SNDL Inc (SNDL) 2024 Q1 法說會逐字稿

Good morning, and welcome to the SNDL's first-quarter 2024 financial results conference call. This morning, SNDL issued a press release announcing their financial results for the year-end and fourth quarter ended on March 31, 2024. This press release is available on the company's website at sndl.com and filed on EDGAR and SEDAR as well. The webcast replay of the conference call will be also available on the sndl.com website.

早安，歡迎參加 SNDL 2024 年第一季財務業績電話會議。今天上午，SNDL 發布新聞稿，公佈了截至 2024 年 3 月 31 日的年末和第四季度財務業績。本新聞稿可在公司網站 sndl.com 上取得，並在 EDGAR 和 SEDAR 上存檔。電話會議的網路直播重播也將在 sndl.com 網站上提供。

SNDL has also posted a supplemental investor presentation in addition to the conference call presentation we will be reviewing today on sndl.com website. Presenting on this morning's call, we have Zach George, Chief Executive Officer; and Alberto Paredero, Chief Financial Officer.

除了我們今天將在 sndl.com 網站上回顧的電話會議簡報外，SNDL 還發布了補充投資者簡報。在今天早上的電話會議上，我們有執行長 Zach George；和財務長阿爾貝托·帕雷德羅。

Before we start, I would like to remind investors that certain matters discussed in today's conference call or answers that may be given to questions should constitute forward-looking statements. Actual results could differ materially from those anticipated. Risk factors that could affect results are detailed in the company's financial reports and other public filings that are made available on SEDAR and EDGAR. Additionally, all financial figures mentioned are in Canadian dollars unless otherwise indicated. We will now make prepared remarks and then will move on analyst questions.

在開始之前，我想提醒投資者，今天電話會議中討論的某些事項或可能對問題的回答應構成前瞻性陳述。實際結果可能與預期有重大差異。可能影響結果的風險因素詳見該公司的財務報告以及 SEDAR 和 EDGAR 上提供的其他公開文件。此外，除非另有說明，所有提到的財務數據均以加幣為單位。我們現在將發表準備好的評論，然後將討論分析師的問題。

I would now like to turn the call over to Zach George. Please go ahead.

我現在想把電話轉給扎克喬治。請繼續。

Good morning, everyone. Thank you for joining us for our first-quarter 2024 financial and operational results conference call. We are pleased with our performance in the first quarter of 2024, which reflects a positive trajectory for SNDL. The improvement in profitability across all of our operating segments is undeniable, building on a multi-year trend that includes improved revenue in eight of our last nine quarters.

大家，早安。感謝您參加我們的 2024 年第一季財務與營運業績電話會議。我們對 2024 年第一季的業績感到滿意，這反映出 SNDL 的積極發展軌跡。我們所有營運部門的獲利能力的提高是不可否認的，這是建立在多年趨勢的基礎上的，其中包括過去九個季度中有八個季度的收入成長。

We are just beginning to inflect that scale and are focused on generating results that showcase the benefits of our diversified strategy, a series of acquisitions and modest organic growth. The revenue growth in our liquor retail segment includes the expansion of our private label program and the initial launch of our commercial data offerings.

我們剛開始改變這種規模，並專注於創造成果，展示我們多元化策略、一系列收購和適度有機成長的好處。我們的酒類零售部門的收入成長包括我們自有品牌計畫的擴展和商業數據產品的首次推出。

In cannabis retail, we saw strong cash flow in the quarter and recently announced further enhancements to our retail network with an expansion into British Columbia. In our cannabis operations segment, we posted record unadjusted results. In fact, we are pleased to report both positive gross profit and operating income in our cannabis operations segment for the first time since the company's inception.

在大麻零售方面，我們在本季看到強勁的現金流，最近宣布進一步增強我們的零售網絡，並將業務擴展到不列顛哥倫比亞省。在我們的大麻業務部門，我們公佈了創紀錄的未經調整的業績。事實上，我們很高興自公司成立以來首次報告大麻業務部門的毛利和營業收入均為正值。

This result validates the acquisition of Valens and the decision to exit non-competitive cultivation exposure. The successful integration of Valens over the last 15 months has been crucial to our progress, and we are just starting to see the benefits of increased capacity utilization driven by the optionality of our platform and our approach to capital allocation.

這一結果驗證了 Valens 的收購以及退出非競爭性種植業務的決定。過去 15 個月中 Valens 的成功整合對我們的進步至關重要，我們剛開始看到由我們平台的可選性和資本配置方法驅動的產能利用率提高的好處。

We believe that the future of the cannabis industry in Canada includes stabilized profits for the strongest licensed producers and manufacturers of products. Looking ahead, we are well positioned to further expand our retail network and enhance product distribution across Canada. We anticipate continued market consolidation, and we are prepared to capitalize on select opportunities to strengthen our market presence. SNDL is optimistic about the slow tide of global regulatory reforms that create distinct opportunities in emerging markets, such as Germany and Florida where we have cannabis enterprise exposure.

我們相信，加拿大大麻產業的未來包括最強大的許可生產商和產品製造商的穩定利潤。展望未來，我們處於有利地位，可以進一步擴大我們的零售網絡並加強在加拿大各地的產品分銷。我們預計市場將持續整合，並準備好利用精選機會來加強我們的市場地位。SNDL 對全球監管改革的緩慢浪潮感到樂觀，這為新興市場創造了獨特的機會，例如我們在德國和佛羅裡達州擁有大麻企業業務。

We're even seeing rational regulatory reform in more mature saturated markets like Alberta, Canada. Last week's exciting disclosure that the US Drug and Enforcement Agency will reschedule cannabis as a Schedule 3 controlled substance, promises to improve the credit profile and free cash flow potential of US cannabis operators with a material improvement in permissible tax deductions. This change improves the risk profile of our entire SunStream portfolio, which has been written down over time to approximately $560 million, including positions that will be equitized in a structured manner compliant with Nasdaq requirements.

我們甚至在加拿大艾伯塔省等更成熟的飽和市場中看到了合理的監管改革。上週令人興奮的消息稱，美國緝毒局將把大麻重新列為附表 3 管制物質，承諾透過大幅改善允許的稅收減免，改善美國大麻業者的信用狀況和自由現金流潛力。這項變更改善了我們整個SunStream 投資組合的風險狀況，隨著時間的推移，該投資組合已減記至約5.6 億美元，其中包括將以符合納斯達克要求的結構化方式進行股權化的頭寸。

Two days after it was reported that the DEA would move to reclassify cannabis, SNDL announced the completion of Nasdaq's review of its SunStream USA structure, marking a significant milestone. The completion of this review creates a pathway to equitize US credits currently under restructuring, positioning SNDL to become a leading global cannabis company. Based on first-quarter 2024 revenue, if SNDL were to exercise its conversion rights upon US federal legalization, SNDL's North American operations on a SunStream USA pro-forma inclusive outlook would potentially rank SNDL as a top five MSO on a North American basis.

在報告 DEA 將採取行動對大麻進行重新分類兩天后，SNDL 宣布納斯達克完成對其 SunStream USA 結構的審查，這標誌著一個重要的里程碑。這次審查的完成為目前正在重組的美國信貸創造了一條途徑，使 SNDL 成為全球領先的大麻公司。根據 2024 年第一季的收入，如果 SNDL 在美國聯邦合法化後行使其轉換權，則按照 SunStream USA 預計包容性前景，SNDL 的北美業務可能會將 SNDL 列為北美排名前五名的 MSO。

SNDL remains steadfast in its commitment to driving long-term stabilized profitability. Following our first ever consecutive quarters of positive free cash flow in 2023, our goal for 2024 is clear. We aim to generate positive free cash flow for the aggregate calendar year.

SNDL 仍然堅定致力於推動長期穩定的獲利能力。繼 2023 年首次連續幾季實現正自由現金流之後，我們 2024 年的目標很明確。我們的目標是在整個日曆年產生正的自由現金流。

First-quarter results exceeded our expectations despite seasonal weakness. This outcome is encouraging, and we remain confident in our path to improvement this year. Our goals imply new all-time records for the SNDL team and success in our mission to bring people together through exceptional products and experiences.

儘管季節性疲軟，但第一季業績超出了我們的預期。這一結果令人鼓舞，我們對今年的改進之路仍然充滿信心。我們的目標意味著 SNDL 團隊創造新的歷史記錄，並成功實現透過卓越的產品和體驗將人們聚集在一起的使命。

I will now pass the call to Alberto for a deeper dive into our financial results for Q1 2024.

我現在將致電 Alberto，深入了解我們 2024 年第一季的財務表現。

Thank you, Zach. I want to remind you all that amount discussed today are denominated in Canadian dollars unless otherwise stated. Certain amounts referred to on this call are non-GAAP and non-IFRS measures. For depth precisions of these measures, please refer to SNDL's management discussion and analysis document.

謝謝你，扎克。我想提醒大家，除非另有說明，今天討論的金額均以加幣計價。本次電話會議中提到的某些金額是非 GAAP 和非 IFRS 衡量標準。這些措施的深度精度，請參閱SNDL的管理層討論和分析文件。

Looking at our Q1 2024 financial highlights, there are good reflection of our three strategic priorities: growth, profitability, and people. Net revenue in the first quarter of 2024 reached $197.8 million or 4% growth year over year. Growth was driven by our cannabis retail and operations segments, which posted a combined 9% growth, while liquor remained steady. Gross profit of $50.4 million represents a 55% growth year over year and an impressive 850 basis points of gross margin improvement, mainly driven by productivity improvements and other profitability initiatives that we'll be outlining later in this presentation.

看看我們 2024 年第一季的財務亮點，可以很好地反映出我們的三個策略重點：成長、獲利能力和人才。2024 年第一季淨收入達 1.978 億美元，年增 4%。成長由我們的大麻零售和營運部門推動，合計成長 9%，而酒類業務保持穩定。毛利達到 5,040 萬美元，同比增長 55%，毛利率提高了 850 個基點，令人印象深刻，這主要是由生產力提高和我們將在本演示文稿後面概述的其他盈利舉措推動的。

This gross margin improvement coupled with increases in our investment income and reduction in corporate overheads led to significant improvements in adjusted operating income and free cash flow of 85% and 89% respectively. These two metrics were close to breakeven in the quarter despite the anticipated seasonality.

毛利率的增加加上投資收入的增加和公司管理費用的減少，導致調整後的營業收入和自由現金流分別顯著提高了 85% 和 89%。儘管存在預期的季節性因素，這兩個指標在本季仍接近損益兩平。

As you may have noticed, we have evolved the financial KPIs we're focusing on. We believe that focusing on operating income and free cash flow is a much better and more transparent way to monitor the financial performance of our business in contrast with other metrics like adjusted EBITDA or adjusted free cash flow. For clarity, note that we only adjust operating income for restructuring, restructuring related write offs and intangible asset impairments.

您可能已經注意到，我們已經改進了我們關注的財務 KPI。我們相信，與調整後的 EBITDA 或調整後的自由現金流等其他指標相比，關注營業收入和自由現金流是監控我們業務財務表現的更好、更透明的方式。為了清楚起見，請注意，我們僅調整重組、重組相關沖銷和無形資產減損的營業收入。

Moving into the quarterly historical tracking of main financial KPIs, we see the improvement Q1 2024 represents, particularly in terms of profitability on free cash flow generation. When we look at specifically at free cash flow, we can see clearly that the first half of the year tends to be lower than the second half, driven by revenue facing and working capital build. In this context, it's encouraging to see that Q1 2024 is so close to breakeven and a significant improvement year over year.

進入主要財務 KPI 的季度歷史跟踪，我們看到 2024 年第一季的改善，特別是在自由現金流產生的盈利能力方面。當我們具體觀察自由現金流時，我們可以清楚地看到，在收入面臨和營運資本建設的推動下，上半年往往低於下半年。在這種背景下，令人鼓舞的是，2024 年第一季如此接近損益平衡，並且比去年同期取得顯著改善。

We will look at each segment in a few minutes, but it's good to see how each of them is contributing to our growth and profitability priorities. Starting with net revenue, each segment contributed to our growth, particularly our cannabis retail and cannabis operations segments. The small negative $0.6 million in the corporate segment is related to the revenue elimination for the cannabis operation sales into our home retail. As this amount is growing, so is the amount of revenue elimination.

我們將在幾分鐘內了解每個細分市場，但很高興看到每個細分市場如何為我們的成長和獲利優先事項做出貢獻。從淨收入開始，每個部門都為我們的成長做出了貢獻，特別是我們的大麻零售和大麻營運部門。企業部門的小額負 60 萬美元與我們家庭零售的大麻業務銷售的收入抵銷有關。隨著這筆金額的增加，收入消除的數量也增加。

In terms of gross profit, all segments are contributing to growth. The cannabis operation segment is showing a significant $12.8 million improvement as a result of our productivity initiatives. This is clearly one of the key highlights in the quarter. I would also like to point out the gross profit growth from our retail segments, which are also seeing good improvement in margin as our profitability priority is embedded across the entire organization.

從毛利來看，各個板塊都在為成長做出貢獻。由於我們的生產力舉措，大麻業務部門顯著改善了 1,280 萬美元。這顯然是本季的主要亮點之一。我還想指出我們零售部門的毛利成長，由於我們的獲利優先考慮貫穿整個組織，零售部門的利潤率也得到了良好的改善。

Moving to adjusted operating income, we see how three quarters of this improvement or $19.1 million are driven by the cannabis operation segment. Liquor retail is also contributing with $4.1 million improvement as well as our investment segment with $4.3 million improvement. In fact, our investment segment posted an operating income of $13.1 million in the quarter, mainly driven by improved valuations from our SunStream assets. Cannabis retail, while delivering negative $1 million of operating income in the first quarter, is $1 million lower than Q1 2023, driven by a $2.5 million fixed asset impairment charge recorded in Q1 2024.

轉向調整後的營業收入，我們看到這一增長的四分之三（即 1,910 萬美元）是由大麻業務部門推動的。酒類零售也貢獻了 410 萬美元的成長，我們的投資部門也貢獻了 430 萬美元的成長。事實上，我們的投資部門本季營業收入為 1,310 萬美元，這主要是由於 SunStream 資產估值的提高。大麻零售業雖然在第一季實現了負 100 萬美元的營業收入，但由於 2024 年第一季記錄的 250 萬美元的固定資產減損費用，比 2023 年第一季減少了 100 萬美元。

Free cash flow also saw a significant improvement in Q1 2024 versus the same period of 2023, as a result of our improvement in profitability, but also a more disciplined approach to working capital management. We believe it is important to understand the drivers of free cash flow in the first quarter, and in doing so, we need to put it in the context of our business seasonality.

與 2023 年同期相比，2024 年第一季的自由現金流也出現了顯著改善，這得益於我們獲利能力的提高，以及更嚴格的營運資本管理方法。我們認為，了解第一季自由現金流的驅動因素非常重要，為此，我們需要將其置於業務季節性的背景下。

Coming out of positive reported free cash flow in the second half of 2023, the first quarter of 2024 shows a negative free cash flow of $6.4 million. We are encouraged by that result, which is ahead of our initial expectations for the quarter as we know that it was impacted by both revenue and inventory seasonality.

繼 2023 年下半年報告的正自由現金流之後，2024 年第一季的自由現金流為負 640 萬美元。我們對此結果感到鼓舞，該結果超出了我們對該季度的最初預期，因為我們知道它受到收入和庫存季節性的影響。

As you can see in the middle of the chart in the slide 7, the first quarter always has by far the lowest level of sales in the year, which obviously has an impact in the level of profitability for this quarter. At the same time, as we can see in the right-hand side of the page, we have historically seen retail inventory buildup in the first half of the year, particularly in the first quarter followed by a reduction in the second half. 2024 is no exception, although we have limited this inventory build to only $5.8 million a much smaller amount than in previous years.

正如您在幻燈片 7 的圖表中間看到的那樣，第一季的銷售水平始終是一年中最低的，這顯然對本季度的盈利水平產生了影響。同時，正如我們在頁面右側看到的那樣，我們歷史上看到零售庫存在上半年增加，特別是在第一季度，然後在下半年減少。 2024 年也不例外，儘管我們將庫存建設限制在僅 580 萬美元，比前幾年少得多。

Within the pillar of profitability and financial discipline, one of our main goals for 2024 is to demonstrate our ability to deliver positive free cash flow in the year. The first-quarter results give us confidence we are on the right path to achieve this.

在獲利能力和財務紀律的支柱下，我們 2024 年的主要目標之一是證明我們有能力在這一年提供正的自由現金流。第一季的業績讓我們相信，我們正走在實現這一目標的正確道路上。

Looking into the first-quarter results for the three operating segments, I would like to start with liquor retail. Net revenue in the first quarter of 2024 was $116 million stable versus the same period of 2023. This is a good result considering the headwinds the liquor industry is facing, with many of our competitors and manufacturers seeing revenue declines.

回顧三大業務部門的第一季業績，我想從酒類零售開始。2024 年第一季的淨收入為 1.16 億美元，與 2023 年同期相比保持穩定。考慮到白酒產業面臨的逆風，這是一個很好的結果，我們的許多競爭對手和製造商的收入都在下降。

I would like to highlight the profitability improvement of this segment. Gross margin reached 25% in Q1 2024, a 220 basis point improvement compared to Q1 2023. This was achieved through multiple initiatives including a 29% growth of our margin accretive private label, procurement productivity and data sales monetization. As a result, this segment operating income delivered a positive $2.2 million over $4 million improvement versus the same quarter of 2023.

我想強調一下該部門獲利能力的提升。2024 年第一季毛利率達 25%，比 2023 年第一季提高 220 個基點。這是透過多項措施實現的，包括我們的利潤增值自有品牌、採購生產力和數據銷售貨幣化成長 29%。因此，與 2023 年同季相比，該部門的營業收入比 400 萬美元增加了 220 萬美元。

Moving into cannabis retail, we saw net revenue in Q1 2024 of $71.3 million, which is a 6% increase versus Q1 2023, mainly driven by double-digit growth in Ontario as well as the expansion of our data sales products. Data sales as a main factor contributed to 230 basis points of gross margin improvement for this segment, enabling a 17% gross profit growth compared to Q1 2023. Operating income was negative $1 million, impacted by a $2.5 million face asset write off as previously mentioned.

進入大麻零售領域，我們看到2024 年第一季的淨收入為7,130 萬美元，比2023 年第一季成長6%，這主要是由安大略省兩位數的成長以及我們的數據銷售產品的擴張推動的。數據銷售作為主要因素，推動該細分市場的毛利率提高了 230 個基點，與 2023 年第一季相比，毛利成長了 17%。如前所述，受到 250 萬美元面額資產沖銷的影響，營業收入為負 100 萬美元。

Finally, looking at our cannabis operation segment, this is where we see the largest and most noticeable improvement, both in terms of growth and profitability. In the first quarter of 2024, this segment delivered net revenues of $22.4 million, a 17% increase compared to Q1 2023. The highlight of this segment is clearly improvement in profitability.

最後，看看我們的大麻業務部門，無論是在成長還是獲利能力方面，這是我們看到最大和最顯著改善的地方。2024 年第一季度，該部門實現淨收入 2,240 萬美元，比 2023 年第一季成長 17%。該細分市場的亮點顯然是獲利能力的提高。

Driven by an extensive productivity program, including the savings from the rationalization of our cultivation footprint, the segment posted positive gross profit of $3.2 million, an improvement of $12.7 million compared to Q1 2023. As a result, the gross margin of the segment improved from a negative 50% in Q1 2023 to a positive 14.4% in Q1 2024. And adjusted operating income was a positive $1.1 million compared to a loss of $18 million in the prior year.

在廣泛的生產力計劃（包括種植面積合理化所節省的成本）的推動下，該部門實現了 320 萬美元的正毛利潤，與 2023 年第一季相比增加了 1,270 萬美元。因此，該部門的毛利率從 2023 年第一季的負 50% 改善至 2024 年第一季的正 14.4%。調整後營業收入為正 110 萬美元，而前一年為虧損 1,800 萬美元。

In summary, a very strong quarter with continued revenue growth, record gross margin and a significant improvement in profitability and free cash flow. We have an ambitious agenda in front of us to continue driving growth, improve profitability, and leverage what we believe is our biggest asset, our people.

總而言之，這是一個非常強勁的季度，收入持續成長，毛利率創歷史新高，獲利能力和自由現金流顯著改善。我們面前有一個雄心勃勃的議程，以繼續推動成長、提高獲利能力並充分利用我們認為是我們最大的資產——我們的員工。

The first quarter of 2024 has been encouraging for our team, knowing we are in the right path. Let's also keep in mind that at March 31, 2024, the company had $189 million of unrestricted cash, an additional $594 million in marketable securities and investments and no outstanding debt.

2024 年第一季對我們的團隊來說是令人鼓舞的，因為我們知道我們正走在正確的道路上。我們還請記住，截至 2024 年 3 月 31 日，該公司擁有 1.89 億美元的非限制性現金，另有 5.94 億美元的有價證券和投資，並且沒有未償債務。

With this, I would like to pass the mic back to Zach to share a few more operational highlights for the quarter.

至此，我想將麥克風傳回扎克，分享本季的更多營運亮點。

Thank you, Alberto. As we continue today's discussion, I want to reflect on the strategic priorities we set at the end of last year. We structured our approach around three, four pillars growth, profitability and people. Each of these pillars is fundamental to our long-term success. As Alberto mentioned, we have clear defined strategies within each to guide our actions and decisions.

謝謝你，阿爾貝托。在我們繼續今天的討論時，我想回顧一下我們去年年底制定的戰略重點。我們圍繞著成長、獲利能力和人才這三、四個支柱制定了我們的方法。這些支柱中的每一個都是我們長期成功的基礎。正如阿爾貝託所提到的，我們在每個策略中都有明確的策略來引導我們的行動和決策。

Starting with growth, our aim is to drive sustainable growth within our core market segments. In the first quarter of 2024, we've implemented several key strategies to enhance our market reach and deepen our operational capabilities. Through the first quarter, we opened a new Spiritleaf store in the coveted resort community at Whistler, BC and added a new Wine and Beyond store in Airdrie, one of the fastest growing communities in Alberta.

從成長開始，我們的目標是推動核心細分市場的永續成長。2024 年第一季度，我們實施了多項關鍵策略，以擴大市場覆蓋範圍並深化營運能力。第一季度，我們在不列顛哥倫比亞省惠斯勒令人垂涎的度假村社區開設了一家新的Spiritleaf 商店，並在艾伯塔省發展最快的社區之一艾爾德里增加了一家新的Wine and Beyond 商店。

As mentioned earlier, we also expect to expand our presence in the BC market through Nova's acquisition of Dutch Love retail locations. We grew our liquor private label program by adding new offerings, specifically in the value segment. And we continue to expand our innovations within our cannabis operations segment, and we'll be introducing approximately 30 new SKUs in the coming weeks.

如前所述，我們也希望透過 Nova 收購 Dutch Love 零售店來擴大我們在 BC 市場的影響力。我們透過增加新產品（特別是在價值細分市場）來發展我們的酒類自有品牌計劃。我們將繼續擴大大麻業務領域的創新，我們將在未來幾週內推出約 30 個新的 SKU。

Moving on to profitability, our objective is clear to achieve positive free cash flow for the aggregate 2024 calendar year. We have focused on optimizing our operations and reducing unnecessary expenditures and have established procurement efficiencies of approximately $10 million. We are currently in the midst of a strategic planning exercise as expected to drive a further material reduction in corporate expenses.

談到獲利能力，我們的目標很明確，在 2024 年全年實現正自由現金流。我們專注於優化營運和減少不必要的支出，並已建立約 1000 萬美元的採購效率。我們目前正在進行策略規劃工作，預計將進一步大幅削減公司開支。

Through the closure of our facility in Olds, we've achieved approximately $3 million in cost savings. We have also generated approximately $4 million in data licensing revenue this past quarter both from our liquor and cannabis retail segments. We've made substantial progress in monitoring business performance and driving a culture of accountability.

透過關閉奧爾茲工廠，我們節省了約 300 萬美元的成本。上個季度，我們也從酒類和大麻零售部門獲得了約 400 萬美元的數據授權收入。我們在監控業務績效和推動問責文化方面取得了實質進展。

Looking forward, we are conducting a rigorous strategic planning exercise aimed at developing conviction around core competencies and capital priorities as well as a further reduction of operating expenses. We believe these actions will significantly improve our financial performance in the second half of the year. Lastly, our people pillar is about fostering a performance culture and developing talent across our organization.

展望未來，我們正在進行嚴格的策略規劃，旨在圍繞核心能力和資本優先事項建立信念，並進一步減少營運費用。我們相信這些行動將顯著改善我們下半年的財務表現。最後，我們的人才支柱是在整個組織內培養績效文化和培養人才。

This quarter, we launched several initiatives aimed at enhancing employee engagement and alignment. These include investment in retention and succession planning. We have rolled out our strategic priorities and core behaviors across the organization ensuring unity. We will also launch community engagement framework focused on mental and physical well-being.

本季度，我們推出了多項旨在提高員工敬業度和一致性的措施。其中包括對保留和繼任計劃的投資。我們已經在整個組織內推出了策略重點和核心行為，確保團結。我們也將推出專注於身心健康的社區參與框架。

Our strategic priorities are not merely aspirations. They are actionable paths that we are pursuing with Vigor. The progress we've made in the first quarter is a testament to our commitment to these goals. I am confident in our team's ability to maintain this momentum and I look forward to sharing more about our achievements as the year progresses. We are excited about what lies ahead and are confident in our ability to deliver value to our investors and partners.

我們的戰略重點不僅僅是願望。它們是我們與活力一起追求的可行路徑。我們第一季的進展證明了我們對這些目標的承諾。我對我們團隊保持這股勢頭的能力充滿信心，並期待著隨著時間的推移分享更多關於我們的成就。我們對未來感到興奮，並對我們為投資者和合作夥伴創造價值的能力充滿信心。

Thank you for your continued support and belief in SNDL. I will now pass the call back to the operator for analyst questions.

感謝您一直以來對SNDL的支持與信任。我現在將把電話轉給接線員，詢問分析師的問題。

(Operator Instructions) Federico Gomes, ATB Capital Markets.

（操作員指令）Federico Gomes，ATB 資本市場。

Good morning. Thanks for taking my questions. First question is just on the international cannabis opportunity. Well, first, I was under the impression that you already had EU-GMP at Atholville. So could you just comment on that? And then in terms of the international opportunities that you have, how soon can they become more material in terms of your financials? And would you consider any M&A on that front?

早安.感謝您回答我的問題。第一個問題是關於國際大麻機會。嗯，首先，我的印像是阿索爾維爾已經有了 EU-GMP。您能對此發表評論嗎？然後，就您擁有的國際機會而言，它們多久才能對您的財務狀況變得更加重要？您會考慮這方面的併購嗎？

Good morning, Federico. Thanks for the question. You’re correct. So there were permits in place. Atholville is going through a re-permitting process that we expect to be completed by the end of the summer. And we’re not giving specific guidance on the growth of the export opportunity in Europe, but our team is heavily focused on it. We’ve received POs recently and we are looking at a few opportunities where we may deploy capital into the region. But right now, we’re really trying to assess the best and highest quality export partners to work with.

早上好，費德里科。謝謝你的提問。你是對的。所以有許可證。阿索爾維爾正在經歷重新許可程序，我們預計該程序將在夏末完成。我們並沒有就歐洲出口機會的成長提供具體指導，但我們的團隊非常關注這一點。我們最近收到了採購訂單，正在尋找一些可以在該地區部署資本的機會。但現在，我們確實在努力評估最好、最高品質的出口夥伴。

Perfect. And then still within Atholville, you mentioned you’re ramping up cultivation there. So can you just remind us what’s the capacity there and how much you’re currently using of that? And then as well as you ramp that up, the impact to margins that you expect because you had a pretty good margin expansion this quarter. So do you think that can continue as you ramp up that production? Thank you.

完美的。然後還在阿索爾維爾，你提到你正在那裡加強種植。那麼您能否提醒我們那裡的容量是多少以及您目前使用了多少容量？然後，隨著你的增加，對利潤率的影響也是你所期望的，因為你本季的利潤率擴張相當不錯。那麼，您認為隨著產量的增加，這種情況還能持續嗎？謝謝。

It's a great question. So yes, it’s operating at less than 25% of capacity today. Our President of cannabis, Tyler Robson has gone through a thorough reset on operations and SOPs in the -- with the cultivation team there. And we’re very pleased with early results in terms of where our cash cost of cultivation are sitting. They’re competitive, they’re marginable and as we ramp, we expect those costs to improve. But we’re going to do so methodically and slowly to meet market demand.

這是一個很好的問題。所以，是的，它目前的運作能力還不到產能的 25%。我們的大麻總裁泰勒·羅布森 (Tyler Robson) 與種植團隊一起徹底重新調整了營運和標準作業程序。我們對種植現金成本的早期結果感到非常滿意。它們具有競爭力，利潤豐厚，隨著我們的擴張，我們預計這些成本將會改善。但我們將有條不紊地、緩慢地這樣做，以滿足市場需求。

And then in terms of your distribution, you mentioned you secured an additional 350 distribution points after quarter end. So could you comment on where in terms of penetration right now, where you’re at across different provinces? Where do you see the opportunity here? And specifically in Quebec, did you have any presence there? And if not, is there a plan to enter that market? Thank you.

然後就您的分配而言，您提到您在季度末後獲得了額外的 350 個分配點。那麼您能否評論一下目前在不同省份的滲透率？您在哪裡看到了這裡的機會？特別是在魁北克，你們在那裡有任何存在嗎？如果沒有，是否有進入該市場的計劃？謝謝。

Yes. So thanks, Federico, a few different elements of that question to unpack there. We have both inside and outside sales resources as well as data partnerships that assist in driving distribution. Our total aggregate distribution points are changing largely as a result of the shifts in independent store behavior over time. So I don’t want to give direct guidance on that today, but we do expect improvements that should impact both our top line and gross profits. And then in terms of the second part of your question, can you just remind me?

是的。所以，謝謝 Federico，您可以在這裡解開問題的一些不同要素。我們擁有內部和外部銷售資源以及有助於推動分銷的數據合作夥伴關係。由於獨立商店行為隨著時間的推移而變化，我們的總分銷點正在發生很大變化。因此，我今天不想就此給予直接指導，但我們確實預期改善會影響我們的營收和毛利。關於你問題的第二部分，可以提醒我嗎？

Yes, just if you have any distribution in Quebec and if you plan to?

是的，如果您在魁北克有任何分銷並且您計劃這樣做？

Yes. In terms of provincial-based opportunities, I would say that we are punching below our weight in British Columbia, have a strong presence in Quebec, but are looking to improve it. And obviously, Ontario is a key market that we continue to make strides in.

是的。就省級機會而言，我想說，我們在不列顛哥倫比亞省的表現低於我們的水平，在魁北克省的影響力很強，但正在尋求改進。顯然，安大略省是我們繼續大步邁進的關鍵市場。

Thank you. I'll hop back in the queue.

謝謝。我會跳回到隊列中。

Yewon Kang, Canaccord Genuity.

Yewon Kang，Canaccord Genuity。

Hi, good morning. This is Yewon Kang for Matt Bottomley. So nice to see the sequential expansion in gross margin profile, with improvements coming in from the cannabis operations side of things. In addition to all of the items that was mentioned as part of the prepared remarks, I was hoping to get some more color behind this. Now that most of the asset rationalization is completed in terms of cannabis cultivation footprint, is it fair to assume that this margin profile will at least be steady going forward? Would there be further variables in the future that could impact the cannabis ops margin? Thanks.

早安.我是馬特·博頓利的 Yewon Kang。很高興看到毛利率持續擴大，大麻業務方面也有所改善。除了準備好的評論中提到的所有內容之外，我還希望在背後獲得更多的色彩。既然大部分資產合理化已經在大麻種植足跡方面完成，那麼可以公平地假設這種利潤率至少會在未來保持穩定嗎？未來是否還會有進一步的變數可能影響大麻業務利潤率？謝謝。

Yeah. Thank you, Yewon, for your question. Actually, we have a very strong pipeline of additional productivity initiatives that should be kicking in as we speak and throughout the rest of the year. So we are still expecting improved margin profile in the following quarters.

是的。謝謝葉媛的提問。事實上，我們有一個非常強大的額外生產力計劃管道，這些計劃應該在我們講話時和今年剩餘時間內開始實施。因此，我們仍然預計接下來幾季的利潤率會有所改善。

Obviously, the closure of the Olds facility in Alberta that happened in the fourth quarter of 2023 that is already behind, it’s fully embedded in the numbers in the first quarter. The ramp-up of the cultivation capacity in Atholville, it’s underway. So that is going to be one of the elements of improved margins both side going forward, but we do have as well a long of productivity initiatives, automation initiatives in our 2.0 manufacturing capacity as well as overhead initiatives for reductions. So our plan is as well to continue seeing throughout the year, continuous margin improvement.

顯然，2023 年第四季發生的阿爾伯塔省奧爾茲工廠的關閉已經落後了，它完全嵌入到第一季的數據中。阿索爾維爾的種植能力正在不斷提升。因此，這將成為雙方未來提高利潤的要素之一，但我們也確實有長期的生產力計劃、2.0 製造能力的自動化計劃以及減少管理費用的計劃。因此，我們的計劃是全年繼續實現利潤率的持續改善。

Thank you. And just another one for me here. Just wanted to ask more about that you guys are potentially having with Nasdaq on the Schedule 3 news coming out of the US. I noticed previously telegraphed that you guys would be consolidating the financial results of Sunstream USA assets due to permit not being there. So I was wondering if there’s been a change sentiment coming out of the exchange, now that the Fed news has been out for about a week or so. Thanks.

謝謝。這對我來說只是另一件事。只是想更多地了解你們在美國發布的 Schedule 3 新聞中可能與納斯達克發生的事情。我注意到之前有電報稱，由於沒有獲得許可，你們將合併 Sunstream USA 資產的財務表現。因此，我想知道，既然聯準會的消息已經發布了大約一周左右，交易所的情緒是否會改變。謝謝。

Just to be clear, you’re asking if there is a change to Nasdaq-related restrictions on the consolidation of -- for the accounting of US plant touching entities post the news on rescheduling.

需要明確的是，您正在詢問與納斯達克相關的合併限制是否有變化——對於發布重新安排訊息的美國工廠接觸實體的會計處理。

Yes.

是的。

Okay. And the answer to that is no, that has not changed. And so we are working towards the close of the restructurings that are underway in the cases of both Parallel and Skymint in the US. But as those close -- and those closings are really waiting on license transfer for the most part.

好的。答案是否定的，這一點沒有改變。因此，我們正在努力完成美國 Parallel 和 Skymint 正在進行的重組。但隨著這些關閉——這些關閉實際上大部分都在等待許可證轉讓。

Everything else is in order, and we were pleased to finally have Nasdaq completed its review, but we will not be engaging in plant-touching activities in the US under our current structure have no intention to do so. It’s still today a federally legal business in the US. And so we will be able to provide some information on value and delineate the capital structures for those entities as the restructurings close, but I would not expect their operating figures to be consolidated into our financials going forward.

其他一切都井然有序，我們很高興納斯達克終於完成了審查，但在我們目前的結構下，我們不會在美國從事植物接觸活動，也無意這樣做。時至今日，它仍然是美國聯邦合法企業。因此，隨著重組結束，我們將能夠提供一些有關價值的資訊並描述這些實體的資本結構，但我不希望他們的營運數據會合併到我們未來的財務數據中。

Thank you so much. I'll hop back into the queue.

太感謝了。我會跳回隊列。

Pablo Zuanic, Zuanic & Associates.

巴勃羅·祖安尼克 (Pablo Zuanic)，Zuanic & Associates。

Thank you. Look, I also want to ask you about Sunstream USA, but let me just start with on another part first. When you think about the Canadian recreational cannabis market, despite acquisition of Valens in terms of market share, you’re still not among the top three. What are the aspirations there? And then how should we think about that over time?

謝謝。聽著，我還想問你有關 Sunstream USA 的問題，但讓我先從另一個方面開始。當你想到加拿大休閒大麻市場時，儘管在市場份額方面收購了 Valens，但你仍然沒有躋身前三名。那裡有什麼願望？那麼隨著時間的推移，我們該如何思考這個問題呢？

Thank you, Pablo. Our aspirations when it comes to the Canadian recreational cannabis market is to be a top five licensed producer and manufacturer of products. Now when you look at the trajectory of our business over time, you are right to point out that in certain cases the combination of legacy SNDL revenue with Valens, it appears that there has been some degree of revenue loss.

謝謝你，巴布羅。當談到加拿大休閒大麻市場時，我們的願望是成為排名前五名的產品許可生產商和製造商。現在，當您查看我們業務隨時間變化的軌跡時，您會正確地指出，在某些情況下，傳統 SNDL 收入與 Valens 的組合似乎存在一定程度的收入損失。

I would point out that the move away from high-cost cultivation and manufacturing was an undeniably positive one for the business. We had revenue streams that were unattractive and that you would not want on a stabilized go-forward basis. So we are working on profitable growth, not growth at any cost. And you’ve seen that with -- in the case of some other LPs that are really prioritizing the top line above all else.

我想指出的是，擺脫高成本種植和製造對於企業來說無疑是正面的。我們的收入流沒有吸引力，而且你不會希望它保持穩定的發展。因此，我們致力於獲利成長，而不是不惜任何代價的成長。你已經看到了這一點——在其他一些有限合夥人的例子中，他們確實將收入放在首位。

We would rather it being slightly smaller with a more conservative posture means that we can run a more profitable organization, we’ll do that, right? So we are making progress. You really have to look at the expansion of our -- not just our branded product distribution, but also our B2B activities and our goals should have us a far cry of where we stand today.

我們寧願它稍微小一點，採取更保守的態度，這意味著我們可以經營一個更有利可圖的組織，我們會這樣做，對吧？所以我們正在取得進展。你真的必須看看我們的擴張——不僅僅是我們的品牌產品分銷，還有我們的 B2B 活動和我們的目標應該讓我們與今天的立場相去甚遠。

Understood. And then a similar question on your retail arm for cannabis in Canada. I mean, obviously, [High Tide] continues to make acquisitions. The cap was lifted in Ontario, right? That creates opportunities for more consolidation.

明白了。然後是關於加拿大大麻零售部門的類似問題。我的意思是，顯然，[High Tide] 繼續進行收購。安大略省取消了上限，對嗎？這為更多整合創造了機會。

We see Fika being very aggressive. They bought Fire & Flower. How should we think about your strategy there? Is there still room to get back to the transaction with Nova? You do own 62% of it indirectly right now. I’m just trying to understand, is that a steady as it goes? Or what’s the plan there for expansion on the retail side in cannabis?

我們看到 Fika 非常具有攻擊性。他們買了《火與花》。我們該如何考慮你們的策略？與Nova的交易還有空間嗎？您現在確實間接擁有 62% 的股份。我只是想了解，這是一個穩定的情況嗎？或者大麻零售方面的擴張計畫是什麼？

We continue to selectively expand the portfolio. We’ve tried to be as disciplined as possible. We’ve looked at distressed asset sales and portfolios of many shapes and sizes. I would say that the analysis has changed a bit as most provincial markets have reached a saturation point.

我們繼續有選擇地擴大投資組合。我們努力盡可能遵守紀律。我們研究了各種形式和規模的不良資產出售和投資組合。我想說，隨著大多數省級市場已經達到飽和點，分析已經發生了一些變化。

And so the build versus buy balance has flipped where a lot of the best real estate locations have been taken. And so we’re seeing a lift off the bottom in terms of valuations and multiples that are being paid for high-quality retail locations. And we’re unwilling to look at bottom quartile assets that in other cases, competitors are welcoming into their portfolio. So we do have a pipeline. We were not -- in Q1, obviously, we did not add a large number of locations.

因此，建造與購買的平衡發生了翻轉，許多最好的房地產地點都被佔據了。因此，我們看到優質零售店的估值和倍數已脫離底部。我們不願意專注於排名最後四分之一的資產，而在其他情況下，競爭對手卻歡迎這些資產進入他們的投資組合。所以我們確實有一個管道。顯然，在第一季度，我們沒有增加大量地點。

But that doesn’t mean that we are standing still and it’s very difficult to have these opportunities fit cleanly into individual quarterly boxes to show sequential 90-day growth rates. So I would expect growth. We have in terms of capital priorities, further investments in cannabis retail in addition to select international opportunities would be top of the list. So more to come there.

但這並不意味著我們會原地踏步，而且很難將這些機會完全放入單獨的季度方框中以顯示 90 天的連續成長率。所以我期望成長。就資本優先事項而言，除了選擇國際機會外，對大麻零售的進一步投資將是首要任務。所以更多的人會來這裡。

But just to be clear in the case of Nova, what’s the plan there? I mean, do you hold on to the 62%? Or do you try to do the transaction again? What can we expect there?

但需要明確的是，就 Nova 而言，那裡的計劃是什麼？我的意思是，你還保留那62%嗎？或者您嘗試再次進行交易嗎？在那裡我們可以期待什麼？

We actually -- with the Dutch Love transaction, our stake will increase beyond 62%. We are a strong sponsor of the vehicle and are working to create value for all stakeholders in that instance.

事實上，透過 Dutch Love 交易，我們的持股比例將增加到 62% 以上。我們是該車輛的有力贊助商，並致力於為所有利益相關者創造價值。

Okay, understood. Look, just moving on to Sunstream, and I’ll try to keep my questions brief there. But at present, it’s a JV (inaudible) Sunstream Bancorp, but you consolidate I think all of it, right? Now you said once you equitize the loans, you will not consolidate the US assets. So I’m just trying to understand what’s going to change from a reporting point of view?

好的，明白了。聽著，接下來是 Sunstream，我會盡量簡短地提出我的問題。但目前，它是一家合資企業（聽不清楚）Sunstream Bancorp，但我認為您將這一切合併起來，對嗎？現在你說一旦你將貸款股權化，你就不會整合美國資產。所以我只是想從報告的角度了解會發生什麼變化？

Right. Right. So Pablo, I think you’re very well researched on both the Sunstream-USA structure and also costing structure that has been put together in the case of Canopy USA. So the issue is that while those businesses are still federally legal, we cannot have directors and officers of SNDL at a Nasdaq-listed company, serving in similar roles at those subject companies.

正確的。正確的。所以，Pablo，我認為您對 Sunstream-USA 結構以及 Canopy USA 案例中的成本計算結構進行了很好的研究。因此，問題在於，雖然這些企業仍然具有聯邦合法性，但我們不能讓 SNDL 的董事和管理人員在納斯達克上市公司中擔任類似的角色。

And when it comes to credit positions that get equitized, we actually cannot vote that equity or that would be seen as exercising influence of control over the vehicle. So you have that equity held in a series of structures that are ring-fenced from SNDL where we have an exchangeable share, and that exchange option can be exercised really only upon federal legalization.

當涉及股權化的信貸部位時，我們實際上不能對該股權進行投票，否則會被視為對該工具施加控制影響。因此，這些股權持有在一系列與 SNDL 隔離的結構中，我們擁有可交換的股份，並且只有在聯邦合法化後才能真正行使該交換選擇權。

One thing on the accounting from Pablo. So we’re not consolidating today the financial statements of those operations from the US. And we’re not going to plan to consolidate them in the future unless there is legalization to trigger an event.

巴勃羅關於會計的一件事。因此，我們今天不會合併這些美國業務的財務報表。我們不會計劃在未來整合它們，除非觸發事件的合法化。

What we do have today, and that will be the same thing that we’ll have in the foreseeable future. We do recognize the value of the asset from an investment perspective, which as you see in our financial payments, is CAD560 million at the end of the first quarter. So we do have the asset, but we do not have the consolidation of the P&Ls.

我們今天所擁有的，在可預見的未來也將擁有同樣的東西。我們確實從投資角度認識到該資產的價值，正如您在我們的財務付款中看到的那樣，第一季末的資產價值為 5.6 億加元。所以我們確實有資產，但我們沒有損益表的合併。

And Pablo, we understand that there is a desire from investors and analysts to see more delineation in that portfolio. And so as we quickly move towards the close of these restructurings, our intention is to provide a lot more granular detail on the portfolio itself as well as the pro-forma capital structures on close for the restructured entities. And so we’re going to in the coming months, move through a significant shift in transparency when it comes to that portfolio.

巴勃羅，我們知道投資人和分析師希望看到該投資組合有更多的界定。因此，當我們迅速完成這些重組時，我們的目的是提供有關投資組合本身以及重組實體結束時的預期資本結構的更多詳細資訊。因此，我們將在未來幾個月內，在該投資組合方面實現透明度的重大轉變。

No, that would be very helpful. So do you have line of sight on when the restructuring will close in terms of timing? And does the litigation have to have been all settled for the restructuring to close and litigation pending, yeah?

不，那會很有幫助。那麼您對重組何時結束有什麼看法嗎？是否必須全部解決訴訟才能結束重組並懸而未決的訴訟，對嗎？

Yeah. I want to be careful with our statements here. Just to put this in context, Pablo, like in the case of Parallel, the restructuring efforts would have started in early 2022, okay? So you’re looking at a process which, if these companies could have availed themselves of the US federal bankruptcy courts, would have been resolved likely in a period of three to five months. And this has been a two year slog.

是的。我想謹慎對待我們在這裡的言論。就具體情況而言，Pablo，就像 Parallel 的情況一樣，重組工作將於 2022 年初開始，好嗎？因此，您正在考慮一個程序，如果這些公司能夠利用美國聯邦破產法院的幫助，該程序可能會在三到五個月內解決。這已經是兩年的艱辛了。

You can imagine the friction cost with legal and other items that would correlate with that timeline. And so there are a number of issues here that are not in our control. We wish that it was different. But really waiting on license transfers. And what we’ve seen in some states, we’ve received license transfers well ahead of schedule.

您可以想像與該時間表相關的法律和其他項目的摩擦成本。因此，這裡有許多問題不在我們的控制範圍內。我們希望情況有所不同。但確實在等待許可證轉讓。我們在一些州看到，我們提前收到了許可證轉讓。

We’ve been positively surprised. And in others, there has been delay, and it’s taken more time. So our expectation right now is to be in a position to close these restructurings end of summer, early fall. But again, we’re not in control completely with those timelines.

我們非常驚訝。而在其他情況下，則出現了延誤，並且需要更多時間。因此，我們現在的期望是能夠在夏末秋初完成這些重組。但同樣，我們並不能完全掌控這些時間表。

Got it. And the last question, I think in the fourth quarter conference call, to my question, you said something like Parallel in Florida and the other states, Skymint in Michigan were running well. We’re funding their businesses that despite the financial challenges things were fine. But I could make the argument that in the case of Parallel, they’ve been stuck at 45 stores for a while in Florida where their competitors are expanding, especially now with the ballot coming up. So there could be a disadvantage, right?

知道了。最後一個問題，我想在第四季度的電話會議上，對於我的問題，你說佛羅裡達州和其他州的 Parallel、密西根州的 Skymint 運作良好。我們為他們的企業提供資金，儘管面臨財務挑戰，但一切都很好。但我可以說，就 Parallel 而言，他們在佛羅裡達州的 45 家商店已經停留了一段時間，而他們的競爭對手正在擴張，尤其是現在投票即將到來。所以可能會有一個缺點，對嗎？

So I’m just trying to understand, once the restructuring is completed, let’s say, by the third quarter, how do you help those entities to raise capital? I mean, you cannot fund them directly, but I guess if the restructuring has been finalized, they would be in a better position to raise capital on their own. But just some color there would be helpful just to understand the outlook of those businesses once the restructuring is done.

所以我只是想了解，一旦重組完成，比如說，到第三季度，您如何幫助這些實體籌集資金？我的意思是，你不能直接為他們提供資金，但我想如果重組已經完成，他們將能夠更好地自行籌集資金。但只要有一些顏色，就有助於了解重組完成後這些企業的前景。

That's all. Thank you.

就這樣。謝謝。

It's a great question, Pablo. But I would actually -- the statistics and data that’s available from the state of Florida specifically is actually quite helpful in this case. And what’s remarkable has been, in Surterra’s case, the ability to maintain share and actually take share in a number of product segments despite the fact that they have not been aggressive in opening new doors.

這是一個很好的問題，巴勃羅。但實際上，我認為佛羅裡達州提供的統計數據和數據在這種情況下實際上非常有幫助。就 Surterra 而言，值得注意的是，儘管他們並沒有積極開闢新的大門，但他們仍然能夠在許多產品領域保持市場份額並實際佔據市場份額。

And so getting the house in order, so to speak, and improving operations has been the priority of those teams. And when it comes to growth capital, which I think you’re pointing to, they have the ability to source capital from a number of different parties, including SNDL in the future. And so we expect that there will be more to come on that front as well.

因此，可以說，讓內部秩序井然有序並改善營運一直是這些團隊的首要任務。當談到成長資本時，我想你指的是，他們有能力從許多不同的方面獲取資本，包括未來的 SNDL。因此，我們預計在這方面還會有更多的事情發生。

But I wouldn’t suggest for -- just to put this in context, two years ago, Parallel was a business that lost over $100 million. This year, we expect to be on the right side -- we effect the entity be on the right side of free cash flow breakeven. So you really can’t overstate the magnitude of the turnaround that’s happened.

但我不建議——只是將這一點放在上下文中，兩年前，Parallel 是一家虧損超過 1 億美元的企業。今年，我們預計會站在正確的一邊——我們讓該實體處於自由現金流損益平衡的正確一邊。因此，你真的不能誇大所發生的轉變的幅度。

Is there more work to do? Yes. Is this structure difficult to manage? Yes. But there is a great opportunity. And to frame it in a negative light when you’re looking at a player that’s a top four operator in Florida, I’m not sure how that’s a disadvantage in any way.

還有更多工作要做嗎？是的。這種結構很難管理嗎？是的。但有一個很好的機會。當你看到佛羅裡達州排名前四的球員時，從負面的角度來看待它，我不確定這在任何方面都是一種劣勢。

Understood. Thank you very much.

明白了。非常感謝。

Thanks, Pablo.

謝謝，巴勃羅。

This concludes the Q&A session. I would like to turn the conference back over to Zack George for any closing comments.

問答環節到此結束。我想將會議轉回給扎克·喬治徵求結束意見。

Great. Thank you. Thanks, everyone, for joining us today. We look forward to updating you on our progress in the near future.

偉大的。謝謝。謝謝大家今天加入我們。我們期待在不久的將來向您通報我們的最新進展。

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與並祝您有個愉快的一天。