A Q transition period (per previously announced acquisitions) and during a tougher retail environment (economy, competition --including the black market because of taxes and CA, and no meaningful federal policy changes) Hence the "hunker down" mode. I do miss basket sizes and unique customer visits as a lead, but while not provided they did claim to have increased their customer base in both states and are now the leading retailer in (both CO? &) NM if I heard NK correctly. What is that based upon and show us the rabbit's feet next time, please.
The GAAP loss was higher for the Q. No real surprise there. Ouch. Frankly, the derivative number was a bit unexpected as the stock was already lower. All of the aEBITDA was pretty good, but 280E makes this what could be fuzzy math at best.
The number of dispensaries is on track, and for me, painfully slow --as only rolled in as when fully integrated-open (so some very real lag as they decide when to best implement a booked expense to four paying walls while the newest (SMOKEYS, STANDING AKIMBO and EVEREST and those additional dispensary storefronts I've found as licensed premises' sales synergies have yet to be recorded and were just about entirely missing in this report?) Those numbers may get better, but as they stated they expect to see a ramp. Foward looking enough.
Oh, projections? Nope. They took away the sizzle imo.
No out on a ledge numbers guidance, but a broad sense of purpose, nonetheless -- if one believes the model of going deep is correct and they say they do. So, gents, not much to hang a hat at the moment on as a wait and see for another Q for these to begin to record sales and with that more customers in exciting places. Meantime the margins at 57% seem pretty darn good. Doc has a point of course with debt (an increase) with YoY revs down (a first?) but a gain sequentially QoQ and increased market share means they are surviving still at the expense of others and where we will likely not see a new entry by a similar nor larger Tier. Suppose they are the big fish in these small unexciting and boring legacy (or so yesterday) full rec market ponds where the available TAM % for them is still very much a vertical ascent. A double? I view a $TCNNF with 127+ in FL and somewhere in the 40+% range of total sales and limited by what policies SHWZ is (and med only in FL) as done by SHWZ as well, but better in two states re size/growth at a lower cost.
Bullish
