Q1 2024 Cresco Labs Inc Earnings Call Transcript
Key Points
- Cresco Labs Inc (CRLBF) reported a 580 basis point improvement in gross profit margin year over year, indicating significant operational efficiency and profitability.
- The company generated $53 million in adjusted EBITDA, up $24 million year over year, showcasing strong earnings growth.
- Net income before taxes was reported at $16 million, reflecting solid financial health.
- Cresco Labs Inc (CRLBF) achieved $36 million in operating cash flow, a substantial increase of $33 million compared to the previous year, strengthening the company's balance sheet.
- The company has made strategic investments in key markets like Ohio, Pennsylvania, and Florida, positioning itself well for upcoming state-level regulatory changes and market expansions.
- Revenue for Q1 was reported as flat year over year at $184 million, indicating a potential stagnation in sales growth.
- Cresco Labs Inc (CRLBF) is experiencing over 11% price compression across its footprint, which could impact future revenue and margins if not managed effectively.
- The company anticipates some supply shortages in Ohio due to the accelerated timeline of adult-use cannabis sales, which could affect sales performance.
- Significant capital expenditures of $50 to $70 million are planned for the year, which could strain cash flows if not balanced by corresponding revenue increases.
- Cresco Labs Inc (CRLBF) faces ongoing challenges with heavy tax burdens and regulatory uncertainties that could impact operational efficiencies and market expansion strategies.
Good day and welcome to the Cresco Labs First Quarter 2024 earnings conference call. Participants could be in listen only mode. Should you need assistance, please signal a conference specialist by pressing star key followed by zero. After today's presentation, there will be a opportunity to ask questions. Ask a question. You may press the star key. Then one on your touch tone phone. To withdraw your question, please press two 13. Please note this event is being recorded. I would now like to turn the call over to TJ Cole, Senior Vice President and Corporate Development and Investor Relations of Cresco Labs. Please go ahead.
Thank you. Good morning, and welcome to Cresco Labs' First Quarter 2024 earnings conference call.
On the call today, we have Chief Executive Officer and Co-Founder, Charles Bartel, Chief Financial Officer, Dennis Knowles, and President, Greg Butler, who will be available for Q&A.
Prior to this call, we issued our first quarter earnings press release, which
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
