There are lots of spooky things in the world, but what kind of financial institution do you want to own where 6x plus leverage ratios don’t trip a covenant? And these people still pay out a dividend. And lot of the leverage was to build out a weed infrastructure. Smoke that kind of weed. That there is a “pretty much” controlling family explains part of how they got there. A very good business, an inevitably reversible cashflow swing…but…what an avoidable mess to date.

August 31 Updated Outlook

The Company is revising its full-year free cash flow guidance and now expects free cash flow to range from negative $275 million to negative $325 million compared to its previous guidance of negative $150 million. The Company reaffirmed the other aspects of its earnings guidance for fiscal 2022 as announced on August 3rd.

The revised full-year cash flow guidance reflects a more accurate estimate of certain balance sheet items at the end of the current fiscal year, including a year-over-year decline in accounts payable that had not been fully factored in. The decline in accounts payable reflects previously announced efforts to reduce finished goods production and purchases of various materials.

The Company’s leverage ratio of debt-to-EBITDA will likely be greater than 6.0 times at fiscal year-end though still in compliance with the covenants outlined in the Company’s recently amended credit facility.

Note to CFO self –it’s not even a coin toss – you are the one who goes.