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    Derek Dley

    Research Analyst at Canaccord Genuity

    Derek Dley's questions to Trulieve Cannabis (TCNNF) leadership

    Derek Dley's questions to Trulieve Cannabis (TCNNF) leadership • Q2 2023

    Question

    Derek Dley inquired about the progress of the Jefferson Park (Jeffco) facility ramp-up, its expected impact on inventory and margins, and the pace of the inventory wind-down for the remainder of the year.

    Answer

    CEO Kim Rivers explained that the Jeffco facility is now fully planted and in full utilization, with the second phase ramping up. She anticipates this will lead to lower production costs, impacting margins in the latter half of 2023 and into 2024. Rivers confirmed that the inventory wind-down will continue through year-end, viewing it as a strategic opportunity to align product offerings with shifting consumer preferences.

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    Derek Dley's questions to Trulieve Cannabis (TCNNF) leadership • Q1 2023

    Question

    Derek Dley inquired about the inventory drawdown timeline, its role in achieving positive free cash flow, the idling of legacy facilities, and whether the Q1 SG&A expense level is a sustainable run rate for 2023.

    Answer

    CEO Kim Rivers confirmed that inventory wind-down is a core 2023 initiative and a key contributor to cash generation, noting Q1 inventory was flat due to outperformance at the new, more efficient Jeffco facility. She added that the process of idling legacy facilities has begun and will continue throughout 2023 as the new facility ramps up. CFO Alex D’Amico stated that while the company is always assessing its cost structure, the significant SG&A savings achieved in Q1 should carry through the year.

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    Derek Dley's questions to Cresco Labs (CRLBF) leadership

    Derek Dley's questions to Cresco Labs (CRLBF) leadership • Q1 2023

    Question

    Derek Dley of Canaccord Genuity requested an update on the progress of the remaining asset divestitures in Ohio and Florida for the Columbia Care transaction. He also asked for confirmation of the full-year CapEx guidance and the cadence of remaining 2022 tax payments.

    Answer

    CEO Charles Bachtell reported good progress on the Ohio divestiture but noted that Florida has been challenging due to market changes. CFO Dennis Olis confirmed the full-year CapEx guidance of $45-$50 million remains accurate, contingent on a financing agreement in New York. He also clarified that the remaining $50 million in 2022 federal taxes are on extension, with the return to be filed in the fall.

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