Cresco Labs, Inc. · CSE:CL
Cresco Labs — Q2 2023 Earnings Presentation
18 slides from Cresco Labs's earnings presentation, August 2023
Slide 1: Profitability and Growth from the Core
PROFITABILITY AND GROWTH FROM THE CORE AUGUST 2023 CSE: CL OTC: CRLBF
Slide 2: Disclaimer
DISCLAIMER This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward- looking information and forwar
Slide 3: Cresco Labs Today
CRESCO LABS TODAY #1 Branded Market 69 $22B Share Operating Retail Locations2 Addressable Market1 in 3 $B+ Markets 3,000+ 4.6M ~$490M Transactions Annually FD Market Cap Employees as of 8/15/23 14 1,600+ Dispensaries Selling Branded $198M Production Sites Products 2Q23 Revenue 900K #1 Wholesaler 47%
Slide 4: The Year of the Core
THE YEAR OF THE CORE ESTABLISHED RESTRUCTURING & GROWTH CATALYSTS MARKET GROWTH MARGIN IMPROVEMENT ILLIN OIS: P E N N SY LVAN IA: CA LIFORN IA : • # 1 wh o le sale market sh are • # 1 wh o le sale market sh a re • Clo se d lo w - m a rgin cu lt ivat io n , GROW I NG • Le a d e r in all fo rm facto r
Slide 5: Positioned for Opportunistic Growth
POSITIONED FOR OPPORTUNISTIC GROWTH CASH GENERATION REINVEST & DEPLOY OPTIMIZE TARGETED GROWTH INITIATIVES GROW I NG • Act io n s take n to sign if icant ly re d u ce SG&A • Fo cu sin g o n p ro f itable market s wit h o ve r n ext 1 2 mo nt h s e sta b lish e d gro wt h cata lyst s • Imp ro vin g l
Slide 6: Cresco Labs Footprint
CRESCO LABS FOOTPRINT CRESCO LABS THE MOST INVESTABLE FOOTPRINT IN CANNABIS 2 0 2 5 M A R K E T P OT E N T I A L • Presence in 9 U.S. markets GROW I NG • 8 of BDSA’s top-10 largest markets 1 FOR • 8 states with >$1B in annual sales SALES 1 YOU • Access to 140M people; 35% of the U.S.; over 65% of ad
Slide 7: State-by-State Asset Summary
STATE-BY-STATE ASSET SUMMARY Today’s Top AU Markets AU in ‘23-24 Future Growth CA MI IL MA AZ NY FL PA OH TOTAL GROW I NG Population #MM 39.5 10.1 12.8 7.0 7.2 20.2 21.5 13.0 11.8 143.3 6 | AU+M Both1 FOR Legal Status AU / M Both Both Both Both Both M M M 3|M YOU 2025E Market Size $B $5.6 $2.6 $2.4
Slide 8: Cultivating Quality at Scale
GRO WIN G FOR CULTIVATING QUALITY AT SCALE Y OU 8
Slide 9: Superior Cultivation & Manufacturing Expertise
SUPERIOR CULTIVATION & MANUFACTURING EXPERTISE QUALITY CULTIVATION… …YIELDS QUALITY PRODUCTS GRO WIN G FOR • PROCESSED 1.6 MILLION GRAMS • 900,000 SQUARE FEET OF OF CONCENTRATES CULTIVATION • PRODUCED OVER 6.5 MILLION • HARVESTED OVER 1.5 MILLION Y OU VAPE PENS AND CARTS POUNDS OF CANNABIS IN 2022 •
Slide 10: America's Leading Cannabis Brands
GRO WIN G FOR AMERICA’S LEADING CANNABIS BRANDS Y OU 10 10
Slide 11: Proven Depth in Wholesale
PROVEN DEPTH IN WHOLESALE LEADING PORTFOLIO OF BRANDS 1 #1 BRANDED WHOLESALER GROW I NG BEST #1 SELLING FLOWER PORTFOLIO FOR BETTER SELLING CONCENTRATES YOU #1 PORTFOLIO #3 SELLING VAPES PORTFOLIO GOOD #4 SELLING EDIBLES PORTFOLIO FLOWER VAPE EDIBLES CONCENTRATES #1 MARKET LEADER IN IL, PA & MA 1Acc
Slide 12: Highly Productive Retailer
GRO WIN G FOR HIGHLY PRODUCTIVE RETAILER Y OU SUNNYSIDE WRIGLEYVILLE/LAKEVIEW CHICAGO, IL 12
Slide 13: Proven Depth in Retail
PROVEN DEPTH IN RETAIL HIGHLY PRODUCTIVE …LOYAL CUSTOMERS RETAIL... ● 69 RETAIL LOCATIONS ACROSS 7 STATES ● PROCESSED ALMOST 4.8 MILLION TRANSACTIONS IN THE PAST YEAR ● 2 ADDITIONAL LOCATIONS TO OPEN IN PENNSYLVANIA ● ADDED OVER QUARTER MILLION NEW CUSTOMERS TO THE SUNNYSIDE FAMILY ● ADDITIONAL LOCA
Slide 14: Commitment to Our Communities
COMMITMENT TO OUR COMMUNITIES COMMUNITY BUSINESS INCUBATOR EDUCATION & WORKFORCE DEVELOPMENT RESTORATIVE JUSTICE 14
Slide 15: Financial Results – 2Q 2023
FINANCIAL RESULTS – 2Q 2023 GROWING FOR YOU 15
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS SHARES OUTSTANDING NET DEBT Share Class (# in millions) as of 6/30/2023 Balance ($Millions) as of 6/30/2023 Super Voting Shares 0.5 Debt Outstanding (ST) $18.3 Redeemable Units 99.2 Debt Outstanding (LT) 471.6 Subordinated Voting Shares 317.3 Long-term Leases 150.0 Proportionate
Slide 17: Financial Highlights: Reconciliation of Non-GAAP Measures
FINANCIAL HIGHLIGHTS Reconciliation of Non-GAAP Measures ADJUSTED GROSS PROFIT ADJUSTED EBITDA For the Three Months Ending For the Three Months Ending 6/30/2023 6/30/2023 Q2’2023 Q2'2022 Q2’2023 Q2’2022 Net (loss) ($43.5) ($8.3) Revenue, net $197.9 218.2 Depreciation and amortization 14.0 13.1 Cost
Slide 18: Thank You
THANK YOU Investors: Megan Kulick – SVP Investor Relations [email protected] Media: Jason Erkes – Chief Communications Officer [email protected] For General Inquiries: 312-929-0993 [email protected] 18