Medmen Entprs B Sub Vtg

Good day and thank you for standing by. Welcome to the MedMin third quarter fiscal 2021 earnings conference call. At this time, all participants are in the listen mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to Reese Holjum. Thank you. Please go ahead.

Thank you. Good afternoon and welcome, everyone. Today, I am joined by our CEO, Tom Lynch, and COO, Tim Bossidy. On today's call, management will provide prepared remarks, and then we will open the call to your questions. Earlier today, we issued a press release announcing third quarter fiscal 2021 results for the period ending March 27th, 2021. The press release, along with our financial statements and MD&A, are available on the company's website and filed on both EDGAR and SADAR. Before we begin, I'd like to remind you that the comments on today's call will include forward-looking statements, which by their nature involve estimates, projections, goals, forecasts, and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Forward-looking statements relate to, among other things, the business and operations of MedMed, our plans for new stores, our financial, operational, and strategic expectations, and our expectations as to future sources of funding. These forward-looking statements speak only as of the date of this conference call and should not be relied upon as predictions of future events. Additional information about the material factors and assumptions forming the basis of the forward-looking statements and the risk factors are provided in the company's reports filed with the United States Securities and Exchange Commission and Canadian securities regulators, including the company's earnings press release and MD&A, which was issued earlier today and is available under the company's profile on both EDGAR and SEDAR. During today's conference call, MedMin will refer to certain non-GAAP measures that do not have any standardized meaning prescribed by GAAP, such as EBITDA, adjusted EBITDA, and corporate SDNA, which are defined in the earnings press release we issued earlier today. Reconciliations to GAAP measures are contained in the press release and are MDNA. Please note, all financial information is provided in U.S. dollars unless otherwise indicated. Now with that, I'd like to turn the call over to Tom.

Thank you, everyone, for joining us this afternoon, where we'll provide another update on the company's turnaround progress, execution on our transition to growth, and plans to drive future growth, as well as our financial performance for the quarter. Last quarter, we addressed the increased enthusiasm in the cannabis sector, and since then, New Jersey, New Mexico, and New York have also passed adult use initiatives. The police report that as adult use in the U.S. gains momentum, MedMed is also gaining momentum. With the gradual reopening of California, retail beginning to position our story towards one of accelerated growth. First, we reported our third consecutive quarter of positive retail cash flow, which is even more robust this quarter with our increase in sales. California same-store sales were up 2.3 percent quarter-over-quarter. Nevada same-store sales were up 8.1 percent quarter-over-quarter. Florida same-store sales were up 12.8 percent quarter-over-quarter. New York same-store sales were up 36.9% quarter-over-quarter. Arizona state revenue was up 80.2% quarter-over-quarter. Illinois was down 4.8% quarter-over-quarter. Momentum is accelerating even more in April with California further reopening, with California April same-store sales up another 11.9% over March and overall sales up 9.1% month-over-month. Our 420 was a huge success, with MedMen hitting its high watermark in weekly sales in the company's history, with its now completely revamped cost structure. What does this mean for the company's turnaround? It means the foundation we have worked hard to build over the past year is solid and starting to produce significant results. Most importantly, we see those results in the four-wall economics we have asked investors to judge us on. We continue our strong progress from the second quarter, despite significant retail restrictions remaining in California through most of January, and some retail restrictions still remaining. Retail EBITDA increased from $5.5 million to $7.4 million, a gain of 33%. Including New York and Arizona, retail EBITDA increased from $6 million to $8.5 million, a gain of 41.4%. Again, this is our third quarter in a row of positive cash flow after tax across our retail footprint, which, as a reminder, had not been accomplished in the company's history until the past three quarters. This metric also resulted in a significant savings in dilution, with Gotham Green Partners canceling almost $100 million in the money warrants due to the company hitting this metric for two quarters in a row. This quarter we held corporate-related SG&A approximately flat, adjusting for litigation related to former employees, and we continue to attract and retain world-class talent. As a reminder, at its peak, the company's corporate-related SG&A was approximately $160 million annually, but this quarter we saw our corporate SG&A reduced to $11 million, excluding pre-opening costs, as has been previously disclosed. That number was 9.4 million, excluding litigation related to former employees, which is flat from Q2 and down 1 million from Q1. We're thrilled with our talent pool at MedMen, and we have continued to bring in key talent in retail, in marketing, in finance, on the supply chain, and in almost every other vertical of the company. From a balance sheet perspective, since we last spoke, we were able to announce the closing of approximately $19 million in additional equity funding, predominantly from new capital partners, as well as announce a path to a significant deleveraging of our balance sheet. Subject to approval from the New York State Department of Health and other regulatory bodies, Ascend Wellness Holdings will complete an investment totaling up to approximately $73 million in our New York subsidiary. which will go towards paying down the large majority of one of our secured lenders. One of the key pieces to our turnaround plan was not only to move to profitability, which we have a clear path towards, but to right-size our balance sheet and reposition the company for growth. We're proud to say we continue to speed towards those goals. Finally, last quarter, I hit on my excitement around acceleration of growth in existing markets, such as California and Florida. And since then, we have announced opening our Emeryville dispensary and our Miami Beach dispensary. We continue to move closer to our two openings in San Francisco, our two openings in Massachusetts, and our significant pipeline of openings in Florida on the back of our ongoing useless expansion. Florida continues to have laser focus for management, and we review our growth strategy there as being differentiated and an enormous value driver for both the company and for patients in that market. We appreciate the patience and support as we continue to make progress on our turnaround plan, which I would describe as being ahead of schedule. With that, I'll hand it over to Tim Bossedy, our Chief Operating Officer, for operational highlights.