The latest CC and Corp “speak”
Let’s read between the lines a little here.
First, we have “Charlotte’s Web became an SEC filer in January of this year”
Yes, as they were forced to do so. Which means they also have to use with U.S. GAAP financial reporting.
But then they quickly derail back to “we will refer to supplemental non-GAAP accounting measures, including adjusted EBITDA and adjusted gross profit, which do not have any standardized meaning prescribed by GAAP”
Now why would they do that?
Then we have the “speak”
“The year saw consumers, customers and investors eager for a regulatory resolution”
“either from the FDA or congressional legislation”
anyway we can get it, victory is ours.
Into “As you well know, this didn’t happen”
Bummer. It sounded good however.
But here “We continue to be the envy of the industry”
Well, there certainly the leader in losses. But envy? Possible bias there, ya think.
What about CW2.0 ?
“So welcome the CW 2.0. That’s what I said in my first town hall with employees on December 17. I also said it, it was all upside, and I meant it, growing revenues being cash generative and acting with the confidence of the leading brand in CBD, those are our goals”
All upside and nothing else but up, goals too. It’s all going on. Go team go.
But
“The truth is we haven’t done enough to amplify our brand equity or our unparalleled science credentials with consumers”
What’s up with that. Can you save us?
“Our e-commerce traffic is down by reinforcing our brand equity, we can rely less on promotional pricing. By the way, as does the competitive set, and reengaging the Stanley Brothers in storytelling and innovation, while keeping us grounded in the mission of the company to improve 1 billion lives again and again.”
There is nothing better than storytelling and improve a billion lives, wow, now were talking. That’s what we need.
So, what’s your new thoughts on how?
“Internally, I believe we overcomplicated our business. And look, that’s all in a rearview mirror. So now let’s look through the windshield to CW 2.0
No more rearview looking for us. Nothing to see on what was.
So, what’s the plan ?
“In my first weeks as CEO, we laid down five pillars that support our priorities for 2022 and our long game, better aligning our leadership team with shareholders, rightsizing our expenses to the size of the current business and being choiceful in the use of cash. We’re bringing back a culture of founders, family and fearless. Growing revenues regardless of regulatory action and simplifying our business with speed and executional excellence”
The 3 F’s yes, yes and we don’t care about no regulatory action. Full speed ahead.
So, tell me more about these pillars
“Pillar 1 We have also modified employee incentive plans.
2 reduced the cash cost of the business and We eliminated a layer of leadership to increase agility
3 we’re reigniting an entrepreneurial culture. Just do the right thing, it’s that simple.
4 we simply must grow our revenues.
5 It seems the 5th wasn’t mentioned but I sure it would have been mind blowing good.”
So, in summary cut costs and sell more. Man, this new CEO got it going on.
“Yes, we can conclude that our traffic has been impacted by the return of the store shopping, but we really haven’t given potential consumers a reason to come to our brand world.”
Why not?
“We will interrupt socially relevant conversations with equally relevant, compelling and on-brand content”
Huh?
"So look, in closing, we think we’ve done a lot in 90 days"
Well other than losing 137 million dollars, getting the deficit up to 188 million dollars and having .98 cent per share in losses. Ya, other than that .
But I mean now we have the 3 F’s, and storytelling, and going to do the right thing.
2.0 go go go .
All IMO
AI
