Tilray Inc (NASDAQ:TLRY) Q2 2019 Earnings Conference Call Transcript

Aug 13, 2019 • 05:00 pm ET

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Tilray Inc (NASDAQ:TLRY) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to Tilray's Second Quarter 2019 Earnings Conference Call. [Operator Instructions]

I'd now like to introduce your host for today's conference, Ms. Rachel Perkins. Ma'am, please go ahead.

Executive
Rachel Perkins

Good afternoon, and thank you for joining us on Tilray's second quarter 2019 earnings conference call. On today's call are Brendan Kennedy, President and Chief Executive Officer; and Mark Castaneda, Chief Financial Officer.

Before we begin, please remember that during the course of this call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could differ materially from actual events and those described in these forward-looking statements. Please refer to Tilray's reports filed from time to time with the Securities and Exchange Commission and Canadian securities regulators and its press release issued today for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.

Finally, please note on today's call, management will refer to adjusted EBITDA and adjusted net loss, which are non-GAAP financial measures. While the company believes adjusted EBITDA and adjusted net loss provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to today's release for a reconciliation of adjusted EBITDA to net loss, the most comparable measure prepared in accordance with GAAP.

Now, I would like to turn the call over to Brendan.

Executive
Brendan Kennedy

Thank you, Rachel. Good afternoon, everyone, and thanks for joining us. Today, I will provide an overview of the progress we have made on our global growth strategy. Mark will then review our second quarter 2019 financial results in more detail and discuss our long-term financial targets. After that, we will open the call for your questions.

The global paradigm shift with regard to cannabis is still in its early stages. Tilray currently serves tens of thousands of patients and consumers in 13 countries spanning five continents. We aspire to be the world's most trusted cannabis company, and to do that, we are building a global platform to be a multibillion-dollar consumer packaged goods company with a portfolio of world-class brands supported by a multinational supply chain. We're taking decisive actions in order to create an infrastructure that can be scaled around the world and are committed to deploying capital in a way that creates shareholder value over the long term.

We are pleased with our second quarter results, which included the first full quarter of Manitoba Harvest sales. Revenue increased 371% year-over-year to $45.9 million, and total kilogram equivalents sold increased both sequentially and on a year-over-year basis to 5,588 kilograms. Adult-use revenue nearly doubled from the first quarter to second quarter with revenue of $15 million. In the next 12 to 18 months, we believe there could be a supply