MedMen Enterprises (MMNFQ) 24 Sep 212021 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the MedMen Fourth Quarter Fiscal 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Officer. Financial Chief Fulgham, Reece Please go ahead.

will afternoon, Thank issued the am Bossidy. call everyone. and management I to your today, welcome, by you. On we our we open call, Tim Good joined COO, CEO, Today, and remarks, and Earlier and Tom will on release, prepared provide questions. press today's then the and along ending Company's XX, June quarter our period EDGAR filed press with fiscal on release, available year and a full fourth MD&A financial and website SEDAR. statements XXXX. the announcing for Lynch; XXXX are The both results

and we today's and risks to uncertainties to call in Before by materially are remind that on forward-looking and actual statements. results expressed those could include differ the the forecasts statements, to which, comments forward-looking estimates, like or assumptions I'd will from involve outcomes their subject you begin, nature, cause that goals, projections,

operations other predictions expectations, Forward-looking our future call, and statements strategic speak conference sources events. among as new to, our and not the plans should of relied relate business be expectations things, of forward-looking of to date of our operational, only statements as These for and this future MedMen, stores, financial, funding. upon and as the of

with and the release States press United Additional Securities the information Company's factors and risk Canadian Commission, in the provided about Exchange in the basis assumptions filed of the reports the forming Regulators. are material Securities forward-looking statements, and factors the and and

EBITDA, are corporate are dollars prescribed by release the do to to retail GAAP non-GAAP otherwise earnings as that meaning contained U.S. indicated. have MedMen release. not information in note, is we any refer Reconciliations Please unless today. issued will earlier today's such and press defined financial all standardized in SG&A, adjusted EBITDA, call, certain conference the provided press During in measures which GAAP, measures

over the Tom. I'd with to turn that, like to call Now

with afternoon, plans now we growth growth, back is this MedMen on trajectory believe progress, to it drive another for where in done to update for our to the that in months and the XX year we North and the of company one turnaround past transactions a will return joining fourth execution was When sales We've the Thank pivotal fiscal ago, joined drastically have announced quarter and retail power us retail adjusted we set future Serruya that. XXXX. and EBITDA leading company's a to as four this for transition growth quarterly out structure, recently improved cannabis performance posted MedMen. which you, everyone, including financial aligns The well quarter for brand, America. generated stabilize brand our We've positive Tilray, quarters. provide momentum we and our the expense on as the consecutive

Looking ahead, the we company-wide our plan push accelerate in profitability coming to growth towards and quarters.

California, our we leverage recognition to Florida, brand As new growth Arizona. Massachusetts, in store drive national

in trends continued the Let's at sequentially increased was positive third sequential show sales other sequential MedMen. The This by $XX and fiscal the highlights growth. year-over-year. driven now was frequency results. the fourth and $XX.X states was traffic greater coming Illinois posting and of quarter for up million than during quarter's at review increase it and transactions fourth with XX.X% sales broad-based XXXX all growth quarter to revenue million from quarterly Revenue from XX.X%

fiscal increasing had have The place EBITDA prior better year. year, to fiscal reflect slight $XX.X for two While moderated a million COVID adjusted And from from dramatic performance the our of Profitability metrics quarters. full year a a pandemic company. versus turnaround a million EBITDA a showed during in year restrictions on to year ago. much million the the decline first ended fiscal our we as year results, $X.X we of last the moment fiscal half us during impact reflect profound million $XXX.X particularly 'XX significant the $XXX.X Company-wide improved revenue we for the is retail think first, a This million. context where focus the saying, and in 'XX York, adds a we to to needed taking reset, We can QX to of on have New started. total, this by negative year-over-year. quarter credibility turnaround on to In especially exciting profitability $XX.X and to we million growth, before adjusted we was it. now approximately and started, turn reported platform inclusive do $XX XXXX, the EBITDA last

approximately a $XXX onetime was loss there million. add onetime that difference EBITDA quarter's is million approximately of $XX adjusted of a million. a quarterly adjusted in EBITDA This operations. of base inventory add-back been million annualized would The between over adjustment also $XX $XX revenue quarter, total this in back, Without that have

to our to damage. strong to of it that. me adjusted of Let at allowed gives our us amendment revenue incredibly done and all management partners work balance trajectory point, operational our be overlevered And California we're and investment, balance be. to to operational shape because restricted The Nevada. had Also, our one the has $XXX and We debt, transform due This in a to stores capacity looting Annualized completely expertise repeat think progress brand. and firepower At attract scales to number renowned and extension same to us along and needed with time, is the $XXX match much were equity our how sheet. over flexibility close undercapitalized focus work sheet. million pandemic needed a and EBITDA we to the important in to million. that the needed severely context where and of with

a company. to high-growth cost covenants, MedMen is convertible an potential reflect portion of Tilray, administrative our by burden which and amend agreement refocused and previously of to Gotham transfer and the to the high were notes, large notes the With have driver our we a extend and fact

Massachusetts, opportunities years over operations sheet eliminated near-term X equity and prioritize us by including maturity by cash and the Florida, paid Arizona, Private California, States. debt Equity new to Illinois Serruya existing and allowing expand service, balance United across $XXX key the extended led in million management. further also have its debt allow We The market to and opportunities and markets, accelerate investment identify growth MedMen will operations

risk all The us key most these growth significant We this us execute markets, for for have recently the together on on transactions of fresh to and reported and going in capitalize plans. financial opportunities our opportunities also our capital have our allows growth to remove filings. concern language allowed two

see progress on to quarter. continued We during profitability the

compared retail tax our fourth which improvement as negative retail addition third the period We In of X.X% year, in fourth cash across of this quarter to EBITDA, by This annualized footprint. $X.X measure quarter, up million full our posted $XX quarter last the million. during $XXX,XXX represents year. we was positive adjusted consecutive the flow to comparable after an from and the

the side, about grew of increasing half sequentially expense SG&A growth, the On X.X% million. corporate $XX.X rate to sales

As a reminder, at $XXX SG&A its approximately annually. peak, corporate the was million company's

Importantly, store in of onetime we corporate felt predominantly we additional $X.X to for XX up excited SG&A bonus new openings due benefit to forthcoming we our took growth headcount million had prospects, about markets. QX. our scale We're a reversal growth, in not because key was planned with but was

six stores new stores Massachusetts plans the our Orlando in to opened months, over recently Florida store, in new our Illinois. to in and over two addition two include nine next nine openings current California in the In months, one six next

our plan. taken these forward profitability this execute the We As we highlights. on for turnaround step generating. progress expect is come our have revenue hand numbers, over the we key we online, to our the believe operational support could of and brand patience Tim the new recent significant appreciate from capable excited a growth We paid We more stores and of elements profitability and with we executed on as from and that, continued patience as Bossidy metrics. be this has believe plan stakeholders Serruya revenue deliver Tilray With transactions. I'll not it to off

thanks, Thanks, today. and Tom, joining for everyone, us

through in now is was quarters, Like fourth up about X/XX week, revenue up of note that discontinued Holiday. revenue this scalable day that upwards. will up to revenue comp was what our up successful to a we us the the ops, plans are Florida, on did exciting week over this of level, generated during the progress XX% $X to bone, growth. about but XX%; touch about scale did about achieved up were itself. in down that cut, pieces million our brought shows turnaround continue drive to have restructuring during I'm What I and $XXX,XXX we there state in about MedMen have XX% California broad-based versus as by over the I'd not of quarter infrastructure as in cut quarter was XX%; to set motion to about third MedMen. in about fiscal sales I process, last we while New more Illinois it X/XX on increases detail. That we the in York, in to will the are and quarter. to Nevada our history we number like than landmark state is Tom, ever platform place Certainly, and also refine proof quarter-over-quarter. Arizona, excited of for At most we improve the walk revenue continue and model. future In future-proof which we and ready in have opportunities the future as and slightly, QX. XX%. our more well As state few we

facility, the Now gain XX%. the nearly infrastructure I as retail. cultivation before momentum 'XX, to and also manufacturing we have footprint, for Arizona we At as sheet, in look year-over-year, facilities. revenue We're ahead, in increasing our our and momentum at growth balance starting doubled a mentioned significant stores Mesa, scalable

just we adjusted with facility, We also over that we generated positive adjustments at inventory XX% Florida year-over-year how we Those essentially Mesa associated is our at quarter. the posted facilities, EBITDA here and Both these Eustis revenue generated operating highlight strong sequential for efficiencies. for EBITDA and primarily Eustis, write-downs in mean the improvement trends But cost. positive with the sequentially. for XXX% quarter, saw increasing also

previously continue we identified both potency, make continue in and to now Eustis, potential strides at pursue. the Mesa, at we and to We expansion discussed have to addition opportunities in expansion yields

million. during company's fourth higher California sequentially of as focus COVID line included: more for in $XX.X XX.X% California little granular well, EBITDA as Key accounted sequentially traffic-driving XX% state, quarter and top lift. first, restrictions quarter the drivers increased grew California, began on a in quarter driven retail initiatives to state volume. the to the revenue in Going by by a

and our strategy. we engagement e-mail as rate XX% CRM Specifically, also pushed increase by in a sent saw increased we XX%, we

also we we this based segmenting Quarter-over-quarter, to ramped XX% process, pilot. and very habits promising responses our since saw began are purchasing revenue this of increase content loyalty card initiatives, this have and past part to from carry hand results up including customers As and their on loyalty testing seeing content. a

We Beach. billboards With at-home also on including a creative revised Boulevard our our and locking adjacent highly we in in the in much Street well-traveled Long fun strategic out-of-home on engaging where store Second feel. better increased Lincoln advertising, in and also we're the encapsulating Venice to our advertising, places,

jumped We Red XX% in quarter, MedMen lead also at it continues continued success in the revenue million number about points of with price where our entry-level in to $X.X a private to seeing label, categories. another

open plan two San next over ahead we Francisco in California, the in to quarters. several Looking stores

Southern next two plan well to off the working our 'XX. of private location our to to location months end the by higher offering improve continue existing launch build Street with open success Red. on early footprint, our as to city are expand label this we closely label Union leverage our We our calendar in and the connections and insights In MedMen in industry existing as a private fall, and and Street

pricing increasing. this first, we also our a build adjusted retail meaningfully Key included: initiatives strategy, through in demand with additional driving tourism sequential back We deployed and quarter into performance XX.X% In $X.X Uber taxi we for on And bring into Overall, scheduled line strategically XX.X% sequentially and on are currently and Lyft Nevada quarter customers digital looking in Nevada billboard a the our have and same-store drivers sales substantial improvement. out for think offering delivery. basis. toppers, are driver Nevada, the grew will on continue to to we in incentives room replacements. marketing our We to our are investing focus million. to traffic digital with team test finally, we are on strip, the our during more add doors. build delivery, stores to pleased EBITDA billboards and of to improve a on the where increased fee-driven company's testing accounted

the e-mail also to in Further, the engagement Downtown copper develop actually got events communications by also the car We quarter of in increase Friday's weeks such Loyalty a next strategic in We've Las popular that leverage several as as vapes in XX% counts. resident increased in revenue total communication increased more First XX% and we XX% implemented partnerships, are increased and the launching increasing and Vegas. specials. we begun off saw local Nevada.

and inventory tight Going forward plan a issues better particularly addressed file MedMen Red. The missed how as fall in here. the of strategy. the what tool. shows Red also which testing revenue on and category doing to market tower in label forward, in well quarter, MedMen opportunities this to valuable some in against the Nevada, supply our go to Competitive pricing led we'll we category, were are in Vegas, and we end continue private the upon us success as we're Nevada analysis optimize improve will similar also around fortified particular to be MedMen higher expand this think working aggressive launch the a to in be in pricing, we have We're where we California discounts Red offering,

relaunch plan our in going live in Paradise to location. with delivery also We November, Nevada

spring's showcase working Finally, our to think and the the our the for with X.X% remaps, difficulty] retail accounted us. engagement. on adult-use. since over are turned which, the drivers retail during and XX% phenomenal we're we're we are in quarter results create paradise the investment to thrilled traffic an Arizona also days, consumption deployed Arizona, after thrilled by EBITDA. looking We grew will In early communications lounge focus e-mail in adjusted XX% increased be and quarter, of XX% this we driving in adult-use. to a million a in seen We drove platinum market we've resume while our during transition included: brand it the to location, in to $X.X equally a less Arizona for on by [technical strategically Key placements company's market

grow, achieved year-over-year in our room also and that agreement there. and Kiva. but our As drove is comps given our manufacturing mentioned, with we growth strong cultivation only for exclusive significant manufacturing EBITDA in positive There operation, facility not

including drive And cultivation our yields to on market of Arizona, cultivation opportunistically pilots, Looking some expand our we believe, the offering, upgrade of ahead we look this in plan retail which approval and label CoAs already with cannabinoids to be wholesale, seeing and manufacturing, ways will note, in and to our range. private total our will label, private that and expand distinct the at capability, to both into are XX% some offering. increased we continue

state a company's adjusted XX.X% the to key quarter. the In private X.X% as see return of $X.X rep of in the that a same-store to retail well quality for the label market our modest from decline through As build million. through continue a our decline accounted different store one as program. bit a and new in strength drive pricing finally, sales our sales well suppliers of marketing attribute we Illinois, programs as our suboptimal visits competition. EBITDA increased given to We strategy customer loyalty of did to of The

with events we we In seeing for we subject to 'XX. quarters increase there rates product while through and and as a in location, the to are Grove spring in the in make offering and by drive lay future repeat lockstep delays, our strategy. to our about working Illinois, is communications cards, special that business well pricing to are XX%, e-mail in then We increase and revamping did We engagement loyalty this as have frustrating at future need by been XX%. about opening enhanced plan our we our and new that adjustments comps, expecting location open note our Morton think a punch new groundwork assortment in-store elevating strong we and development

to customer to and increase bit and the and broader all platform, The within in for retail for systems integration into to issue EBITDA isolation plan improve of $X.X sequentially. of we customer state marketing be currently and sales Illinois, X.X% loyalty bringing New the driver to systems in a are XX.X% increase York, have nice we we the this to MedMen together guidelines an is program think interim a working acquisition on adjusted program million. going also a accounted us. really as better a place In in state company's increased help same-store permanent third-party quarter increased retention a We

including ops, is we towards to that we're York want to regulatory While helpful letting to new a did still in - continuing we with approval increasingly are service. Ascend wholesale work this assortment we be continuing to are offering, grow customer the on continue our business. it confident store up where towards discontinued we differentiated regulatory Mass, we while In on openings, here drive note in of we New to progress approval. investment, implementation And not show based subject the and retailer will

to our quickly with hope to We location for And open are state we the November ongoing. as as a possible. is working right done get now, are inspections and state Construction approval. opening final subject

Mass, in and evaluating opening in read and have lease the potential of for a excited announcing the billboard Although a requirements. we'll in Mass prime of we delivery, advance advertising with we send our for secured restricted also On location. placements compliance cannabis, of to identified messaging which final guidelines have in partnership highly are be we We've maps down timing grand area, placements desirable a upcoming. locked and couple are the outcoming vendor already are

XX.X% as potential once are the quarter, MedMen a city percentage sequentially X.X% In Massachusetts company's sequential have primarily to $X.X in expenses retail million. to new store. our of for operating still aim we to partners to in identified due the in Beach decline Red of open location Florida the our several We the increased Florida, revenue of new underway. retail revenue 'XX Miami adjusted launch accounted state EBITDA and with ramp-up higher to approvals. spring subject also And operations our

the internal as and based to also and results our cultivation how and progress include driving the much increased, Potency Key manufacturing, facility even Florida We credit This marker low. a accounting. improved of quality is saw more there efficiencies count is team made. positive on EBITDA in showing a remains operating huge product. at sales we've MedMen's at noted, level history the our SKU better drivers and of in increased fiber though first

by e-mail we another future the SKUs XX%. year, plan are and for - early engagement revenue well the We year. XX SKUs now our - we is double so where XX% of to almost improved at or also next increased expand by coms which Loyalty and over about expand quarters, assortment by XX end by over least

experiment while our this we are, price standpoint, think fixed alongside Pete, Orlando, and in leave early then of to there An differentiated need educate cultivation And with This might from to enormous how point patients I our cultivation inherited. we strategies starting to of mid a facility. year our be strong maintaining expansion everyone Florida and We value. refresh We're operating is plan the want peers. of a important genetics launching underway, we end nine back the in Shores. of St. providing can our Coral need to into more we quality to both do the amount excited high to stores program. also standpoint, promotionally our compete the need competitive delivery the be market of by is around end leverage we We of a the better tremendous on competitive from this while product We also is business, in an through 'XX driven into expansion. pricing to that October, Miami absolutely product quality and need our additional fact, to open from with amount given margins, costs We but be standpoint.

the With phenomenal MedMen I'll our to we of As hand and profitability. story execute on one the we growth that, Reece. plan towards quickly drive footprint, will it

Tim. Thank you,

financial U.S. Also, all in let domestic the SEC in such, U.S. statements note quarters, are today's consistent with call First, with prior prepared GAAP. of a issuer were that and accordance me are under the rules we figures considered dollars. the on as our U.S.

measures indicators. GAAP certain be to we refer I'll relevant addition, to believe In economic

find by further on financial You Overall, progress to and solid continue operational metrics. measures most our financial we make can in these press quarter-over-quarter information release.

are me included million which states, were the revenue operations, XX.X% mainly Illinois, discontinued our New up in $XX.X as quarter. million, the prior operations, Arizona the which was driven First, XX% which were address but for classified was operating transactions except in classified fourth results company-wide for up operations. by retail Company-wide are which let for broad prior as the as currently $XX.X operations, growth GAAP results, operations fourth and continuing quarter. Company-wide quarter, includes fiscal now all our York previously from than the lower across retail slightly quarter discontinued

from or for quarter the from million or fourth for operating quarter. increase quarter operating an XX.X% million revenue, retail the $X.X totaled expenses year, of and prior and gross meaningful XX% was the business revenue of increased full margin recovering company-wide revenue. retail for compared down improved the XX.X% prior the COVID-XX quarter the progress million XX.X%. $XX.X million, Company-wide and the of million or or year. $XXX.X million on of sales by California by retail Nevada occupancy California quarter-over-quarter, company-wide impact XX.X% X.X% from $XXX.X The continued was revenue $XX.X XX.X% prior Nevada in to For of expenses retail restrictions. $XX.X

company-wide a million. for retail company-wide million adjusted was XX.X% reversal of $XX Full million or Company-wide operating $XX.X up $X.X $XX.X $XXX,XXX. $X.X prior from Third a included onetime from revenue, $XX.X quarter gross which year. $XX.X prior million of is year Full revenue, expenses negative than bonus EBITDA and higher million million of than expenses was the EBITDA retail margin totaled million retail higher year's year. million of the quarter revenue, benefit XX.X% or XX.X% XX.X% quarter in $XX.X of or of prior prior adjusted or decrease the the the year

million or For compared last XX.X% quarter $X.X distribution year, retail EBITDA, adjusted revenue the of million full which was $X.X to or $XX.X Retail of year's expenses $X.X revenue. $XX.X was XX.X% fourth higher million. including retail company-wide was revenue, XX.X% expenses, the the Full prior is or distribution year EBITDA adjusted including EBITDA, million adjusted for quarter. than million or XX.X% of

As in fourth row across was Tom mentioned positive our footprint. of earlier, after this quarter a flow retail cash our tax

sequentially. from earnings a differ and and quarter. reclassified operations The fiscal decrease Full Now impact year-over-year the totaled reported primarily continuing million $XX to related Revenue the continuing as for from totaled the prior discontinued discontinued prior quarter prior the take year classified continuing quarter for million for we compared of from year XXXX operations operations high Arizona the in presentation $XX.X revenue, New have million, Continuing million due results prior level release Nevada. $XXX.X operations quarter million our as full in million $XX.X today. look continuing as year. our fourth operations revenue of the our fourth continuing quarter increase California deeper operations, operations. the $XXX.X $X.X York or basis, XX.X% from an let's million, from the year from fiscal we in was operations totaled the Continuing the of a gross restrictions margin to as COVID year. a gross up which operations margin from fourth On operations XX.X% or totaled increase have $X.X financial at and fiscal $XX.X is million

margin preceding partnerships continuing still Mustang, the gross selling, totaled general million $X.X higher operations, XX.X% or we Fourth where or overall than as significant cultivation XX.X% $XX.X fixed prior expect year. is at $X.X We and quarter carry costs. deepen going DHS and in than continuing quarter administrative operations forward our which expenses million, to million the and lower improve we

reversing $XXX.X year. general million, For the declined was Corporate for prior from XX.X% the SG&A full or quarter. was $X.X QX, down or is expense an prior sequential a $XX.X bonus year, million Primary adjustment reason the for and million $XXX.X the X.X% recorded $X.X to million, lower quarter of selling, continuing which higher or and fourth XX.X% expenses million million. accounting $X.X than operations, in $XX.X the year accrual administrative than prior million increase the in

For the year. which or $XX.X $XX.X the than corporate was million was million, SG&A XX% prior lower

For continuing operations the in Included loss million, totaled million from charge the the of asset net fiscal $XXX.X loss continuing $XXX.X year, improved year. an in which from impairment was $XXX.X XXXX prior from operations million.

a net from For shareholders of to $XXX.X loss prior the of full MedMen million improved year, to year. Enterprises loss attributable million a $XXX.X loss the in

from net improvement per loss average prior of XXX,XXX,XXX, a share an from continuing year's operations loss $X.XX. of driving was weighted share $X.XX, per year, shares fiscal the outstanding For the

Turning our to balance sheet.

fiscal was cash As of XXXX, including total million. cash totaling able XXXX, net approximately in company cash the MedMen $XX.X investing financing of XX, assets had $XX equivalents million, of and from June activities $XXX.X raise to in million.

instead, under Tilray the sale XX, date the and flexibility and to a to notes a representing on eliminate the aggregate facility, majority to that August of obligations eliminate objectives. maturity Under announced million of we the achieve and restrictive and components, XX% note turnaround acquired including: the funds. the $XXX service the to to solidified restructuring in announced amended previously XX, outstanding required one, restated and of convertible cash certain principal connection to an extend notes million eliminating provide GGP outstanding the senior warrants both covenants. approximately restrictive two, investment company. and transformative interest and August facility. requirements fund of from other of Further, amendment Partners terms As equity of secured the XX% covenants Prior acquired subsequent with several to convertible year-end, provide the Tilray XXXX, modifying kind plan in amount cash XXXX, to other facility pipe convertible integral certain strategic outstanding profitability maturity notes, $XXX and and for XXXX, the note transactions notes payment extend to company of the until any secured of the million transaction, new warrants And Green debt debt $XXX.X GGP the the of the and interest investors Gotham

the the Serruya it's financial would given of letter, group redeemable update improved the pipe well, to restructuring a senior by annual the the liquidity, another positive of senior in which This investment an that a resolves successful notes, I addition stabilized investors secured of existence the Private important $XXX recognize table conjunction to notes disclosure concern cap XX, with of In for to convertible provide with to opinion properly in closing management's we think announced Equity. conjunction the I condition. the was subsidiaries. on MedMen's convertible as led million transactions restructuring going the removal positions financial on like requirement our which growth also profitability. secured financial further of evidences the forecast in at of outcome critical of our also August turnaround securities with turnaround company significant the audit

retail approximately for overnight position had shares scalable to continue transformation made will an I'm all store which and redeemable best-in-class aggressive operations cultivation and MedMen truly very our we the importantly, executing operations XX, expansion schedule, redeemable is be without opening one-to-one capacity executing not growth. results, company a September the thereby leased unlocking and operating by to management for on team XX,XXX,XXX the infrastructure, shares, voting properties, occur additional improved voting challenges. from subordinate and progress Overall, and which shares are value but This liquidity, X,XXX,XXX,XXX of encouraged stabilized As subordinate is and on offering not the exciting. of portfolio unopened focused to basis.

However, I'm expenses of rationalization I confident daily through Massachusetts, Florida, California, Arizona, continued assembled expect of to revenue. the team is task. a profitability the MedMen up our of and in Illinois, and as methodical footprint continued progress expansion percent Accordingly, reduction

customer put world-class while basis retail appreciate conclusion, of market MedMen offering uniquely to and is and cultivation cannabis as unsurpassed successfully operations, day market, and continuously prudent and very support. sincere an experience our stewardship I thrive team to In remain financial MedMen to effort want would customer our improvement is I developing in for my optimization and our a stakeholders to experience. growth resources, day like personnel be also positioned appreciation believe Continued their the production that of the to improve and use outstanding strategy. our of provide express continued in execute by various forth the our to continued I members immature on product capacity matures sustaining out and cannabis excited and the I normalized. this involved recognize

will We your call now up to questions. open Operator? the

the your of Genuity. Matt line question [Operator Bottomley Instructions] of comes from Canaccord And first

to what And quarter Congrats - saw on get the market its average profile on the overall? any the how if wanted that just you Angeles the sequentially growth in and state? that might to your California patterns impact your comment any quarter the you specific store MedMen some also if and if regulations market the looking on at did market to Los I here. And of not Tilray any, stores additional the translate might if sort specifically? and see, of then - on relates announcement. in growth that to consolidate was you of you how the California thoughts there traffic previous state that the anything saw primary that And risk the the could the

this the particularly California fortunate about right, communities for to dispensaries. with, talked question. where embedded Tom. have we're to which strategy, talked Thanks the before, well we've quarter, that about in go-to-market and more this we've enough been we've frankly do, lot our become Matt, much performed a as is has

market a share tourist So broad, you its regaining, of share of we we're certainly X% the north about, talk then the of assortment experience. X%, here, quality across stores. had of X% When negative We're the and our we now retail talk the turnaround, assortment, simply its But not go-to-market We a types all as great, this a EBITDA diverse MedMen about just portfolio. company than driven just to - have first, boxes, I frankly, XX% result contribution would we of for this depth we got point the folks. that the strategy frankly, to as caters offering was. and originally growing towards more when

we point then organically, to the we're had And talking stores, prove prove grow fix about so able to if of own that to continue is our we can't because we what expansion, quarter-over-quarter. and that

you'd what's So or place Tim Reece, challenged, the there. on but anything like obviously, It's bullish to taking very pleased been add? with honestly, bullish we're California. Very on market. very

underpenetrated potentially just country, think at potential in a other states you adult-use quick, look would I still sales it legal when looks California bit little under-penetrated or cannabis I significantly the the consumer. - when per

peers so for hand-in-hand be a think there's I with all And definitely standpoint. of that, think work with lot a to a state, ahead I from room But the compliance our of continue of here. we'll

that. and in now, I part we'll question. the to state of room is here. restrictions, up, of think so open the around keep was And conservatism to think the it - market for the run lot like we But COVID don't There's watching given continuing there's that a always looks

Thanks, Matt.

[Operator at questions participating. concludes Instructions] this for conference are no And this Thank further you time. today's call. There

now may You disconnect.