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    Andrew Partheniou

    Research Analyst at Stifel

    Andrew Partheniou's questions to Cresco Labs (CRLBF) leadership

    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.

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    Andrew Partheniou's questions to Cresco Labs (CRLBF) leadership • Q1 2023

    Question

    Andrew Partheniou of Stifel asked about Cresco's standalone growth strategy if the Columbia Care deal does not close and inquired about the process and timeline for potentially extending the transaction's outside date.

    Answer

    CEO Charles Bachtell outlined a standalone growth plan focused on adult-use conversion catalysts in key states like Pennsylvania, Ohio, and Florida, and share gains in existing markets. Chief Transformation Officer Greg Butler added that growth would also come from expanding successful brands and entering new product categories like pre-rolls. Regarding the deal extension, Bachtell stated it is a board-level decision contingent on progress with the required asset divestitures.

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    Andrew Partheniou's questions to Cresco Labs (CRLBF) leadership • Q4 2022

    Question

    Andrew Partheniou from Stifel asked for an update on the Columbia Care transaction, focusing on the capital raising environment for the required asset divestitures. He questioned if the company could still achieve the $300 million in total proceeds and inquired about the closing timeline relative to the outside date, as well as the potential scenarios if the deal does not close by then.

    Answer

    CEO Charles Bachtell acknowledged that the capital raising environment has degraded but stated their divestiture strategy targeted buyers less dependent on traditional cannabis capital markets. While expressing optimism about closing the deal, he conceded that total proceeds would likely be under the initial $300 million target, noting that the company could divest other non-required assets to help cover the difference. Regarding the timeline, Bachtell confirmed they are still well within the range to meet the outside date and that different scenarios for not closing would trigger different obligations for the parties involved.

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    Andrew Partheniou's questions to Trulieve Cannabis (TCNNF) leadership

    Andrew Partheniou's questions to Trulieve Cannabis (TCNNF) leadership • Q2 2023

    Question

    Andrew Partheniou sought more detail on the operating cash flow guidance of $100 million, asking about the expected cadence between Q3 and Q4. He also inquired about the use of cash, particularly regarding CapEx levels and plans to retire debt due next year.

    Answer

    CEO Kim Rivers clarified that improved cash flow is not solely from inventory reduction but also from long-term business optimization initiatives whose benefits are now being realized. She emphasized that the company's strong cash position provides flexibility and optionality for strategic decisions, including addressing debt obligations, while reaffirming the current CapEx guidance.

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    Andrew Partheniou's questions to Trulieve Cannabis (TCNNF) leadership • Q1 2023

    Question

    Andrew Partheniou asked for more detail on production costs at the Jeffco facility compared to steady-state expectations and how this might offset market-driven gross margin pressures. He also requested a breakdown of the drivers for the $100 million operating cash flow guidance, specifically between expense and inventory reduction.

    Answer

    CEO Kim Rivers explained that gross margin is a 'three-dimensional puzzle' where positive impacts from the Jeffco facility are offset by pressure from inventory wind-down and macro consumer dynamics, reiterating that the primary goal for 2023 is cash generation. She confirmed that both core business expense reduction and inventory rationalization are key priorities for achieving cash flow goals but was not prepared to provide an exact split between the two efforts.

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    Andrew Partheniou's questions to Trulieve Cannabis (TCNNF) leadership • Q4 2022

    Question

    Andrew Partheniou from Stifel asked for more detail on the drivers of retail performance in Florida and the quantifiable impact of inventory monetization on sales and margins. He also inquired about the reasons for the shift in operating expenses between marketing and G&A, and what normalized levels might look like.

    Answer

    CEO Kim Rivers noted that Q3 Florida results were depressed by external factors, making the Q4 volume rebound appear larger, and cautioned that the shift to value products means volume data doesn't directly correlate to revenue. CFO Alex D'Amico explained that the G&A increase was primarily due to reclassifying costs from idled production facilities out of COGS and into SG&A, a necessary step in their cash generation strategy that will continue in 2023.

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    Andrew Partheniou's questions to Green Thumb Industries (GTBIF) leadership

    Andrew Partheniou's questions to Green Thumb Industries (GTBIF) leadership • Q2 2023

    Question

    Andrew Partheniou of Stifel Financial Corp. asked for same-store sales growth excluding New Jersey and inquired about the market's ability to absorb upcoming production expansions in New York, New Jersey, Minnesota, and Virginia.

    Answer

    Founder and CEO Ben Kovler declined to break out same-store sales excluding New Jersey but noted it was not a key driver. Regarding new supply, he expressed high confidence in the market demand for brands like RYTHM and Dogwalkers, stating the company's methodical "crawl, walk, run" strategy ensures new capacity aligns with market opportunity.

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    Andrew Partheniou's questions to Green Thumb Industries (GTBIF) leadership • Q1 2023

    Question

    Andrew Partheniou of Stifel followed up on cash flow, asking for details on how the impressive result was achieved, specifically regarding inventory management and whether certain markets were outsized contributors.

    Answer

    CFO Matt Faulkner attributed the performance to disciplined financial management, including maintaining stable inventory levels and managing receivables. Founder and CEO Ben Kovler added that this is part of the company's core ethos. He reiterated that the lack of a Q1 tax payment was a key factor, which will be balanced out by two payments in Q2.

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    Andrew Partheniou's questions to Green Thumb Industries (GTBIF) leadership • Q4 2022

    Question

    Andrew Partheniou from Stifel asked about working capital management, specifically regarding inventory levels and turnover as a potential cash source, and the risk of competitors liquidating inventory, which could create further price compression.

    Answer

    CEO Ben Kovler stated that the company feels good about its current inventory levels and consistent turnover rate. CFO Matt Faulkner added that while inventory-driven price pressure was felt in PA, NV, and MA in 2022, PA and NV appear to have stabilized. He identified Florida as a market with some risk of over-building but noted that adult-use catalysts in markets like Maryland could help absorb excess supply.

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    Andrew Partheniou's questions to Green Thumb Industries (GTBIF) leadership • Q2 2022

    Question

    Andrew Partheniou from Stifel inquired about capital allocation priorities, asking if the company would consider raising more debt to accelerate CapEx or pursue M&A given its strong balance sheet.

    Answer

    CEO Ben Kovler emphasized a disciplined approach, stating a high bar for M&A and a preference for organic investment in high-growth states like New York, Virginia, and Florida. He added there is no current appetite to increase leverage.

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    Andrew Partheniou's questions to CYBIN (CYBN) leadership

    Andrew Partheniou's questions to CYBIN (CYBN) leadership • Q3 2022

    Question

    Andrew Partheniou from Stifel Nicolaus asked for insights from the recent U.K. MHRA meeting and inquired about the partnership strategy for the CYB005 program, including ideal timing and partners. He also requested details on the timing and drivers of future operating expenses.

    Answer

    CEO Douglas Drysdale described the MHRA meeting as positive and productive, with no surprises that would alter their clinical plans. For CYB005, he noted its potential in neuroinflammation is attracting significant interest from large pharma companies with CNS franchises, and conversations are underway. Regarding expenses, he projected a quarterly run rate of approximately $10 million, with an increasing allocation to R&D for the CYB003 and CYB004 programs over the next year.

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    Andrew Partheniou's questions to CYBIN (CYBN) leadership • Q2 2022

    Question

    Andrew Partheniou from Stifel asked about the clinical trial structure for CYB003's combined MDD and AUD indications, expectations for repeat dosing, data on 5-HT2B receptor agonism, and progress on the CYB004 program for anxiety.

    Answer

    CEO Doug Drysdale stated that the MDD and AUD programs would likely separate for efficacy trials after combined early-stage safety work. Chief R&D Officer Mike Palfreyman addressed the 5-HT2B receptor risk, noting it's low with the planned intermittent dosing schedule. Mr. Drysdale added that CYB004 is progressing about a quarter behind CYB003 and aims to provide a rapid-acting alternative to SSRIs for anxiety.

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