TILT Holdings Inc.

Good morning and welcome to TILT Holdings' fourth quarter and full year 2020 earnings conference call and webcast. This call is being recorded today for replay purposes. A replay of the audio webcast will be available in the investor section of the company's website approximately two hours after the completion of the webcast and will be archived for 30 days. I would now like to turn the conference over to your host, TILT's Director of Investor Relations, Taylor Allison. Please go ahead.

Thank you. Good morning, everyone, and thanks for joining us today. Tilt Holdings' fourth quarter and full year 2020 financial results were released today. The press release financial statement and MD&A are available on CDAR, as well as our website, tiltholdings.com. Please note that during this morning's webcast, remarks made regarding future expectations, plans, and prospects for the company constitute forward-looking statements within the meaning of applicable securities laws. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, which we disclose in more detail in the Risk Factors section of Management's Discussion and Analysis for the three and 12 months ended December 31, 2020, filed with the applicable Canadian securities regulatory authorities and can be found on CR.com. We remind you that any forward-looking statements represent our views as of today and should not be relied upon as representing our views as of any subsequent date. While we may update such forward-looking statements in the future, we specifically disclaim any obligation to do so except as otherwise required by applicable law. Please note that on today's call, we will refer to certain non-IFRS financial measures such as EBITDA, adjusted EBITDA, and gross profit margin, excluding changes in the fair value of biological assets and inventories. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. So, consider these certain non-IFRS measures to be meaningful indicators of the performance of our business in addition to, but not as a substitute for our IFRS results. The reconciliation of such non-IFRS financial measures to their nearest comparable IFRS measure is included in our press release issued today. As a reminder, TILT completed the sale of Blackbird on November 30, 2020. On our full year and comparative financial statements, you can see Blackbird as discontinued operations in the income statement and statement of cash flows. A more detailed breakdown of Blackbird is available in note four of our financial statements. Unless otherwise specified, the results discussed today will be from our continuing operations. On today's call are Mark Scatterday, Chief Executive Officer, Brad Hoke, Chief Financial Officer, and Gary Santo, President. Mark will begin with a high-level review of 2020, followed by Brad who will provide an overview of our financials during the quarter. Gary will then discuss recent developments and operational highlights, after which the team will take questions. With that, I will now turn the webcast over to Mark.

Good morning, everyone, and thank you for participating in our fourth quarter earnings webcast. The top priority for this year was to bring TILT to profitability. I'm proud to say that we've accomplished that goal. And with the addition of Gary, we've solidified our long-term strategy and have established steady growth trajectory. Let me review the three big milestones we've reached during 2020 in greater detail. One, bring tilt to profitability. For the full year 2020, we generated $16.9 million in adjusted EBITDA from operating activities and $16.7 million in cash flow from continuing operating activities. This is in comparison to an adjusted EBITDA loss of $0.8 million in cash flow used in operating activities of $17.6 million in 2019. This $17.7 million improvement in adjusted EBITDA year over year was driven by achieving greater scale in our plant touching operations, bringing shared expenses to the corporate level and a strong focus on cost control across the organization. This focus on profitability will only improve in 2021. The steps we've taken this year set TILDUP for success going forward and we expect adjusted EBITDA in 2021 to be between $30 and $32 million. We can self-fund operations and growth and are less vulnerable to macro conditions that affect the capital markets. Two, solidified tilt strategy. With Gary as president, we undertook a full strategic review of the company, looking at capital allocation and how we could best generate shareholder value. Blackbird was an asset with a lot of potential, but it drew heavily against resources that could have been deployed in areas that would generate more immediate returns. We reorganized the business, streamlining Jupiter as a cash flow steady business with access to thousands of B2B cannabis customers and redeployed our capital into our plant touching businesses. We are leveraging relationships across the business cross-sell services and growing our platform as a unified B2B company. Gary will touch on this in greater detail, but we are also taking significant steps to turn Tilt from a holdings company into an integrated operating company and putting the right leaders in place to drive our next growth phase. Three, establish a steady growth trajectory. After facing two macro events within the last two years, which created the perfect storm for our business, we stabilized Jupiter and diversified our business with more revenue from our plant touching assets. We generated sequential sales growth in back to back quarters and expect to continue this trend through 2021 with a full year revenue outlook of $205 to $210 million. Last year was a productive year for Tilt. We brought Tilt to profitability, solidified Tilt's strategy, and established a steady growth trajectory. I'm proud of the hard work the team this year under difficult circumstances. Tilt has never been in a better position for success, and I feel extremely confident in the company's future. With that, I will now turn the call over to Brad, who will break down our quarterly financial performance in more detail.