Green Thumb Indus Sub Vtg

Good day and welcome to Green Thumb Industries' fourth quarter and full year 2023 earnings conference call and webcast. All participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. On today's call, management will provide prepared remarks and then we will open up the call for your questions. To ask a question, analysts may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. And to withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Shannon Weaver, VP of Communications. Please go ahead, ma'am.

Thanks, Betsy. Good afternoon, and welcome to Green Bump's fourth quarter and full year 2023 earnings call. I'm here today with founder and CEO, Ben Kobler, President Anthony Georgiades, and Chief Financial Officer Matt Faulkner. Today's discussion and responses to questions may include forward-looking statements which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. These risks and uncertainties are detailed in the earnings press release issued today, along with the reports filed with the United States Securities and Exchange Commission and Canadian securities regulators, including our most recent annual report filed on Form 10-K. This report, along with today's earnings release, can be found under the Investors section of our website. Greensum assumes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. Throughout the discussion, Greensum will refer to non-GAAP financial measures including EBITDA and adjusted EBITDA. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in our earnings press release and SEC and CEDAR filings. Please note all financial information is provided in U.S. dollars unless otherwise indicated. Thanks, everyone. And now here's Ben.

Thank you, Shannon. Good afternoon, everyone. Thank you for joining our fourth quarter and 2023 year-end conference call. I'll lead off with an overview of our results and some quick observations on the industry. Anthony will discuss the progress we made in 2023, designed to carry momentum into 2024 and beyond. Then Matt will dive into the financials, and after that we'll open the call up to questions. I'm pleased to report that our team delivered a strong finish to 2023. Even with price compression in some markets and inflationary impacts on consumer spending, we saw our year-over-year revenues increase 7.3% in Q4. This performance contributed to a record fourth quarter for revenues, cash flow from operations, and adjusted EBITDA. On a GAAP net income basis, we reported $3 million, or one cent, per basic and diluted share for the fourth quarter. Importantly, for 2023, cash flow from operations was $225 million. And at year end, we had $162 million in cash on our balance sheet, net of share buybacks, debt repurchases, and fully funded tax payments. Green Thumb is in strong financial shape that largely reflects a capital allocation strategy focused on generating cash flows. Over the past few years, we have deployed considerable capital within our key markets in anticipation of expansion. When New Jersey, Maryland, Connecticut, and New York launched adult-use sales, we had an expanded infrastructure in place to serve a greater market demand. Adult-use sales are on the horizon for Virginia, Ohio, and Minnesota, and potentially other states where we operate like Florida and Pennsylvania. We are ahead of the curve when those markets open for adult-use retail sales. While our major CapEx cycle is behind us, we will continue to invest in scaling growth within our operating markets. As part of our capital allocation strategy, in September our board authorized our first share repurchase program for up to $50 million. We believe that this share repurchase program is an appropriate tool for creating shareholder value without compromising our growth initiatives. To date, we have purchased approximately $40 million or 3.8 million shares. We paid a reasonable price and now every shareholder owns a slightly bigger piece of the pie. In addition, the board approved an additional $50 million for the repurchase program, bringing the remaining authority to repurchase shares to approximately $60 million for a total of $100 million for the program. Additionally, as it relates to the senior debt, we repurchased $25 million of that debt at a 5% discount during the fourth quarter, bringing our remaining principal balance to $225 million at the end of 2023. We continue to focus on building a business to succeed regardless of federal change, while remaining hopeful for the potential reclassification of cannabis to Schedule III, a move that would eliminate the punitive impact of 280E This would be helpful for GreenThumb, especially since we paid over $100 million in cash taxes for 2023. Separately, we also look forward to the day that U.S. cannabis companies can list on a U.S. exchange, which would increase the company's access to capital and the marketability of our stock. Turning to consumer demand, we see positive indicators that consumer sentiment will continue to drive the long-term growth prospects of cannabis. Number one, acceptance of cannabis for health and well-being is evident, with 70% of U.S. adults believing cannabis should be legal. Number two, U.S. legal cannabis sales are estimated at approximately $30 billion for 2023, with more growth expected ahead. And number three, my favorite, over the next five years, there are expected to be 18 million new cannabis consumers in the U.S., while there will be 2 million less alcohol consumers. And that's what drives us. Now, more than ever, we remain hyper-focused on our patients and customers. We are growing our family of award-winning cannabis brands, Rhythm, Dog Walkers, Incredibles, and Bebo, to provide our customers with an even wider array of choices that suit their preferences and price points. We're on a mission to continue building brands that will be part of the American experience for decades to come. And we will continue to explore innovative ways to connect people to cannabis. Whether it's the first of its kind, Miracle and Mundelein, legal cannabis consumption music festival that I mentioned last quarter, the expansion of our Rhythm Artist Series, including the exciting momentum around Tinashe's Green Tea Strain, or new collaborations like the one with Magnolia Bakery and our Incredibles brand. Our strong brand recognition is opening doors to engage and excite our customers in new ways. And as our brands grow, the stars are aligning to create even more opportunities to increase brand awareness and attract new customers. We believe this is just the beginning for Rhythm, Dog Walkers, Incredibles, and Bebop. My confidence in the future of cannabis has continued to grow since we founded DreamThump 10 years ago. That said, outsized opportunity is only as good as an organization's ability to optimize its potential. We are continuously studying what separates success from failure, and it all comes down to long-term planning paired with strong execution that delivers organic growth and cash flow. For us, it's about focusing on investing capital for the greatest risk-adjusted returns, our obsession on providing customers with the best, most authentic cannabis products and experiences, and our intensity around strategically executing our growth plan. Every day is still day one and we are always looking forward to ways to get better as we evolve and continue to win. The team accomplished a great deal in 2023 and that sets us up well for 2024 and beyond, as Anthony will discuss in a moment. However, No achievement, whether big or small, happens without an amazing and committed team across all aspects of the business. We can build cultivation facilities, open stores, and develop new products, but it's the people who care about promoting well-being through the power of cannabis and who are dedicated to treating people well that matters most. And this dedication extends beyond the doors of Green Thumb out into our communities. On February 8th, we published our second annual social impact report that shares many stories of our Growing for Good program and positive impact it's having in the communities we serve. The report highlights the causes we support to promote a more inclusive and equitable industry, the ways we advocate for social and restorative justice, and how we seek to be more environmentally aware. Above all, our social impact report celebrates our team's dedication and achievements, and I could not be prouder of our 4,600 plus team members who make it happen every day in every way. Now, I'll turn the call over to Anthony to add his thoughts on 2023 and beyond. Anthony?