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Trulieve Cannabis (TCNNF)

Participants
Christine Hersey Director, IR
Kim Rivers CEO
Alex D’Amico CFO
Steve White President
Derek Dley Canaccord Genuity
Camilo Lyon BTIG
Russell Stanley Beacon Securities
Matt McGinley Needham & Company
Andrew Partheniou Stifel GMP
Scott Fortune ROTH Capital Partners
Aaron Grey Alliance Global Partners
Kenric Tyghe ATB Capital Markets
Spencer Hanus Wolfe Research
Eric Des Lauriers Craig-Hallum Capital
Vivien Azer Cowen
Call transcript
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Operator

Good morning, everyone, and welcome to the Trulieve Cannabis Corporation’s Fourth Quarter and Full Year 2021 Financial Results Conference Call. My name is Rocco, and I will be your conference operator today.

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

You may begin.

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, questions. Following

XXXX. or described the to and this from including with our As and and and on subject ended our are forecast, these of including during are materially XX, for Commission, other Annual Company’s the that historical the cause in call risks differ uncertainties uncertainties could factors reminder, XX-K Item results Exchange Factors historical a made year Form facts our not filings actual statements the Risk to that statements Report results XA, Company’s constitute statements, from the Securities risks, forward-looking December

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

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

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

Kim Rivers

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

year We record fourth capping to full and including truly has report XXXX the year. achievements, Harvest are been results, acquisition. was full what quarter a monumental of thrilled off remarkable

transformative continuing while in capabilities our history record to results our the during ability organization. produce to most the a is company’s Our year of execute to true testament

consistently ability to growth track has We performance. industry excellence of adjusted was or Fourth year. profitable XX% have the record quarter XX% of made full adjusted well confident never financial in this gross XX% XX% and margin success, capitalize strategic assets to compared demonstrating consecutive margin the up from while XX% is million and Trulieve Contributions a record in $XXX Trulieve of sequentially. of to have for of assets and been margin plan. $XXX our of the our disciplined our stage XXXX. early Trulieve fully drove progress EBITDA or $XXX was at U.S. record EBITDA on $XXX acquired gross and representing GAAP committed industry-leading opportunities and an substantive XX% XXth in ahead. million, million, year-over-year achieved and positioned more revenue operational cannabis million, fourth quarter XX% long remaining million was adjusted revenue and growth, up standout This margins with organic $XXX quarter. achieved outperformance Full year XXXX. impressive positioning was

history purposeful and government participate our did land to to Trulieve market Instead, stimulus. the our noise to rooted establish in focusing commitment our market sustainable tremendous most and in a incredibly share in the operation Florida, U.S. accelerated the frenzied approach opportunity Our out of multi-tier strategy. brought building a the we a the by COVID-XX We was profitable during positioned in significant in steadfast growth XXXX in and operator heavily, most on as for By state is foundation M&A were home backyard, recognize well powerhouse invest Consequently, potential grab the growth. in XXXX. period on not commanding the choosing in able tuning our medical we and attractive solid

about concentration broader fast new a we and redeployed. to Trulieve expansion we network, for regional be customers that success hub for intention markets choose. cannabis the insights trends. purveyor regional the growth wholesale, XXXX, We platform high from operated favorable in Pennsylvania. while cornerstone our markets preferences to With Exiting customer X states and X high-quality with in with we progress Harvest of year Company’s M&A In revenue by XXXX, our and articulated added history, leading organic Arizona position strategy strategy processing develop bringing Our and new stores building At service serving This XXXX, the the our XX XXXX, wholesale Trulieve out and in with strategy. platform while X to hubs. access XX In our market-leading returns diversify the and our $X.X of was across In become market our retail a further two a the on seven identified to leadership products By and establishing strategy and XXXX, valued with we our significant communicated additional cultivation, retail, products. both establishing through strategic our position acquisition we transformational a firmly retail positions Florida, medical expand a through the generating in expanding and innovative operations go increased covered and in assets a could exited retail We business customers. of in that eight XXX to in depth deep our success while products footprint the in vision time. Southwest. to valuable in geography to undeniable. attractive valuable remarkable at introduce by branded in is build and in hubs states, of market-leading Trulieve’s and chapter business The hub hub in further the page beginning and billion. in delivered states regional or big and distribution our designed locations conviction turned made regional upon growth We deals hubs building regional and U.S. channel, could scale while strategy XXX% with We Florida. talent patients adult-use plan inclusive could

XX% locations Importantly, were of of our at outside Florida. state the retail year-end, of

becomes continue we demonstrate value of and strength the As apparent. retail platform expand growing to our the diversify increasingly network. business, of metrics Performance our our

by XXX% the just legacy year comparisons. of growth in in declined portfolio sales same-store XXXX with a in Trulieve revenue in modest XXXX, tough decline X%, phenomenal representing a Following

In for XXX or by $XX, locations improve these to an size size quarter, continue basis, our in and XXXX, relocate dispensaries by locations In a same-store combined in the active our increased foot of introduction market of full and sales square the average in we On fourth this sales X.X per $XXX. visited month basket recreational with opened efforts generated performance, per older that days Arizona driven by XXXX on same-store same medical-only times company open of Florida to sales XX%. year. on stores the pro Company-wide, Excluding $X,XXX in before, average primarily began customers X%. forma will average basket portfolio was sales, increased of year. approximately the based

Our was considering when the more are retail in unlock are the retention recreational value fourth quarter, potential permitted Comparing customer metrics XXXX XX%, the quarter company-wide. third markets. sales with significant, to future

upstream our significant feet. support [Technical added network, high and added we In in conviction scale XX% Now, capacity over our markets. distribution cornerstone X.X growing of increasing we units, processing over to from our we and Difficulty] chain up XX% square turning XXXX, X.X chain. cultivation in depth supply XXXX, square million to produced million supply Notably, feet million To by XX.X

Operator

stand Pardon the Please can we we interruption, operator. Apparently, is by. conference proceed, by the stand we Please This will is location. everybody. moment, location. speaker right the speaker this the We’ve rejoined Everybody, in. lost back If one join ma’am. them here operator. the

Kim Rivers

Hello, everyone.

apologize where if So, back I’m I to this going Kim, is and left think start off, just redundant. it’s I at that maybe we and

I which get know about. is to hear to going retail you’re our very about again, network excited everyone So,

our our As platform the expand diversify retail Performance demonstrate our and strength business, of becomes apparent. increasingly we of network. growing metrics to continue value the

Following of X%, sales phenomenal by a XXXX in declined representing portfolio in just same-store in growth revenue comparisons. a the decline in with legacy modest XXXX, XXX% tough year Trulieve

these the XXX or size square in dispensaries foot in on driven performance, In increased our continue company $X,XXX XXXX, open began average combined for year. same-store per fourth forma of by that an active before, on with the increased in a sales, primarily based per was will times Arizona sales size basket sales quarter, relocate and same-store full year. of and month On X.X introduction XXXX market the of Company-wide, Florida $XXX. $XX, Excluding In medical-only our average portfolio improve locations in days efforts average older by visited customers stores this XX%. to X%. generated to sales the basis, approximately opened recreational same of we by locations pro basket

are quarter, metrics the value fourth the company-wide. recreational retention quarter in retail to unlock markets. customer when sales are XXXX the future with third potential Comparing significant, more was Our considering XX% permitted

are chain added XX% XX.X processing depth including Notably, turning in through chain performance increase X.X financial depth we With growing improving markets. equipped units, Now changes network, feet. and XXXX, in feet and our increasing X.X supply To chain XXXX, cultivation significant we distribution from the expect and cornerstone million compression. our up manage capacity, over preparing XXXX, the to units landscape, added XX.X scale supply future price investment continued absorb further we supply produced in square our By XXXX. in of in catalysts. better million external macroeconomic value our in of scale and million million support we to by chain. for XX% internally, more competitive we high our our square In pressure upstream capacity to controlling and over conviction to

capacity Our competitive expertise advantage. operating rapidly and a are distinct chain capabilities scaling and supply and

new reach, a to acquired product addition portfolio Harvest. from we In and branded expanding network integrated introduced our and brands

By factors. form needs. includes broad a products Our a able points, offering are across offerings customer portfolio consumer and we of price meet to combined appropriate variety range of segments at

Our data a value consistently shows and higher with premium distribution customer barbell for preferences pattern exhibit demand products.

premium evolving value-tier with speak our particular are and a product continually We emphasis to offering products customers. on that

Trulieve Trulieve products and customer to markets the reinforcing Alchemy, innovative available long-term exiting and customers part XXXX, demand Flower, into offering. while own year Differentiated such number building as our of XXX Florida. Roll branded market, the concentrates distribution including are brand increasingly hydrocarbon Muse and brought X,XXX as of a partnerships our introduced part of brand strategy extracted and Modern an and to XXXX, Collection, Cultivar in During and Regional we with SKUs In over to first launched new brands. products with important patient new SKUs, value. over the meet local our of One, complement products brands

just will launches. by we channels. our encouraged product new highly Throughout initial across promote networks, branded success the markets recent we expand we and products branded continue distribution more our broadly to Although to beginning our bring are are XXXX, products of into

growth terms. and capital oversubscribed with equity industry-leading $XXX us record XXXX, two completed In $XXX to million track affords Our Trulieve of allocation and in million disciplined capital in access debt. raises profitability at capital

moves in structured particular, Given ratio a the Harvest transaction volatility in we from relative sides exchange, U.S. as the insulating in share sector. both cannabis of and the sentiment-driven the for equity markets

a senior notes, shortly initiatives has underperformed repay the in and the deal the able capital high of sufficient closing we in to tranche $XX As this with to move deal short-term Harvest XXXX. plan, October, plans Trulieve totaling closed announcement and In our our accordance allowed growth the cost January, and we transaction ahead. fund months reposition and closed. debt sector deal between structure to after X% the million. secured strategic in In second were

assets, catalysts. investing to are and support We our ahead of and operations our in future teams infrastructure growth position

from assets began organized in retail We locations integrated Harvest. process we teams branded integrating teams quarter, fully rebranded fourth the Florida. During of the repaid and and Harvest products, XX debt,

both the in XX% during the that transactions see Harvest Throughout this continued with efforts increase XX rebranding to stores. compared a periods. in to were and We to This year, Pennsylvania. saw acquired Maryland have stores will operations. integration of continue in and December the and continue our locations the streamline converted retail Florida affiliated August of year, we outperformance We XX in opened we number

part acquired indoor Pennsylvania, product of our retail assets, channels. As of production In wholesale affiliates, steps we to cultivation our and we in optimization our -- have products refining ongoing our of taken allocation schedules, product capacity across mix and Arizona.

We and plan growing strategy. focused external and not we We our are exactly noise. said pivot realize to investing did reaction platform. stayed would to laser XXXX, We form in what and support we or efficiencies our do. from our on In did systems long-term we and stray infrastructure true to

clear defined capital and Early prudent for our choice our attractive. a We that not strategy that remain to do plan. through strategic allocation. well-established committed our to criteria fit not profitless definition and fit a prosperity deals organization We have conscious of made on, markets pursue

generational headwinds The this investment Regardless susceptible already by of by conditions, period markets. or leading presence a Trulieve and on headwinds macroeconomic cannabis and is and success are rising cannabis markets. lower the an opportunity. stimulus seen we unmatched year, has driven a U.S. and COVID all-cash and and achieved in inflation. to to increased expenses in of pressure scale scale new pressure our U.S. has a and end presents XXXX government disposable business in is now defined Towards exited pricing Florida, economic building period other of transient macroeconomic consumer short-term cornerstone income. retail support Cannabis into entered has U.S. select

and to are We manifesting market conditions vision. short-term undeterred committed long-term by our

a company not fad. a an building making emerging short-term and are passing leading in a industry, We casually trade

apparent. and Sentiment before. tuning to have response open seen sales markets SAFE new short-term the upside week horizon, know catalysts are catalysts introduced MORE in but was staying to readily force this launch We in timing the legislation observed Florida, past phenomenon future West exact again, the greater of challenges the this true we Act. Pennsylvania. builds when Virginia We upcoming and noise and adult-use returns States strategy. Act Maryland certainly Connecticut, don’t around as when for expect in movie then the and all executing the Banking on as on realize turns to In and November as the and more like the out negative the over excitement we with form, Georgia We in Reform and become the meantime, our prospect

those catalysts in to improve assets We operations ready ‘XX, are have and plan we our while performance when of a ahead future our positioning opportunities that so arise.

four the strategic initiatives. our are setting We with reinforcing the position for stage leadership and future

returns, loyalty experiences retail rewards and enhanced customer exceptional and assortment product with and delivering broad are across innovative multiple convenient we segments and First, programs. transactions, frictionless

focused value. on solidifying long-term customer We and brand are loyalty

leverage we markets. our our Florida, Second, are Pennsylvania markets strategy in through our reach expanding expanding network. in in and supply regional we further capacity depth to existing our hub emerging expand with markets, presence deepen distribution can are in we and and cornerstone Arizona footprint By investments and and chain upstream scale adding develop continuing cornerstone to our

Maryland continuing like We time, value recognize Virginia. markets potential are growth At new same Connecticut, medical and and the in the to we invest in West Georgia.

and in of the years. opportunities a market markets these expect new play the on development fully the coming bullish very role Southeast, meaningful we in are in to We

branded through chain in by wholesale investments Third, we distributing supply enabled and retail is our which channels, products capacity. are branded

in stages to into the ahead markets. We products our of own bring we and of are a internally our this early endeavor, have significant more branded opportunity produced

hold. We the of expect take as half to realize chain additional margins and second capacity in supply improved initiatives ‘XX optimization

acquired increasing convert locations new of number open we the doors brand, Trulieve Trulievers. we As and the to are

are capital disciplined brand our is products customer reinforcing continuing improving branded performance. loyalty, to to Moving branded approach finally, retail equity And building we through margin critical allocation. and long-term

Our resolve has to true to very served Trulieve stay form well.

the in in balance diversification ultimately XXXX for leading restraint of opportunities preserved XXXX strength our strategic sheet, and XXXX. Our better to

We Trulieve, stringent to M&A, XXXX to approach will for remain In extraordinary highlighted the adhering by was our with and transformational summary, significant Harvest. disciplined acquisition of our year achievements criteria. an many underscored by

current focused company’s to and the our ahead, Looking is to turn our Trulieve poised we and are results ready that, and details we call Alex in next the chapter on write define for of future I’ll the cannabis. outlook. over With more energized as history.

Alex D’Amico

for Thank XXXX history in rapid exceptional In nationally witness our setting incredible It such evolution you, growth Kim, operations our the our evidenced transformed time. come. our complexion year short this growth years expanding year, an to one the organization, the period within just in we future company’s of results. by morning, and as stage of record everyone. the of to and have good a was organization and has continued been

proud come heights new XXXX as our reach We’re drive initiatives we’ve how continued strategic and far to excited of in outperformance.

our discussion today’s bear in reported cannabis largest our our represent U.S. mind an quarter transaction financials, to During reset that following fourth of date. results organization the initial for please

we recently plan reported in and will lower-margin noncash have trends accounting As to from short-term contributions believe our and the the results closing we following and improve streamline we impacts expect operations operations results significantly ahead. optimize that year show immediately as associated assets. in our our progress previously initial We treatments the acquired deal, to indicated, can due improved we anticipate nonlinear with to be with inefficiencies

full increased quarter Trulieve the $XXX.X profitability compared ended be revenue $XXX.X included in going million the increase Fourth an scaling XX% XX% million of markets. $XXX.X XXXX XXXX. XXX contribution acquisition. to demonstrated deep leverage operations revenue from and quarter in full Record attractive record of of million, quarter year-over-year potential already revenue increased can million for of $XXX.X during during realized that quarter XX% and and Harvest by XXXX. third We delivered million compared $XXX.X into quarter dispensary a the year has to the company Our to fourth compared sequentially fourth operating with locations.

million gross $XXX.X March year XXth, over XXXX. XXX square million or cultivation in capacity. compared margin million owns supported was profit gross operates $XXX.X XX% of X by was processing XX% GAAP to Trulieve and dispensary feet of As and locations, Full and

Excluding the gross million, of and have charges, compared would to been the gross XX% have XX%. fourth gross transaction-related adjusted impact was full a In during margin XX% of would quarter million been the XXXX. $XXX.X year or fourth million $XXX.X $XXX.X margin profit gross quarter, profit reported of adjusted or

Excluding transaction-related adjusted or was $XXX.X adjusted of the gross fourth charges, impact quarter of margin profit XX%. million gross

revenue we line from gross contribution part holiday was As adjusted with signaled quarter primarily assets. before, have promotional seasonal by activity during the of Harvest impacted trends, margin fourth as In events. increased

quarter Looking quarters third we in gross anticipate the some include charges, will margin XXXX. and impacts transaction-related those decrease of second ahead, expect first will GAAP we and

We market expect gross margin quarter-to-quarter and flow will and continue to through. product on inventory depending fluctuate mix

SG&A to expenses. now Turning

with revenue charges full SG&A were million expenses Fourth primarily $XXX to associated compared the XX% approximately million acquisition. revenue included $XXX.X of fourth million transaction XX% in revenue or For Harvest to and or quarter were the during million XXXX. of revenue expenses $XXX.X of the integration-related quarter the year of XXXX, XXXX. quarter or XX% compared fourth $XX.X $XX SG&A of expenses during XX% million or of

or expenses impacted of enter markets, system new implementations. Excluding and was fourth by these XX% SG&A million revenue. readiness new $XX.X was to SG&A stock quarter charges,

SG&A million revenue. recurring increased additional compared for compared growth, are $XX from the year. quarter the to we fourth Approximately made As the and life of $XX year investments quarterly Harvest assets of in expect assets. in in $XX.X in increased useful XXXX. full to Depreciation expense expense in of in due amortization depreciation future expense to and be amortization to increased continue fluctuations XXXX will year as in Depreciation $X the for This intangibles of million to $XX.X was nature we increases over $XX.X underlying $XX.X full to amortization of the transaction. million million million and the and from invest amortization expenses prior the increase Net ahead the depreciation XXXX. the million was income for fixed million

Excluding would Full income to XXXX. $XXX.X share been $X.XX earnings nonrecurring have XXXX. charges, in year was net per million compared XXXX in $X.XX

full the $X.XX. to for fourth the charges, share year $XX.X quarter $X nonrecurring loss income compared would Net XXXX. have net Excluding was of of fourth for million million per quarter earnings been

fourth was charges, share fourth nonrecurring $X.X income loss have earnings per $X.XX quarter quarter quarter XXXX $X.XX Excluding of net share in to per been would Fourth compared XXXX. million. of the

per quarter fourth share earnings would charges, have nonrecurring been Excluding $X.XX.

charges EPS We will reported to expect impact XXXX. continue throughout transaction-related

now to adjusted XXXX or XX% Full adjusted year was EBITDA. Turning million million $XXX compared or EBITDA $XXX to XX% XXXX. during

For compared adjusted to the to XXXX, $XXX.X channels. or XXXX. XX% markets was quarter Adjusted during due EBITDA EBITDA lower or and lower-margin million the million $XX.X XX% into the fourth quarter expansion fourth was

EBITDA expect our execute we as optimize on plan. and adjusted to strategic assets We improve

Turning now our flow. balance to cash and sheet

debt. $XXX was and of million nonrecurring flow $XXX at transaction-related would million we million million During the with $XXX XXXX and $XX fourth $XXX in Operating been completed XXXX and million notes of cash placement five-year million, we cash ended in in excluding X%, and senior We have secured private quarter, retired debt. $XXX charges.

contribution operating of flow expect in greater In closed in to January, back tranche the totaling X% cash positive secured notes $XX We second senior year. XXXX a million. with we the of generate half

million. $XXX XXXX, evaluate of strategic and for financial continue catalysts. and invest forecasted operations flexibility profile return continue will we ahead scale and cash to growth future rate build, similar expenditures to our with each corresponding we strategic market with In Consistent as performance, the project and capital initiatives. plans. to strong depth in our on a at supporting past are position in while XXXX provide capital Our our Company-wide expenditures capital generation totaled

XXXX our of XXXX. and are our in current to we for guidance to EBITDA. $X.X and now billion $XXX Turning guidance million to adjusted performance of on billion expectations $XXX revenue issuing in $X.X Based year-to-date, million outlook

we to XXXX, XXXX. in will not to year XXXX XX Florida. anticipate company-wide relocate We quarter and existing compared open be revenue flat linear gross fourth quarterly XX to expect new X to in realize with full the between revenue We first and dispensaries do the quarter XXXX. For up growth adjusted margin flat stores expect

Given in report the timing up expect of the capacity, performance XXXX ramping and chain stronger supply half investments of back we to year. and exiting the

expect comparable X- we X-year to of to adjusted first at model. such, XXXX. XX% least quarter represent target a quarter over reasonable As EBITDA term, fourth be of least gross the in horizon, adjusted adjusted compared and the believe EBITDA Longer margins XX% to margins a at we

like and achievements expect to the potential. and may favorable contributions my this operating congratulations for thanks I’d their realize building to look underperform In impressive are periods we fully this range conditions during range foundation Trulieve here offer our the results We forward catalysts where working investing closing, team express and exceed to past growth. at upon quarterly this periods solid further and fluctuations to may I over future when and in for significant our have during true we year.

incredible already come. have best to progress made the year-to-date, yet We and is

Kim. on our execute with ability I’ll in plan over confident We to turn are stated And that, highly and goals. reach call the to our back our

Kim Rivers

incredible begun. yet, only our and another said, year as was XXXX just Alex company, we’ve for Alex. Thanks,

in cannabis. U.S., day, for cannabis a in new still becomes more signaling We change U.S. steadfast mainstream Every innings come. early widely of our remain the conviction paradigm acceptance. We in that are will eventually recognized

expect increasing meaningful encouraged discourse ever MORE evidenced the Act level the the the focused be on reform on federal vote as activity we and by We of week. in House are by to this

forefront We to be of and and industry, rapidly to the development are this to expansion proud evolving access of cannabis. contributing at ever-changing the

Ruth Ginsburg, all of We way step recognizing that the change We the To pioneer Bader all position one industry continue happens important understand and an a the to our quote the serve to “Real victory. indeed at change, levels, late to enduring as stakeholders. along advocate and step every a importance is responsibility advancement in at for time.” necessary Trulieve’s change,

year, talent past industry acquired hires the bench disciplines. multiple and Over across expertise Trulieve and strength through added

our two which welcomed of again, new in Board, of inaugural now ESG building in down Once the with XX% by the our in the also the includes the were we to sustainability quarter, pack fourth women. We members upon report at work front representation XXXX. report our release

are steps, we this lead with the maintain follow billion sales by XXXX. ready meet to cannabis we recognize new in like in ahead. arena strategy, the and on been industry opportunity. of industry Trulieve work The legal U.S. over in cannabis. $XX it’s the with in execution, proud go we positioned moment our profitability is for While in U.S. remains has is years. said, It we incredibly upcoming precipice depends noting much forecast that initial to forward almost double the standards of are in Because often deep uniquely discipline these setting to this it, again look our next markets We but five of worth exciting and an reaching again years, on annual promise

continue Thank will you do. are joining do for we and what onward. to going we to We as us say say, I today, always

Christine Hersey

this At for open call available will please Alex and up Steve questions. the time, answer any questions. be White D’Amico Rivers, Kim Operator, to

Operator

today’s Derek Instructions] question Genuity. with go Please Dley Canaccord first [Operator And comes ahead. from

Derek Dley

I you comment are integration on on I but how Harvest the performing? and appreciate statistic the of a into up can have stores wanted some your transactions, just on now XX% Trulieve, that months Harvest to X -- in we’re revenue? a to last the that just call. the that Trulieve increase incremental of SKU follow seeing within been we And it’s you just of that’s are helping increased increased sort those implementing, revenue, product initiatives offering whether provide of terms outperformance? number in mentioned the drive think was some of on if stores can I you’re the count, XX% rebranded

Kim Rivers

sure. Thanks, Yes, Derek.

have were noted call, it stores We data are regulators initial to the because most our, absolutely seen to the to from baseline and brand. the the rebranded noted stores, continued by committed transitioned and numbers performance as on at legacy call, those strides been we have time relates are and we standards have on bringing call of as Trulieve in Trulieve our into the Those relates increases we significant into it, made. the stores be Harvest into as acquisition. stores the to as So, it fold required Florida those we

stores right direction. believe marketing into As we’re cadence, to the the and and trend those successfully and continue of outreach which cadence the adequately them step, have product that our mix in first course, in to doing is to right this bring we

we on the we the successfully just similar As and both are -- now. efforts of and since of call, beginning those in rebranded the stores undergoing in year, in markets noted Maryland Pennsylvania the have

so, we should in have markets. those as for some of better And we get you color time performance

-- in Arizona We into will think I brand this will this prepared mention remarks, Trulieve we stores an our is year. in -- be Trulieve that didn’t important and note rebranding we some be

Harvest name we call brand that. to as, the about we’re it, pace disciplined that So a I’ll recognize That in the go going in is excited more, equity market. of of course,

currently us thoughtful in those and we so, branded be over, for that Trulieve. ahead not some want that stores how transition we do rebrand there terms makes but And to are are go Harvest sense to of

to we’ll progresses. and So year that on more as very the on interested have about those talk performance,

Derek Dley

one just then, great. more. Okay, And

transaction terms are going your on wholesale you’re -- your of Florida, is you some gaining split new perhaps dispensaries mentioned exposure you’ve forward? this states? comment the increased with you just and of and can which But wholesale entry learnings helpful. should retail expect of that into just we In And as outside now of the XX%

Kim Rivers

Sure.

reporting as noticed. segmented basis, So, sure we’re you on I’m not a

we and point, your to However, will continue ramp across markets to -- wholesale be we’ll in country. the

course, you a a Of we of consistent folks, other a that strong comments think, QX. where did in Pennsylvania, I wholesale likely with platform, all take from did hit take, heard bit have that that in

well adult operations Maryland expanded of we wholesale ahead Maryland on increasing likely in path to with what are coming We capacity as use. in view line as a currently

our we’re course, again, appropriate platform. products be evaluating month-over-month, channel not out Interesting, having, retail, has branded previous through Massachusetts Arizona. Arizona that of supply. And and date, Massachusetts, well. in like with had but built metric To strategy meaningful the branded we to having kind of any we by as increasing So, wholesale also Harvest Maryland that going in wholesale are secondary

and going So branded products in different in wholesale opportunities with some exploring with we additional capacity in are in rightsizing capabilities as potential of to produced be Arizona, Arizona ability well. production market adding get and and to terms

initiatives certainly one certainly of this part a around business have do growing we So, for our year. and that

of will branded think at certainly list I the the through that top that retail branded However, that’s we’re with of for strategy this channels, and leading is initiatives the certainly say products important that and year. we for

Operator

BTIG. question Please Camilo And from with the go Lyon comes today ahead. next

Camilo Lyon

quarter, pricing? parse what the and margin a I wanted you puts the more some out in think said, to that on to line cyclical maybe how to the the respect little impact focus on the -- of have did some quarter on long-term have? But as to you with gross the changes bit of sort of margin. What some dynamics detail the versus evolving. with about Alex, given What respect the did if happened ongoing just on -- compressed isolate And unfolding to more helpful. during versus maybe takes, could opportunity. would pricing or more having some perspective. good gave really that better actually So, function market if from we’re more changes integration color period our or Florida the be more getting to is nature wondering By any of, is to what the a that again are that so this temporary math, what structural by a in gross or Harvest? margin again, just And state the of mid-XXs mix about with is now efforts gross

Alex D’Amico

Yes. Sure.

step-up million those transaction, us when was we obviously, XX%. an noted, the was as approximately integration you fair acquisition, all of and we that by significantly GAAP right? -- other get you Harvest impacts to gross inventory value on So various nonrecurring reported $XX margin, costs to as we adjusted impacted add past So, margin accounting an and back, had acquisitions, such adjusted of got

the of our is about integration full in part optimized remove not delta the that were a of which support presence. and when the benefit the EBITDA lower true the those the without XXXX, to majority at looking and retail margin cultivation nonrecurring quarter. of XX% a noted, the you’re in and revenue And built primary margin Harvest traditionally was So, retail of as and profile you That Kim integration true operate assets, quarter-over-quarter strategic driver the plan, on the costs. out reliance of acquisition, third-party wholesale delta of

the spoke it’s -- in we right, quarter, past, holiday. promo the noted, with our You we as had about

as inventory offset a then, can product So, an swing swings through of points we also prior impact will quarter But, like in will of in legacy there see quarter-to-quarter that from a kind forward. the quarter-to-quarter, and noted couple basis-point each perspective. many Trulieve flow and basis generally was markets. few mix the And there legacy you they other going times,

Camilo Lyon

it. Got

gross Is it state So, think own a I branded legacy opportunity that, it to up is stores the we’re Florida a opportunity clear. operations your talked of in right and is through Trulieve the Harvest structure going biggest and from products up more of integrating you and forward? perspective, that’s to the If at pretty retail operating about coming from type is margins? really verticality see that biggest it looking know margin perspective? that you

Alex D’Amico

you retail, margin pickup of our see incremental then, the opportunity leading is year, the we building core the in right? And of the year. biggest during the do our think across platform should in first to support of I cultivation that half the kind our markets, back half as in

Camilo Lyon

quarter some announcements is signed? Clearly, made talk are impressive trying being you you pretty all very are them. Kim, then, where a one you and -- agreements And Can aware perspective, competitive you And partnership as take much know and from that to impetus during interesting pressure Perfect. Connected we Florida those market? the of partnership the about behind the of.

So, what result partnerships terms in trying ultimately, what awareness, here? to are quality, for is brand you trying to and the you’re product do strive these of with

Kim Rivers

Sure.

with our existing and and thrilled partners. we folks So, announced are with we’ve that partnership current

of ago. having -- of the idea so that introduced And a Florida and recently on And we our leader years in has in it’s Florida bringing to and had really our focused about we that really having on we with that partnerships time. selection that We long then was -- so, And Connected for are products rationale in were holds partners very market in doing customers number best-in-class premium Harvest brands It’s this a Florida depth we’re it shelves. today. of particularly are, announced and can with and that true the that of high-quality shelves in. felt we these offer specifically, products to regardless relationship our the our course, a

team. We’re very familiar with the

in added as, is size We’re genetic their ability of beneficial, their as speak our additional items not very additional and that which that in they to products, their we retail the with to will Florida. only quality basket very really portfolio segment, market in they end also basket to impressed that in the bring but locations impact on well particular have again, selling believe

product we this which space a market. market at retail we couple broader when from at in across our the of I’ll a shelf minutes that to across think when and I -- our is to locations Trulieve across availability shelf look positioning try and and look the space down conversation, here, boil differ U.S., does but So, platform

fit we opportunity we our so, the as stores. also our relates tiered about confusion partnership and offerings customer, that again, have to product our it choice U.S. And around the this And segmentation around and tremendous market -- purposeful balance as we choice relationships between into acquired category think in are there’s but as there we across think again, very-focused stores opposed to, in for really very-focused our be strategy to

Camilo Lyon

differential That’s one the If you between product on see. kind the could just -- where general you product? the is I a margin other lower-priced basket margin your question product distinct point great. your continue segmentation and of but to is there getting in that high-end and Clearly, curious are side and Is on I’m to differences there ticket, and about, differential deficiencies non-existent? cultivation understanding ask the of just innovation barbelling a

Kim Rivers

Yes. offerings segment, If to going that And give -- my question. -- recovering you down it were that to a to spectrum, products I’m going spend in gets across it’s the it margin And I vape segments. be will lawyer does Great so -- I and following really give conversation. number we to is, concentrates, who the -- it look value, segment to board. it rate, way, only strongly depend, more offerings on certainly to answer is yes, both in but both margin really you and the great We a product really not category can’t the and at and very, products in is that which innovation if and on have input for continue subset very believe, with which obviously, and of important believe into the But also on durability you to folks we’re time and a in of then announced like. protection, significant additional your point, been for and an pricing at premium both we both, the And us, and is looking a recently, there if will. significant we certainly, in value have develop flower you we blended released velocity, have also and most sides will, way, have in premium. we’ve in in that premium And in category. product by product

margins the on like segmentation. to premium good have across and both -- think But lead important clear ends, which to we certainly And a on is but margins cultivation our -- so thing. we the better to enjoy your efficiencies again, it’s board, though, point category. good we So,

Operator

at Russell go Please [Operator Stanley Beacon Instructions] comes question Securities. from Today’s next ahead.

Russell Stanley

headwinds. wanted your seen and just in the of comments the premium to barbell around you’ve your segment, I growth the follow the up face there macro pattern on

see perhaps that, headwinds given do I And vulnerable that, So, any just how think are seeing? you guess, guess, seen do any I for preparing in you are everyone in a to wondering, have envisioning you softness macro premium, softness which the you you preparing others for if are that more or that markets is and little there? or category

Kim Rivers

in our net we’ve majority We’ve of -- about know pressure of inflationary and in course. of and as thought and in which bit in premium, have falls we’re that to might the interesting seeing, dollars. seen is kind Yes. fairly actually talking Thanks, of we that and in Russ. units really markets, we I little It’s relates -- a seen increases -- it the what the we’re face of kind

does all same can affected markets being tell are are it markets And the I certain is differently. not that what so appear you. And

think businesses, account type perception and have of in that also marketplace. the to little a proposition the stand in between for is And as the so, certainly it is we bit and said, my robust value they for portfolio also the again, on to the than down same and again, at product value, means meets availability going I’ve depending that, price that on that which there’s of a customers a to back customer’s also of other differences not a have market with choices comes value That product the perceived being critical to shelves the we segment not up product, it’s which product earlier some that mid-tier. can have and that the a where what believe, And whether market, and offering to it right, and we markets. other from cannabis, different we There’s comments, right, also said, choice, of are, same quality, not can or right?

take bank, we may fourth quarter, the value in as perceived more velocity in spending a to they’re higher mid promotional tend tier jump environment. this a see -- so, kind folks in customers the same up activity that again, to premium is a and we of in potential dollar, to for holiday while by And us, those category typical kind of with product, right, get is able customer, value see which

also to right of also segment value and sure are just consistency which we again, we but develop, to quality availability on products price at consumer. products focus of good us, develop to we’ll the and -- that value to a also good are development to so, And but proposition, at is will continue and not we continue reliability focus make certainly for premium that -- for continuing do products, important have

Operator

And next from today go Company. our Please Matt question McGinley ahead. comes at & Needham

Matt McGinley

states? XX forward? adding are XXXX that units in future, And to support in XX you dispensaries market the or probably unit units relocating patient with those that you will open Are to how or an the you adding this growth those beyond? the more you Florida units versus need eye year, many Florida or Florida, at of in the to to towards those population other point this in converting some adult-use be think many for going expect think How year, do those how do about of you

Kim Rivers

Thanks, Yes. Matt.

one to anticipate question time? then, we XX end So, about, the would would state And your of of and see XX, Florida. up give in going part we’ll in obviously, we or it’s those depend second if will the land more that approximately -- me of but on you approximately can I half say,

Matt McGinley

a with to in with XXXX or be you’re adding or or in units think these more Florida, them adult-use do those is that adding How those towards adding Are market you adding there about of population you will growing support Florida? in that, mindset you mindset units? and patient the probably that eye so relocating the of are

Kim Rivers

Yes. No.

locations. heard couple us are of are to we X and in not locations that want those folks XX. just that to our XX make there. locations, relocating a So, sure included Florida points That’s I One,

program So, stores previous regime distinction. those stores And open I under think to that important are the had stores an we maybe got started. stores first in legacy that the were that’s that are Florida when

and whatnot, so, stores. And different had zoning restrictions location and they’re oftentimes, smaller and of in they terms

and week came our in serve. our locations, if there locations. the earlier with selections And that to to great better a how stores are retail of stores analysis we about it think to report that around respect do of terms is customers was relocate kind relates outperform ton market into And and out populations we point, our in a area our to to do think so, with those our our able -- we continuing as that We those And competitors in Florida improved, you locations this your experience. the of grow. store will, serve placement, to and store believe we need to I store

of We’re at patients week. a a period QX approximately per rate where coming X,XXX off was growing of

week. at of growing it’s a approximately X,XXX Now patients per rate

we are of growth of down state seeing an underlying metric slowing in So patient not Florida. fundamental the

phenomenal in to recreational we to do being order see seeing the eye may that slower need locations relates growing or some be underlying can it continue that feel market. happens as That that be on of we to grow, have growth growth it an serve will relates are to consumption, and the still we positioned locations said, spend we serve always While as once and in state we Florida. to patient

a about that’s we think when always So, positioning. consideration

Operator

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

Andrew Partheniou

if the including that’s any the be supply York, New hemp in your other acquisition, of cash of about future balance But, have thoughts updated Jersey any relatively new, markets in considerable around Rex Thinking $XXX by state attractive? your and right Harvest chain, Wondering if updated integration is necessary could million that? York was you pro our you included and transformational. Obviously, or give New M&A. Namely the forma could that that’s have on do estimation. amount thoughts you now operators New which and cash wondering something

Steve White

Yes. is Andrew, Steve. this

do decisions potential the about into get variety at, consistent reasons, and the a we we’re acquisition team, that assets, our is whether we entering of -- price For whether overall assets, consistent make markets, those specific criteria won’t to a with well-established strategy. timing the Generally, stuff markets. into is looking too new the that of but deep have our

price in say be may right markets the timing or markets not or us. fair assets the it’s different think how and our for assets, those that assess geographic to and I sometimes those of instances, view than many is others

we like a We’re trade. potential interested look not don’t M&A at --

so profitable it’s that We’re transactions business, we last sustainable building and X, and view year. opportunities. through close We a lens that did X

criteria, that for is we about been have to and and be potential have the will fit previously opportunities fair conclude our to given there guidance continue So, Trulieve additional hubs that organization. it there

Operator

today Scott Partners. Please question from next comes Our ahead. ROTH go Capital at Fortune

Scott Fortune

at looking target of model. kind your Just long-term

industry-leading X include years adjusted XX% margins and XX%. competition, your Pennsylvania as out, do we on at that look and of EBITDA how at you’re a look margin Does normalizing gross our within You forward? going how Florida margins mentioned your kind the turning here going X, lower perspective of as And pricing seeing that and longer-term of at adjusted here? industry look compression with you margins rec? And from maintaining we

Kim Rivers

Yes.

questions of, couple I think, So a there.

First, here. our -- it’s forecasts things that include are never

So include not does or it Pennsylvania recreational in Florida.

to specifically very result it we those as to laid to relates the our that our course, very we’ve as into on performance strategic going And our execution. a financial we how and if out when ability of substantive things be, would and initiatives call, the there margins, upside, those flow-through of it’s and strategic and were So occur. additional think against to can probably execute initiatives those be achieve

I think that of, again, what we we going strong have doing record to we’re do. say track a

plan a increase is getting identifiable on is out financial are in terms building Again, performance of a that see philosophy as formation start supply to, Trulieve each we basis a as those through we critical. chain year. strategy in how the very one a of those have And the soon expect is of we that of markets. this we to and markets, one held We market-by-market specific believe going since element again, half to have which, second to and in deeper again, results that is pull true

and that, get again, in achieve very there again believe minimum nothing it’s achieving. also, is we a we’re margin very point EBITDA. at record complicated we again, confident just should XX-XX that out that guidance, So in that guidance than believe. really we least can is, the more have and which to gross track believe, again, So, strong right? element We our execution, a ability in And I that

Operator

And ahead. from Alliance our go Aaron today comes Global Grey, Please next Partners. question

Aaron Grey

talk Florida a I top that per same-store answered more unit about in the terms to of you question for want on average and So, store go bit little sales. earlier of growth sales

down X%, So, X%, up prior excluding opened legacy stores Florida those to XXXX.

about store have the going of guidance, or forward to of guys get thinking you embedded sales average terms the are kind So that in could color just same-store in you want the additional during I stores also continued sales Then guide? have own competitors, terms hand, growth. also what per patient On of stores year. within in some coming of you an your from on some impact one line have the relocations

forward So, any XXXX think for specifically should about helpful. store, per Thank going sales How we terms of embedded you. in expectations be would average Florida? that in

Kim Rivers

Sure, Aaron.

in we’re guide sales embedded guidance. giving any So, same-store not specific

Again, branded I our think in to as the portfolio indicated, However, network rightsize we in the to availability product the we our increase ‘XX. retail anticipate as and offerings country. across locations combined continue across improvement

year. improve right the trending again is the So throughout to looking are continue direction and performance in to

Operator

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

Kenric Tyghe

your reported recreational to impressive baskets medical you and some spoke both, in Kim, markets. average and

any of macro Just you can the disciplined of pull thinking expect backdrop, you to And macro backdrop? the some market in about promotional pressures? those frankly, first wondering in half current that mitigate evolution baskets? the XXXX, promotional to how Perhaps, given the of and you how levers context do those of are be and type the

Kim Rivers

seeing interesting. are this wish impacts the of It’s and basket consumption different is as so overall different overall mentioned, we quarter-to-quarter. from might I -- as not same of an seen seeing, giving the And markets that we Yes. in just are the anticipate I kind what U.S. mentioned much And relatively was question. Thanks regions have depressed where and times, as as simple you again on like as for I necessarily few the across one are a we -- kind pressure interestingly, not flat all we

that $XX again, $X, have that potential precipitous priced again, QX, pull through data have underneath terms we we that will or their certainly moving of against at introduced in and quick basket. $XX innovation, are type erosion type from or products. in seen in end early we’re think macro this So, just which seeing that time end. a period lower to it’s and basket and the defending, that of challenge consumption register kind believe in of across kind decline But basket, any right, into of of where I products, in of in -- start in And high not edition significant a register products in we’re QX any is And are overall than it that a is Florida, do defend or average I QX again, there. decline specific we -- we products a ticket The out helped think more We’ve to a impact. a selection, not offering, an it’s basket it particular, order is guess, that necessarily the positive variety call of important markets. product seeing hold

Operator

And go ahead. today Research. Please from Spencer question comes Hanus our Wolfe next with

Spencer Hanus

the When seasonality in under improvement industry, to seeing change you start in in think pressure promotional Florida? then, we’ll do activity from XQ the XQ has Pennsylvania pricing, adjust to are you any when recently? see for And an you which in been

Kim Rivers

Spencer. Thanks, Yes.

QX as the across QX quarters. industry business the is QX, So, promotional and It’s QX the highest. higher our we are in mentioned, to QX

in and over obviously you’ve both or Green then Friday got of XXX. end period. Black then with course, the of QX, XXX, Wednesday, then, got And and holiday -- You’ve QX the year the holidays, and

ramping QX, fallout exactly telegraphed QX. that as throughout throughout see they it Pennsylvania all the market. vape believe about we also course, think, the There’s waited and what Pennsylvania, pricing specifically, folks seeing began widely there channels down QX we’ve wholesale discount that’s believe believe seasonality that in were think recall talked last impacted and of of vape year in stabilized. happened now, happen I and was the has retail. think, that we’re some QX creating, we QX. that more fallout Pennsylvania, to in vape really while happened. the -- And that’s both Pennsylvania as previous And noise actually did is was the to at normalization again, In a in or promotional So line the discounts. do occur, to so more ordering and in directly at category, and what and in pricing production a occur businesses across have impact, And some relief transient that wholesale to and that did, QX issue across Pennsylvania in nature and in -- of of across both this, and the we be and with the I in we that that relief baseline impact needed

for have that in issue additional based. note, as out in certainly a so, little flush or decipher discern continues. value segment by specifically, which but us if that’s to some believe products -- to reaction promotional driven in heightened but well I has PA, to Flower because to activity we response that as And There’s stabilized. Pennsylvania, both regulators cannabis-dried built in in will regulatory harder that is difficult fundamentally yet Pennsylvania, approved the gotten driven what haven’t to anyway general terpene -- whether it’s promotional it’s in, in believe Important noise this is we pricing we year in as

looking those should for that the out, of to we’re some in and and vape rest roll year. the stabilization have the QX again, certainly, it issue So as relates into to we coming market

Spencer Hanus

change do they could are And sales significant for business. any that? to Where Got to change? front? regulators it. open some wholesale your regulatory thoughts updated we when do to would go need on That’s a you opportunity think How then, see And helpful. Florida making be see regulators in then, or allowing there on Pennsylvania that could rec the

Kim Rivers

Sure.

will initiative. need an ended appetite movement relates it next be just We’ll or to there was session, there ballot session. session. this there between So, and movement And Florida not now and activity legislative watch for next some session, as likely to

So, would going position and activity session initiative the that posture see if the to the the ahead be voters, X that or of session we next that’s would X legislature that occur. session that

that -- ballot is the reminder, with that a ballot expanded As with medical medical happened initiative what the program. initial the

that couldn’t a So, it’s you really I terms of be likelihood. certainly could tell followed. pattern in

going to depend initiative off reaction it’s responses response ballot once gets think kicked in on to I the, and that. again,

folks crystal adds And conversation. encouraged certainly, Pennsylvania, is substantive parties some in question. see And sales love of we’re and the to that kind think, markets to we neighboring again, clearly, in activity in adult-use that all, by pressure, for relates getting market adult-use. it in in by to folks we increased are type to it’s advocate closer to But, a forward, As we by believe, the would move I Pennsylvania to ball that Pennsylvania. working hard both conversation increased

Operator

is go like Capital. And Des line It go our question, apologize. clear Andrew ladies and Craig-Hallum to is do from Eric the Jefferies. Andrew’s everyone, gentlemen, at looks today from ahead. Please And which Bond next we’ll not with I so Lauriers comes question next

Eric Des Lauriers

on you the for relates line, absorb talk that expansion of you. Can guys the you I overall pace supply to additional expectations Florida. in supply, then about how the bringing additional to ability just market Florida Thank and guess, more that of

Kim Rivers

Yes, absolutely.

we specifically and chain, to in relates inventory supply our through. of the how market flow it within have in built projected be growth Eric, built Florida, very So, in capacity terms on projected the we as we Company, modular nature in bring the of needs company and to

that we’re will throughout discipline So, year continue this and beyond. --

the average of registers, And growth number timing really when we’re of market, is there go down of specifically projecting, number with physicians, along metric and how cetera. a to to it et patient in is underlying the so, tied very we transaction

for same we’ve want make able supply all reasons on this here have to and to how the also the or are sure the certainly feel match, will, about that talked we market. plenty to in meet be our or with about to growth overbuild So, that at service you customers confident expectations capacity depth experience of And our not we patient we to but like needed required if time, categories we and very oversaturate, we comfortable have in call.

Eric Des Lauriers

Okay, very That’s great. helpful.

of sort of -- methodical in half, step expansion to guess, just for steady your so versus And think a capacity the we second example? so I continue of function should Florida a growth kind of

Kim Rivers

in Yes. now, me Florida, -- it’s there cultivation. be clear, again, let I mean,

bring we’re comment. efficiencies that mean So, certain going built you’re into that this I are -- not it’s there -- to inefficient. are

in bring at do phases a we particular time. So,

point, perspective like, meet function will Florida. to want want we’re from we believe depending it just capacity our to and match what in demand step what you demand that But of your channel there. we to sure So, through don’t the that definition on I yes, of aligned to looks I and I retail need -- projecting the a state make we’re

Operator

gentlemen, ahead. question next and from with Please Ladies go comes Cowen. today our Vivien Azer

Vivien Azer

the I But the referenced, driving So, basket. register. competitive of front product category. is work optimization is, reality of Kim, appreciate in terms think, terms lower-priced and in in I of certainly, the lot helpful at you the that a discounting there portfolio That’s putting promotion

So around of but is specific two very reduce something love consumer can more do different get to right? very can in alcohol, because approaches, what just philosophy or seen we’ve the signals spending there to promotional you the your your You that I’d and price, kinds really perspective promotions. value-added

about the balance those So, you how understand standpoint two? leaning from today? I’d you. love And are where guys execution an think Thank to you of

Kim Rivers

Yes, Vivien, thanks.

we absolutely run. every with we’re and have promotion to in So, accomplish promotions, strategy-driven we very looking specific that we drivers are that

we customer a that try -- normally margin know encourage encourage for customer to repeat well or a that’s that whether that’s greater have back category isn’t. very to begin we of So, come a a an and customer their if basket, that’s a in that product product buy to indicators try But to have but would and were to particular increase they visit move to where whether availability whether that part average moving segment that’s may whether perhaps with, not that ticket, make to to we product strong comprise another forward. a

So, we and that any very of promotion it an is it as very is a result we and looking are run. outcome we measure do data-driven, may And strategic.

Operator

at Please Andrew our and Ladies [ph] gentlemen, next go from question Bond Jefferies. ahead. the call is

Unidentified Analyst

[ph] all line you Andrew for Hey. Bond Bennett. Owen Can hear on me the okay?

Kim Rivers

can. We

Unidentified Analyst

Awesome.

to partnerships? Could qualities plan bringing partner around going you Florida? evaluate branded quickly, when outside more that how brands. you just to give balance back between detail related very Just operation of on you. just expanding you then, around the and Thank to considering specific some commentary additional And that, wholesale

Kim Rivers

Sure.

portfolio from particular sense, that we’re develop when to that to a quite frankly, evaluate that or brand, opposed for value of of So, it into in as a a make partnership that more us a needs to if couple set and into time where bring partnership, have customer thinking equity build brand sense couple for is, they’re we’re different developed to that certainly, about brand and to us criteria. and/or fit doesn’t something relationship can in believe their because the segment or skill of looking nature, of that significantly particular that’s national a internally. different start our makes scratch to market it built One is we one

also as experience markets. And know. et Blue it’s market, competitive Florida. California high quality, them market, other been sense cult-following be looking Blue high are within solvenltless for So, there high efficiencies, our is the bring for River with of a portfolio company, the plus a known Blue we in have flavor, with a in an taste, beloved River. market a product they’ve them brought to would example and We’ve partnership brand cetera, that in we’ve into decade a all space. has into River And Massachusetts in launched and very

second legalization. And regional be in regional too, a yes where why originated has is times advocacy He had vote local brand could that that to have conversations strong the ties market for for also has brand passage was actually cannabis in of it brand. the the The our an has the and a very amendment. would tour often been and our facilities that Bobby regional for very we’re senior another and soon. element he important spent them state would have amendment, partnership He ‘XXs. on the years going went to Tuna Tuna, be, Bobby around cannabis, to with living to our advocate an that and advocated example, stream announce we’re them. going example there typically assisted seniors Black here in for Florida, An XX-plus around to and with prison which for

we as markets And great Bobby, partnered with he’ll the been we markets, in example, sells and time we -- every launch us so, strain Florida. neighboring of other That state in well for he’s it out a partner a to have And has it. partner wonderful actually look in Georgia as and for the Southeast. be

will, brand those buckets, partnerships our if So, you typically are that two the fall into. kind of

how us markets. As again, flexibility in go-forward we specifically basis think a portfolio gives we on in it versus about, again, think our partnerships and brand wholesale channels, about the own certain product

Blue now. actually So, Blue of Massachusetts example. the live River as Massachusetts an in founders River, let’s take

So, our through with through that to through that channel additional own for not branded in absolutely, their have us the Massachusetts. sell portfolio they but an products we’ve They’re or only have advocate allow will doors also products, opened. wholesale added they Trulieve Blue to relationships River

several markets. think, in certainly So, partner Massachusetts. like beneficial that years. with strong in Very, a is have a space, I that XX in it’s doors have for another chocolate mutually been very across market in presence we strong brand relationships And relationship very retail market a has the Bhang

branded it, products opener I’ll door another products additional channels. for a call in great, and And wholesale the so Trulieve Trulieve

Operator

And question-and-answer turn session. ladies remarks. over I’d like and to back this gentlemen, call closing for our concludes to Christine any the Hersey,

Christine Hersey

your all for you time Thank today.

directly updates Florida We an in are will you we the details. June look Analysts and contact Tallahassee, have Xth. great attending webcast management Space additional call hosting on meantime, to during event the In should will our Thank interested additional again, forward in presentation a in conjunction will but with day. be who me analyst for the be we providing next May. event. earnings limited, in

Operator

all you, for you ladies concludes today’s and And presentation. this Thank today. Thank our call attending ma’am. conference gentlemen,

disconnect your wonderful have lines, You and now day. may a