tlry earnings

on September 24 | in Uncategorized | by | with No Comments

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In the quarter it’s — all the EBITDA improvement was driven by lower SG&A.

Hey, thanks Rupesh. So my first question comes along lines with Manitoba. So I think that we’ve got some moving parts that if we — if our revenue expectations are not necessarily met, I think that we’ve got some avenues that we would look to go down and try to still make that happen, or if we see the revenues start trending to what we think they should, is that we’ve got an opportunity to maybe make some additional investments in the company elsewhere. And so we’re using their sales force who are acting as our exclusive agents for all provinces and territories except for Quebec. This consisted of $13.6 million for land and buildings, $10.2 million for its cultivation license, and $1.3 million for foreign currency translation adjustments. On the Canada rec, I’d say that we have seen — actually we’ve been pretty consistent with our pricing. By leveraging the expertise and relationships we expect our distribution to grow in the adult use markets and the High Park’s diverse portfolio of brands such as CANACA, Chowie Wowie, and Marley Natural. There is good demand. Before we begin, please remember that during the course of our discussion, management may make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Thanks. As a reminder, this conference is being recorded. We’ve seen — we expect to see increases in distribution through our relationship with Kindred, which gives us greater reach and a greater frequency interacting with the respective provincial buyers and retailers. We haven’t really been driving pricing down, like a lot of other people have.

We should see some benefit as we move into the back half of this year foreseeing the full impact of the cost cuts that we have implemented and not necessarily just a partial amount of those as we did in Q1 and Q2. Many of these measures have already had a positive impact on our P&L, and we expect to continue seeing benefit for the remainder of 2020 and into for future years. Please limit yourself to two questions. However, if we experience future construction delays later this year due to COVID-19 they may impact our total capex spend for the year. Yeah, so I don’t think we have more of the introductory to pricing type of thing coming our way.

So just wondering if you can just give bit more detail as to how you intend to resume growth in that segment because this quarter it was a sequential decline, anyways?

Great. In Canada, we have integrated the Kindred sales force through acting as our business sales agent for all provinces and territories excluding Quebec. I think that we’ve talked about previously, something in the $40 million to $45 million, $50 million range for that business.

And on a separate topic, I think you mentioned and I know you’re shifting to a broker or a third-party distributor to sell in Canada. Second quarter revenues grew $4.5 million or 10% to approximately $50.4 million or CAD69.4 million compared to the same quarter last year. The company reported ($0.65) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.27) by ($0.38).

I don’t have that data in front of me at least. View TLRY revenue estimates and earnings estimates, as well as analyst recommendations. We’re trying to monitor what’s going on relative to pricing. These numbers assume no meaningful additional impacts due to COVID and the remaining capex assumes completion of Phase 2 in Portugal during 2020. We’ve seen the same thing in Canada four years ago. It is important to clarify, our cost reduction efforts began during the first quarter before and unrelated to COVID. To our knowledge, we are among the first in the cannabis industry to have successfully obtained a full EU GMP certification within the EU.

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