This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk02: Good day to the Green Thumb Industries first quarter 2024 earnings conference call and webcast. All participants will be in a listen-only mode. Should you need assistance, click single conference specialist by pressing the star key followed by zero. On today's call, management will provide prepared remarks, and then we will open the call for your questions. To ask a question, analysts may press star and then one using your touchtone telephones. If you are using a speakerphone, we do ask that you please pick up the handset before pressing the keys to ensure the best sound quality. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Shannon Weaver, Communications for Green Thumb. Please go ahead, ma'am.
spk07: Thank you, Jamie. Good afternoon, and welcome to Green Thumb's first quarter 2024 earnings call. I'm here today with founder and CEO Ben Kobler, President Anthony Georgadis, and Chief Financial Officer Matt Faulkner. Today's discussions 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 trust 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, Greensound 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 Plus filings. Please note that all financial information is provided in U.S. dollars unless otherwise indicated. Thanks, everyone, and now here's Ben.
spk05: Thank you, Shannon. Good afternoon, everyone, and thank you for joining our first quarter 2024 conference call. We will keep our remarks short this quarter, given there has not been a lot of substantial updates since our 2023 year-end call. I am pleased to report that our team once again delivered an outstanding quarter, particularly on the cash flow from operations line. First quarter revenue increased 11% over the prior year to $276 million, with 31 million, or 13 cents, per basic and diluted share of GAAP net income. Cash flow from operations was over 80 million, and adjusted EBITDA was over 90 million. Additionally, during the first quarter, we repurchased more than 1 million shares, spending over 13 million dollars, bringing the aggregate spend under the share repurchase program to almost 55 million dollars. We continue to believe in the value-creating nature of share buybacks done at attractive prices. Remember, as the share count goes down, everyone's interest in the business goes up. From an industry perspective, there is still pricing pressure in some markets, as well as pockets of inflation. Even so, according to the most recent Commerce Department data, consumers continue to show strength. And we believe that for many Americans, well-being through cannabis is becoming more essential than ever. We see Rhythm and Dog Walkers playing a role in America's choice for well-being and stronger mental health. So, for Green Thumb, we will keep doing what we said we will do. Scale our business through retail store expansion. Invest in quality products and premium brand experiences. Build out and scale our production facilities.
spk04: operate efficiently and with common sense, and finally, as always, carefully manage our balance sheet.
spk05: As I've said before, we love our portfolio today, we love the states we're in, and we believe we have a tremendous embedded growth opportunity both near and long term. With adult youth sales on the horizon in Ohio, we are well positioned to reap the benefits of long-term planning, just like we did in New Jersey in 2022, and Maryland last year. Over the past few years, we have invested in Ohio to prepare for eventual adult use with five RISE dispensaries across the state. We expanded our cultivation and manufacturing capacity to meet new demand and have an experienced team in place to ensure a smooth rollout. We believe Ohio should be a nice market. We see opportunity across our portfolio from Florida to Minnesota and lots of places in between. In 2024, we will be mining diamonds in our own backyard. As you know, thoughtful and meticulous allocation of capital resources has been our touchstone. Our capital expense has been differentiated over the last few years, and we should start to see some of those results. Recall, we have referred to this as, quote, internal M&A. where every day we are essentially investing in or buying our own business based on those returns. As we round out year 10 as a company, it's still day one for us. There is a massive opportunity in front of us, and we plan to continue growing our market share by investing in our brand identity, introducing new product innovations, and deepening our relationship with customers. We now have the infrastructure, experience, and cash to optimize our portfolio of award-winning brands and find new ways to engage and incite consumers. Going forward, we have a clear vision, a long runway for growth, and hands down, the best team in the business to execute the next decade of the Green Thumb story.
spk04: And now, Anthony will give you some more color on our current initiatives. Anthony? Thanks, Ben. As you just heard,
spk03: Despite continued industry and inflationary headwinds, our consistent head-down focused on the fundamentals mindset allowed us to achieve record first quarter results. Let's look at some of the highlights. First, we invested approximately $15 million in CapEx as we continue to expand our Florida retail footprint and our Connecticut wholesale facility. All of our new Florida locations are outfitted with our retail rebrand, which should continue to elevate our overall vibe and store efficiency in the Sunshine State. Second, we launched a number of new products across our rhythm brand, including our solventless vape and concentrate line, rhythm artist series, and our rhythm pre-roll line, Remix. For those fortunate to have rhythm products in their state, we encourage you to give them a try and see what all the buzz is about. Third, we continue to improve our utilization, scale, and efficiency of our wholesale platform. During the quarter, we fully operationalized our Hackettstown, New Jersey facility, and continue to grow into our newly expanded wholesale facilities in New York, Virginia, and Minnesota, where we've invested significant CapEx dollars in advance of future market expansion. As we look ahead to the rest of the year, our team is focused on achieving the following. First, driving operating efficiencies to combat continued pricing erosion and competitive dynamics. In wholesale, this means lining up our supply as closely as we can to estimated demand along with taking advantage of automation in a few select areas. In retail, it's closely monitoring our discount rates, throughput and staffing levels, and customer feedback. Second, taking our learnings from previous adult use conversions to optimize our opportunity in Ohio. Kudos to the Buckeye State for going the route of Maryland versus New York and quickly establishing a framework that provides consumers with access to high-quality, lab-tested products through the state's existing medical program. Last, continuing to allocate our resources and capital to markets and activities that optimize the current environment along with our long-term company objectives. For the year, we expect to invest approximately $100 million in CapEx, a significant reduction from the $220 million we invested in the business last year. Our 2024 CapEx plan focuses on 10 to 15 retail store build-outs and renovations in Florida, Nevada, Minnesota, Virginia, and Ohio, and continued wholesale investment in Connecticut and potentially elsewhere. Continued strong financial performance combined with a reduction in CapEx should provide us with substantial business optionality, including with our senior debt facility that comes due in the second quarter of 2025. In closing, I'd like to leave you with a quote from the late Charlie Munger. Those that know us well know that Warren and Charlie have influenced how we run Green Summit in many ways.
spk04: Recognize reality even when you don't like it, especially when you don't like it. We'll miss you, Charlie. With that, I'll turn the call over to Matt to review our financial results. Thanks, Anthony, and hello, everyone.
spk05: We're pleased we started out the year with strong results and record cash flow generation. In the first quarter, we delivered over $275 million in revenue, an 11% increase compared to the prior year period. Revenue during the quarter benefited from 15 incremental retail stores and the legalization of adult-use sales in Maryland. While price compression was still a factor year over year, the sequential impact showed improvement. Overall, retail revenue increased
spk04: revenue increased 19% versus the prior year quarter. Looking forward, we expect to see second quarter sequential revenue to be flat.
spk05: Gross profit for the first quarter was $145 million or 52.5% of revenue compared to $125 million or 15.2% of revenue for the first quarter of last year. Increase in gross margin was primarily driven by improved CPG utilization along with retail acquisition costs. Turning to OpEx, $16 million non-cash credit. SGNet excluding depreciation, amortization, one-time transaction costs, and stock-based comp, which we refer to as normalized operating costs, approximated $64 million compared to $56 million in the first quarter of last year. The increase year-over-year is mainly attributed to the 15 incremental retail stores. First quarter net income was $31 million for compared to net income of $9 million or $0.04 per basic and diluted share reported last year. Adjusted EBITDA, which excludes non-CAS stock-based compensation and other non-operating costs, was $91 million or 32.8% of revenue for the quarter, as compared to $76 million or 30.7% of revenue for the first quarter last year. Weight on the first quarter was a strong balance sheet, including CAS $224 million, Cash flow operations came in their record $84 million compared to $75 million last year. In closing, I'm very proud of our team for all their hard work and execution in the first quarter. I'm confident in our ability to continue to execute our strategic plan, deliver high-quality cannabis to our patients and customers, all while generating strong returns for our shareholders.
spk04: With that, I'll open the call to your questions. Operator.
spk02: Ladies and gentlemen, at this time, we'll begin the question and answer session. Once again, to ask a question, please press star and then one. To withdraw your questions, you may press star and two. If you are using a speakerphone, we do ask that you please pick up the handset prior to pressing the keys to ensure the best sound quality. Please note that in the interest of time, we do ask that you please limit yourselves to a single question. Our first question today comes from Matt Bottomley from Canaccord Genuity. Please go ahead with your question.
spk11: Good evening, everyone. Congrats on the strong quarter here. I guess my first one's a little bit administrative, but I'm just curious if we can get a little more context on the $16 million credit to expenses. Is this something that would have understated your margins in previous quarters and maybe overstated them this quarter? I'm just trying to get an idea of if we removed it altogether, depending on the nature of it, where EBITDA margin would have came in for the quarter.
spk05: Thanks for the question there, Matt. So that $16 million credit had no impact on previous periods P&L. It was a settlement of a contingent consideration. So at this point in time, once that credit and that settlement of the contingent consideration is now clear of the balance sheet, there's no more contingent consideration there. Your second question is out of the adjusted EBITDA already.
spk11: It is. Okay, that's the more important part of it. Okay, I appreciate that. And then if I could just put in one general question, if that's all right, just on Florida. So you had opened up a dispensary in the quarter, and on a year-over-year basis, it looks like you've doubled there. So not asking you to crystal ball what might happen in November, but from a capital allocation point, how important is that market, considering that some of your peer groups, just in that market particularly, are well ahead in terms of their retail rollout?
spk03: Yeah, sure, Matt and Anthony here. I mean, look, Florida's important for us. You know, we've opened up two stores since January, one in the first quarter, one subsequent. We have a number of additional stores set to open between now and the end of the year, and we're closely kind of looking at our capacity as well at the newly constructed facility in Ocala. So we've got a lot of eyes on Florida at this point, and we're constantly optimistic coming November.
spk04: Okay, thanks, guys. Thank you.
spk02: Our next question comes from Matt McGinley from Needham. Please go ahead with your question.
spk10: Thank you. So this quarter you had your best gross margin and EBITDA margin since 21, so great work with managing that. I think last year you called out on one of the calls that the underutilization of some of your cultivation facilities was a drag on your gross margin. How much of that pressure has gone away as states like New York have turned on for you? And do you think that that 52% that you did this quarter is kind of a sustainable gross margin rate for the year, or was this quarter just unusually good?
spk04: Yeah, thanks for the question.
spk05: So, yeah, it's fair to say there was, you know, a ramp-up period for those investments we made. And by the time you, you know, get those going and you start to increase your revenue come out of there, the absorption – improves as you're improving the utilization and output of those facilities. So some of that tailwind benefited us in the current period, but looking forward, as price compression is still there, it's hard to count on a repeat of that margin and effectively
spk04: components of how to get there. Great. Thank you.
spk02: Our next question comes from Eric Delorier from Craig Hallam Capital Group. Please go ahead with your question.
spk01: Great. Thank you for taking my question. Congrats again on another very strong quarter here. So, just a high-level capital allocation strategy question with respect to potential rescheduling and potential 280E going away. You know, obviously, as you mentioned in the prepared remarks, you know, your CapEx the past year or two is significantly higher than peers. That's been trailing off. You're returning cash to shareholders via buybacks. I'm just wondering how your investment into your retail and wholesale facilities may change if we do indeed get rescheduling. Would you anticipate sort of stepping on the gas again if you expect others to do the same, or is it kind of as simple as, you know, you're sort of running out of CapEx projects to do here as you've executed them over the past couple years, and that change in taxes wouldn't really impact that CapEx outlook. Just wondering how you're thinking about that. Thank you.
spk05: Sure. Hey, it's Ben. Eric, I'll take it. I mean, I wouldn't say it's running out. I would say risk-reward and constantly measuring where should we invest and what can we gain out of it. So we're analyzing the markets. We're understanding what the demand looks like, and we've built an unbelievable foundation of a business that is producing last year over 300 million Aviva dots. So we're really comfortable with what we have there. So the risk-reward calculations are just different now than they were five years ago. So running the math of five years ago is like yesterday's game. So we're trying to think out of ways. We're thinking about capital allocation sort of futuristically, and that's where we're setting up the business for shareholders, for ourselves, and we're really excited about where that's going. So we like what we're up to. We're really proud of the balance sheet we've got. It allows us to play aggressive offense.
spk04: Great. Appreciate the call. Thank you. Thank you.
spk02: Our next question comes from Gerald Passarelli from Wedbush Securities.
spk08: Go ahead with your question. Great. Thanks. Just wanted to go back to Florida and maybe ask a question a slightly different way. As you think about what potentially lies ahead in November, I guess, how do you think about the need to invest heavily behind that market to, on one hand, ensure that you can adequately service the robust demand if the state goes legal versus the prospects of the ballot initiative not passing? It's obviously a very transformative catalyst, but just one where the outcome is completely binary. So we'd just love to get your thoughts on how you plan and operate around something like that. you know, a few months out here. Thanks.
spk03: Sure, Gerald. Anthony here. I mean, look, the calculus in Florida is different than the other markets, right? You've got the vertical nature of the market itself. You know, it's really, it's us against ourselves. So, you know, as we open up stores, we have to make sure that we have enough wholesale capacity to service those stores, right? So we've seen some nice growth within the Florida market, within our store base itself. And so as we look ahead and think about, okay, what kind of increase could we expect to see with an adult new slip? And then we have to figure out, do we have enough product coming out of our wholesale facilities to match it? So that's really the calculation that we're doing. It's not as if we're in a race to catch up with X, Y, or Z. It's really about how much capital we feel comfortable deploying into the state relative to the other places we could deploy that capital. And that's how we're going to look at it. So, you know, We're taking the steps to be prepared to kind of revisit some of those decisions if and when things go our way in November. And so we'll do what we can to get prepared, but until we actually know what's going to happen, then we can really make the right move. And I'll just say one of the ways that we've been able to differentiate within the market is when we built our purpose-built facility in Ocala, we did it with a focus of high-end indoor flower. And so that's really kind of the basis of what we're looking to kind of build our business around. And that's what we've been focused on doing since the start of the year.
spk04: Perfect.
spk08: Thanks so much for the call.
spk02: Our next question comes from Pablo Zonic from Zonic and Associates. Please go ahead with your question.
spk00: Thank you. Ben, two questions. You know, something that keeps coming up from investors, they ask about insider buying opportunities. despite the rescheduling news and all the positive news we've had in the last few months, we haven't seen really insider buying and speaking on average in general. I don't know if you can comment from the Green Sun point of view. And then the second point, I'm sorry this came up before, but I don't think I heard it. In terms of 280E, are you changing your tax planning in any way? Are you going to start provisioning in a different way? Are you going to start looking for tax refunds? What are you thinking of that in the short term regarding 280E? Thank you.
spk05: So, you know, at this time, we continue to assess the landscape and watch what's happening in the marketplace while we make a determination of what we're going to do next. So we continue to toe the line at this junction while it evolves to be able to determine what ultimately our next steps are.
spk04: I can hit the first one, Pablo. Hey, it's Ben. Thanks. Interesting question.
spk05: I think, you know, for the first time in a long time, we were able to talk about how bullish we are on the equity, right? We have a share buyback and we're out there buying the stock because we think the equity is too cheap. We're backing that up by allocating, and I think, I don't know this, but I think we're the largest allocator of stock to the team, which is effectively having the team buy the stock because we all want to own a piece of the boat that we're building. We have massive management that owns the, management is a massive shareholder, a large shareholder in the business. And lastly, we have a share buyback in here. So we're sort of letting the company come in and buy stock. As you know, and everybody knows, this is thin. This is a very, very thin market in Canada and a unique opportunity that people can understand the balance sheet and see the future trajectory of the business. There's a lot of obfuscating going on in the balance sheet land, and we're trying to keep it just as clean and tight as possible. So we love the share buyback. We sort of put it in the annual letter. If people haven't read the letter, I'd encourage you to read the letter, but reduce the denominator has become sort of a mantra here. We like this share buyback. We are happy to be able to buy over a million shares, and we'll see what the future holds.
spk04: All right. Thank you. Thank you.
spk02: Our next question comes from Howard Penny from Hedgeye. Please go ahead with your question.
spk06: Thanks very much for the question. What are the characteristics of the Ohio market that you see that will make it such a strong adult use, and what specifically are you going to take advantage of that?
spk03: Hey, Howard. Anthony here. Good question. I think I cut off a little bit at the end, but I think the question is about Ohio. Look, here's what we like about Ohio. You've got 13 million people. You have a medical, I don't want to say anemic, but you have a very small medical market with certainly not the penetration levels that we've seen in many other states around it. And at the same time, you've got a healthy amount of capacity that has been built up within the market itself. So You know, that all really sets up for when the flip happens for a vibrant, robust market in day one. And so, you know, that's really, you know, given kind of the size of the state and knowing that, you know, you've got a healthy chunk of sales that are heading north up to Michigan, you know, we're pretty bullish. You know, we've got five stores there in the state today. We've got a cultivation facility that's maxed out at least under the medical canopy. And, you know, we're doing everything we can to get ready for the events come late summer, early fall.
spk06: Is it a rinse and repeat new market for you? Is there anything unique to Ohio that you're doing when it opens up?
spk04: You know, it's, I mean, there is an element of rinse and repeat.
spk03: But, you know, as you know, given the adult use market is at least initially going to be launched off the medical regs, There's some nuance in the Ohio market, right? Pre-rolls are not allowed. We've got tents instead of inks, so the unit measure is just a little bit different. You know, and then also I think, you know, for the most part, given kind of the heavy pharmaceutical nature of the market itself, the infrastructure in Ohio is probably a little bit different than what we've seen in other markets, but it's generally the same with a little bit of nuance that we just have to manage around.
spk04: Awesome. Thank you so much.
spk02: Our next question comes from Aaron Gray from Alliance Global Partners. Please go ahead with your question.
spk09: Good evening, and thank you for the question. I just want to speak to the kind of overall consumer trends that you're seeing somewhat towards consumer health. Obviously, the category has seen, you know, pricing pressure and down trading for some time. But curious if you're seeing any benefit from the lower pricing within cannabis versus some of the higher prices you see in other categories, and then seeing consumers increasingly shift into cannabis versus some other social lubricants, just from those dynamics. Thank you.
spk05: Yeah. Hey, Aaron. It's Ben. I can take that. You know, the core of your question is yes, the consumer is strong. There continues to be mixed shift. Age matters. And, you know, we're starting to see that in the data. I think the pricing and the lower prices continue. The cost per buzz in cannabis is far lower than alcohol. where how much it costs you for one drink or one shot. You know, you have on-prem versus off-prem and things like that. But we continue to see strength in the consumer, and what's happened is, you know, category blowout, where there's now three, four, five, six segments within flour. Flour is about 50% of the category, and you have real segmentation there for real different consumer tastes and preferences, branding, you know, premium exists, value, things like that. And if you're under 35, you don't drink like you used to. If you're 40 to 60, like some people on this call, you know a drinking culture. And if you're under and you're 35 and under and you're 25 and under, things are different. So encourage those on the call if that's new news to get out there and see what's going on. But, you know, we're not closed ears to what's happening in the alcohol space with the biggest, you know, spirits companies and the biggest beer companies and why that's happening on the ground and then, frankly, what the consumer wants. Same thing we've said the whole time. The North Star is the consumer. We want to make things better for the consumer. If we add well-being and we add mental health, you know, wow, things could get really good. But it's going to take a while, and as we see, you know, that's an atypical opinion, a non-consensus opinion, and it takes a while to change people's thoughts. So strength on the ground, strength in the youth, and we like where we're set.
spk04: Great, thanks for the call. Then I'll jump back in the queue.
spk02: Our next question comes from Scott Fortune from Roth Capital. Please go ahead with your question.
spk13: Good afternoon. Thanks for the question. Even though it's over 35 or not, I drink as much. But just an update on capital markets here around rescheduling the momentum there. Just kind of an update if you're kind of from the exchange side of things. Are you hearing inquiries from them as far as changing that. And just wondering if you're seeing, you know, obviously some debts coming up here due. And your discussions with lenders or creditors in the capital markets in general, are you seeing better terms or debt now that, are they starting to factor in rescheduling at all? Just kind of your sense on the debt side of things as far as the lenders are concerned from what you're hearing.
spk05: Sure. Hey, Scott, thanks. Ben, I can start. When I summarize the listing and the exchange, which I think was the first part of your question, is I would say very open dialogue, good communication channels, and summarize no change. I would summarize the rescheduling situation as massive confusion, which then, to the last part of your question on the debt, there's not new pricing in eight days. And that's not really how we're focused at all. We're thinking about a very strong balance sheet and how we're positioned extremely well to play offense and figure out what we'll do about the debt in 12 months. I mean, it's not that hard to see what would happen with the free cash flow generation of the business if you just run it out. But that's not really our style either. We'd rather extend the duration and be able to be in a very comfortable position, sleep well with a great balance sheet and be able to play offense and continue to answer the phone, continue to be awake for what's happening. We continue to think the landscape of strategic deals increases, especially for strength, especially for the leaders, especially for those that have done and been able to do it with strategic partners in several different correlated industries that are really complementary to the cannabis user and who that consumer is.
spk04: So I think that's the summary there. I appreciate the color. Thanks. Thank you.
spk02: Our next question comes from Enrico Gomez from ATB Capital. Please go ahead with your question.
spk14: Hi, good evening. Thank you for taking my question. Just going back to your performance this quarter, I wanted to ask about your revenue performance and just curious if there was, you know, anything on the pricing side or, I guess, in terms of consumer behavior or any specific market here that you think that, you know, performed better and maybe surprised you during the quarter, you know, to help drive the revenue beat compared to your guidance. Thank you.
spk04: Hey, Frederico, Anthony here.
spk03: You know, look, there was nothing that had a material impact on the business, right? Now, you know, when we pull back the covers a little bit and take a look at what's happening at the state level, there were some markets where pricing stabilized and actually improved. Maryland's a good example of that. You know, since adult use, you know, when the supply, you know, with the increase in demand, you know, you know, that differential from supply and demand kind of resulted in slightly higher pricing. But overall, you know, what we're seeing is it's not consistent, right? So we look back in some of the markets where we saw some erosion in Q4, we saw a slight bounce back in Q1. Ones where we saw, you know, kind of strength in Q4, maybe a little bit of erosion in Q1. So it continues to kind of be a game that's market to market. And as you zoom out for us, again, what we're focused on is high-quality product where we can hold price and we can really drive our brand. But on a net basis, there was no material kind of shift that we saw that had a fundamental kind of impact on the top line of the business.
spk04: Thank you. Our next question comes from Mike Regan from Excelsior Equities.
spk02: Please go ahead with your question.
spk12: Hey, thanks, everyone. Congrats on a great quarter. Quick question that's not sort of significant yet, but 10K noted about selling farm bill compliant, I guess, hemp-derived products. And we saw Goodness just launch low-dose beverages in Minnesota for sale in bars and liquor stores. Is that something that, I guess, can you give us more detail on your plans and the product innovation in that area and where you're selling it and basically what you're doing around that?
spk03: Yeah, sure. Mike here. Mike, Anthony here. Great question. So let's take a step back. So we got into the hemp space, you know, first in Minnesota. That's really where we dipped our toe in the water. And we're still in, really still in the discovery phase. But when we take a step back, you know, here are the things that we're focused on. First is the consumer. So first and foremost, you know, when we looked at the landscape, you know, what we saw was effectively you know, packaging and communication to the consumer that didn't make a lot of sense. And so for us, one of the things we've really tried to do is to kind of open up the transparency with the consumer on the product testing, what's actually in the product, the cannabinoids and the ratios and whatnot. So that's first. Secondly, what we've also seen is that, you know, the market seems to be smaller at least than what anecdotally we've heard from others. Quotes we've heard of $15 to $20 billion, I'll just tell you that we're not seeing the market at that size at least yet. And third, you know, you've got a regulatory landscape where the ground is shifting literally underneath us, market to market. So, you know, for us, what we're going to continue to do is we're going to continue to kind of study the market, focus on the consumer, and take it one step at a time.
spk12: We're still studying only Minnesota, but I guess if I guess, is it possible you could do that in other markets as well, or even ones beyond your core marijuana markets, more broadly across the country?
spk05: Sure. I mean, everything's on the table if it makes sense, but just sort of a little look behind. All the work we've done there, this looks a little smaller than we thought, maybe not quite as exciting, but we'll see.
spk04: Great. Thanks a lot. Thank you.
spk02: And with that, we'll be ending today's question and answer session. I'd like to turn the floor back over to management for any closing remarks.
spk05: Thanks, everybody, for joining us.
spk04: Look forward to the next update next quarter. Have a good start to summer.
spk02: And with that, ladies and gentlemen, we'll conclude today's conference call and presentation. We thank you for joining. You may now disconnect your lines.
Disclaimer