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Trulieve Cannabis (TCNNF)

Participants
Kim Rivers Chief Executive Officer
Christine Hersey Investor Relations
Alex D’Amico Chief Financial Officer
Steve White CEO, Harvest, Inc.
Derek Dley Canaccord Genuity
Andrew Partheniou Stifel GMP
Russell Stanley Beacon Securities
Matt McGinley Needham
Pablo Zuanic Cantor
Aaron Grey Alliance Global Partners
Camilo Lyon BTIG
Graeme Kreindler Eight Capital
Kenric Tyghe ATB Capital Markets
Scott Fortune Roth Capital
Eric Des Lauriers Craig-Hallum Capital Group
Andrew Semple Echelon Capital Markets
Vivien Azer Cowen
Derek Margiado Jeffery
Harrison Vivas Cowen
Call transcript
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Operator

Good morning, ladies and gentlemen, and welcome to the Trulieve Cannabis Corporation 's Third Quarter 2021 financial results conference call. My name is Jamie and I will be your conference operator today.

As a reminder, this conference call is being recorded. And at this time, I would like to turn -- to introduce your host for today's conference, Christine Hersey. Ma'am, please go ahead.

Christine Hersey

you. Thank thank us. and for you morning joining Good

During Alex deliver D'Amico, Kim Rivers, for prepared Officer, and Chief Executive Trulieve. outlook Chief and on financial today's the call, remarks performance Financial Officer, will

will we will President, available remarks, prepared be their open call Steve also to questions. answer the to White, question. Following

or described the from including with and and Form to December our and forecast, this of including our As and XXXX. the Commission, subject annual Company's the are these the during in are risks materially uncertainties other that historical cause for item call Exchange factors differ uncertainties, could ended XX-K factors reminder, results filings historical a the risk made facts, our report not X-A Company's actual statements to year Securities that statements XXst results constitute statements, from risks, forward-looking

so Although except whether forward-looking time-to-time, from it the undertakes a these future as or voluntarily result information, may commitment revise law. statements, update required new by events, Company or do to no as of otherwise,

our be release the our report press measures today that Non-GAAP Relations Non-GAAP should current During can also found in directly substitute accordance X-K furnished We earnings measures calculated is Generally measures. or discuss not to these measures available are of the A Investor to that with Trulieve these accordance the the we for most measures considered financial as in with in of in Accounting will SEC call, to as refer Form in 's section Principles These or reconciliation GAAP. comparable Accepted GAAP management generally not certain an GAAP. and prepared be financial the website. a on is financial isolation U.S. results to our that exhibit

or advised dynamics we may responses A third our may be or reported we results results. quarterly at provide to these the insight the www. Please and presentation offer of not today's call XXXX. in CEO, archived Please our website, on into provide your may section our additional the trulieve.com. remarks copy over questions, during for prepared on of our will earnings morning, that our may accompanying be This of business call press metrics of details turn the our An now Lastly, later to to we greater times an continue quarter Rivers. to Investor be of or future. conference website version ahead. today. go available PowerPoint our Relations Kim found the release I'll

Kim Rivers

thank and joining today. everyone, morning, for you Good us Christine. Thanks,

to continued profitable revenue. our thrilled consecutive driven report are quarter by XXth We record outperformance and

As remain we approach an history, in our most strategy. we unrelenting the on firmly Company's on the of our focus executing year transformative offense with end

Just to-date. Cannabis the the over we largest U.S. Harvest X transaction weeks acquisition, ago, closed

the competitor. strongest position in an of third $XX to call on XX% a operator during have where three our reported Cannabis quarter solidifies XX% compared growth outlined U.S. Trulieve As hubs, million revenue last Xst, in revenue, among adjusted XX our the we growth this the forma in a million a in pro greater we year. quarter. largest nearest profitable Trulieve the of approximately increase of across reporting third and October combined this basis, a XX% achieved dispensaries, was our results adjusted as EBITDA million representing and basis, most EBITDA, now $XXX and states of XXX than of an Company's quarter XXX with This gross On total in been would've million. XXX industry-leading operates margin results a MSO deal multi-state any public On standalone

of operate ago. Xyear to Florida now compared dispensaries we just Importantly, XX outside X

Florida, Arizona, and we processing and into network to X.X to cornerstone feet build square operations million profits by while capacity. supported open retail cultivation industry-leading and our redeploying depth of are and states, expand additional scale Pennsylvania, and in over and new With well-positioned is markets. Our market-leading emerging

momentum not launched team to wholesale the pending commence cultivation Collection, our secured were became X Muse, during opened with slow first dispensaries, lines new an Massachusetts, down license alone in award for While acquisition, did and and Talk financing the products the option in to retail Sweet Trulieve including hydrocarbon in Shops license of purchased license closed a concentrates opened dispensaries, in brand introduced new announced the acquired first-line we opening launched teams for branded Maryland activities sale a Pittsburgh, third quarter. X Trulieve working and Weston. West Florida Concurrently, of new close acquisition Momenta, million the the extraction legacy form Harvest facility, Harvest Keystone CoXlors, Modern new end we've dispensaries using Roll XXX buy an the a portfolio the Pennsylvania, retail of Florida, in products operator operations product Arizona, Harvest sale-leaseback additional and the such arranged One over the to Georgia, in and Hancock, Virginia. in licensed of Cultivar to the Morgantown totaling XX affiliated reopened Virginia, month a products In going. were SKUs the past the of Florida, new in addition its a Those of are October. portfolio we October, in locations Since location week, dispensaries wide throughout dispensaries first In Flower, X across quarter, medical as extensive state carrying factors. In first-to-market $XX truly duplicative and the opened branded kept the in in the third Harvest and Alchemy, West variety Pennsylvania. cash. the we in

were run X have converted acquisition, subsequently already in more Trulieve that a than the Harvest Harvest to and month post we increase opened rate stores as far. For XX% thus seen revenue

focused of in stores locations. Harvest additional With completed, Florida are the conversion we on

Trulieve another As operates X and Florida we dispensaries to of in expect year-end. dispensaries today, by XXX open

manufacturing capacity, number measured revenue data and respectively, largest home Trulieve of of categories over our Xnd products by sold the and conceivable our of the of XXX% number Xst, pounds and to and July range position the published sold, nearest for than of X.X flour every amounting seeds, top total alone by XX of volume to patients October in metric, Florida. between thousand more including as Health During cultivation milligrams open quarter, served, state more oil, retail flour fold and employees, According Trulieve remains profit. third and of oil, the greater Florida in Trulieve than maintained product XXX% locations, than of competitor. billion Department operator

while for impressive and customer we're of focused While achievements statistics, setting operational to delivering committed exceptional remaining on our excellence these acknowledge continually experiences. we're the proud standard

advance forging products with leading around in We ahead capacity broadening technology designed initiatives series expansion are centered of to a further access investments Florida position. our Cannabis and

First, to expanding the first extraction. using have available concentrates further lead in the well proudly manufactured these Cannabis the we to products in Since initial access with are Florida the hydrocarbon of products received. September, way launch very State been

that we tech so, come building beginning hydrocarbon that now much and quadruple capacity will out extraction capabilities online additional recently So the of XXXX. through

capacity we also continue product adding manufacturing lines. across our other In several cultivation efforts, expansion while addition,

edibles quarter, we kitchen. production Tampa at began During larger which the XXXXX-square-foot a includes facility, third our new operations

increased up We existing for expect bringing fully will the by new kitchen year-end, production. space be ramped

investment have with informs the the date. roughly analyzed offers and total technology half now, As to including into capture for in our collected purveyor organization is to decision-making. One customer to appreciation our continued SAP our data aid position share data insights centric and enterprise analytics a in tools us software operator of in the This utilize market of for system approach. point high-quality behavior Florida, XX% the over transactions and in market Company-wide, We valuable customer data market-leader roughly maintain as that for we These preferences platforms. data X differentiation and years leading tools. and SAP patient compliance, Trulieve - customer and customer with ability Cannabis retention the enable products and of and afford aim and our

catalysts we remains best-in-class to the remains additional growth we investments depth, of strong including June, one the capacity added medical so with and patients products growth in despite the average of continued We deliver in patients XXXX end attractive scale consultations Patient sales. experienced Florida opportunities growth over cultivation, of can existing continued future quarter to in of across experience during Telemedicine ahead deliver third the on manufacturing, invest accelerated the most and high-quality demonstrated retail continue X,XXX returns our will in and Florida, in adult-use an by can fast Florida state. that the U.S., per of XXXX. favorable invest in that in to growth week. adding Do and customer redeploy markets and top

Philadelphia the acquisition the adding Pennsylvania. presence. dispensaries we Shops, In in retail area medical July, on Turning X now to to of affiliated Keystone our closed

part to to As presents divest significant were the the additional medical Xst with In the market or adult-use assets future Pittsburgh. call, October Pennsylvania October, growth in open we required any include and cultivation the X medical affiliated we both dispensary as opportunity Pennsylvania Harvest of existing a retail acquisition. within affiliated during indicated not in sales. potential expansion

dispensary reported mid-August, the allow we over and in lead consumption legislative will support of sales to As adult-use more remain that active inception, Pennsylvania. Pennsylvania program's since in ultimately optimistic XXX,XXX bipartisan patient mounting to X billion than cumulative measures certifications,

in and in turn August, and Mesa, state Southwest. to location, The in upcoming market Finally, recreational purchased discussion provides to XXth valuable be launch operations cornerstone rounding on to insights glean results license Southwest anchor developing markets, the Harvest expectations quarter which in our develop second an recreational the Arizona growing will key the Since these acquire opened to and outperformed Phoenix. has markets. January. reported progress in XXth dispensary new only the This the team both our market to an out opportunity our sales made let's considerable continues downtown option dispensary a the an a of since of retail our Arizona, in our North in

in and Arizona winter well-positioned return of We tourists are the largest and, the to snowbirds. in months invest of the continuing operator we coming are retail ahead and state, as

high fund opportunity. short-term Harvest ample growth our Trulieve initiatives offering debt, Following has and repayment generational cash the recent to investment within of debt and this cost

our leadership products quarters, locations outside invest scale retail of State on our continuing catalysts. Over our cornerstone In Trulieve and branded wholesale and will of assets. year, a our through of we adding in the creating broadening more retail than consistent future across fortifying be By reach will few our the to markets. increase coming we channel, next reach will depth in Florida build markets, branded while continue production to ahead position, cultivation stores re-branded our the XX experience

markets invest strategically will we attractive that addition, in emerging offer In returns.

our invest across expansive and we're While further assets to existing open in developing we continue tuck-in additional hub, completing to acquisitions.

operational will our the strategic the supported profitable with we opportunity existing pursuing Southwest. our teams did regions, in hub strategy appropriate to in attractive activities M&A our by assets and in acquisition assets market hubs allows to us an Our strategy we remain In us M&A teams new with around add have at bolt-on disciplined set as Again, and acquire an growth, infrastructure. our Harvest both price. where adding assets we

In with our markets markets part pursuing on addition, commitment structures quality, license customer through profitable in we delivering allow of focused will more organic new experiences opportunities awards. as growth. exceptional will supply, to branding scale to with that continue attractive achieve pursue consistent optimal regulatory us to We and remain

scalable demonstrate building Our actions strategy recent third our engineered a our for business to of goal success. to quarter and commitment and and our sustainable results

for fourth As our a quarter will contribution include Harvest. reminder, results the full quarter

range Harvest, any the to guidance $XXX $XXX XXXX million million contribution for range of $XXX EBITDA we to and As the $XXX remain of our million in adjusted million. in in confident from revenue of

on March. we the We results. quarter turn combined quarter Alex guidance results will over I'll our full-year to provide more XXXX for details call With in that, when third report fourth

Alex D’Amico

into efforts. initiatives, fronts, you, and so acquisition tremendous growth on everyone. been integration has to morning, Kim, operational XXXX. and This significant good far. progress this continue We'll momentum and and Thank and along year-end Highlighted expansion by year through build including a several organic execution,

Harvest organization, next we'll expanded how to supported to evolving a by acquisition, landscape we and deeper into proud navigate come our successfully of integrate fully be we've within it rapidly far As going excited our industry. help keep year. the capabilities bench across the We're leveraging

reported third highlighted of compared of quarter million, during million earlier, third increase XXXX. XX% year-over-year Kim revenue of $XXX.X we the to quarter As an $XXX.X

$XXX.X quarter to growth compared second Third quarter the in outsize increased further revenue quarters. quarter, sequentially to million recent with dispensary ended Trulieve locations. the during XXX adding third

margin gross to achieved or The As second or $XXX.X during quarter. XXX Trulieve of of quarter $XXX or November compared gross XXth, million Company XX% in operates profit dispensary the third XX% million owns of locations. the

retain quarter, offerings. preserve third we of margin targeted the to pricing strategy During product and value employed our a and brands the

increased to Shops all inventory In the additional this by Keystone on-boarding addition, increased third-party by the margin macroeconomic influenced product on the step-up offset of early gross and despite quarter. material the of was constraints, flow-through markets positively finish capacity in acquisition labor was of goods brought in sales value fair by and partially

prior As we gross fluctuate will inventory and saving expect quarters, margin to depending market continue mix. product, on and flow-through, quarter-to-quarter

Turning SG&A were now or of to the $XX.X during XX% expenses third XX% revenue of or depreciation of operating to revenue XXXX. amortization compared quarter, $XX.X second expenses. the in million and excluding million quarter

related integration expense million costs. to to integration primarily restricted transaction related with one-time included the were increase Harvest to approximately share-based $XX.X stock exchange costs warrants acquisition share-based outstanding acquisition units. and expenses of associated the in and X time compensation Third The acquisition. and compensation quarter The transaction

XX% Excluding costs, SG&A these revenue. onetime was of

million earned in quarter. and third second income million and compared $XX.X was sequential increases we compared provision revenue. to depth the for in tax the markets was as ahead scale are to the $XX.X The markets, quarter. we fluctuations second the million decline build million As of Operating higher made expenses in investments $XX.X in continue Net cornerstone operating the income quarter. operating for while income in expenses, and the $XX.X aforementioned for quarter, for in expect quarter quarterly expanding operating one-time estimated new reflects to net

We quarterly of would share diluted estimated earnings industry. Absent $X.XX. taxes, share earnings in particularly our within per $X.XX basis. expenses, on We high-growth a fluctuations expect fully generated one-time have per been

will costs next to EPS integration and quarters. for continue the reported transaction expect impact We few

now Turning adjusted to EBITDA.

$XXX.X the the XX% increase This For secured the bolstered compared retail $XX Subsequent of or quarter. third first $XXX we EBITDA is associated in of the million representing of flow completed - months at million margin, the sales partially terms million marketing second and gross the by through U.S. the placement adjusted to to our X% million quarter growing ended with XX% of million a $XX.X year. balance cash our with third quarter by flow-through increased industry-leading private to a or X $XX.X cash We senior was XXXX, touching expense companies. during attributable footprint. offset notes operating quarter-end, plant in X year cannabis

costs have retired short-term and of high We million payable. $XX debt $XXX million Harvest notes and of Trulieve

at to positive the Harvest cash will in growth, on Our invest organic strong generation and financial expenditures profile include capitalize flexibility like newly operate. quickly go deeper team through I assets. over averaged been Kim. just of states market we per of million will the our proud will evolution with call to provides here into expansion capital year-to-date, and in am where turn in as tremendous forward firsthand opportunities, it $XX year-end investments I'd XXXX has we organization. carrying acquired look month the to investments and In build Fourth-quarter Expansionary that, and Company-wide this trends. dollars With how I express and year. with scale next line I and momentum the plans. Trulieve, continued see in accordance to to capital over continue back growth growth capex to depth allocation closing, how throughout within

Kim Rivers

transformational growth. year-to-date ready Thanks, exiting of the an organization, year Alex. of a underpinned We're the and by exceptional larger, well-capitalized, This next for has acquisition at the been Trulieve phase stronger as Harvest.

if efforts for the acceptance when industry greater to change Act, that population, and state to early We're great political accelerating highlights significant as opportunity in at delivering set such introduced The of beginning. the In advance a is time, mainstream legislation, and this true it innings over cannabis Act to story we and country and broadening the momentum, not a Even deal, industry. the public. is reform Trulieve an federal eager Act, and continues the cannabis While in still it continued U.S. business, build the matter through Reform broader MORE cannabis the our if to the only level local come. access are SAFE reform of have accomplished advancements the remains by will cannabis STATES just newly and view, increasingly leaders. our

the to is the to of generational with expected U.S. and in operational are XXXX, financial over forecasted market team. we this in For ready of markets profile, billion XX%, grow X scale, legal is enviable in poised combination today world-class excellence, Within and in $XX positioned the to meet over next grow cannabis represent opportunity Trulieve expected reference, context, Trulieve uniquely $XX to years. and XX% billion up sales XXXX. from The unmatched investment this is of an promise which strong operate to

Christine Hersey

you call And say, this define time, any be White Steve for always future of for available please questions. the the up will joining Kim Cannabis. Operator, questions. D'Amico, open today. us to answer Thank as I Rivers, onward. and Alex At

Operator

session. Instructions]. now question will We begin [Operator the -and-answer

If you handset [Operator the ask up are we using pressing your do the please keys. a pick before Instructions]. speakerphone,

Our first Please from question from Genuity. today question. with comes ahead Canaccord your go Dley Derek

Derek Dley

of to and another Hi. results. I congrats wanted focus in X morning states set Good particular. in on on strong

is Pennsylvania. that seeing higher comment and on the let's focus coming get, side? capacity been of price incremental about that in the in others namely value X, start assume hearing part would now I We've from I PA, online on Pennsylvania, And that? capacity can some of in cultivar your terms that end then second online question, just would competition what and So on within from with the you're what you

Kim Rivers

Thanks Derek. Sure.

what and there pricing been Pennsylvania in started what think it conversation has your and and pricing lot high. relates believe a of is exceptionally as around point, we So that believe I I Pennsylvania, to to pricing

we're pricing in have pricing so of the is we effected, makes certainly tiers. through on been what separation so over happens pen In pricing have of which I and sense pure time and we than And occurs appear of products be set. acquisition peer to some happen any believe Pennsylvania over focused course, (ph) market. premium products, maybe pressure time experiencing more our that normalization quality less of value Certainly, experienced, historically, among -- should as

any do in we bring forward, to divest we or and our of cultivation of assets noted, retail any won't affiliated capacity to plan online that state. -- require the Moving additional Harvest as

the And course we increased will time Pennsylvania and and retail that bring brands. significant be looking through so it in to from focus will products that that's our of as for increased product availability branded customers really state provide with along upside the branded over margin that in to relates believe are

Derek Dley

typical Okay. Great. then Pennsylvania. customers? adult-use in Steve what customers are can And and medical consumption this the secondarily Kim adult-use the the in maybe as you that is noticing That's markets patterns perhaps on Are Arizona and there new helpful between of one, difference entered previous a material answer there's or but that space? customers here, --

Steve White

patients to from In adult decreases the - Thanks -- - the other the little patients is customers markets like see true, customers bit sales, adult tend use of lot customers the of see of increase. and What as this use over words, Derek. be think, a sales, over generally sizes transfer a look - a that customers over you add adult you recreational the the to time, recreational use that I smaller the medical than Derek, medical generally all number will customers. sales. customers. basket medical And time the

seeing Arizona. state patterns are of those in We the

Derek Dley

you very helpful. very great. That's much. Okay, Thank

Operator

question. Partheniou Stifel ahead question go next our with And from your GMP. Please from Andrew comes

Andrew Partheniou

as pricing taking questions. you is Wholesale and of even Hi, stable have and kind I'm any seems for limited good are just my Pennsylvania, in same If results of congrats see about little I of wondering of both at and do could it's -- see market. similar. why in we normalization, color it, think level more you your the headset, market great there. markets both put in be given a on you. that, that any thank a the Maybe helpful, on you Massachusetts, Massachusetts kind just entered pricing leveraged we if you a that but thinking time in seeing especially thoughts morning, the you at Pennsylvania retail if thoughts states, the would we some But bit though non Massachusetts to licensed around difference trends be thank provide those and we

Kim Rivers

Yes, thanks, Andrew.

would set I on best best any understand just deal with but So have the data available and there, relying I think found that that -- we we that against some single have. as first we inconsistencies certainly the caution

-- established, already the a as, differences that Pennsylvania be my of in it think what fact comments a relates previously back there do I in in categories swing where things bit in across pretty started, here around of are basis in tiered I again, tiers we as Massachusetts. Massachusetts several existing think you to fact pendulum it may seeing goes are pricing and a there on price whereby definitive quality to

with think think case I a strategy in and bit behavior that's than both what barbell is little consumer just a we it's barbell the Pennsylvania a I seeing, across a in of that both what and markets. additional we're think rate across different that color, we of pricing to continuation least but markets, Massachusetts. is seeing I So But at bit certainly add see of in established, study part which little patterns are being

Andrew Partheniou

gears correct I in outlook York, and area. In Jersey switching states Illinois, believe, ideas appreciate that Jersey, new to you New in maybe and particular that me I'm call that, around, I and were wrong, states or wreck had among on look if you visibility increased other and with New or but on New M&A your New sense will legislation of market make thoughts any those does that the Jersey XXXX around entering states, applicants, Jersey any updated New how medical if in RFA wondering York? New other the

Kim Rivers

Yeah.

our very we around think in the whole. Northeast We the on we M&A. bullish know, you We on remain position as currently. As like sort and any comment of Northeast, a specifics don't

noted specific growth deployment it's our whether we We also, as around course, of M&A. capital, prepared remarks, have a through metrics of or in very through organic

for -- was were opened to just was X, can in the is you Northeast, -- Virginia. reception state your in into Virginia exceptional draw lines, And this it's this Just on I weekend, that past tell grand West that how but we depending at I the you opening. on store there and there evening. first We the XXX very an that around starting lines opening West the day over customers early going served block

So take we're as hub. We're poised they excited additional footprint. remain and opportunities the about our on certainly available to become as advantage a of bullish Northeast

Andrew Partheniou

that, Thank queue. back you for and in I'll get the

Kim Rivers

Great.

Operator

And Russell ahead Please our Beacon Securities. Stanley next your question comes go from question. with from

Russell Stanley

question. for thanks Good first the dispensaries integration progress. Harvest my around just of guess re-branding and Florida. in the Congrats morning the on taking my I

get you on Just your must an on wanted I extensive in, I thoughts substantially to to how through but wanted guess only when know far your to weeks X process thoughts get complete. expect be what are. you're you be

Kim Rivers

Sure.

I'm to and perspective comment Steve as perspective, our extremely is our from think but going let from well, well. I integration going on this

conversation defining previously another alignment when Steve teams we're having possibility through And was -- wrap-up a priority. it really of the diligence, that I a to In because offside, that's I've across other first really and the we think priority important is words, alignment final things if about if stages of believe LY, to how made started and have about through or its in not think discussions to a whether transaction continue well-served. I as throughout going we that that set I noted started the transaction that we sense process. of the we the get were

are have members. the haven't that that key gotten and evidence significant working fact I've what as teams very I Our of there shoulder-to-shoulder any identified is the And we team think in together. quickly had departures

In being combined are are thing a portfolio mentioned, product which for lines converted, on coming as basis, you key a addition, stores is us. again through

to systems through we certainly together feat, certainly do on there? then we're speak. conversions that begin combined XXXX, the that branded we comments well. combined And additional remarks, across XX platform and markets integration, the working combined over store through talked that you portfolio a work As prepared fact do bring on that capacity course, working small to get it's increased have And addition, heads bringing on we as we'll to have in as any down going through about my products basis of Steve, be and across we'll other no platform. we're

Steve White

Sure, because the areas quickly emphasis a we big I which think, to Russ, But faster. two actually that bring other organizations it's we're the that deal. could having we close two teams this the we to very -- away it's close expected could It's words, more obviously get for months shouldn't where in a teams context together and been In remember actually point number of for was. both find conversation what we be be even just yet. would from important did a of

would ahead independently. that at than were even every we're going maybe of across they are schedule very I to look teams aspects, demonstrated together all executing say the better much integration So that process have you're way and the

Russell Stanley

maybe in just queue the more get I'll Massachusetts. back on And great. and That's one

you've a think sense get you by just you can entered if wholesale helpful. perhaps the or penetration, and be HX at would recently that any wanted be on on there, to I penetration share year-end targets could front whatever market perhaps you're numbers or share it where

Kim Rivers

Thanks, Russ.

wholesale you we launched As noted, just Massachusetts. in operations our

but Blue concentrates product brand wanted and with we X are and we're a now say like both our branded as Cultivar scale demand Collection I our call, can received get the say targets flower to partner to focused brought sure online. we alongside we number have national ramp mix bang each in We like one and in River, can categories. we us have of bring as for very continuing We I'm differentiators we which think -- position at look that hitting partner the ramping feel well of Muse. not numbers well terms this what we as capacity products, to on our truly products. Massachusetts I brand, we those in right branded our -- where meet we and We understand point, this are product our share and high-end particular on been production are making as, of to have to recently again, mix that doors, demand for market profiles that those those

Russell Stanley

That's color. great. get for back I to Thanks the the will queue.

Operator

next And with Please from ahead comes from go McGinley question question. Matt our your Needham.

Matt McGinley

the Pennsylvania looks quarter-over-quarter I've revenue on and the Harvest seen Based well. quarter you. you Harvest and trends been bit mostly dollars it I a business. like proforma overall that would declined but Thank EBITDA quarter, by can guess you happened Arizona, fourth those have numbers the those in about little as third about provided fared in down in states with what the and how talk was XX%

Alex D’Amico

Hey, a Matt? do you taking the impact of out when proforma, intercompany. Yes. Keep in we're mind

back So Harvest when was down add you, that over when quarter-over-quarter, slightly actually. you just X%

Steve White

attributable your Nevada actually in decline, improvements Pennsylvania And that to mainly say Specific Matt, of those this saw sales -- we what that is entirely Arizona, the in attributable is to marginal questions both our sales. and about can we quarter-over-quarter Steve. or quarter-over-quarter, to was retail markets;

Matt McGinley

labor does largely more part in noted dissipated a gross margin side, that like the that availability but looked guess I importantly, and third the just of curious the the was as the know gross latter in Okay. what third, kind what And much headwind how look like into in appears that that this and to quarter issue have inflation the And of overall. something I'm it of second year? like bigger a I would labor on in the on quarter? you margin

Kim Rivers

Yes. Thanks, Matt.

noted the also avail there in of It us correctly was was QX, also overtime. was in certainly our we headwind -- as for a So QX. for We that by it compensated QX. in increasing beginning it

that QX. and And QX, so We going somewhat a a in of was did do started rate be occurring to for would into back of the more not certainly, the normalization cost side we now normal elevated back we're happen, what us experiencing expect see in and, to in QX. labor

Matt McGinley

Thank you.

Operator

Cantor go from your Fitzgerald.Please comes ahead from next question. question with And Zonnic Blow our Paul

Pablo Zuanic

given beginning Kim, the sales you. for on the [Indiscernible]? Kim, right, week? I'm Thank hear changes, as I second Thank for one $XX Is about for said get that in of Solevo would and quarter you. the if you had Keystone [Indiscernible] Is assortment mean points and stores sales you. saw that? and a context you a Good about the the top volume if the to in morning, we for Florida the million Florida, give stores the time Trulieve help. give just about were more may.. that number mix estimates look Harvest flat you. X quarter. now XX%, I the numbers on Pennsylvania that were sales new commentary if were for growth benefits at And price about quarter-on-quarter Certainly there? of X think about number X% was context I with over were our the then month, the flat Arizona, I over that a we in Any at there should re-branded. for that Solevo a Harvest stores just the Can your was and one lap Steve, that and that can at some were would question down you

Steve White

Thanks, Florida start Pablo. And the I'll question. with

to an down So to down again calculated of annualized basis those additional we it's days just and on as the that opened increase they were post required is legacy shut additional were stores in and days. a an products addition saw stores themselves. that Trulieve temporary, and the then close other when with the numbers some we renovations the stores be where In close Harvest the What prior words, you out Harvest was at bump the annualized that and not of saw that XX% between the after. showing stores

XX% to the And so marked and due Trulieve work increase some was there, the increased SKUs, additional product flow-through the that by of done you mainly saw team.

Pablo Zuanic

But can we --

Kim Rivers

I'm Yes, sorry. and

Pablo Zuanic

go sorry. Sorry, ahead. can you I'm

Kim Rivers

No, go ahead.

Pablo Zuanic

trying stores in and something results of number impressive, your Pennsylvania XX% -- a guys should we to see I'm month based week very You going is my XX% question assume? extrapolate something that to could think that you you. our And I that or benefit Thank is and in a are also Steve. rezoning, forward. just calculated that we was but of more is course how was going on a say you

Steve White

states Whether the further expansive. you comparing Trulieve whether specifically not. of because other August mean, Trulieve I what as pattern know in what don't much the we're numbers we're annualized not obviously Florida, other don't or could our Stores. not in I apply the or skews that states I extrapolate post -- State you across are quite at with But looking two or know those over could legacy flip Harvest numbers that

and So states. we'll we'll happens see other the in what report

Kim Rivers

product on just are is have capacity on Yes. I'm said, piggyback the there backside that the online, we on think months. combined But and mix market focused situated both Pablo to Steve be as the in few while for are increasing portfolio will we products an a retail through primary near-term certainly going And focused markets, other branded going well going on certainly coming focus of into, for and to to our Pennsylvania, of coming in we was strategically expanded for what channel, into the sorry questions Arizona -- be production be will the brand I in to try additional what getting -- to that branded branded me. as retail through each

not Harvest portfolio make Legacy also Florida product into only And come able and robust channels. and impact to availability, products combined specifically, product Trulieve by we increasing both while of more but were again, so in immediate Harvest, in those

of of each that's We right a those other in of product to will markets mix forward. different have do to we'll but appropriate course markets same also moving some customers and the acceptable, and plan

Pablo Zuanic

my but you it, do you about Got I Florida, want can can comment it, if repeat to and on it? repeat question want you

Kim Rivers

sure. Yeah. not I'm repeat Yes, please it.

Pablo Zuanic

Okay.

for of the you. will Florida in business hearing the question quarter-on-quarter about about It on was there be the But competition the Does had in flat, that all pricing sequentially. math, they're mix in based terms, was will my more sales X% case Keystone the price in in Thank But about down was volume Shops organic growth. the talk X% context. XX some the quarter. current that That in be is for Florida million So nothing wrong with mean all we're color there. that consistent with that data about shown the Quarter would the help.

Kim Rivers

to is Yeah. I'm proud of certainly how good inventory we're this flow-through which Florida keep Florida. say we're business to to it finished as was felt seeing ground. what the in What to around our had reconcile We relates trying order the very Florida increased Pennsylvania products very relates that with it I quarter. to on can into in we performance to continue important up comment the

mentioned, And was there we so as activity. promotional

this selling did through which increase we results, slightly categories. We you're promotional on production we promotions However, rate to continue while you lower promotional have activity, I targeted increased to in product have better saw that margin, have we more and you have additional that because significantly -- more obviously scale because the to think opportunities maintaining when it's offering ability important job at strategic to making prices. units have a executing certain the sure are certainly quarter across come you

maintaining relates quite most set that by this XX% scale saw, weeks that frankly, outperformance our And on reported cylinders, marketing sales specific the production over we strategic combination team LMMU. firing to promotions to our led again, Florida into it a and, our and leaning our really on so more through, peer market and as are of share I coming think quarter as team all our

Pablo Zuanic

Thank you, congratulations.

Kim Rivers

Thanks.

Operator

Our your question go Partners comes ahead from Alliance Grey with next Aaron from question. Global

Aaron Grey

questions the quarter. Hi. Good and morning. congrats the on Thanks for

between of me, So provided wholesale. back the starting I some acquisitions versus you through. talked a Harvest now historically retail with versus breakout coming know first Company, for on wonder, of shift between wholesale one. last kind about the for the retail question as bit as Kind little the double haven't of the key lens to of well

sales, you or trended the very wanted basket, don't maybe how want the Just the provide during during that some could metrics think to some quarter, in some you be Thank could if to if to breakdown provide I you much. know quarter of same-store terms on you visits just helpful. used that maybe could color of provide do maybe that,

Kim Rivers

Yeah. Thanks, Aaron.

So obviously, has been Trulieve of an option. not a our where presence the given for wholesale relevant in State is wholesaling significant Florida, less historically, metric of

managing outside currently, focus on continuing basis. to that we channel this wholesale of business way starting are expand experience Florida. we to the we However, to to your state are, again, additional of point, as go-forward wholesale a necessarily Important not on but that capacity note we're

if we Florida, to business to about in important via business to it's XXXX, exclude do think our of moving and I was were that that half XXXX. note double plan -- wholesale, into you is

return However, will again is the I that do product reiterate branded should that branded and retail, that we priority. through believe remain best a and

Aaron Grey

had it we Florida the it Thank given within you promotion you and commentary If would on color. quarter, high of some from terms on long And within profile last some talked of talked in for that margin state. the terms of in persist, about does promotional peers. the Okay, competition great. how based about last on activity, this call yourself targeted then just the and just some the

guys do terms your some the to persist the of it promotion are promotion? just if beyond in you looking in of state, expanding targeted despite very it does quarter. So more healthy target during what Obviously, maybe margins

in the competition So how now for are environment, activity looking heightened of ongoing evaluating case the and basis. at an and more you promotional Thank state competitive the you.

Kim Rivers

Yeah.

to and promotional been terms overall successful -- very think that impact of think look, it relates static as in pricing I we've maintaining activity. very, I in

whether need again, the like We're followed the based and think see it I our not through Florida. And that making that course, increase to gas again, from with State if as investment to should as opposed position I that note future put upside was It's adult However, of months clear, continues quarter, to and our grow results and we'll forward bring I we on what decisions you day, of competitive in ability statements. that an not, on ahead online cultivation. that as an up we'd to And rely actually Florida, as online on taking do Look, results over we relates not so be in an incredible as is to it in we the use. to to of as saw as the the or have what to XX% -- to margin to feet returns, be market, the the square all XX bring next medical go focus. fully continued will in landscape. foot well front. do of as us our continue on margin, we million depending off additional capacity or to strategic the our this what incredible proof I can

Aaron Grey

color. All Thank you right. so jump much for I'll the the into back queue.

Kim Rivers

Great.

Operator

Please Our ahead from with next your questions. question go BTIG. from Camilo Lyon, comes

Camilo Lyon

you. Good Thank morning, everyone.

magnitude to a buckets maybe the perspective, Maybe we from if understand about from help to back them few perspective quantify you buckets us think could went consider into level help the larger and just the QX do just those Alex you on of you maybe and how a margin higher unpacking where 'XX? gross could a different moving us Just about and if talked takes. the puts question, just

Alex D’Amico

Just in protect mind we we targeted when quarter, our and the margin keep strategic deploy the strategy say helps us discounting preserve in and brands.

in Q-over-Q flat So that you that to call regard. could

particularly quarter. plans, In build we onboard some capex to centers higher and we accordance finished our capacity level that time in process of to additional in to, our addition this do alluded goods, continued as in with we Kim Florida, additional of of all some increase finished just those we've the goods we labor quarter were challenges flow-through additional bring navigate quarter, markets -- to to our in infrastructure -- in and and we prior able of end to, a the over processing on working implemented

value our by all partially buckets inventory offset So those the margin. step-up that GAAP were we that -- fair from Shops. the and things in love, conjunction with Keystone know -- and was for Those

Camilo Lyon

action of it finished level Was was contributor pricing the higher or the bigger goods? the better

Alex D’Amico

So I mean, you on as it's a right? capacity, bring -- combination. high, higher The

whip back-loaded we that from the Increasing flow-through of So a higher half finished as from additional were benefit little bit goods. second in capacity we that. on and that level then so saying was and bring you

Camilo Lyon

like Got we growth look in coming Very some at have 'XX, just could you talking as as store that remind online maybe helpful. Capex it. what you look market projects about. if to your of us then the you're And support

Kim Rivers

call. XXXX, So we'll certainly give year-end additional the on on color

globally branded and we're stores. we're what platform of Arizona, think retail products defining today, say capacity, markets, the branded of that having we're continue through to increase an is Pennsylvania, I which robust our prepared goal again, as going bring in Florida, cornerstone invest to increased on to with to additional in

And so additional of XXXX. those With expansions investments, many underway are currently. expected them throughout

Camilo Lyon

Good helpful. luck very and the Great, thanks for color.

Operator

with Our next question Capital. comes Eight ahead from Graeme question. go Please your Kreindler from

Graeme Kreindler

question. for and in expected thank enter seasonally We're taking period strong Arizona. a morning, what's be good about to to my you Hi,

hoping early if any discuss, you we stages. was the as So in you're I are could seeing shift

looking very inventory Some the as earlier you year situation Thank given well seasonality’s of the break. that's it tightly in as was what much. here, managed at the mistake like onset

Steve White

months. Graeme. typically, seasonal is little summertime the Sure, see over you In bit of Arizona, a what weakness

of in is around what typically, that people that less trend starts And see or you Arizona. the reverse You State see reverses October. to

it than originally supply you market wholesale was State In terms of adult would the Arizona, the we is the as of expect, constrained use any continuing constraints in supply introduced sales. or less when

And come so has online. additional capacity

starting are and strengths there. less to we so lesser And see

Graeme Kreindler

or further it deals now off started hot for appreciate trending, some are potentially that. more valuations like of where we're I'm Dan, for a consolidation just Arizona wondering what late activity as the and market, seen Thank discuss the in you if follow-up could landscape we've Thank after particularly seeing looks and as as opportunities some that. you. on of increased you the consolidation I'd late. year

Steve White

You bet.

and recreational saw the frankly, prices we you that you appropriate. passage -- where retail the always saw Arizona, the be paying those deals is the appropriate. But portfolio not So and of of challenge obviously, saw you When a in when been where market some the we'd price prices. initiative, if that initial and, so spike, was the has interested price interested adding one in cornerstone to are aware

for done, becomes acquisition, to Arizona And then challenging criteria but the we in get like opportunities continue hit State evaluating there. deals -- it will be us they So to state of in if deals execute we more the will a for our still on what are Arizona.

Graeme Kreindler

you Okay. that. I understood. for very Thank much

Operator

And with question. Markets. from Capital your question from go ATB Kenric our Please ahead next comes Tyghe

Kenric Tyghe

XXXX ramp speak I say Kim, hear the to interested and I'd to there you with wanted significance. that any and moat respect and you its you as Florida. the Thank you insights ramp hydrocarbon have good dynamics look may extraction competitive versus and be to and that [Indiscernible] in I to morning. would

Kim Rivers

only be with products and concentrate respect available so actually that's existing to as we be our wonderful make from in is of hydrocarbon that quickly on a our velocity signal methodologies. an extraction our that of will of incredibly we products coming that the we so part process previously of any Down, are portfolio, State in -- we so that products been of we of than not extraction Florida, skews market be believe down to significantly new any State but us Kenric quality competitive double and to always we'll highest that to is among Florida needed to expansion the to bringing technique new the brought very able And and have has make have available, to higher Sure but will and of The currently on strategy far a we is efficient that scaled as online our in yields what been that the we for, speak. customers done extraction capacities number output, just way, have asking able not which

cycle made expectation with into an So and that available have in the testing are going portfolio products now the holidays. we'll have the been expanded

through the that are that we forecasts coming the to we're to to bring able not stopping -- variety As we're our also bring going XXXX. call, capacity want I mentioned products more online of indicate even on online we to there because be need effectively

production additional in that So additional through XXXX. across manufacturing equipment the will state go we into facilities investments have

of first-half continue very, will Florida. But So that segment state to ramp particular excited that 'XX very of we're about market the in

Kenric Tyghe

a mischaracterize, additional just or for in characterization Florida of mean, not will that provide in fair obviously and I can current arrow availability, potential also speak? so useful will in but And Kim. sector be to your the context very to towards you, profitable a curve, activity promotional it is Thank but useful that

Kim Rivers

Absolutely.

on that also it's note therefore to important and a think about high. those the flexibility And as efficiencies products margin I allows go-forward exceptionally pull-through we on think again, us positioning basis. significant are

Kenric Tyghe

of anticipation were you. one all the Adding mind a use. Pennsylvania. and of use. XXXX pricing of Thank the of or a needing quick just your with for the to yourselves position of a move into potentially risks or How in number half adult market supply second dislocation on add What's players, me, potential any final ahead we adult And dynamics included? imbalance do there supply the capacity cultivation about balanced think dislocation if of in market to a

Kim Rivers

with. equally I it's brands that in that suppliers created I or Yeah. again, all that coupled are created think note important and not all to mean, products they same not the

wholesale products I've on So extremely in has positioning Pennsylvania previously, been front. and with certainly -- continues to customers noted way the as I like be and our received products legacy well the that resonate

become get we capacity, XXXX. retail, availability On as -- a front. we that branded provide in And availability I the and more and through more more insulated product through think internally we retail can position

you in feel peer you the I vis there. strategically get about that again, our look combined vis - can a footprint position we're set as affiliate as -a So as good at, of

Kenric Tyghe

congrats. and Thanks Nice.

Operator

question next from our ahead go from Please Roth And with comes your Fortune question. Capital. Scott

Scott Fortune

what the more good made seemingly going around then the keys but that. great upfront on Pennsylvania see in as Florida you a learn to today, for towards be give ahead legislative there. pretty That'd play reform with side narratives thinking progress Good those and the with now use, federal two around with pressure of a also lot update legislative forward an focus morning. ahead Republicans color Kim, mid-term adult and first on you've states? the And movement SAFE we'll update of then and later

Kim Rivers

legislation. a in Yeah, her looking I, today is probably at one, absolutely. think along to thrilled proposed a update Meza I leadership everyone position call, take that on X Congresswoman very am this with female I on for conversation. mean, forward see much to I, 's republican o'clock, this

the conversation you is the that bipartisan think of is to before said doing actually which it that in I job chambers lead will as both refocusing a way, mid-term. the something hopefully in possible

course, So be also we we're in forward. eye to of bill defense opportunity for that encouraged by faith mix thinking potentially the this our the this as the at development, have week. the on and moves And least

at Regardless our and catalysts movement have your state what ahead I the to provide And we poised business last number point, opportunity significant years. the a a are think federal federal five of lot on Florida. there significant those level, of and side. I over for the of our for been happens successful business remains positive remains growth think as importantly, growing But

around would is with a coming initiative there across continue bipartisan in ahead which will pike making Certainly, for currently of finally somewhat the crack to are the Northeast a door, use continues an that encouraged by conversations a you -- to in for as the use legalization. be which, its effect and down online In adult the region. the accelerate the adult similarly believe we the region home-grow in markets we elections domino XXXX. Pennsylvania, are recent that again, if posturing of We bill is conversation will, way think space, legislation continue coming

Scott Fortune

then for things loyalty bit you of competition the last the of side at the provide some update And update. a in question help Florida. those we're Could or potentially and I on of initiatives? little appreciate pricing And me programs, on offset discounting the kind loyalty Great. where of

Kim Rivers

the still XX%, have of state we State very in loyalty program remain those of Florida. and Florida. When We look the high quite widely loyalty we're a which exceptionally review accepted of our around we Sure. XX% metrics, loyalty often, certainly at in customer

loyalty integrate customer Trulieve to offer, we're the on get we are markets the combined their to to that is across systems is that retail basis customer we they in from have again, XX location. goal a time our that lives. the certainly branded incorporate a forward retail program today platform, unified branded across get on consistent to experience Our time base forward and continuing products go everyday looking And depend to return as to to into over

Scott Fortune

back Perfect. jump for color, the in Thanks will queue. the I

Kim Rivers

Thanks.

Operator

Our with go from Please next comes question. Craig-Hallum Eric question from DesLauriers, Group. your Capital ahead

Eric Des Lauriers

trends a in Great, there on in retailer these be price impacting thanks you're Florida discounts for it sounds or color taking that the love on get seeing just your might different, my Cultivar seem you there. planned strong comments I you're some your congrats towards question, any the seeing that does and across value then as product categories And markets. seeing hydrocarbon increased comments Can but your With mostly and premium, some to on spectrum? Pennsylvania branding across here. to well you're Florida comment normalization of a be Thank and premium offer the appreciate my bit like results. are I the trends other on production of you. would mix? Collection, trends price or normalization that mix pricing

Kim Rivers

little well that be in a deployed and of mid-tier. we bit tend Eric, we're increase We're certain the better margins seeing quarter-over-quarter, see increased with bit -- as business. that the because an high side mid-tier promotional to strategy certainly Florida the certainly in seeing What and barbell hold the question. actually to on with thanks we're that this a value for of continuing the activity in a on premium quarter, patterns is growth simply last true both with

that that you purchase And unable discount mid-tier into mid-tier. to so category, is value when customer

along uptick we in look again, seeing well. just release just a to color there's pickup at a of that continue consistent when when at bit So at a existed slight a the really and as I that value, on very, quarter-over-quarter, value blended premium blended But the We're it's that that overall, with would look we mid-tier. little front. say gave very I trends

side we on of to in So premium adequate mix of thinking about we those terms that hydrocarbon continuing allows how to that through things, we are certainly and in robust want make the product forward, moving sure have supply an of on we and which those us through thankfully that focus both product excel the are efficiencies and product to offerings. setup quality,

Eric Des Lauriers

helpful. Thank you. that's Great,

Operator

next our Markets. question ahead Semple Capital Andrew Echelon comes with question. Please And from from your go

Andrew Semple

we've And Pennsylvania assuming Good some has the congrats in at that results. wholesale on retail on there. at the business the Has Harvest stores? for insights have level volumes seen volumes recent passed inclusive all enough Have seen perhaps then where compression. been have at months, been the onto the savings retail the of to you morning transactional expand pricing And increased you Hoping mostly price normalization case, and dynamics seen or the price that wholesale might those consumer? uptake secondly, pricing? margins offset

Kim Rivers

Pennsylvania, seeing some And let Steve Harvest the it's I of say again would Yeah. clear you bifurcation think different the What of to relates is I and the Legacy just a I'll lot as again, establishment it then of level, that, take every think if general, in portfolio will, universal to that I which certainly I'm we're pricing other very different the fact that again, the I'll that have flow-through of to not And reiterate really that's that give general And, in is quarter. really in it products, are and a customer. normal. color market we we cut seeing on that participate tiers segments pricing. more going in.

you of Harvest healthy we to to is across then to again, So And of speak tiers create terms if the market responding clear-cut legacy. that think the different want it's products in how lines.

Steve White

actually from McGinley, store the Sure. mentioned the as at we I Matt an earlier, in There response was retail question in Harvest stores see quarter-over-quarter to legacy a did increase front.

larger increases across of the was one fact, portfolio. In it percentage basis on a our

level. retail seeing seen significant aren't or at we So the a pressures haven't

Andrew Semple

to Great. range decline That's a helpful. for And sequential know I would whether there's see the that. maybe just you just the high it any to a pressures there's that into pieces, heading potential at lot to revenues. any see end I Trulieve if to business, want look even comment quarter. If upper the the you moving to grow But guidance want full imply on pressures the even the pace seem potentially fourth second guidance. end slight within even to for the on inter-Company I just QX. I expect of of growth at of year, of question would see a if

Kim Rivers

given a Yeah. to update basis, reminder, in Thanks. necessarily in quarter on Trulieve We again, will our a the set significant We with again, We not call. in we're material guidance change not on next many that ability to not going to the it that going confident confident our very was absent does be important guidance, be we've combined on said indicate but a or previous folks time, to guidance. it, practices quarter -- giving, -- it some we as or that our we're thought was comment in changing just quarter-by-quarter And cases just we change hit over to a to business. relates it's quarter. go-forward felt given as it in guidance remain with especially then, to that -- withdrawing of consistent are previously this peer course, some and it stated important and the basis

Andrew Semple

additional again for on congrats Thanks Great. the color results. the and

Operator

Vivien question comes go next Please Azer Our from with Cowen. ahead your question.

Harrison Vivas

around Vivas Harrison of there's been to lot pricing how environment your the better taking informs sense Thanks incremental on a about pricing, capacity. for is discussion This but so a cultivation of for love I know philosophy Vivien. get much the we'd question.

expansion the these the acquired any markets? near-term, legacy had newly the reevaluate in reversing your you plans dynamics with Harvest very Thanks So any much. evidence markets have to or of that little Trulieve of

Kim Rivers

of be to how think course, and market. store number looking pricing the flow forward model look looking but through have our in again, in our at evaluating built And at Yes. of very making our our inputs. bases. -- we current at looking at bottoms-up our decision we metrics how Certainly, model Company as and we've our increases about metric terms the I growth of think business. -- you We're -- forward-looking only we customer No, look, in customer a and are we're levels. plans, not our the in we at We're

number So inputs we again our our in as at look there a all markets that say we warranted. is that I to the of future, capacity believe of would additional model. are

we additional big are more markets a be a will platform. product incredible think retail and again, to not that of will those takeaways and in much pickup we and growth forward-looking branded additional to we only XXXX margin one now as integrate branded for indicate continue for need but on XXXX this the top at have. through across platform really the capacity absolutely very into that looking optimize ahead investments We growth significant and now provide think, again, coming line, opportunities cycle that platform number through make we see We we that a robust, that a of would that

Vivien Azer

Thank you very pass on. much, I'll it

Operator

And with Owen from Bennett, our Please next comes question. your question ahead go Jeffery. from

Derek Margiado

and calling on Class you license just Georgia questions Pennsylvania, have been answered but the award my its one have the of Florida of Hi. actually to about licensing production X touch two Good the congrats received Margiado Again, market, guys licenses, morning. Quarter. This tenth a from [Indiscernible] of and most wanted on alluded Derek the is environment. there, for

Arizona. wondering come second potential plans I like question what they in But as markets much more would with Any these plans Pennsylvania, would of that of obviously and within you. obviously, if competitive more on great. then market? robust California guess there's are where any markets. update and Just timeline your kind that mature And color there be comments online on Florida, Thank Colorado are as footprint mature isn't be

Kim Rivers

license pause happened remain that aware also there are a very excited in be for there a period, normal award etc. protests I'm of. that be as period Sure. -- for door opportunity, very, very, of regulations typical every We to think period market the to very and I very it's post developed, to on

XX have that's in within by soon that in go to clarity. that hit hope there months lot the next so with the the like certainly looks from a XX We big period to received to a ready differentiator as Florida as the registered we state market the soon its of have light awaiting greater look we're over the online. fact as patients in would already products in Florida as out right the for And seat green all that in inception, able and Georgia there. plans now would we we're that We are thousand Georgia. place, come

of you locations. California you'll think a the year And stores is Colorado, we're the evaluate so your Trulieve California of into from In we other us continuing as about see and markets, to market. will Colorado, to rebranding point, what in addition, number in in the that next see

there many that have again wholesale portfolio hands into and We ensure that investments that as possible our customer basis as about next into is positioned Colorado smallish a made in getting some think moving to product on product as we mix year. branded properly

Derek Margiado

I'll much. so Thanks on. it right. All pass

Operator

to with session. ending today's closing management floor any we'll to I'd the the gentlemen, team be that, over and turn question-and-answer for back like Ladies remarks.

Kim Rivers

our look a earnings Thank during additional We you for time providing progress today. to on forward call. day. Have next our your updates great

Operator

attending do today's you today's presentation. for gentlemen, and we'll Ladies with that, conclude conference thank We call.

your may now lines. disconnect You