Canopy Growth Corporation (NYSE:CGC) Q2 2020 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 08:30 am ET


Canopy Growth Corporation (NYSE:CGC) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to Canopy Growth's Second Quarter fiscal 2020 financial results conference call. Canopy Growth issued before financial markets today, on November 14, 2019, a news release announcing its financial results for the second quarter fiscal 2020 ended September 30, 2019. This news release is available on Canopy Growth's website and has been filed on SEDAR. On the call this morning, we have Mark Zekulin, Canopy Growth's Chief Executive Officer; Mike Lee, Canopy Growth's Executive Vice President and Chief Financial Officer; and Rade Kovacevic, Canopy Growth's President. [Operator Instructions]

Certain matters discussed in today's conference call or answers that may be given to questions asked could constitute forward-looking statements. Actual results could differ materially from those anticipated. Risk factors that could affect results are detailed in the company's annual information form and other public filings that are made available on SEDAR. During this conference call, Canopy Growth will refer to supplemental non-GAAP measure, adjusted EBITDA.

These measures do not have any standardized meaning prescribed by IFRS. Adjusted EBITDA is defined in the press release issued this morning as well as in this period's management's discussion and analysis document filed on SEDAR. Please note that all financial information is provided in Canadian dollars unless otherwise specified. Following prepared remarks by Mr. Zekulin and Mr. Lee, the company will conduct a question-and-answer session, during which questions will be taken from analysts. [Operator instructions]

I would now like to turn the meeting over to Mr. Zekulin. Mr. Zekulin, please go ahead.

Mark Zekulin

Thank you, Sharon, and good morning, everyone. Thanks for joining us. So a little bit of, I guess, housekeeping before we start. Last quarter, we -- or I guess I took the time to have a lengthy introduction to go over our strategy, remind people what it was and then confirm we're staying true to it.

So I give you my word. We won't do the same lengthy summary this time. Mike and I, between us, will stick to probably in under half an hour. We'll leave half an hour for questions, and then we'll let everybody get back to their days.

The second thing, just to let you know, there are four slides that we have put up on our website, which speak to -- as a complicated quarter, we decided to put some information down on paper about adjusted EBITDA, inventory levels working up to normalized margins. So those are there. Mike will use those as he speaks a little bit later on.

So with that said, I think it is fair to say it's been a challenging couple of quarters in the cannabis sector. So I would like to first address that head on; second, speak to what we as a company have done this quarter to adjust to some of these short-term challenges; and third, reinforce our view that, over the medium-term and despite the current climate, we feel exceptionally bullish on how Canopy is set up to win.

So firstly, the big picture. To be clear,