Trulieve Cannabis (TCNNF) 19 Nov 192019 Q3 Earnings call transcript

Good day, ladies and gentlemen and welcome to the Trulieve Cannabis Corporation Third Quarter 2019 Financial Results Conference Call. My name is Julie and I will be your conference operator today.

As a reminder, this conference call is being recorded. I would now like to introduce your host for today’s conference, Ms. Lynn Ricci, Director of Investor Relations for Trulieve.

begin. may You

With morning, Officer. joining Good corporate gentlemen thank Mohan of and for Chief Kim Thanks, Officer Executive today ladies to for and XXXX. quarter third us Cannabis Chief and today discuss you are Trulieve Rivers, Financial Julie. Srinivasan, Corporation’s and me financial highlights results

Following our open will we the call prepared remarks, to questions.

statements. for other shareholders, I that that today today’s risks, parties. being a that differ recorded actual factors Before the remember note call individuals, could number other investors, and to we results to the would get from our of like materially may forward-looking interested statements started, Please include of media benefit that cause and is discussions uncertainties forward-looking involve those

Any speak assumptions XX, by further companies. or and these call. with ended as quarter most directly press profitability the forward-looking factors prepared are release by believe measures Statements the the press considered XXXX our be the furnished and factors of risk release. assume our company’s MD&A financial to that other We well to non-IFRS table transparency comparable material call alternative of Any in performance our financial the comparable Also, made in measures presented end are for ended should on in in is connection information. not These XX, in in on unlikely using this this IFRS financial to reference September earnings this IFRS forward-looking provided applied to our measures quarter metrics. demonstrated update today’s for non-IFRS an Certain measures regarding only as measures obligation at that the non-IFRS included greater we earnings XXXX and required to no measures non-IFRS statements. be order financial reconciled considered to referenced financial non-IFRS today and as this any morning MD&A making we remarks provide September the were in and of Trulieve. call

all dollar Investor quarter Last note XXXX. our our reported also filed release, accessed maybe website dollars. trulieve.com to section Please are our third MD&A of A of the news results SEDAR. and copy Relations references financial U.S. of on to statements and we that were night, for

In call be addition, on website. webcast a of today’s will conference available our

over Now, to Rivers. call our Kim I turn will CEO, the

Thanks, good and for us. everyone. Lynn morning you Thank joining

and to We are very results pleased all update you share to provide business today. earnings our a

we to our prepared my will then analysts’ remarks, the open financial and Mohan Following questions. call results will discuss third quarter

to beating XXX% another operationally financially Turning estimates. which results, a quarterly $XX.X experienced million strategic first our Trulieve strong consensus the plans our and of increase increase quarter-over-quarter sequential as against XX% third announced we quarter and over revenues represents of night, both as for same the Last year. quarter quarter, executing well last

We Trulieve. that say to quarter record is this another producing are happy revenue for

or XX% As in million second said we profitably. $XX.X XX% critical in build before, EBITDA company we the quarter Trulieve’s adjusted million to compared to or was it is the believe the third have $XX.X quarter.

and part a set is discipline in the of consistent who strong industry. are cannabis become us company. EBITDA performance the differentiator Financial apart has and Trulieve simply important Our we for an

in X year, success first Florida. proactively the built our are here Throughout months on of the we

team financial have and our discipline our supply and support implemented future growth. increased We maintain to leadership profitability infrastructure, enhanced chain efficiencies,

market, in calls the are illustrate Florida our on We have but strong lead not foundation we discussed building our for national only solid a groundwork on expansion. to previous how

initiatives retail were have and sustained brand, cash to for financing leadership a going expansion ready, As strength. the we flow, and I our and we have walk positive increase updates and we spend through made tools strategic to with including changes further activities today, QX and strong you available our cash product be expertise, believe

will with profitable Through posting Trulieve the strength. positive strong of remained third EBITDA XXXX, quarter our cash financial flow. start I and generating

our Trulieve record. to our public to completed second public of principal an those were of have issued the that pleased offerings gross in to October, debt the same complete warranted aggregate the offering terms in non-convertible the investor we support companies few million. of successfully speaks In and believe deal in very addition, value our the carry offering. approximately In one cannabis a the strong company. June reopening We XXXX warrants financial raised previous proceeds The $XX public debt is demand delivering debt million which of of Trulieve debt the the $XX notes

favorable in In and to property new the million price announced that This And Massachusetts cultivation sold plans of back Florida. last favorable of most Quincy, we in with second for Holyoke, announced deal offered we transaction we lease debt the XX% the in sale addition $XX property offering, to equal build-out with month, industry the in in the Massachusetts, some located rent the similar leaseback July, place. property. in which are purchase for terms their

debt cannabis increasing. execute million is within ability along leaseback during before to is sale year span challenging growth and be invest nearly cash us this alignment assets positions bolsters deal flows weeks strategic and and when Adding $XX agile declining well capital the in time the the cash cash of from on and valuation This for deal the industry additional of with end. to provides further a capital strength our public the few initiatives

strategic Our expansion replicating on successes is leveraging and financial based Florida. in

accomplished the our ability, meet the having drive and cannabis to growth. continues by expertise Florida unique for ever leading increasing demand in the this state. market Our in Trulieve has fuel position position dominant to

success is in Florida strength of key to our brand. retail A our the

stores believe will the that for Beach. Key Florida’s areas. third is highlighting loyal in in a I when to happy Clearwater such open stores The are can and beneficial quarter most have some additional we We Florida store new a saw They use state base of recently, our in We a recreational before thread. candidates report use. door Panama communities communities in City am are X the market Beach. as opened time that West Florida More opens the target, just with approval October, an and prepared matter adult of of maybe be customer it and strong to and opportunistically brand in the tourists-centered which we common

market plan approvals, end. to openings. Given dispensaries XX competitors regional applicable by our our and our we strength over enjoy to to of dominant have our ready the in match we to the dispensaries of that operational lead year maintain Though in our a our subject brand in lead Florida, try testament operational regulatory pace stores is share is store

stores XXX October there with of operated As were XX respectively. our XX, in two having XX XX competitors closest stores of Florida. those and Trulieve dispensaries

Corner open the Our the currently This XXXX. operating are our and Healing Florida to however over as remainder the strong continues market dispensaries the Healing dispensary, addition of in operate share track Trulieve remains a in revenues QX impress state. of The recent growth process on In for The with XX of name. Connecticut, X and re-branding patients under well as is within at we to XX%. Corner

there a in will is believe soon high reality adult Connecticut. a become We continue likelihood to that use

branding increased to the as serve provides the with Massachusetts additional us wholesale Connecticut are basis with both our We platform expand well retail also opportunities operations our adjacent for market. property for initiatives. dispensary ready on the as space to

We early for facilities completion are Phase an cultivation dispensary. of target of Northampton still and on our QX our X opening

a closely robust and groundwork challenging, Massachusetts will implement doors we in are and working wholesale. have manner communicating timely begun would approvals but market. introduction and with the a along we are for we brand and opportunity in open of into already they our hope approvals our plans wholesaling support so will Regulatory regulatory bodies the for the Massachusetts our move

wholesale ever the strategy, we for provide. contribution are growth the the we of implementation bullish more As will than about prepare arm strategic our

as to stream while few are the the that product state. understand Over customer. have well we future, the to very is wants scalable Trulieve past see speaking could determining of a for In with using a predictive meeting analytics and their demanding needs, ensure been consumer we forecasting state winning revenue customers preparing potential Massachusetts actually driven the needs and current assortment brings months, near purposeful expect plan wholesale our as profitable to future you consumer-based to

retail a to quality plants dominant brand, offerings. is expertise our both the key our product to product cultivation addition the success innovation as of our as In of in well

incorporating practices. into efficiencies cultivation to agricultural best-in-class build our out continue focusing capacity We on our

important factor, will Florida footprint, cultivation X.X largest still under million in expanding. hovering growth footprint indoor Florida. is the note feet. one Our currently having cultivation indoor is U.S. are at I and an of square is just cultivation that This we greenhouses, and particularly including

shelves, of is is our which products our sold XX% from store only Flower, into grown Trulieve. the now approximately Florida

choices, look strains Our to demonstrated recent customers flower brand XXX the of patients and forward catching in our the but online. up tinctures been including and bringing to us growth highest our topicals, extraordinary, weeks, indoor vape flower new Florida possible. we our is offer product more has with flower demand important The capsules, cartridges. come are flower, demand continue deliver more to over currently and We as we Florida for our in supply want we to seeing and quality smokable concentrates, to

this production final not sale and for edibles await patients. be will growth Florida. but another the We believe only our area, a also more anxiously of regulations big We for alternative good importantly, in

we Blue with Sunshine market Additionally, favorites have of partnered Loves as Binske, strategy. Bhang, Each Slang, unique value have Cannabis. River are Oven, we proposition and and these customer companies penetration a noted, with

dispensary. and and to This from location plan our price us additions to the as California, flock older branded affluent for tourists a offerings. to visitors our use range R&D strategically refer we festivals, this to wide for mix the data area weekend what of of Trulieve test Springs location vacations We homeowners allows demographics In to is to Palm the that getaways. our

continue our moving current committed about As to to leverage to think we markets. strong our remain we foundation how forward,

markets executing of opportunities and as Florida. mentioned mot of capital and further and and we leader. efforts patient market other refocusing while in continues grow competitors expansion slowing As in solidifying the true state This focus today, is I are intend are our have to our the Florida, demand our home states, in strong on ahead continually position to each current to where

pullback others now this to we critical As in market. double the is down believe time

speaking access capital, executing profitability and to companies to offering believe we for will future high will we will that solid we but profile combination will part fit success Trulieve. our consider dates, weekly. for teams partnerships rigorous I established criteria reiterate and the To companies other line Trulieve’s be of robust deals sheet, and growth keen opportunities our not valuations sight M&A growing is hope for with a are standard sake, in with being calls to more growth. pipeline acquisition core exhibiting we with core upon realistic more values, and us are has we inbound are a companies of a balance witnessing As to customer-centric company be interesting reevaluating evaluate M&A of much which management importantly, key having conversations. fast values The meet available increasing become specific ensuring they with to for We clear, that the that in translate greater our that and of grow accretive

our hand tuned. on as on we current are M&D as a well to opportunities market stay I often, richer So the focused right on continuing in say acquisition pipeline targets, the with as markets cash laser of capitalize and increasing strength

available. our states to key us will growth a we our addition allow team an achieve as open key developed will also brand have Trulieve expertise organic and markets targeting are help to current success. This has opportunities, license application grow license in organically In rapid applications growth strategy that where

as level, moves compete that national the we As quarter us XXXX at strength. are on during our of focus made as we bench XXXX continuing for to third a initiatives in past We of touched we and the important the successfully the look remainder underway well this at beyond. internal and prepare on number a

few organizational that addition such a now the is of of organic and place more the the refocusing personnel team Some and visible. but in org as with other work chart behind scenes are application changes,

Chief not retail as instance, choice. financial Murray Also, importer call organization will of recently being but was our overseeing moves the these believe and We areas. production and focus delivery our drive was increase U.S. Tim Landrum revenue, and Sales and as quickly growth Officer, promoted only supports centers. strength, already dominance, the cultivation strategic For elevated leading internal the customer vast goals within market Officer, Kyle store Production expanding centric effectiveness and of Chief

to before quarterly me open and review to add over the that, call Mohan? the closing results turn Q&A. With remarks I for my let call Mohan the

maintain tools we everybody. Thank company morning as have the spent and you, we and efficiencies have our us third Kim XXXX. good with to the and a continued expansion multi-state will in the established place financial XX, will now quarter at revenue our operator. strong have outlining allow Kim operational time September ended and growth, as I of discipline disposal. a review results proceed What we the profitability

represents exceeded record of year. a internal the sequential same quarter our a quarter-over-quarter revenue million, Tim Trulieve which increase over last a XX% forecast mentioned, achieving $XX.X XXX% of and as increase

$X.XX For exceeding we share the earnings estimates. per third quarter, achieved of the

flower for store revenue Our and increased be increase openings. by new successful demand counts, third continued to quarter driven patient

as patient sales the XX of total our an the they and customer had important at Let awareness Florida, quarter. a same-store us this stores we of brands end initiative of loyalty. for look are third operating at In

and for locations have entire XXXX XX in were QX sales. The stores business stores these quarter-over-quarter by both us and increase the XX%. that of QX opened of The growth that an XX% quarters the year-over-year important profitably. metric XX and is we opened increased XXXX same-store our revenue the showed quarter, For entire growing sales for and an QX successfully indicator in for QX for

gross will I profit. discuss now

revenue million which grow of net in the The fluctuations XX% costs of $XX.X cultivation second under more of the to remind was financial relatively grow third our would the to the fluctuate of value come assets quarter-to-quarter or year. half million see pace $XX whether biological quarter. the expense like the accommodate it or inventory. expect fair gross assets in I profit or biological in with is policy, openings in and you that as before the in we store changes as line XX% in facilities accelerated from to We online and should new second inventories is

if our to to QX for comparison, was of costs, XX% were you XX% For for account grow capitalization profit gross in QX. compared

forms now significant continue part to will will and we our have goods of cost turn facilities to cultivation. cultivation As There growth continue our I increases been of be to cultivation sold, as in online you in August. more Florida keep we square allowing the experimental us remind market greenhouses essentially during with demand. And doubling I quarter, than to brought that pace footage our will this

we of quarter, indoor reportable third feet of greenhouse facilities. the and square cultivation enter we capacity As cultivation had XXX,XXX

we We feet capacity, announced square greenhouses underway. we Currently, anticipated our be feet Florida of in on the third the the entered that X,XXX,XXX kilograms. construction the QX quarter cultivation earnings up experimental the ongoing with call with annual cultivation were coming out providing as X Massachusetts fourth as XX,XXX online and in Phase in quarter, XXX,XXX to have square build completed XX,XXX facility fourth quarter well

early in We Florida Phase square expect QX. be feet in with will completed the to X,XXX,XXX and build-out Massachusetts X the end quarter that

quarter X the and openings for expenses, preparing the million our of compared cost These quarter first dispensary in or million quarter to of for was of The the million largely third or of marketing was for or to to related primarily same and to in have costs for the in to costs I cost related category were to prior XX% third expenses. XX% expense will XX.X new year that and revenue and opened X.X Now, revenue cost stores fourth XX.X period XXXX. revenue turning increase quarter. additional amounted last cover sales store related in this XX% the due

profitability. million as and to last growth us Overall, $X.X mix same was period revenue period from degree in financial to increased expenses or million year prior leads year-over-year or for of and the the G&A expenses million public of also increase for of aligned quarter. The X% high year levels, G&A infrastructure reflects the revenue $X.X the in discipline operating costs last talent compared in $X.X same staff to the X% keeping company. essentially was related a a with quarter

into Adjusted the other non-IFRS help as the biological quarter net performance. expenses, standards. biological EBITDA assets. RTO million in IFRS operating accounting the assess income accounting inventory investors the Operating adjusted interest, expenses, non-cash We value income, under was We and the fair and income business. and $XX.X net depreciation, assets to EBITDA, report excludes to costs was reported, from the related effects our to profitability into and measure, non-cash valuable performance provides unsold tax, of our biological growing taking net assets company for income for adjusted required a EBITDA account of insight for of million $XX.X believe changes

of in grow of sequential the or as inventory brought compared increased structure we million believe that EBITDA normalized million $XX.X new XX% new new costs adjusted varies XX%. are online an a adjusted openings of was adjusted EBITDA quarter. the enter as as capitalization XX%. of where adjusted dispensary selling and XX% the previous or and revenue Massachusetts costs On XXXX on the vary, EBITDA $XX.X quarter we Please basis, depending like states levels Our to quarter-to-quarter be our of the in fluctuates third will revenue can EBITDA by and cost marketing note around facilities

assets, quarter. the percentage to our tax gross a including was profit, taxes, effective value in turning of for fair net XX% as of rate Now, changes biological this

better percentage our we the tax manner on as taxes a with advisors. before more this reminder, a discussions based on and effective tax of XXXX belief explaining that measure than rate of began in second income a stable this taxes our of quarter in starting As is based calculating

as of of result This of $XX of processing was million in third was sheet, cash related million from or end balance the cultivation and at the primarily the expansion expenditure our $XX XXXX, balance additional million $XX facilities. our QX. capital decrease million of our to $XX of end quarter the now the Moving September a stores, to of

In activities, obligations met the debt payments the sale is our of coverage million. addition, approximately and and strengthened QX, cash $XXX $XX of interest approximately financing ratio And deals we two is we our our million. to Subsequent X.XX. and balance note as on balance the Florida. debt leaseback and fixed our all charge sheet XX, transactions two nearly Quincy, These by property November in completed further

of for $XXX guidance contemplate This to million $XXX in plus revenue our million based anticipated store EBITDA guidance The reaffirming adjusted openings. on and not footprint May in does are the million. Florida approximately we Connecticut XXXX million year $XX our of $XXX to with store Massachusetts. revenue Finally, is expected from the new for current issued

continue while our exercise to will We leveraging financial discipline, scale.

$XXX We are and Florida, XXXX foreseeable Massachusetts revenues California. which in million in the in as and $XXX profitability $XXX of of and the operational This our $XXX well EBITDA. continued the growth, our our these growth XXXX, strength estimate Based incorporates financial place. in for range outlook financial on million current recreating as sheet, also regulation Connecticut million markets, expansion balance and we to store into disciplines adjusted highlights to million generating summary

to will now hand it I remarks. for closing over Kim? Kim

challenges shareholder are quarters closing, pleased The third retail is from based investors are Canadian Canada and sector. Turlieve’s quarter write-downs companies better in increasingly value. In cannabis industry both of results opportunity. This face wider in results, and especially negative Mohan. financial results our in trends general. have the recent Their disappointing we revenue the large institutional to causing weighed Thanks, losses, on strong in and the wider with demand

for we above will America. companies pack. cannabis have the this as ready on we call begins have lot As capital in to built have stand companies one the to with look about cannabis and foundation the allocated performing a a I increasingly Turlieve tools the company top fundamentals, of be talked proven for North

proud of are have achieved. success We we the

market a only passion our in believe fundamentals, the from Trulieve MSO in and I With operational further are the our non-performers. recently our illustrates widening demonstrated financial enthusiasm the but debt leading solidifying company. as prominent closed quickly not gap deal as strength, we also for a market

a addition, reputable the cannabis, one in being done ongoing would but any not foundation establishing strong work corporate internally industry. In be just in that is

moving further and look story. We to forward forward are soon well-positioned attention updates I providing welcome onward. to our

like We take to now would questions.

comes with Thank Instructions] first of the line go Fagan GMP from you. [Operator Securities. ahead. Your Robert question Please

and Hi, and Kim a body quarter. every on congrats fantastic

Rob. Thanks,

some sitting liquidity couple any kind your existing could enter your you were ask plans, would I your attractive shift M&A guys just looking discussed strategy new you the comments wondering around a around pipeline great? and you to previously had Yes, of perhaps operators enviable pretty in states kind plans will allocation of position year be capital for you if this your obviously and on your any are about in can of have construction with and of us the you given ground-up versus more if more now, provide that color update

Thanks, Rob.

conversations to folks So, we are respect who continuing of outlined in with course, as meet call. the criteria the

are the they opportunities accretive presented. We are interested as in definitely

pipeline current through of With rigorous and use addition noted be and in as the opportunities opportunities for are and potential interested very our we It organic the specific expansion our hopefully to came are on markets up that focus in addition our who very course as with that again folks in continuing are this team, well. partnering of criteria. that call in should meet our ground going we application to

the Florida the for contribution that seem bit maybe of for in where something there of process? but estimate then wondering maybe trending Massachusetts share always outlook, little upside Okay, great. XXXX the of guidance the I if pretty the but ask obviously, licensing would could will guys XX% are outlook but breakout see a with I if we think be any to course? And us wondering, your you your conservative to some slower given wanted very rough I which Mohan, market now, sales XXXX more just it’s potential conservative provide suggest from guess you us, for of and way are there just about this in landing could you like context the in a

you on regulators we Yes, progress, we color prepared that additional I continue and this at will things not But for current respect until investors. to I Massachusetts are some mean, thanks, productive Rob. update we guidance next with certainly, point to adjust it have there, and think to touched from year. as the

Okay. growth get is really XX in April Florida back your kind some where in Florida given back Alright, how well are you capital queue all the getting strategy, maybe terms on cylinders to the while one and I I last around came will of like Can the the maybe for your other for wholesale for, great? pulling to a the until of guess it refocus opening comments store pipeline I just is off there? you like bit be some the details close limit cap though hitting in are for in me outlook your that around, market on allocation number process are maybe kind comes for of expansions players guys you update us what’s

Sure. Thanks, Rob.

have when so that to XX active next that and in that we So, again as reminder we currently then also stores benchmark. which have, we just are patients getting relatively open close on to Florida a every XXX,XXX everyone, we remind Trulieve, to able are

locations. X additional an get will We

are as Florida. you in Wholesaling prohibited And it’s an this real however and will a legislative complete and continue session so election that Florida early because robust with a very we in year is in estate pipeline in have we change year opportunities currently Florida. respect so know to and and to take

January go in through and session begin we So, March.

also wholesaling legislative actions. So change in affirmative will also legislative And sunset to on so that automatically allowed. is lot, as would a locations for currently cap to a to take set be – the change reminder Florida an dispensary folks, any for then that require is

Okay, great. again. Thanks

Thanks, Rob.

Rob. Thanks,

Your Securities. next ahead. Russell question of Stanley with Beacon from comes line Please go

excellent morning congrats and Good quarter. on an

Thanks, Russ.

any the are guess I or get that XXXX that QX, conservative just being just in to thinking revenue respect suggest a want coming you to comparatively guidance of question headwinds even actually up? your see the range that, quarter modest are there on upper end you with First

patient discussed so as in We Russ. thanks and fundamental It haven’t to we seen try based we ground-up changes increases forth to Yes, model. do the course a model. specific on we is base have that built of increases, physician model very any have And Florida. our count

have our and that we unless we be guidance so underlying previously those things in of assumptions. will change signalled And keeping until terms

keep want the it same. So we and did ahead to go

we or other a growth quarter-over-quarter that due in is of actually or will some that The singular increases see to I demand not XXXX with coming shift significant with there on and that a did continues mention patient thing was to whether flower more a online in instead earlier kind respect so basis of stair-step.

I it’s still also to be determined. think

for color. that Thanks

that quarter I as inventory question, something – the impact the should to tied online that think look sequentially answer the know is we might the I in think I to is about coming just that? wanted the next at level, there days ask just the greenhouses climbed I of beyond but in inventory and of or else a fair bit

No, that’s right. exactly

cities in wondering plan around to is a your I on Massachusetts, the I moving given these just what And game and guess city’s dispensaries? September decision provisional Cambridge licenses, where of believe wondering yoou have just there new one

in Massachusetts. I in retail, so Massachusetts appreciate wholesale we our important signalled, forward dispensary but strategy as can also with mean moving no, launch we have our Yes, that we that. and are first that’s our

We additional much facilities Massachusetts. been strict retail given restriction and in locations locations the have are very of on of number actively considering

locations and/or locations. current for So additional those up certainly relocating are

can the I me bit that from and looking in of but than I growth the one recommend just it’s question metrics. cannabis a at I slightly will continuing in qualified, other guess a to some but market more of report physicians guess And looking grow, OMMU queue. into last are at of And back get guess that the Thanks. physicians number question, and modest pace of that perhaps at I an number industry-wide the is

activity I or more what So more you help am or on that that can are you what can physician front just on doing you do pardon patients to do drive front? wondering what or me

Sure.

physicians patients got or to like our very course the platform employees So then doctors cannabis XX of physician network supporting state all of existing benefits a more and I so around educating gaining around around to efficiencies of as onboard an patients all and the portion the to on the who so, physician is We've into and educating space. and and in see they within and and conferences for really we us of that into is the are to we their well communities. move area make and medical continuing state practices the course for and decide are of focus and with cannabis primary medical would time active incorporating their their the active being will see so also renewals patients groups additional practice we as as practices cannabis medical positions to their positions that of meeting new say they area certainly more able a time over

again. Thanks all me. you a great congrats and Thank That’s lot. That’s for color.

Alright. Thanks so much.

Thanks, Scott.

with line from ahead. question next of Derek comes Canaccord. go Please the Dley Your

good echo hi, morning the on congrats everyone. Yes to great like I also quarter.

and about more it just in spoke you the seen guys pricing little data. you last That about dynamics for the $XX pricing to you the So think changes in one that still bit is competitor to range any competitor any quarter? was talk OMMU have a of I with the the gram by time of there minute on you pricing just market talk seen or flower can $X sort being in per have trends I we disruptive think want had looks like I

Sure.

remained introduce that we our has one respect at product be a the which our their flower received $XX.XX with has TruFlower been of competitors has mentioning price the actually flower is has market quarter. particular other our plays should very that next bud, new same did tell in remained well very, that to and over in and I that how all some are increased followers released interesting smaller-sized you with you that product categories by So, will see are to we is category Minis, pricing we which no which pricing recently the is so that the so

Okay, were your able bit position fair parcel the internally of had you're when a a that’s still increase more be had I'm capacity you helpful flower been think to part say why you looking for quarter sell you it that's you but of and have your and assuming would that more in cultivation supply shortage about to supply flower. would and to

That’s a fair assumption.

I along trends Okay. flowers guys market has lot there switch a Florida early you And vaping but any at there? just consumption or the and did in relatively in the see you terms of trend obviously regarding flower news have the then all to the a during just in get from vaping discussion of seen quarter been that

long in comments material vaping nothing flowers I its and mentioned that that a see were XX% our material any and term approximately seeing Really, off really mix in X% so I back was the came X% that it to are not would vaping but really on week say the issue. by with so my we straight or from a product of we did about so there vape the away impact we category

gears of and home side or second business. you the talk for of seen penetration within Click have terms that a Call Collect the market? just then and in of & sort about the Can delivery what or Collect you & switching Okay, the

Yes, absolutely.

a things this of to we store. a and and where have kind reason a over that’s and it currently X% that for So delivery and target that delivery reduced really we closely with think so interesting that couple is I is about delivery delivery very and actually at of for have actually very one are we active areas time watch is the we respect we

course quick in to where areas, here out like you supposed through delivery the for you a thesis order have of to we some start store you on actually a we get for have time is delivery do that and are actually actually number going which for are those you and a we then all initiatives it XXXX will sign wait delivery the so to to So message different look management that’s -- doing typically the and going to are difference having to one. may the sign quick and and our for day it perspective when to haven’t and that in of very and sort an we're our there drive more Amazon date. on ready to of and from package pickup minutes actually delivery activities and to increase drivers as thinking in a says so doorstep stop store text we're store pickup done a our poster convenient of have approximately in and is the leave us our So what than in receive style to that big put by actually waiting model those being is one store that a you place interesting if added that and one Two, you a we order around actually we technology your that able is XX is

that it with So have how planned. interesting will we over those be number to shift see activities that

to sense. Okay, between for any me, And in the store of it that, the and delivery size it’s do basket you that one is versus related in call customer? terms collect last in whether makes just whether the difference just see

less to coupled folks inconvenience in are ordering be they So – big they an but think charging that at I bit a I with delivery order. that are delivery fees does walk-in and are for having rational I more a ordering versus the think folks when pickup that of what a it’s an they that say little are and is are was store the I – in in store often a that for customer least we higher the in so would delivery more basis perceive, do I explanation also tend bigger doing versus order consolidated think was a ticker folks the

very Yes, Thank make much. sense. you

thank you. Yes,

you. Thank

line question with Gilmer Please next go the Securities. comes of ahead. Haywood Neal Your from

questions follow-up edibles the I on of already once update have just did want just asked be on but those whether Florida in going and prepared Yes, and in to to comments my came been number have good sort again morning quarter. are congrats on the any available the A of market? on when you one remarks your of

held there do behind I behind that out because first come believe testing likely stand right track are and would to has process I early would making statutorily we year that before in it had have them regulations see hopefully be and every hopefully likely how remind we bit we don’t testing felt color on if it regulations be expect that the may edibles and piece makers should them some unfortunately embedded if from say regulators during hope the have and that other news talk we edibles a chance an that pressure that I see see we out is we in of of there off see to not that XXXX next took of rules Neal session Florida then required it do and of law then vape we ready. to within will we then I write decent a edibles so were that course little everyone about would that little progress is any any I got that’s them don’t applying so stop been bit then sort I session start and to a additional bit testing a

Our edibles is built fully kitchen out.

We of doing sample non-infuse are all batches products. now of

work our on on packaging have the got are Of partners up we now. really we seeing lined course, that’s

are to we products Florida those be market. anxiously awaiting to available So the

a amount And this R&D as give far market, just probably been point, refer that hoping collect and what thanks. in as confidence that please? your visibility data is so California, Appreciate your of the more that you a that maybe bit current guess at where here are from data on the maybe as as do around, facility what just of I to far able what little as you couple fair to Okay, in you do a think you to gathering or you California to comments does update. have

Yes, sure.

very So been has that. I California interesting mean in

we dispensary unable collected We some and understand and selection everything. generally with feedback as the gotten that forth. is just hypothesis in typical begin are data trying also and exercise in a of as human store and very appreciate based choice saturated we is on that have that make choices XX have California to we important, know lot that the to brands behavior to would a And have opposed and folks so decisions really, while been curated to

curate will and to we that well the we as data as collected mix and of other location be a format. branded little are about out blend experience playing Trulieve the little – And building medical a so that we using retail with rec have a again into location that are now store bit that actually side down patient bit product of we in

that on it medical market. on a I and will are say, that legacy So and selection rec it’s call is of informing focused fronts. would thing we now most us number right the we a product combined curated

much. thanks Okay, very

Thanks, Neal.

you. Thank

over to us brings for Lynn time will of Q&A. the That it end I the back turn now Ricci. to allocated

progress Thank you quarter. for a joining good next us updating our again today. We on look forward Have you day. to

today’s concludes call. conference This

disconnect. now may You