The following is a summary of the SLANG Worldwide Inc. (SLGWF) Q3 2023 Earnings Call Transcript:
Financial
Business
Significant growth in Vermont with QoQ sales increasing 24%.
Expansion to Maryland and West Virginia, increasing market presence to 13 states.
Initiatives led to YoY sales increase in Colorado since July 2023.
Considering strategic alternatives for business consolidation, sale, merger, or recapitalization.
Financial Performance:
SLANG Worldwide Inc. reported Q3 revenue from continuing operations of $9.1 million, an 11.4% year-over-year and 7.8% quarter-over-quarter increase.
Gross profit increased by 34.8% year-over-year and 5.7% quarter-over-quarter to $4.86 million.
The company's cash position improved from $10.07 million to $10.82 million during Q3 2023.
Gross margin for Q3 2023 was 53%, marking a 9% year-over-year increase.
Total operating expenses reduced by 30.6% year-over-year, highlighting the success of their strategy towards streamlined operations.
Despite an EBITDA loss of $0.31 million for Q3 2023, this illustrates an improvement from Q3 2022, where the EBITDA loss was $1.24 million.
Business Progress:
The company experienced significant growth in the core market of Vermont, with sales increasing 24% quarter-over-quarter.
Expansion to Maryland and West Virginia through a partnership with Trulieve increased SLANG's market presence to 13 states.
Initiatives focusing on all-in-one category and large-format vaporizer growth in Colorado led to significant year-over-year sales increase since July 2023.
The company is considering strategic alternatives like business consolidation, sale, merger, or recapitalization to enhance shareholder value, reduce overhead costs, increase market share, and expand product offerings.
More detailed: SLANG WORLDWIDE INC IR
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