Cronos Group Inc. (NASDAQ:CRON) Q3 2022 Earnings Conference Call November 7, 2022 8:30 AM ET

Company Participants

Shayne Laidlaw - Investor Relations

Mike Gorenstein - Chairman, President and Chief Executive Officer

Bob Madore - Chief Financial Officer

Conference Call Participants

Andrew Carter - Stifel

Michael Freeman - Raymond James

Vivien Azer - Cowen

John Zamparo - CIBC Capital Markets

Andrew Bond - Jefferies

Matt Bottomley - Canaccord Genuity

Operator

Good morning. My name is Chris and I will be your conference operator today. I would like to welcome everyone to Cronos Group’s 2022 Third Quarter Earnings Conference Call. Today’s call is being recorded. At this time, I would like to turn the call over to Shayne Laidlaw, Investor Relations. Please go ahead.

Shayne Laidlaw

Thank you, Chris and thank you for joining us today to review Cronos Group’s 2022 third quarter financial and business performance. Today, I am joined by our Chairman, President and CEO, Mike Gorenstein and our CFO, Bob Madore. Cronos Group issued a news release announcing our financial results this morning, which is filed on our EDGAR and SEDAR profile. This information as well as the prepared remarks will also be posted on our website under Investor Relations.

Before I turn the call over to Mike, let me remind you that we may make forward-looking statements and refer to non-GAAP financial measures during this call. These forward-looking statements are based on management’s current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from expectations are detailed in our earnings materials and our SEC filings that are available on our website, by which any forward-looking statements made during this call, are qualified in their entirety. Information about non-GAAP financial measures, including reconciliations to U.S. GAAP, can also be found in the earnings materials that are available on our website. We will now make prepared remarks and then we will move into a question-and-answer session.

With that, I will pass it over to Cronos Group’s Chairman, President and CEO, Mike Gorenstein.

Mike Gorenstein

Thanks, Shayne, and good morning, everyone. I’d like to start our call today by discussing the strategic realignment we have been working on this year. We have taken steps to cut costs as you have seen within our operating expense structure and continue refining our budgeting and capital allocation processes to improve further. Our slimmer cost structure and more targeted approach to growth across segments helps ensure that we are allocating funds to the right project initiatives. All new investments share common goal, profitably grow Cronos with a focus on borderless products and brands that can adapt to new markets as they open. Thanks to continuous efforts and reinforcing our startup mentality, we remain on track to hit our cost savings target of $20 million to $25 million in operating expenses in 2022.