Q2 2024 Verano Holdings Corp Earnings Call Transcript
Key Points
- Verano Holdings Corp (VRNOF) reported revenue of $222 million for Q2 2024, in line with previous guidance.
- Adjusted EBITDA was $71 million, representing 32% of revenue, which is an improvement over both the prior quarter and the prior year period.
- The company announced accretive M&A transactions in Arizona and Virginia, expanding its footprint to 14 states and 150 stores.
- Verano Holdings Corp (VRNOF) maintained a strong balance sheet with $130 million in cash and cash equivalents.
- The company is well-positioned for potential adult-use cannabis transitions in key markets like Florida, Pennsylvania, and Virginia, which could significantly boost future revenue.
- Net wholesale revenue saw a decline, offsetting some of the gains from retail operations.
- SG&A expenses increased to $87 million, or 39% of revenue, up from $85 million in the prior period.
- The company reported a net loss of $22 million, primarily due to the provision for income taxes under Section 280E of the tax code.
- There is continued pressure in the New Jersey and Illinois retail markets, impacting overall performance.
- The company refrained from providing specific top-line guidance due to uncertainties in the industry, making future revenue projections challenging.
(Operator Instructions)
Thank you. I will now turn the conference over to Julianna Paterra for VP of IR.
Please begin.
Thank you and good morning, everyone. Welcome to the Verano Second Quarter 2024 Earnings Conference Call. I am joined today by George Archos, Founder and Chief Executive Officer, Brett Summerer, Chief Financial Officer, Darren Weiss, President and Aaron Miles, Chief Investment Officer.
During the 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, uncertainties and other factors that may cause the actual results, performance and achievements of the business or developments in the Company's industry to differ materially from those implied by such forward-looking statements. Actual results or events could differ considerably due
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