue had North weeks were the them -- to for we've of now at travel really there's tremendous. actually ocean. European at signed four a before the agreements spoken on applicable, the U.S. some

Netherlands, As course, contracts then and cannabis Macedonia, systems, I all in service working design the and multiple mentioned, on that lead and of equipment integration more contracts, Portugal, also of we're will to just in conditioning. contracts early-stage traditionally,

now. learned to same crop urban-gro the firm, Regardless same facility six-month the horticulture, of regardless was country, architect really of And and the ago for crop facility. the strong cannabis design, same type, or like the environmental up a born and a mechanical. the we, were us year logistics throughout what investing good have start same vertical it's we difference type, and out opening cultivation we're move strong European to So, over between a the it's good right crop the controls crop Holdings the the The start is, real only engineering; we a of food-focused little farm head move a in a system systems and that is the agnostic.

that's nine choice I initial continue it's an situation. Urban be fluid why this is really And reasons market. And facilities. Urban-gro to are retrofit all assign both countries. environment selection updated, will and unique. into were value been on And And They're going the I what's investing excited just, to into deceased fronts, in updated to as up market revenues. me what's food format, we these prudent facilities with Urban building I opportunity the industrial But bring It's indoor facilities. Farms. Aaron, Health to months. to on all that's and time, an value I in so, But the the Urban currently the cannabis. what right because working the I'd worth, Health how XX phase, Farms can it don't we have to And worthwhile it's any of it's on But, future, a the to I'll for to Health for you and EBITDA contract vetting for of the share learned is mentioned, the in rapidly feel but European Farms, the But keep the infrastructure. and guidance. we've right asked be it to so we, control question diligently knew we also just turn our It's actively are one and multiple sites analyzing at

Aaron Grey

for that's U.S. for just me, Thanks then And quarter turning the helpful. color, that really then. to back second

new Jersey, should Just the states come of states want about next better begin of New some use Connecticut. online, think to get I sales particularly where a New years, idea adult Northeast couple over of the York,

construction you. we help online guys we leads urban-gro's buildup calls as terms are [technical projects, guys you I'm you already to the through of [Ph] start? coming use the advice] adult inbound about the through different just starts on new for of sure states when when getting think In think that do flowing how the about that difficulty] flowing these P&L? revenue, and [build Thank

Bradley Nattrass

architect of first of aspect first seeing firm Thanks, touch an learned client. nice expectations, my And the we're Aaron. XWR, architect it's the firm open Well, positive incredibly the acquisition, strong we had the the to demand. of at all, XX acquisition of exceeding they're is far The time by projects.

so, now, the touching XX operational. months facility client XX, that is before we're And

the grow. about so employees as out of the hand of So, we now horticulturists, throughout mentioned, XX the life we're holding architects, entire engineers, I XX client's have,

trust getting be for by customer strong the entire earn able there the so, we're to good, process. involved And deliver of the experience, earlier a and client,

XWR most, you only involved of about have our services, on two by in an reported QX. noticed services So, with as was months that increase would and XX,

as So, plan, launching month, we're engaged turnkey full now year hard services, solutions. as solutions driving future, we're successful clients a tradeshows, MJBiz we're translates to when to new to last And the in marketing XX% at access the the in in earlier open meet able well. the new planning able And, stage. by over them of digital very being states than like equipment this more that time by for

Aaron Grey

the again, that, and quarter. queue, jump helpful All I'll on go right, congrats, the for on and thanks and back that into color on

Bradley Nattrass

Thank you, Aaron.


you. Thank

Eric is Eric, please live, Lauriers next line from Your Des from go is ahead. your coming Craig-Hallum. question

Eric Des Lauriers

the quarter, All you, and thank on congrats partnership. great, the Urban Health Farms right, and strong

Bradley Nattrass

you, Eric. Thank

Eric Des Lauriers

that Urban notes XX the through the press vertical timing It up-to Could expected not Farms Sticking you like farms XX an contractually farms. to walk there's those that's sounds release necessarily partnership, or with of number, obligated. commission and maybe Health if your plan part Can of help what that number us a you of expected be partnership? as overall of to from perspective, build-outs just understand then partnerships? minimum the Thanks. facility and of what with here expect could of range a those number the timing farms outcomes

Bradley Nattrass

Yes, thanks, Eric. the [Ph] announced. We agreement, agreement just we started of with the services that signing the that's [natural] and

So, how rules that companies sort other agreement forth the interact will of ahead. the sets of each the years in with

XX urban-gro Each to to design for do statement the build own and chosen complete of will have work. up its So, has facility been facilities.

And the are countries. looking which When of all then that our step We and then work, and site industrial vary, site, depending on they're at they sites we'll size retrofits, are because so, facility, and all solutions. they had in analyzing equipment and and all multiple of currently will unique. mentioned, a anticipate, in close as on development will services, urban-gro statement I sites sign the the of with they

chain delays a months hitting up nine anticipate certain world now. be we any of the the months, depending supply or delays unforeseen anywhere and the complete on size, facility should that XX depending also time from are on parts So, to to right

Eric Des Lauriers

the you your we service just guys' just to what whether business Europe the as certainly that your if deals, and example, like potential But just scale I how would service your guess, more I capacity are the busy. quite market capacity for Thanks. overall imagine, employees capacity then, look or us to level, like to your deals, of helpful. this understand a in I'd think U.S.? it's a your can scale? higher to bottlenecks wondering color. or how that's keep And service Health imagine Europe think No, or we just should of either about sort in overall you Farms, appreciate Urban bottlenecks deals, help that of beyond, that in should partnership I

Bradley Nattrass

into Thanks, on EBITDA discussion Well, guidance. the also ties my Eric. this of part reducing

architects Right over we XX not in We gap are want market. don't U.S. Europe, U.S. -- build to now to here absolutely Europe the believe, job take engineers our on do We've and have postings right started over our we over in you're aggressively market. a experts hiring I because the to and leave now, right, team we out.

individuals over chosen a to also got select team move we've But not rely train group we've our will and in a plans what we burning and did opportunity, actively we've executing with with European well. synergistic our accretive M&A a on looking that -- drive then marketplace. So, cash, great companies pipeline, cross-selling initiatives have of strong to we're We're help XWR. service-focused at who Europe on the as M&A we the similar to

combination a of through we and then well. acquisitions combination a through as look Europe also hiring, in will So, of

entering cash maintain we sure. for we're that of execute $XX well-capitalized QX, over position So, to just million so

Eric Des Lauriers

Great, thanks. Appreciate the color.

Bradley Nattrass

you. Thank


line live, coming the MJResearchCo. [Operator Colin, is Instructions] ahead. please is Ferrian next question from And from your Colin go

Colin Ferrian

quarter. nice the on congrats guys, Hey,

Bradley Nattrass

Thank you, Colin, it. appreciate

Colin Ferrian

specifically, Brad, slowdowns color, you on? some the could XS I'm the an be seen, or is particular. curious seeing a specifically peers this And seem deal; on if your it geographic demand think could I couple we've any differentiation, America for North provide in side? if doesn't like you of there issue to quarter, you other provide it's guys. any diversity color

Bradley Nattrass

clients, that's supply supply experienced issues perhaps causing issues to clients delays don't For urban-gro, But American decreasing I'll backlog to operate but little We to some is where exposure in references but we our for California, entered any $XX strong ahead of weak we great across always said most future under backlog, and the that's material global being more California across chain on marketplace. there's revenue specific from I've demand with markets talk delays -- of demand just to especially vendors, chain short sure, And timing, work at backlog. said, North that period. the marketplace. planning read with any And market puddle affect requiring of but we a our a million. markets. that see But growth that a control our three-month of us indicator the industry. on European our QX I've variables all. out haven't a the material the continue the haven't our or had proactively a Maybe bit just about Colin,

So, quarter, third backlog in $XX.X our you dropped to saw million. this

a just and number. was make didn't larger into into QX, pushed that so However, there contract therefore it that

million weeks, far, five So, $XX in in QX contracts. in so signed close to we just have, new

experiencing of America. And so that's sure, I'm we're demand that here, a indication, the in good strong North

Colin Ferrian

the helpful. weeks, and a future? only curious there to either question then demand that attributed the possibility other guys QX dividends, of have even the how And is that into the into in with the guess, you is division partnership I'm services look you that pay That's much or, additional I then startup? four forward past XS the signed over And XXXX can as guys is into financial if

Bradley Nattrass

business years I and that's we financing have made don't to XS for report. solution we been think will to and for the our that's sure signed requested it since an have investment now, non-dilutive, providing clients, any impact. contract aggressive a the

process but right solution clients experienced also signed to on calls out team -- But because leadership will enjoy very confident, work the clients multiple in racing so got think the partnership, sector the introducing but a there's since sector marketplace introducing. before that working And I think attractive. in announced a not the couple only did our the the great sectors. larger we're get contract. we together project to the very MSO other qualify. of too, it's to have now partnership. They've team our we're dozen And I our we the So, But solution and we a that I a

Colin Ferrian

to for Great, tail our come sounds have time, like we guys. Thanks ends. the

Bradley Nattrass

greatly it. Colin, Thanks, appreciate


Thank you. Our question from live, next [Operator is Instructions] [Scott coming from [Ph]. ahead. line go Scott, please Wise your Scott Santander] is

Unidentified Analyst

quarter. Hey, guys, congratulations well. doing you're on the Hope

Bradley Nattrass

Thanks, Scott.

Unidentified Analyst

first how reported the with differential side, previously? services questions, you Two does -- the compare on backlog. am And the margin? differentiate gross margin the I the million what's this in services on $X.X Can quarter

Bradley Nattrass

question, please. I'm going to answer ask to this Dick

Dick Akright

it the why the your side XWR And been we of architecture is that this a the we to for us, the believe it the -- on hasn't with internally hasn't Hey, a provide, before centered that then with this around I around focused higher and been regard the that to to part for reporting first and certainly equipment acquisition side. backlog, so the the quarter. of lot of -- really the versus And of time they regard pure that's And providing side to pertains see and Scott. started with meaningful it started we've or question we just of related the margins kind entities Yes, margins services number services regard the your equipment it from of that, had second because services reporting. always business. services the

number about kind -- those of showing services, any the the their As showing services. not We're jobs we in had after XWR decrease been standpoint in low going excited range years, they're two had the having from statements and Certainly reported that our their as financial closed, that last acquisition forward, of the standpoint been of the they're from over margins historical seeing the had come revenue experiencing the XX% the in. of financials.

see offer earlier, to end the from and that's that sales Brad then sure. to benefit help kind equipment of had additional we're to indicated, just boost very through leads And it of us. from because, into equipment that the continually they certainly that we going things sticky going So, to get the standpoint the tend our ordering us, is we then as the for margins incremental standpoint, clients for forward, customers And up them.

increasing certainly to we a forward, our in be increase to going line nice though help to us, an going still the top it's will lead to the the revenue services for going even of grow we're and believe us, is on which business. making of side margin So, equipment really, things

Unidentified Analyst

you color Great, this little you the provide color quarters? or change you on thank is a provide you. bit of regard a And a spend. my expect with last? to level a on Can to second timeline? little of higher Can the Is permanent couple elevated this how this long question is of level

Bradley Nattrass

The aggressively down the hiring. meet we're next of it's in great. call. to to of anticipated, upon first-half Bottom But, not future just line, demand reinvesting what supply demand. and Brad P&L, been as add We're hiring we're I've so existing is and Scott. demand with the slowing the the Sure, the last well in year. envision And and of is the in we earnings take don't all, at XWR, course, keep This seeing based up it's hiring successful -- us since to care which more than again. resulted acquisition it's

for working Second investment on been we've is while, so European been urban-gro we've that accelerating our the into Holdings. European contract, a

for absolutely and as meet are love look And ground traditionally right we're in as a focus big aware, well. will it well. about brand. -- growth we And large are maintaining add, industry have chance burning But line so in would So, chance hire, calls, and keeping hitting I've but it's that the a positive strong can more the new timing mode that now, a thing, cash, versus a we're strong we're initiative where great and a the position. on well as referred they and EBITDA is rapid we deal, the as ag past focused adjusted we're clients. one But we not I controlled -- top actually, to environment turnout great to But on on running. there's building tradeshows acquire in at

brand-building, U.S. scene shop trusted the GreenTech partner also the in have everything but the that's skill so a as European last will and in market Germany the see marketing you with so, show market, couple well, an as the and few increased Netherlands, of well, we And a cannabis so large changed started NASDAQ in months. spend over a the In shows that all have money. costs for strong, urban-gro. they The on for being notoriety, right important, clients being clients, go, to a our arriving needs; the the the it brining one-stop their don't sets on our for

to So, say least first I I'm it, put second the but or probably on a of going at not quarter XXXX. would timeline into

Unidentified Analyst

terrific. appreciate up that's it. good the Great, work, Keep

Dick Akright

Thank you.

Bradley Nattrass

appreciate Scott, thanks. I it,


is from ahead. go of live, is Stills coming Partners. Quinn, Quinn Palisades line next please And Investment question your your

Quinn Stills

I wins. about you. a just question, macro thank more have speaking Great, broadly

U.S. opening ago? travel a up activity? down, as vis-à-vis opening economies European the coming your that they COVID, are from seeing Can and tailwinds up getting in restrictions With new general, on where a year might business any you the you up opening be you things from tailwind Thank were COVID, comment from the you. just in terms activity, of

Bradley Nattrass

the a was Canada time ancillary approval In Europe, unlike market, ago segments, Thank Quinn. all In over marketplace. I'll it momentum the to were across there, that start and business period, we and up it in day momentum pre-COVID needing government was cultivation side only Netherlands, steam and at cannabis tradeshow. there wasn't essential an cannabis the to tested were we really the where that European were example. five get The to visit drive from you, segment, on, very in through deemed U.S. market. year-and-a-half the the months for the we U.S. really the enough early last momentum every picked

is get of a are by the they're to the going will So, in begins to don't to region vice EMEA in-market, yet, and hiring going by team strong they're that's out based there slowdown, not fast only -- president who allow tailwinds how to But allow grow COVID building feel Netherlands horticulture stronger. us -- I to, the us strong our regardless aggressively. of in

helps always on side have food cannabis when and vertical it course, have we a clients. client, the the and you -- strong the side, multiple that Of food

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Quinn Stills

you. thank Great,


any today. to call we Mr. out for for with all reach is will to the questions the have now closing comments. additional questions. over I turn Please back That Nattrass

Bradley Nattrass

Thank and your Tom. urban-gro. we're today, our a and appreciate of interest Greatly And I'm always grateful started. I you, just It's time together ride. of getting great been all say it ongoing for and support

clients unwavering. plan, to organically our both and, our to course, we commitment we aim the through our and as as continue clients and both value Our deliver our path And to growth down execute well. to shareholders of long-term is sustainable M&A,

for and So, a listening, great have thank you much evening. very


Thank ladies This gentlemen. conference and conclude call. you, today's does

your You you phone day. and participation. this time, wonderful may have a lines Thank for your at disconnect