Q4 2023 Vext Science Inc Earnings Call Transcript
Key Points
- Vext Science Inc (VEXTF) has enhanced its balance sheet flexibility, positioning its Arizona operations for long-term growth and profitability.
- In Ohio, Vext Science Inc (VEXTF) generated revenue of $34.8 million for the full year 2023 and adjusted EBITDA of $5.5 million, demonstrating strong financial performance despite market challenges.
- The company has successfully expanded its footprint in Ohio, adding two additional dispensaries and expecting to close on two more in 2024, which will enhance its market share and cash flow as the market transitions to adult use.
- Vext Science Inc (VEXTF) has a solid balance sheet with $8.7 million in cash as of December 31, 2023, and no material unfunded growth capital expenditures planned for the year.
- The company's Arizona dispensaries continue to outperform the state average in terms of customer traffic, transactions, and unit sales, thanks to effective store management and targeted promotional discounts.
- Vext Science Inc (VEXTF) faced industry-specific hurdles such as overproduction and falling wholesale prices in Arizona, impacting the overall market.
- The company recorded a 1.7% decrease in revenue from $35.4 million in 2022 to $34.8 million in 2023, mainly due to weakening revenue from Arizona operations.
- Adjusted EBITDA for the year 2023 was down compared to $15 million in 2022, with adjusted EBITDA margins decreasing to 16%.
- The company anticipates operating expenses as a percentage of revenue to remain elevated for the first half of 2024 due to necessary expenses to take advantage of the Ohio recreational market.
- Vext Science Inc (VEXTF) expects continued market pressures and challenges in the Arizona market into the first quarters of 2024, with ongoing pricing pressure and a tough consumer market.
Thank you for standing by. This is the conference operator. Welcome to the Vext Science's fourth quarter and fiscal 2023 financial results conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions) I would now like to turn the conference over to Jonathan Ross. Please go ahead.
Thanks, operator. Good morning, everyone, and thanks for joining us today. Bank's Fourth Quarter and Fiscal Year 2023 financial results were released earlier this morning. The press release, financial statements and MD&A are available on CEDAR plus as well as on the bank's website at Fox science.com. We would like to remind listeners that portions of today's discussion include forward-looking statements and that forward-looking statements are included in today's filings. There can be no assurance that these forward-looking statements will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results contained therein will materialize. Risks
| 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
