We are excited to catch up with the CEO of TLLTF, Gary Santo on December 12 @ 2 PM.
TLLTF put up strong 3Q21 top-line numbers, but they were not alone reporting that inflation/logistics costs were elevated. As such offered guidance on the low end of their previous revenue range of $205-$210 Million due to product approval delays in Pennsylvania. Revenue increased 37% to $53.4 million, driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 19% to $11.2 million, and inhalation and accessory revenue increased 42% to $42.1 million.
The company revised its (A)EBITDA down slightly to $24-26 Million from $30-32 Million, due to headwinds in Massachusetts and Pennsylvania and increased freight costs from Jupiter on increased shipping china. On the positive side, 4Q21 and 2022 are looking sequentially stronger with two of their dispensary locations in MA receiving adult-use licenses shortly. The company stated their dispensaries usually saw a doubling of revenues when medical-only dispensaries converted to adult-use. For reference, the current run rate for one of their dispensary locations in the state is $10 Million, expected to more than double when adult use is instilled.
Tilt provided an update on their Long Island operation with the Shinnecock Indian Tribe. They expect to be breaking ground soon to commence construction of their grow facility and dispensary. Tilt expects to be operational by the end of 2022. The company could accelerate the buildout if the state of NY allows sales across sovereign borders sooner. The cannabis industry in each state will cause margins to contract. Tilt's unique strategy allows it not directly to compete with MSOs and instead supplement them with their B2B strategy.
On the call will cover topics around:
- The evolution of CPG in Cannabis and B2B sales
- The value proposition of TLTTF to other MSO's
- The future of Jupiter (Jupiter is worth more than the entire EV of the company)
- Update on trends in MA
- Thoughts on the competitive pressure in PA
Please email any questions to Consumablespro.com
