Andrew Partheniou's questions to Cresco Labs (CRLBF) leadership • Q2 2023
Question
Andrew Partheniou from Stifel inquired about tax payments in Q2, the outlook for taxes in the second half, and the nature of minority interest distributions. He also asked about capital allocation priorities between CapEx, debt reduction, and M&A, and the potential sources for funding these initiatives.
Answer
CFO Dennis Olis detailed that $22 million in taxes were paid in Q2, with a ~$50 million payment for 2022 taxes expected in Q4. He clarified that NCI distributions are primarily in-year federal tax payments to Up-C holders. CEO Charles Bachtell explained that capital allocation is focused on strengthening the core to pursue capital-efficient growth, with potential funding from unencumbered properties, but no plans for equity raises.