Q1 2024 Verano Holdings Corp Earnings Call Transcript
Key Points
- Verano Holdings Corp (VRNOF) reported strong first quarter results with $221 million in revenue and 30% adjusted EBITDA margins.
- The company has a significant presence in states transitioning to adult-use cannabis, including Illinois, New Jersey, Connecticut, Maryland, and Ohio, positioning it well for future growth.
- Verano Holdings Corp (VRNOF) is well-prepared for the potential legalization of adult-use cannabis in Florida, with a deep footprint of 74 dispensaries and plans for further expansion.
- The wholesale side of the business showed positive growth, helping to offset some retail softness, with net wholesale revenue up 130% and net wholesale orders up over 300% versus the prior year.
- Verano Holdings Corp (VRNOF) has made strategic contributions and support to campaigns like Smart and Safe Florida, enhancing its community and industry engagement.
- Revenue for the quarter decreased by 3% compared to the previous year, primarily due to pressures in New Jersey retail as more dispensaries opened across the state.
- SG&A expenses increased to $90 million or 41% of revenue, up from 33% in the prior year, driven by new dispensary openings and investments in infrastructure.
- The company reported a net loss of $5 million for the quarter, influenced by the provision for income taxes under the restrictive 280E tax code.
- While the company is preparing for potential adult-use markets, there is uncertainty and risk associated with the outcomes of upcoming ballots and regulatory changes.
- Verano Holdings Corp (VRNOF) faces ongoing challenges with cash management and safety due to the predominantly cash-based nature of the industry, although potential federal rescheduling could alleviate some issues.
Good morning. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to Verona Holdings Corp. First Quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. (Operator Instructions)
Thank you. I would now like to turn the call over to Juliana Petra, Vice President of Investor Relations. Please go ahead.
Thank you, and good morning, everyone. Welcome to Varonis First Quarter 2024 earnings conference call. I'm joined today by George Scangos, Chief Executive Officer and Founder, Brett Zimmer, Chief Financial Officer, Darren vice president, and AIR MILES, Chief Investment Officer.
During this call, we will discuss our business outlook and make forward-looking statements within the meaning of applicable U.S. and Canadian securities laws, which are based on management's current assumptions and expectations such forward-looking statements involve known and unknown risks,
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