cbdMD, Inc. (NYSE:YCBD) Q4 2019 Earnings Conference Call - Final Transcript

Dec 18, 2019 • 04:15 pm ET


cbdMD, Inc. (NYSE:YCBD) Q4 2019 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to the cbdMD Fourth Quarter and Fiscal 2019 Earnings Call and Update. This afternoon, the company issued a press release that provided an overview of its fourth quarter and full fiscal year results, which followed the filing of its Annual Report on Form 10-K. Today's conference is being recorded and will be available online at cbdMD.com in accordance cbdMD's retention policies. [Operator Instructions]

At this time, I would like to turn the conference over to Mark Elliott, the company's Chief Financial Officer. Mark, please go ahead.

Mark Elliott

Thanks, Jess, and thank you all for joining the cbdMD fourth quarter and fiscal 2019 earnings conference call. On the call today, we also have our Chairman and Co-CEO, Martin Sumichrast. Following the Safe Harbor statement, Marty will provide an overview of our business. Then I'll provide a summary of the quarterly and annual financial results. Following that, we'll open up the call for questions.

We'd like to remind everyone that various remarks about future expectations, plans and prospects constitute forward-looking statements for purposes of Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. cbdMD cautions that these forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from those indicated, including risks described in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2019 as filed with the SEC today and our other filings with the SEC. All of which can be viewed on the company's website at www.cbdMD.com or on the SEC's website at www.sec.com. Any forward-looking statements made on this conference call speak only as of today's date, Wednesday, December 18, 2019. And cbdMD does not intend to update any of these forward-looking statements to reflect events or circumstances that would occur after today's date.

With that, I'd like to turn the call over to Chairman and Co-CEO, Marty Sumichrast. Marty?

Martin Sumichrast

Mark, thank you and thanks to everyone who is listening in on the call this afternoon. Before I get into the results from the last quarter in fiscal 2019, let's take a minute and review our history, so that our recent accomplishments can be put in some perspective. In just one year, we have built two of the leading CBD brands in America, cbdMD and Paw CBD. We've built an infrastructure that is more advanced than most of our competitors in the U.S. CBD industry with over 130 SKUs, a 170 employees, 11 departments, full-scale manufacturing, distribution and warehousing facilities. Building this infrastructure now has been an important part of our plan, since we envision significant growth over the next several years.

Now let's talk about our results. Our overall e-commerce sales for the September 2019 fiscal quarter were $5.1 million or 54% of our total net sales, and for the fiscal year ended September 2019, our e-commerce sales are $14.8 million or 63% of our total net sales. We continue to experience rapid growth and our sales metrics continue to remain