Howard Penney's questions to Glass House Brands (GLASF) leadership • Q1 2023
Question
Howard Penney of Hedgeye asked how the company plans to balance its desire to grow its retail network with its commitment to maintaining positive free cash flow, given the capital-intensive nature of opening new stores.
Answer
Co-Founder and President Graham Farrar emphasized that maintaining positive free cash flow is a priority and that cash flow is expected to accelerate through the year from its seasonal Q1 low. He stated the company is taking a 'watch and wait' approach to retail, looking for capital-efficient opportunities rather than engaging in a 'land grab.' CEO Kyle Kazan reinforced this, stating a land grab strategy is not their approach. CFO Mark Vendetti confirmed that the current financial outlook is based on the existing 10 stores, with no immediate plans for further expansion.