Village Farms International Inc. (NASDAQ:VFF) Q3 2019 Earnings Conference Call - Final Transcript

Nov 15, 2019 • 08:30 am ET


Village Farms International Inc. (NASDAQ:VFF) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen. Welcome to Village Farms International Third Quarter 2019 Financial Results Conference Call. Yesterday, after market close, Village Farms issued a news release reporting its financial results for the third quarter ended September 30, 2019. That news release, along with company's financial statements are available on SEDAR and on the company's website at under the Investors heading.

Please note that today's call is being broadcast live over the Internet and will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. Details of how to access the replays are available in yesterday's news release.

Before we begin, let me remind you that forward-looking statements may be made today, during or after the formal part of this conference call. Certain material assumptions were applied in providing these statements, many of which are beyond our control. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements.

A summary of those underlying assumptions, risks and uncertainties is contained in our various securities filings, including Village Farms current annual information form for the year ended December 31, 2018, and MD&A for the quarter ended September 30, 2019, which are available on SEDAR. These forward-looking statements are made as of today's date and except as required by applicable securities law, we undertake no obligation to publicly update or revise any such statements.

I would now like to turn the call over to Michael DeGiglio, Chief Executive Officer of Village Farms International. Please go ahead, Mr. DeGiglio.

Michael A. DeGiglio

Thank you, Casey, and thank you everyone for joining us on the telephone and the Internet today. With me for today's call, is Village Farms Chief Financial Officer, Stephen Ruffini. Agenda for today's call, I will start with a review of another quarter that continues to set Pure Sunfarms apart from its peers both operationally and financially. I'll provide an update on the progress of our U.S. hemp CBD initiatives, highlighted by the solid results from our first outdoor growing season. Steve will review our Q3 financial results in detail and I'll return to discuss why we are more confident in Village Farms' ability to capitalize on these new high growth opportunities in cannabis and CBD, and why 2020 and beyond holds so much promise for our company. And then we'll take some questions.

Q3 continues to showcase Pure Sunfarms as a best-in-class vertically integrated cannabis supplier. Pure Sunfarms continues to set the standard for operational performance, which was once again clear in its financial results. Let's get right to the numbers, which once again ranks Pure Sunfarms among the largest, most efficient and most profitable license producers. As a reminder, all of Pure Sunfarms numbers I will discuss here are before Village Farms' 50% share, and are in Canadian dollars.

So, net sales were CAD24 million and I remind you that the entirety of that sales figure