Turning Point Brands (TPB) 26 Feb 202019 Q4 Earnings call transcript

Hello and welcome to the Turning Point Brands Fourth Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded.

I would like to turn the conference over to your host today, Bobby Lavan, Chief Financial Officer. sir ahead, go Please

Good Brands. I'm operator. of Lavan, Turning Point morning, you, Bobby everyone. CFO Thank

today Turning me Graham Joining are Purdy, Larry and Wexler; CEO, Point Brands' President

and Vice Chief is who the of Murray, Officer, up Head Senior role. Operating Business Business Jim picking Planning Louie IR Development, Reformina, of President

available. release call issued a section quarter of website our where XXXX will in results. morning we covering located Relations This This of Investor conference today's replay be a news fourth release is our

call, discuss perspective operating our plans. will this results and progress strategic segment In consolidated and we our our provide on our against

As and cited statements is from direct in today's Exchange that outlines various Commission. to filings could risk attention cautionary release of statements may press be our the the The actual materially and disclosure discussion customary, differ I that results to today's factors projections factors and Securities forward cause forward-looking the looking or in in your with discussion.

projections certain In today's of with reconciliations today, call statements. will financial and management believes found we revise why and we useful reasons them forward-looking These obligation measures. are by Laws, except Securities These earnings upon provide measures forward-looking publicly update Federal to to reference not as information. be reliance the can along GAAP non-GAAP in release, and statements they that future you undertake not undue guarantees any and provided place should or performance no

call the Larry turn now I'll our over to Wexler, CEO.

morning, you. everyone. you call. the Bobby, Thank Thank and for good joining

the workforce that controversy to of late entered across compounded the We dramatic which restructure impact as implemented from on. the or swiftly summer and to you, over we quarter, flavor plans regulation. vape early address call of announced we and our fourth to in We The it, November the third with efficiency, XXXX had of did the moved plans additional the platforms. impact shared call, size this strong PMTA, acceleration We a results. FDA rather first with with me XX% by speed disruption vape gate right quarter and further vaping the reduction momentum the the last summer on disruption board. company-wide consolidation In Let the head business. carried the our announcing vape

fourth the from reorganization completed one. year warehouses to we In quarter, the going warehouse ago four a

low and entire our eliminated our wholesale have VaporBeast, We under consolidated BXB margin platforms premier platform. business

exiting and affords We products PMTA to winning the shut exposure certain we of capacity BXC actively ensure BXB player. to that while stores as pathway business and shrunk retaining come for out us are vape both our access and to the sufficient we size manageable now our brands quality And leases. a a and

rationalize get Vape to moved and can gate was to earnings and we restructure where organization a growing we rapidly business. the back so distraction, an management drag the

the As certain far flavor off aspects addressed due all and inventories of quarter, to the vape down as writing other timeframe writing the right sizing ban. including inventories we and initiative unsalable accelerated FDA in the business, PMTA the

known the addressed issues in to I'm material our have way, say category-wide the While business that and these reset from we all events. affected pleased external resulting anticipated

exceeding XXXX for expectations. already in Initial our sales vaping results are

than anticipated While a early, we vary seeing results platform, the are by stronger recovery.

well We resource player positioned and stronger of have believer to flexibility as retained and the prepared materially less out process come less PMTA competitors. other the to relative are we

my us drive scientific the better moments those to XX and side get prepared We be our many confident we of to will are robust years that, that we the to right on Nu-X PMTA one business we for our process. of spaces allow products that is the the see through PMTA. are the of We've white a and Adding the The believe seen industry. and regulatory in in portfolio several tobacco results. shifts will expertise now accelerated product major available we in market, pipeline, over

products Let proprietary distributor brands. me a be vaping a clear, suite marketing this portfolio of to vapor products simply from pivots of third-party of us being

our quick Now continue a compelling let and snapshot strong, me of and results. you the give business. performance tobacco decor sustained of deliver to Fundamentals results

First offset full share Net year secular ago, in Stoker's point quarter, continued with Snuff increased compared advances share delivered sales chewing tubs to Smokeless. cans by significant in decline of Snuff, In gains. Moist year the tobacco. the delivering another of record robust the one for double-digits on Moist both and a Stoker's partially

in high single-digits. results products delivered and delivered net strong is with being U.S Canadian both In including rolling Zig-Zag paper smoking, cones. Growth the quarter with up positioning sales new

than of captured equities brand XX% in Canada measured the stronger even XX% We have category universe. are a the Zig-Zag share measured commanding In market. greater already the with

facilitate dispensaries. universe with our and We forward large which entry brand into recreation are contract to on the growing track new propel our marketing partnership, the further Canadian help and will distribution

business to vape business, on the for the new actives we consumers and core via The umbrella we're especially changes who of accelerating remain company remain primarily of the us, with business Nu-X tobacco Having focused growing behind tobacco while also behind novel continued Stoker's new forums total are Zig-Zag profits gross products. in Both delivering the put in core X.X% and tobacco growth. quarter. on the products gains, focused is the strong engines the searching

XXXX. add our were CBD and X,XXX at on color end To perspective in available some forward. Nu-X products over path year stores

call the Officer. Purdy, Let turn Operating me Chief to Graham over

Larry. you, everybody. Thank Hello

Friday, I the these well-prepared Thoughtful, in Marvel enabled and but MSA I'm well-prepared, XXs, swiftly to SCHIP the the times in us of for XXs fully you the team. I'm not XXXXs, many inheriting. the that's the characterize wars to price through I'm challenging COO, in of freshly and Larry, Like lived highly As know, tumultuous overwhelming about have or the minted my From tobacco industry. a situation how would efficiently. and move it times believe energized the not, are

a revolution we the we have sense we how allow Starting me exceed As off. in and cultural the the energy, us. summarize to before prepared purpose already with of kicked challenges with are and meet to look future

accountability, Your management with will and team responsibility. win integrity,

Let punch is plan. so me the company Winning the each to to and to we we everyone why Accountability above fight to and everything come that here hard means what our weight why benchmark, it's It member of tell the at to leadership you each other TPB. work, means team. the in industry.

We shareholders. have alignment across company our and full with the

outside Active by new bright box appropriately team we mean of engagement than the or personal box, is just what the a completely. member That behavior. the hallmark an ethical compliant accountability. comply think we drawn organization. ownership for not of and Integrity, the is is leadership to Responsibility. are the unwavering does that commitment responsible team head trade lines department and Responsibility accountable. but advancing a A the and be initiative, somewhat don't product may different

Both is do. winning organization. initiatives, new It components opportunities. are everything includes to and that actives, necessary new of products, committed an channel new we any organization new This winning and

fact-based We the work when will Hard competing and for as consumer and needs. be and making tenacious wants Decision important solving outwork our in talent focused on and is as is marketplace. competitors. intelligence just

alignment full with communicated across the clearly are strategies XXXX organization. Our

First, maximize core the business.

across MST expanding Zig-Zag focused iconic U.S We growth are the driving Stoker's portfolio on and the and both relentlessly Canada.

operating This and gross on Improving capturing deliver our We've and Next, on return through cost invested rapidly capital. a efficiencies. we spending leverage focused profits products. are increased cost efficiency. grown solid controls higher will successfully

deep preference of robust will gravitating consumer product We acquisitions. will to winning several data identify acquisitions, to. and can to products accretive And growth. most rich evolution are a certainly increasingly use outcome, continue in consumers are product The Identifying potentially pursue strategic opportunities finally not dialogue system that testing given. we emerging deep is our we tracking and We're forms propel ensures pipeline. in mean that but the that early of further certain a company transformative does

access and We the we will deploy capital officially to those company resources accelerate to have momentum. the

of in Stoker being driven Fourth growth are given record results Stoker's tobacco certainly also we up year to dynamics market for coordinated core a with positive the same in was MST one Despite point body Smokeless sales tests, share, challenge terms continued both enthusiasts initiated store both and and a those in digit selling with of the share restructuring store vaping at from strong the a industry. delivered sales remains only comprehensive business. exceptionally trajectory of but advances net quarter our encouragingly growing not sales and high-single quarter in by X.X%. plan, ago, sales full XXXX the year wins. a store most Perhaps a and

sequential third paper products growth measured to roller to share brand. smoking, remains in that. of With runway year Zig-Zag’s momentum universe bright volumes, for industry and XX% number on paper looks representing continued new the the Stoker's up XX% premium in one for and the ago encouraging. increased a In MST U.S. X.X% store period

U.S This distribution as hemp share total Zig-Zag in number available a the end, retail continues capturing of at market. XX% a year cones paper are the Zig-Zag now XX,XXX Establishing cones hemp XX% brand opening wraps share the late take Replenishment rapidly with encouraging trade. In our to stocks. fourth Initial has quarter, with in initiated shipments we is wholesale enthusiasm a highly the of rolling stores major XX,XXX with drive been papers rates hemp transit. outlets. Zig-Zag carrying cigar of of hemp depleting segment. one

on but forward in to rebound ensure also and implemented and NewGen, a Zig-Zag efforts plan. from Zig-Zag mid our place to be indicators gained and not and to quarter we of building carefully sales in late brand early program. cones will Canada, looking And expansion opening And and the the growing planned in the paper methodically progress expansion, are the both second monitored only vitality restructuring dispensary market. swiftly we're positive eagerly are efficiencies seeing against

just a enthusiasm actives I by. can I'm by you also products team gummies, tinctures product I've confidence challenges mention the NewGen and inherited will and and optimism COO trust, other exciting be pipeline, and of for surrounded sense the my fueled to in as CBD the the shots, new including growth few.

Bobby our And Bobby? turn a for it quarter with review of I'll fourth performance. financial that to

as quarter in the turbulent, Thank you, to disruption to program vapor the Graham. increased were unlock and designed an Company swiftly with results address restructuring moved efficiency. we orderly competitiveness fourth

smoking total businesses up XX% to our the Smokeless ago. year a As publicized highly were a sales with very in disruption, were versus both net performance and the ago. vape year segments consequence disturbance, vape encouraging, significant up a company the Despite of

I’m to which of XXXX that to our buildup with D, off profits. year-over-year So disappointed model a operating No you ago, started swing the you a to positive and NewGen year at do of fourth uses NewGen. one here filing A million negative in profit $X.X I operating than in disclosed quarter I businesses, a more encourage performance go respective shows million little look we to build I start discloses the the the point information the me. that there. from segment adjusted Schedule million same. going is XXXX. swung script adjusted NewGen quarter X.X fourth X the in I about When

reacted until the going benefits positive lightly by Segments not didn't lower we segment January December. volume negative take the margin. The in and but was are a something in get considerable we month

on summarize So going me let script, exciting some back new developments.

TPB the and required February ingredient Moving pathway, products on new XX. as redeemed to the PMTA FDA with for the agency disclosures filed

being for readied date filing XXXX. for XX, submissions are the May Additional next

approved share including total XX opportunistic the Directors be regimes the testing required, to million. will shareholder motion, and social, Yesterday in filings to Board returns. million these intended PMTA pharmalogical a for scientific strengthen execution the authorization million on of repurchase TPB XX $XX expenses With

of the XX yesterday April dividend which an finally, of to in to shareholders share, close increase XX% business the on as on Board the per approved of be March will XXth. And record unanimously paid $X.XX

And We We policies. to working XX shareholder cash gate, million the ended year cash stricter we even total was of year, are as from balance allocation. and to flow continue with the operations sheet to vape XXXX capital million committed of implement dedicated returns. strongest XXX with the on capital liquidity

earlier. million XX Net in the brand XX.X% continues segment momentum. reviews. portfolio and XX% sustained the grew Turning In sales Smokeless Stoker's deliver sales growth the increased net X% now Smokeless quarter in to MST XX% from to the up year quarter. of the for Smokeless, represented a to revenues

volumes Smokeless MST lowest by the Stoker's Stoker's tobacco with Smokeless its to MST. in with growing past X.X% chewing XX% shipments year quarter both and share Year-over-year outpaced the the industry mix retail tobacco few eroding X% retail to with up approximately volumes wholesale levels price declined a inventories in from In years. at entry were their quarter Moist in approximately Total X.X%. advancing by X%. industry chewing increased shipments from

I smoking digit to and Turning year-over-year by in wrap for focused products products. both stop to being inventories. despite quarter offset year cigar single a Canadian papers, for and net sequential of trade negative to decline ago the XXX,XXX XX.X wait Net on growth X.X the were pipe of sales increased those depletion a businesses can't segment. flat weeks partially comp. U.S X.X% million Cigar sales in non high of

MSAi According U.S papers Total low digits, smoking volume price for amount. cigarette while mix the fourth mid-single contracted decreased to volumes industry increased to retail shipments by increased wrap X.X% to cigar while X.X%. quarter by same

million sales goods. sales our media contra return Largely off-take to headlines general decreased disrupted were and Moving NewGen to significant million, trade anticipated, revenue products and inventory decline depletions. XX% XX.X segment, in $X.X riptide for NewGen where on including vaping total net reserve as a a consumer

reflecting gross FDA For and flavor NewGen million the and write-offs consequence as XX.X million of the quarter, accelerated ban in XX.X reserves a negative was PMTA. profit

Adjusted to was consolidated business. prior XX.X in XX.X quarter year. million compared Moving the EBITDA the to the for million as

In sales provided this million. release, $XXX also vaping PMTA upside morning's assume. This from no sales our with to projected XXXX XXXX net total which includes included of earnings XXX million XXX guidance, million we

XX Adjusted includes which FDA in XX million total XX million EBITDA expenses, X XXXX. million. XX spent of expects million million of to company The PMTA to

have a first calculation. PMTA banks a in Our quarter And for agreed million XX carve to to we sales million. XX out the expect expenses EBITDA be adjusted to the

excited very opportunities Larry the to And the there. more for we as continue that back comments. with to I'm I'll discussions potential turn and come, about partners targets M&A call closing evaluate

Bobby. you, Thank

I be. welcome, at Reality it as setbacks great see temporary are often as the motivator. hoped to us task it is the hand. helps never While I've on chosen always focus and world a would It is not

smoking business. products. tobacco in the exceptionally in core both grow XXXX and to did First, well We Smokeless

This which delivering and to are objective leverage. priority contain aid Second, control psyche. in will XXXX our in embedded operating costs, plan and improved

secure Next, paper leverage to opportunities, like to cones, can strong revenue our for new meaningfully new where identify market we equities example, streams. existing

And committed shareholder engaged quality finally, remain accelerate that to acquisition very growth value. identify we can candidates and and high

committed participating our remain to company for resilient remains and solid journey. and call the Our people the in Thank today. you

with And like Operator? to to that, the open questions. call I'd

with Cowen. Instructions]. Vivien [Operator the first And question the comes from Azer

today. Steve is Schneiderman pitching Vivien in This for

in would The seen data start Let's suggest the on not Nielsen category. we've vapor. far so an improvement

by certain you So you are portions And please open, expand your offer perspective exceeding type closed vapor so on comment XXXX of the Thank your market a can your system expectations? and expectations you. early can in thing addition, on disposables?

small So all of doesn't fourth that. happy off of the systems, as other fallen almost negative happened the of that not out see much we in October, has market a the sheet retail we went of who to balance and dramatic quarter, thing kind nipping go as still were show the guys have effectively our perspective out in November, Like There market. we, and the for are to heels guys is the entirely nice so own is the from guys I'm had vaping work have that. those kind cash, you was business. is which in to pullback flexibility there on up know really that's maintain but are our and our can But open we we Steve, September, Nielsen,

market just taking we're So share this point. at

great. Okay,

returns coming recovery inclusive the it, from? million you where should that we place sales, of XX.X if seeing we you're where the of So with think finished riptide, run of rate when the further in the for guide about think quarter XXX headwinds for the a vape

Yes.

got in in process you've be play the in that's May. we're there's expecting to just third second going of sort And a and out market -- to that So noise a going of PMTA the quarter. the lot

back of up we're bit will second expecting slowdown that and kind bounce quarter fourth little in of So a quarter. sort of the and a in third

giving PMTA for which Now, credit has we're not significant enough upside. ourselves

business they that's down. the of one that to we're employees, with maintain being want we few now, we in end a manufacturers come kind with out our the its right vape noise needed in, also but participating our cause So are like investors, to and being just bring we PMTA just or where conservative optionality of

So dollar not are to we every grab at We're looking costs. being conservative. -- at all every

And so it's of just third the a second quarter. right now expecting we are slowdown kind in and

All right. Bobby. Thanks,

how period? Imagine Nu-X NewGen or was you have out? And progress selling Within in sales, it the sales. last caught in that CBD sorry you on specifically? up, still some you've short was Nu-X after much on probably being inventory How

Yes, so out. we are selling

were going was it NewGen keep size to as it's because frankly part sales Nu-X And to sort disclosing, it's us. that of it's Some a going investors. we're just confusing to stop proprietary to of gotten

rest are year-over-year. was XXXX. very It's business. about But integrating excited also significantly be So in It's it we was It's of strong up going it. the a into to -- business. it up our

in of On of about think X,XXX We're through there. CBD end excited that's mean, side, opportunity went ubiquitous pretty plus Hudson percent. is stores, other it the like, at XX I saw input CBD in forward. I CBDs the day I News the plus we're the airport the the X,XXX pushing we becoming XXXX calls. input costs down in The is and more on discussed as sort previous so

starting it creates have it's we're So points, I And to with over huge meetings the sub excited massive chains, next accept of is grab also a us the past over really allows about. month price XXX XXX lineup tailwind those we so from chains slog, a the to a year, costs it. which and are really mean, and

this all pumped And this opportunity about year. so point. about pretty at It's the execution we're

bps. a down the continue Smokeless. during something was promotional the major expect throughout Well, cadence the bit to quarter? profit change Gross we this XXX little to in is And take was What should that let's XXXX?

Look the Steve, simple. we got tick out tickers didn't pretty is We just year. last to embedded is of chain the of We question those you the are And the year had chain massive we big caused anticipated that we programs accounts that accounts. Hey, essentially of of growth that the, that then into at some a that Graham. those answer had wins anticipate that this chain growth out nice down. some that have end

were, we million Yes, we did six a in like expect just five we just -- we ourselves promotions or we be share -- we because not on didn't, see annual didn't found offside $X Like about the to to we expect happen. that Speedway. a

at fourth the end tickers more the quarter, that the really so be, of than program. are so that sort it's of and year, annual in not they're come things there And would it's

set it sort are in seeing from out a little so systems systems Those as are because we catch and that was in depressed have place, those And We reviewed allowances margins to spread up throughout will fast here up growing I -- and a was of perspective. business year an allowances. And you're artificially we put accounting do allowances that now perspective the not as perspective. be there were very a now think, from got I XXXX. those to operational from had an was less

so a wasn't fourth just sort And It quarter really promotion. it some catch-up. was of

be buyback duration one of the because term seems in know lot the that based one close? on long a But buyback, to about be would it. be outstanding you is me, I your the program, it of certain shares sense. would the on for That used opportunistically. And last makes would XX% doing Bobby, Got yesterday's year all how

today. day on really with about opportunistic. got we be dramatic. about Canada PMTA like to Moist end business doing this going really what's We is excited in provides massive feel Zig-Zag. that this I at we've We're mean We going the is the the alternative We're optionality strategy feel this good think Yes. of Zig-Zag, great. on

investing end And better kind our in And use to it. things look our the liquidity of and monthly of an capital business is is a capital that's sort of use going on at just buying in stock so way we stock do so basis day, is and to of that there we're our so there need see the a we evaluate stock? or that that's there to are the of It's improve that. we're a the there -- element doing at of better

the And to is toolbox lever another return. so just buyback our drive ultimately in shareholder

And then question Anderson with B. Susan comes Riley next from FBR.

that as NewGen restructuring XXXX, I look we I kind growth as mean, say differently or we quarter to the benchmark of the is guys with Should to guess we just have at to follow-up that for it out and operating? -- out think a should with restructuring now all activities XXXX undertaken. on we fourth margin, Or done? you look look about you've

there's the Yes, - up. of get to the gross want I that margin end we at day, mean

so sort where And perspective. I that's a is an is of our will from XXXX say investment year

a it's viewed to quarter the there competitors depression market little be as low. liquidate. so, we in are should there's it. who just as would and little we of in bit think And and volatility a a quarter will second at look bit way have be the third through, as of the go going That's I I But fourth

our was going We're not mentality would I you chase year ago, not, a to that. we're to tell so And that. chase

that plus we're XX% holding So focused and margins up. on very moving

change it's business from where a So that's perspective. a transformational

market versus the opportunity I share. Okay, MST, like and have share you and Speedway, is again, change brand Can terms you're expansion great. Stoker's longer the again term success like that for where's given in then your then the share guess. I goals competitors? X% seeing said your And door of That's there X% guess And growth think I market nice sounds grew us on or helpful. overall, remind but you

we're we We to only distribution. got and to that's also stores share a at and the now distribution Stoker's, brand of chains, brand. that for we've we're lot consumers knocking had but the Hi, to is with and new continue, is down Larry. Susan, capturing we new pleased promote pleased is be growing that continue a expect plans not to this what it. about Stoker's consumers, organically were is very love X.X This running right in

sounds This good. it's how know Like then the opportunity could the a for I any exact little maybe Canada sales around longer if big term? early but that'd That this be innings, about could partnership? Great. that talk just And you bit thoughts be? the great.

Susan, closer keep to day, a at a sell kind the end that we're in maintain little going to of of zig-Zag Canada hasn't third-party really we in the that, to the brand.

And the so brand a XX% there's, has that, despite market share.

of So opportunities, XX We at or is the want an there's opportunity end dispensaries so shops. XXX%, great. a the and and alternative

so that's is the where the play U.S. we're coming. is in And same is out the market the growth is seeing in, dynamic where this

we there. up Like to So see opportunities growth. chase we that significant need

just robustly. on papers Are which then you I all guess Great. from cones, to cannibalization grow at curious seeing the And any cones? continue the in the

other. the But will that reaching are for each Susan substituting so people. is are natural. fact Yes. the already be much cones There additional that

to positive want net or [indiscernible] occasions a paper to prepared the So brand. is it rolls. just accretive have people where

cone Larry told booklet and box sell a price, that's so that it French really it. from XX got sell versus same a leaves in our are are in six the Americans Susan, cones Larry, me that here, has perspective, we got I lazy, cones for -- orange we and in wisely

There's cones. gorilla on a multiplier And papers literally is the opportunity. orange the somebody so, from XX math converting to by French

perspective. more just consumer. that's the it's massive convenient to our So And from

Yes.

up there. we've indication has were introduced an you give and our up. Since three to quarters for Just gone cones, share

you this much quarter and Nice Nice see NewGen. strength business to year. the so Thanks luck rebalancing guys. for job. Good

from question Buckingham. And next comes Clement, the Jamie

Hey, Bobby.

signals, authorization, of is the any the clear share in be it? pipeline, enthusiasm in that lack deal dose to the Just relative way repurchase

would Jamie ship We are tight And vape right? deals we but so extremely the deals like day, you aware, we And end gate, have for add quarter. guys think XX terminated of real to gate push them in at And vape No. it done wasn't if I in the run we people, disruptive. the and management require was like through. they pipeline, all a fourth

pipeline and done do that The is resources strong, be dynamic. frankly forced did pipeline of and back deals those dedicated the we moving around companies move table, offer deals. where -- bid So are you stronger. said to is I never to the some it's We which is the deals summer forward. getting to frankly of But are want have that management still for late interesting that on is there sort bunch that an a in come solely

companies. is And tell industry that. so we a cannabis these are it sort it's when I just of just carnage there comes everywhere the and blood is We're to will issue. set you, massive. -- evaluating CBD It -- opportunity is capacity

we're we cleaned this Jim got our business, get books, we've -- done. going it's So the to which stuff Murray up reset quarter through, moved to straight deal making, is and awesome

I rattled of actives? Can could as you CBD you other you, I off non-CBD pipeline? a product turn if little bit a about couple just talk Both And great. know things. Graham, to as well Okay, new

Yes.

belief with consumers for when consumers. price of arrive in that So acceptable channel a mainline points CBD going we've went focus channel. around the back half our the are the XXXX It's will to for in smaller products price on of that points sort

lot time products for so sense developing And the we of a spent half street. made the down that the of in back year

that active large other marketplace. the active ingredients see for the in sold Like in the are largest time, of At probably take same of swaths ingredients one caffeine is coffee, factors. instance, you these form

inhaler. we've And caffeine a introduced so

form active our it known makes put taken with sense. And a that a and core into we've So ingredient factor competencies.

of to introduction So CBN. you're also see CBG and you're sort going cannabinoids to see the of around some caffeine. like going profiles And additional development

website, away into onto go to on want two cannabinoids. and you we've if So other got cross website, camp products there CBD from our sort of now you'll that Nu-X see the that the get

alternative the down first points these sense looking step for warfare. the trench in form it's of street and makes actives factors of and at putting them So our just terms sort in price that it

the that there hemp of the about CBD you I just and chain? right. kind I were read articles actually a you that then you thing And couple know terms space. for problems farmers guys? of in in Is supply the Okay. think that hemp the good worried general, in on about, talking having I'm some Is a what anything

of see is the one So -- get Larry buy of a so Jamie, the forge hurt. like FDA that takes big real only champion so hemp the end getting then The Congress, hurt, you that -- chain regulatory likes a a weeks and a at sort these can they're farmers mark no and to But negative, bill, more. fine creating walls all I farm and personally time on stopped supply to we world on the few were you part and the is farm a want and the ultimately where of the ago. went on. they day, farmers having

really there's you So tell out would there that's more the only side the than negative. hemp processing I capacity.

-- at liter supply were chain now underwriting XXX now, CBD $X,XXX fine. So X,XXX we can on go Frankly, to people liter I there's a is ago. capacity. and a right year Right CBD unlimited buy

issue, chain. we only feel that's farmers correlation a issues not great. these is to amounts supply are there, never on and out on than CBD really great of seeing just the that unlimited about concerned There up is Really, so that got we got Other we're you've That's that we're about work thing that any side. it's hurt who ugly. building

the return Lavan closing for session. floor questions-and-answer I any conclude Bobby to And Thank to like does comments. would you. that to

Thanks everyone.

and the to to there the few aggressively road you Talk going investors see are We over months, on meeting encourage are so and be I website come soon. next you us. with

presentation. conference today's is Thank you you. attending Thank for concluded. The now

lines. now may disconnect your You