Good morning, everyone, and welcome to the Entourage Health Corp. third quarter 2024 results conference call. At this time, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity for analysts and members of the media to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. A replay of this call will be available on the Entourage Health website later today and will remain posted for the next 90 days. I would now like to turn the conference over to Catherine Flaman, Director of Communications with Entourage Health. Please go ahead, Catherine. Thank you, Gaylene, and good morning. For copies of our press releases and supporting documents filed or to retrieve a recording of this call, please visit the investor relations page of our website. The replay will be available later this afternoon. Today, we will review the third quarter's business highlights and financial results and discuss recent developments. Following the remarks, we'll open the floor for questions. During today's call, we will discuss our business outlook, which contains certain forward-looking statements. Actual events or results could differ materially from the expressed or implied by such forward-looking statements due to several risks and uncertainties, including those mentioned in our most recent filing, SEDAR. These comments are made based on predictions and expectations as of today. Other than as required by applicable securities laws, the company does not assume any obligation to update or revise them to reflect new events or circumstances. I'm pleased to introduce George Scorsis, Entourage Health CEO and Executive Chair. George, please go ahead. Good morning, everyone, and thank you for joining us today to discuss Entourage's financial results and operational highlights for the third quarter of 2024. I'd like to begin by expressing my gratitude to our shareholders, employees, partners, patients, and consumers for their continued support. This quarter, we achieved a total revenue of CAD 13.6 million, reflecting an 11% year-over-year increase. This growth, which is a significant achievement in the current market conditions, directly results from our team's focus on delivering value to our customers and executing our strategic initiatives, particularly our expansion into alternative sales channels. This was part of our diversification strategy and contributed to our top line alongside our adult use and medical segments. Vaani will discuss our notable achievements and provide a detailed walkthrough of the financials in just a moment. First, I'd like to briefly highlight some of our accomplishments to date. We are pleased with our progress in improving EBITDA, which increased 70% this quarter and 65% year-over-year. This reflects our relentless efforts to manage costs, streamline operations, and enhance margins. SG&A expenses decreased by 32% year-over-year, representing significant savings. These were driven by advancements in pre-roll automation, optimizing our product mix, and enhancing production processes. For example, we now produce over two million pre-rolls monthly, an operational achievement that positions us to capitalize on growing consumer demand in this product category. These operational enhancements strengthen margins and enable us to scale production more effectively. Our distribution strategy is designed to adapt to evolving consumer preferences, driving both market leadership and profitability. This alignment is reflected in our recent product launches in Alberta, Ontario, and British Columbia, where we unveiled a diverse range of innovative cannabis products tailored to meet consumer needs. This year, we've expanded our portfolio significantly, with 23 new SKUs across our core brands: Color Cannabis, Dimebag, and Saturday. These launches include new cultivars such as Luminous Lime, Jazzb erry, and Almond Cloud, and innovative formats like infused pre-rolls and value-focused offerings under our newly launched Dimebag brand. The response has been overwhelmingly positive, with Dimebag leading our adult use portfolio growth, delivering CAD 2.5 million in incremental revenue year-over-year and securing 2,000 new retail placements. Our strategy begins with the expansion of our distribution channels across Canada, recognizing that accessibility is critical to market penetration. Looking ahead, we're excited about our 2025 pipeline. We plan to launch a number of new products and formats, including Chromatica, Sour Grapefruit Haze, Live Resin Infused Pre-rolls, and our new 25.5 gram mega packs. Entourage is strategically positioned to lead Canada's medical cannabis market as well, introducing innovative, patient-centric product formats to our growing portfolio. With proven expertise in insurance coverage and service extending to over 15 locals nationwide, we are well equipped to drive patient conversion. By leveraging strong partnerships, we are expanding access across new platforms tailored to veterans and aging populations. Through a focus on innovation in medical and wellness-oriented products, Entourage is aligned to capitalize on the projected growth of Canada's medical cannabis sector, expecting to surpass CAD 1 billion by 2029. While we are proud of our commercial and operational accomplishments, we are also acutely aware of the financial challenges facing the industry and our company. We have been working closely with LiUNA, our key financial partner. Our partnership with LiUNA is built on shared values, trust, collaboration, and a commitment to sustainable growth. Over the years, LiUNA has consistently demonstrated confidence in our vision and operations, providing the support we need to adapt to the market shifts and remain resilient. We are laying the foundation for a stronger, more stable future. Before I hand it over to Vaani, I want to note that despite these challenges, our financial performance continues to trend positively. Over the past nine months, we have demonstrated our ability to reduce costs while improving margins, enabling us to compete more effectively in an increasingly competitive market. Every step forward from our solid production capabilities to launching innovative products has been made possible by the diligent efforts and resilience of our team. I want to thank our team for their contributions, which has positioned Entourage as a leader in the Canadian cannabis industry. Looking to the future, our focus is clear. We aim to close this year strongly, delivering results, reinforcing our commitment to growth and profitability. With the cannabis market stabilizing, we can lead the industry, provide value to our stakeholders, and achieve sustainable development. I will now pass it over to Vaani. Thank you, George, and thank you to everyone joining our call this morning. Please note that for the course of my financial discussion today, all financial information is prepared in accordance with International Financial Reporting Standards and is in Canadian dollars unless otherwise stipulated. To start, our third quarter total revenue increased by CAD 1.4 million, or 11%, to CAD 13.6 million compared to the same quarter in 2023. Net revenue, which is revenue less excise duty, increased by CAD 0.8 million, or 9%, to CAD 9.5 million compared to the same quarter in 2023. On a consecutive basis, total revenue increased by CAD 1.4 million, or 11.5%, compared to Q2 2024, reflecting a pickup in the adult use channel due to new product offerings as well as partial recovery in our BC sales channel. Our year-over-year net revenue growth was largely driven by growth in the bulk use channel of CAD 1.1 million, slightly offset by a decrease in medical revenue of CAD 0.2 million, or 7%, while adult use was flat. Lower medical revenue was driven by lower patient renewal rates and reduced basket sizes. For the nine months ended September 30th, 2024, our total net revenue grew 2%, or CAD 0.8 million, due to higher bulk sales of CAD 2.3 million, offset by decreases in the adult use portfolio of CAD 1.1 million and the medical channel of CAD 0.5 million. Decreases in the adult use segment reflect the softness experienced in the first six months of the year due to lower order quantities from the western provinces, as well as lower pricing in our newly launched value brand, Dimeb ag. For the nine months ended September 30th, 2024, our average selling price per gram after excise duty was CAD 1.73 per gram, reflecting a decrease of CAD 0.81, or 32%, largely due to the bulk sales which took place during the quarter. Whereas we've previously maintained a belief in the eventual stabilization of selling price per gram, general market price compression due to inflation and other factors indicate a continued decrease in selling price of the adult use market. Defensive actions to maintain stable revenue levels have been assessed and include introducing formats conducive to the mid-potency market of a consistent quality. As well, our new value brand, Dimebag, continues to grow, and our average selling price will be impacted. Gross profit before changes in fair value was CAD 2.9 million for the three months ended September 30, 2024, compared to a gross profit of CAD 2.4 million for the same period in 2023. This is an increase of 20%, or $0.5 million, whereas the same metric for the nine months ended September 30th, 2024, reflected growth of $1.8 million, or 24%. Cost of goods sold increased by $0.5 million, or 20%, for the three months ended September 30th, 2024, compared to the same period in the prior year as the cost of biomass grew. Higher cost of biomass is expected to continue in the short term. From an SG&A perspective, Q3 2024 total SG&A was lower than Q3 2023 by $2 million, or 32%, and $6.5 million, or 31%, for the nine months ended September 30th, 2024. The reduction was largely due to restructuring initiatives undertaken in the third and fourth quarters of 2023, which included headcount reduction, reduction in marketing expenses, and reducing our external agency fees. Turning to our balance sheet, we ended the third quarter with cash and cash equivalents of CAD 3.5 million, a reduction of CAD 7.6 million compared to December 2023 due to operating losses. The company's cash burn continues to decrease with each quarter due to disciplined cost management and opportunities sought to grow margins. With respect to our capital structure, we continue to work with our largest lender to negotiate a resolution to the current forbearance letter in place. The current agreement expires on January 15, 2025, and management maintains its resolve in simplifying our structure. All in all, the financial results of the quarter reflect market conditions which are forcing sales prices down and biomass costs up. Our focus on cash preservation, operational efficiency, and consumer needs continue as we weather market conditions. With that, I'll turn the call back over to George for closing. Thank you, Vaani. The steps we are taking today position us to adapt to the changes ahead and create a more resilient and efficient organization. With a clear vision and a dedicated team, we are confident in our ability to drive progress and achieve sustainable success. With that sentiment, I pass it to Catherine to guide us through the Q&A session. Thank you, George and Vaani. This concludes our opening remarks, and we are now ready for the question and answer period. Gaylene, please proceed with instructions to call in. Certainly. Panelists and members of the media who wish to ask a question may press star then one on your touch-tone phone. You'll hear a tone indicating that you're in queue. If you're using a speakerphone, please pick up your handset before pressing any keys. If you wish to remove yourself from the question queue, please press star then two. We'll pause a moment for callers to join the queue. Once again, anyone with a question may press star then one. As there are no questions, I'd like to turn the conference back over to Mr. George Scorsis, CEO of Entourage Health, for closing remarks. Thank you all again for joining us on today's call. If you have no further questions, please reach out to Catherine and our investor relations team. With that being said, I want to wish you a safe and happy holiday season. Thank you very much.
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