22nd Century Group, Inc. (NYSE MKT:XXII) Q1 2020 Earnings Conference Call - Final Transcript

May 07, 2020 • 08:00 am ET


22nd Century Group, Inc. (NYSE MKT:XXII) Q1 2020 Earnings Conference Call - Final Transcript


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Welcome to 22nd Century Group's First Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded.

At this time, I would like to turn the call over to Mei Kuo, Director of Communications and Investor Relations. Please begin.

Mei Kuo

Thanks, Brock, and good morning, everyone. We look forward to discussing our first quarter 2020 results with you today. Joining me for 22nd Century Group's conference call are Mike Zercher, our President and Chief Operating Officer; and Andrea Jentsch, our Chief Financial Officer.

Before we begin, we would like to remind everyone that the statements made on today's call that are not based on historical information are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, and all such forward-looking statements involve risks and uncertainties, many of which are beyond our Company's ability to control. Actual results may differ materially from those expressed or implied by such forward-looking statements as a result of various factors including, but not limited to, the risk factors disclosed in our Company's annual report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on March 11, 2020. 22nd Century does not undertake, and it disclaims any obligation to update any forward-looking statements or announce revisions to any of the forward-looking statements.

During this call, we will also disclose certain non-GAAP financial measures, including adjusted EBITDA, which we define as earnings before interest, taxes, depreciation and amortization as adjusted by 22nd Century Group for certain non-cash and non-operating expenses. All is described in our Company's earnings press release for the quarter ended March 31, 2020, as publicly issued today, March 7, 2020, and which is available on our Company's website.

I would now like to turn the call over to Mike.

Michael J. Zercher

Thanks, Mei, and good morning, everyone. Before I discuss our results, I'd like to first touch on COVID-19, how we are handling this situation and the impact it has had on our business. Our first priority has been and will remain to ensure the safety and well-being of our employees. Our corporate employees have been operating under a work-from-home policy since March 23, and our R&D lab in Buffalo, New York has temporarily closed to comply with state orders. The Company's production in facility in North Carolina is classified as an essential business and remains fully operational with heightened health and safety protocols in place.

We are very proud of our team and would like to thank all of our employees for continuing their great work under these unusual circumstances with minimal disruption to normal business operations. We will continue to monitor this rapidly evolving situation and look forward to reopening our corporate office and R&D facility as soon as it is legally and safely possible.

Now, let me provide an update on our first quarter results and year-to-date accomplishments. We had a solid start to 2020 driven by