Q3 2024 Cannabist Company Holdings Inc Earnings Call Transcript
Key Points
- Cannabist Company Holdings Inc (CBSTF) successfully completed the sale of assets in Arizona and Eastern Virginia, generating $105 million in proceeds.
- The company is making significant progress in transforming its business model, with over half of the transformation completed.
- Wholesale revenue increased by 2% sequentially to $19.5 million, despite divestitures in Virginia and Arizona.
- The Ohio market transition to adult use has been successful, with volumes nearly doubling and a significant influx of new customers.
- The company is targeting a 20% adjusted EBITDA margin in 2025, indicating a focus on improving profitability.
- Revenue for the third quarter was down 8% from the second quarter, primarily due to the sale of businesses in Virginia and Arizona.
- The company experienced a slight decline in gross margin, down 35 basis points to 38.2%.
- Cash from operations was negative $18 million, a significant decline from previous quarters.
- The Florida operations have been loss-making and continue to be a drag on adjusted EBITDA.
- The company faces challenges from the 280E taxation model and limited access to investment capital.
Good day. And thank you for standing by and welcome to the Cannabist Company. Third quarter, 2024 earnings conference 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 to ask a question during the session. (Operator Instructions)
Please be advised that today's conference is being recorded. I would not like to hand the conference over to your first be here today and Lee Ann Evans - Senior Vice President of Capital Markets. Please go ahead.
Good morning and thank you for joining the Cannabist company's third quarter 2024 earnings conference call. With me today are Chief Executive Officer David Hart, President Jesse Channon, and Chief Financial Officer Derek Watson.
Earlier this morning, we issued a press release reporting our third quarter, 2024 results. A copy of this release is available on the investors section of our corporate website where you will also be able to access a replay of this call for
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