Green Thumb Industries Inc (GTBIF)

[BottomBounce]

$GTBIF has $515.31 Million DEBT

[fourdint]

Its not just this quarter ... believe GTBIF is the most profitable MJ interprise period.

[GE_Jim]

It would be nice if congress got fired up on this SAFE again.

[GE_Jim]

Another hit me up with this today. I'll repost here -- https://s3.documentcloud.org/documents/23506988/2022-12-22-letter-urging-recognition-of-merits-of-descheduling-1_0.pdf

[GE_Jim]

This Cannabis Multi-State Operator Was The Only One With Solid Profits In The Last Quarter
8:05 am ET December 21, 2022 (Benzinga) Print
Most U.S. cannabis multistate operators reported modest to significant year-over-year revenue gains.

Among the companies with the highest revenue in the third quarter were Curaleaf Holdings (OTC: CURLF) with $339 million followed by Trulieve Cannabis (OTC: TCNNF) with $300 million.

In a similar range was Green Thumb Industries (OTC: GTBIF) with $261 million, Verano Holdings (OTC: VRNOF) ($228M), and Cresco Labs (OTC: CRLBF) ($210M), followed by Columbia Care (OTC: CCHWF) with $132M, Ayr Wellness (OTC: AYRWF) with $119.6M, Ascend Wellness Holdings (OTC: AAWH) ($111M), Jushi Holdings (OTC: JUSHF) ($72.8M), TerrAscend (OTC: TSRRF) ($67M) and Acreage Holdings (OTC: ACRHF) ($61.4).

Those with a presence in emerging markets, such as New Jersey, experienced significant year-over-year growth in revenues in the third quarter of 2022. According to MJBizDaily Curaleaf increased its revenues by 7%, Green Thumb Industries by 11.8%, Verano Holdings by 10%, Columbia Care by 0.3%, Ascend Wellness by 17.9%, TerrAscend 36.4% and Acreage Holdings by 28%.

[RangerPete]

Buy

[RangerPete]

As an old trading buddy of mine once said, when everything is going to hell, but hell

[GE_Jim]

Really, show me where. SEC filing states otherwise.

[BottomBounce]

$GTBIF Has $515.31M DEBT

[BottomBounce]

What about Hemp https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170738026

[GE_Jim]

FYI - https://thehill.com/homenews/senate/3777205-senate-gop-faces-politics-vs-policy-battle-on-marijuana/

[GE_Jim]

Good catch

[FUNMAN]

Green Thumb Industries Announces Expansion of Executive Leadership Team
Executive Management and Board Member Appointments to Take Effect January 1, 2023
December 13, 2022 07:00 ET | Source: Green Thumb Industries

CHICAGO and VANCOUVER, British Columbia, Dec. 13, 2022 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today announced the appointments of four executive leadership positions and one new board member. The leadership promotions include Anthony Georgiadis to President, Matt Faulkner to Chief Financial Officer, and Bret Kravitz to General Counsel and Secretary, as well as the appointments of Rachel Albert to Chief Administrative Officer and Dawn Wilson Barnes to the Company’s board of directors. These appointments will be effective January 1, 2023.

“These changes reflect the natural evolution of high-performing team members to positions of greater responsibility and demonstrate our conviction in the strength of our leadership,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. “I am especially pleased to recognize the pivotal role that Anthony Georgiadis has played over the last seven years. He continues to be an outstanding partner in leading the business, an excellent problem-solver, and a material value creator for shareholders. His deep understanding of the operations and financials, along with his proven leadership ability to empower the team to drive results, make him exceptionally suited for his new role of President. I am confident these moves set us up for long-term success as we progress in this ever-changing landscape.”

As President, Georgiadis will be responsible for all operational and financial matters of the Company. His direct reports will include Chief Financial Officer, General Counsel, and Senior Vice Presidents who oversee operational functions. Georgiadis will continue to work closely with Kovler on overall corporate strategy and operations, while allowing Kovler to focus greater attention on capital allocation, strategic partnerships, brand positioning, investor relations, and mergers & acquisitions.

Georgiadis joined Green Thumb in 2015 and has played an integral role in growing the Company into one of the leading multi-state cannabis operators in the U.S. Since 2017, he has served as Chief Financial Officer, directing the Company’s cash flow and financial planning while overseeing operations for other areas of the business. Prior to Green Thumb, Georgiadis co-founded and served as Chief Operating Officer of Wendover Art Group, which he helped grow into one of the largest manufacturers of wall décor in North America. Georgiadis graduated magna cum laude from Bucknell University with a degree in finance and minor in mathematics.

Georgiadis said, “I am humbled by the trust that has been placed in me as well as the incredible passion we have across our leadership team. I view today’s announcement as recognition of our collective hard work and dedication to making Green Thumb a special place. I am also excited for Matt Faulkner, who has proven his financial and reporting acumen over the past several years, to take on the role of CFO. Green Thumb’s ability to continue to identify and cultivate talent from within is critical to the execution of our strategy. And while our roles within the business evolve, our steadfast focus on creating authentic brands, high-quality flower and memorable experiences for the consumer remains.”

As Chief Financial Officer, Faulkner will be responsible for managing all financial activities for the Company. Faulkner joined Green Thumb in 2018 and was appointed to Chief Accounting Officer in 2020. During his tenure, he successfully facilitated the Company’s initial public offering in the U.S. and led the transition from reporting under International Financial Reporting Standards (IFRS) in Canada to U.S. Generally Accepted Accounting Principles (GAAP) reporting with the U.S. Securities and Exchange Commission. Prior to Green Thumb, Faulkner spent over 20 years at Walgreens, where he progressed through leadership roles in accounting and finance. Faulkner earned a bachelor’s degree in accounting from the University of Toledo, a Master of Business Administration in finance from Northern Illinois University and is a Certified Public Accountant.

As General Counsel and Secretary, Kravitz will serve as the primary legal advisor to management and the board while overseeing all legal matters of the Company. Kravitz has served as Chief Corporate Counsel since joining Green Thumb in 2017. Throughout his tenure, he has closed numerous strategic acquisitions, partnerships, and capital raises in coordination with Green Thumb’s executive team. Prior to Green Thumb, Kravitz held attorney positions at Dickinson Wright and Baker Hostetler. Kravitz earned a bachelor’s degree in finance from the University of Colorado, a Master of Business Administration in finance from the University of Denver and a Juris Doctor from Lewis & Clark Law School.

Rachel Albert will assume a new role as Chief Administrative Officer, supporting executive initiatives and decision-making while helping to shape Green Thumb’s culture. Albert joined Green Thumb as a consultant in 2020 to lead the Human Resources department. She has spent over 20 years as a trusted business partner in both high-growth and downsized organizational environments leading efforts aimed at engaging and motivating employees while delivering business results. Prior to Green Thumb, Albert held various roles with strategic and tactical human resources management oversight at GE Capital and was a consultant at Mercer HR Consulting in New York. Albert graduated magna cum laude from Tufts University in Boston and earned a Master of Business Administration from the Kellogg School of Management at Northwestern University.

Appointment of New Board Member
The Company also announced today the appointment of Dawn Wilson Barnes to its board of directors effective January 1, 2023. Barnes will join the board as an independent director and member of the audit committee.

Barnes is an experienced financial services professional, and currently serves as President and Founder of Aurora Bay Capital, an Atlanta-based financial services firm that provides institutional marketing and consulting services to firms seeking growth capital. Prior to founding Aurora Bay Capital, Barnes held positions in Private Finance, Equity Capital Markets and Investment Management at J.P. Morgan & Co. and Goldman Sachs and Co. in New York. Previously, Barnes held auditing and accounting positions with Honeywell, Inc. in Corporate Financial Audit in Minneapolis and the firm’s Military Avionics Division in St. Petersburg, Florida.

Barnes holds a Master of Business Administration in finance and entrepreneurial management from The Wharton School of the University of Pennsylvania, and a Bachelor of Business Administration in accounting from the University of Michigan. She is a FINRA-registered representative with Pickwick Capital Partners, LLC and passed the CPA exam in the state of Minnesota.

Kovler commented, “We are thrilled to welcome Dawn as an independent member to Green Thumb’s board. As a seasoned financial professional with expertise in capital markets and audit, she will be a strong addition to the team. Dawn’s appointment to our board will further strengthen our corporate governance, which remains a top priority for Green Thumb. I look forward to working with Dawn.”

Barnes added, “There are endless opportunities in the cannabis industry and the Green Thumb team has set forth an outstanding foundation to deliver long-term growth. I am beyond excited to join the Company’s board and support their growing success.”

Green Thumb continues to actively recruit additional board members in preparation for its potential U.S. listing and has hired an external recruiting firm to assist with the search.

About Green Thumb Industries
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 17 manufacturing facilities, 77 open retail locations and operations across 15 U.S. markets. Established in 2014, Green Thumb employs approximately 3,800 people and serves millions of patients and customers each year. The company was named to Crain’s Chicago Business Fast 50 list in 2021 and 2022 and a Best Workplace by MG Retailer magazine in 2018, 2019 and 2021. More information is available at www.GTIgrows.com.

Cautionary Note Regarding Forward-Looking Information
This press release contains statements which may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect,” or similar expressions and include information regarding the filing of the Documents and the timing thereof. The forward-looking information in this news release is based upon the expectations of future events which management believes to be reasonable. Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Green Thumb does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information in this news release is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those express or implied. When considering these forward-looking statements, readers should keep in mind the risk factors and other cautionary statements in Green Thumb’s public filings with the applicable securities regulatory authorities, including with the U.S. Securities and Exchange Commission on its website at www.sec.gov and with Canada’s System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, as well as on Green Thumb’s website at https://investors.gtigrows.com, including in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Investor Contact:
Andy Grossman
EVP, Capital Markets & Investor Relations
[e-mail]
310-622-8257

Media Contact:
MATTIO Communications
[e-mail]

Source: Green Thumb Industries

[GE_Jim]

Sounds like progress to me, and it’s good to hear.

[FUNMAN]

Green Thumb in CT --->>> First adult-use recreational cannabis sales to begin in Connecticut in January

By Mike Mavredakis
Hartford Courant

Dec 09, 2022 at 9:02 am

The first recreational, adult-use cannabis sales in Connecticut will begin at nine hybrid retailers in January, according to the Department of Consumer Protection.

The DCP gave a 30-day notice to the nine hybrid retailers across the state that they can begin retail sales on Jan. 10, 2023, starting at 10 a.m. or as local zoning permits allow.

The locations approved are three Fine Fettle Dispensary locations in Newington, Stamford and Willimantic, two The Botanist locations in Danbury and Montville, Still River Wellness in Torrington, Willow Brook Wellness in Meriden and Blue Point Wellness of Connecticut in Branford (Blue Point is Green Thumb). Yeah, finally I can walk into a store not far from home!

All current medical cannabis producers met the space requirements needed, which is at least 250,000 square feet of growing and manufacturing space that is approved for adult-use production.

Consumers may purchase up to one-quarter of an ounce of cannabis flower, or its equivalent, per sale. This could include up to about seven pre-rolled cannabis cigarettes that weigh one gram each, two to four vape cartridges, edibles or a combination of products equaling one-quarter of an ounce. Edibles may not exceed five milligrams per serving, the DCP said.

“I am proud of the hard work our team has done to meet the goal of opening adult-use sales in a safe, well-regulated market,” DCP Commissioner Michelle H. Seagull said. “We know that many people are excited to participate in this marketplace, whether as a business or a consumer, and we encourage adults who choose to purchase and consume these products to do so responsibly once sales begin on January 10.”

Check back for updates.

[Liam859]

$15 now. If it dumps more I load more

[retired early]

As of September 30, 2022, current assets were $318.6 million, including cash and cash equivalents of $147.3 million. Total debt outstanding was $255.5 million.

But sales and future profits will wipe that out in no time especially with the expansions going on. Folks the sky is not falling. :)

[GE_Jim]

Ok, thanks for that! I was curious as the figures differ from what’s in the SEC filings.

[GoldRu$$H]

Most likely Yahoo Finance.

https://finance.yahoo.com/quote/GTBIF/key-statistics?p=GTBIF

Balance Sheet
Total Cash (mrq) 147.26M
Total Cash Per Share (mrq) 0.62
Total Debt (mrq) 515.31M
Total Debt/Equity (mrq) 30.19
Current Ratio (mrq) 2.46
Book Value Per Share (mrq) 7.24

[GE_Jim]

And where/how did you come up with that figure?

[BottomBounce]

$GTBIF Has $515.31M of debt.

[FUNMAN]

Green Thumb Industries Reports Third Quarter 2022 Results
NOVEMBER 2, 2022

To see the financials, follow this link:

https://investors.gtigrows.com/investors/news-and-events/press-releases/press-release-details/2022/Green-Thumb-Industries-Reports-Third-Quarter-2022-Results/default.aspx

CHICAGO and VANCOUVER, British Columbia, Nov. 02, 2022 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today reported its financial results for the third quarter ended September 30, 2022. Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and all currency is in U.S. dollars.

Highlights for the third quarter and nine months ended September 30, 2022:

Revenue increased 3% sequentially and 12% year-over-year to $261 million.

Year-to-date 2022 revenue increased 17% to $758 million compared to the first nine months of 2021.

Ninth consecutive quarter of positive GAAP net income, delivering $10 million or $0.04 per basic and diluted share.

Adjusted Operating EBITDA grew 7% sequentially to $84 million or 32% of revenue.

Cash flow from operations of $48 million net of income tax payments of $31 million for the quarter.

See definitions and reconciliation of non-GAAP measures elsewhere in this release.

Management Commentary

“We are proud to report record revenue and Adjusted Operating EBITDA for the quarter against a backdrop of higher inflation and greater economic uncertainty. Revenue increased 12% year-over-year and 3% sequentially to $261 million. We had positive GAAP net income for the ninth consecutive quarter of $10 million or $0.04 per diluted share. Adjusted Operating EBITDA grew 7% sequentially to $84 million, or 32% of revenue for the quarter. Finally, the business generated strong cash flow from operations, totaling $48 million for the quarter,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler.

“As we near the end of 2022, we are optimistic about the future of the U.S. cannabis market and proud of Green Thumb’s leadership position in the industry. We continue to think about what is best for the American consumer, as demonstrated by the recent announcement of our plans to launch RISE Express medical dispensaries adjacent to Circle K locations in Florida. Looking ahead, our focus remains on execution, maintaining a strong balance sheet and making strategic investments in markets that will generate strong returns for our stakeholders over time,” concluded Kovler.

Recent Development

On October 19, 2022, subsequent to quarter end, the Company announced plans to expand its medical cannabis retail footprint in Florida through leasing arrangements with Circle K, the global convenience store retailer. Subject to regulatory approvals following construction, Green Thumb plans to launch its test and learn phase of the rollout in 2023, with approximately ten “RISE Express” branded medical dispensaries adjacent to Circle K stores in various Florida locations.

Through the exclusive agreement, Green Thumb can lease space adjacent to Circle K locations in Florida, where the retailer currently operates approximately 600 locations. The planned “RISE Express” stores will offer patients with a valid medical marijuana identification card expanded access to a selection of branded medical cannabis products including RYTHM premium flower, Dogwalkers pre-rolls, incredibles gummies and &Shine vapes.

Third Quarter 2022 Financial Overview

Total revenue for the third quarter of 2022 was $261.2 million, up 2.7% sequentially and up 11.8% from $233.7 million in the prior year period. Revenue growth was primarily driven by increased retail sales in New Jersey, reflecting the legalization of adult-use cannabis, increased retail sales in Illinois, 12 additional retail locations versus third quarter last year, and increased traffic in the Company’s 77 open and operating retail stores.

All 15 of Green Thumb’s state markets contributed to third quarter revenue: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia. The Company continued to invest in expanding its cultivation and manufacturing capabilities across its footprint.

Gross profit for the third quarter of 2022 was $131.2 million or 50.2% of revenue compared to $129.5 million or 55.4% of revenue in the comparable period last year. Gross profit performance reflected increased sales in the Company’s retail business, new and acquired stores, New Jersey adult-use sales and continued growth in the Illinois market.

Total selling, general and administrative expenses for the third quarter were $82.5 million or 31.6% of revenue, compared to $71.4 million or 30.6% of revenue for the third quarter 2021. The increase in total expenses was attributable to retail salaries and benefits, intangible amortization expense and other operational and facility expenses primarily due to an increase in the Company’s store base.

Net income attributable to the Company for the third quarter of 2022 was $9.8 million or $0.04 per basic and diluted share, compared to a net income of $20.2 million, or income of $0.09 per basic and $0.08 per diluted share in the prior year period. The reduction in net income of $10.4 million was primarily due to favorable fair value adjustments to the Company’s warrant liability as reflected within other income (expense), net, during the comparable period in the prior year.

In the third quarter of 2022, EBITDA was $73.3 million or 28.1% of revenue versus $75.2 million or 32.2% of revenue for the comparable period. Adjusted Operating EBITDA, which excluded non-cash stock-based compensation of $7.9 million and other non-operating adjustments of $3.3 million, was $84.5 million or 32.3% of revenue as compared to $81.2 million or 34.7% of revenue for the third quarter 2021.

For additional information on these non-GAAP financial measures, see below under “Non-GAAP Financial Information.”

Balance Sheet and Liquidity

As of September 30, 2022, current assets were $318.6 million, including cash and cash equivalents of $147.3 million. Total debt outstanding was $255.5 million.

Total basic and diluted weighted average shares outstanding for the three months ended September 30, 2022, were 237.0 million shares and 237.8 million shares, respectively.

Consumer Packaged Goods Business Development

Green Thumb’s third quarter revenue included sales from its family of consumer brands including RYTHM, Dogwalkers, incredibles, Beboe, Doctor Solomon’s, Good Green and &Shine that were produced, distributed, and available in retail locations across the country.
Good Green, the Company’s newest brand, has expanded to eight total markets with additional markets planned for later this year and in 2023.
Consumer Packaged Goods gross revenue increased 5.9% sequentially.
Retail Business Development

Green Thumb’s third quarter revenue included sales from 77 retail stores in the following states: California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia.

Overall retail revenue increased 3.6% quarter-over-quarter.

Comparable sales (stores open at least 12 months) declined 1.6% on a base of 59 stores as continued traffic and volume growth were more than offset by price compression.

Subsequent to quarter end, Green Thumb announced plans to expand its medical cannabis retail footprint in Florida through leasing arrangements with Circle K, the global convenience store retailer, as described above.

Capital Markets and Financing

On July 14, 2022, Green Thumb announced it exercised its right to extend the maturity date of its senior non-brokered debt by one year, from April 30, 2024 to April 30, 2025. The Company’s senior secured notes (the “Notes”), which have a total principal amount of approximately $250 million, bear interest at a rate of 7.0% per annum that is paid quarterly. The extended maturity date did not involve any amendments to the Notes or any additional consideration to the existing lenders.

Green Thumb in the Community

On August 25, 2022, the Company announced that RISE Dispensaries will serve as a premier sponsor of HeadCount’s Cannabis Voter Project, which aims to register and inform voters who support cannabis policy reform. Leading up to this year’s midterm elections, HeadCount and RISE Dispensaries have been teaming up to encourage voters to “Roll Up to the Polls” through Cannabis Voter Project resources now available at all RISE-branded locations and online at www.headcount.org/rise.

Non-GAAP Financial Information

This press release includes certain non-GAAP financial measures as defined by the U.S. Securities and Exchange Commission. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.

Definitions

EBITDA: Earnings before interest, taxes, other income or expense and depreciation and amortization.

Adjusted Operating EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash stock-based compensation, one-time transaction related expenses, or other non-operating costs.

Conference Call and Webcast

Green Thumb will host a conference call on Wednesday, November 2, 2022, at 5:00 pm ET to discuss its third quarter 2022 financial results for the quarter ended September 30, 2022. The earnings call may be accessed by dialing 844-883-3895 (Toll-Free) or 412-317-5797 (International). A live audio webcast of the call will also be available on the Investor Relations section of Green Thumb’s website at https://investors.gtigrows.com and will be archived for replay.

About Green Thumb Industries:

Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 17 manufacturing facilities, 77 open retail locations and operations across 15 U.S. markets. Established in 2014, Green Thumb employs approximately 3,800 people and serves millions of patients and customers each year. The company was named to Crain’s Chicago Business Fast 50 list in 2021 and 2022 and a Best Workplace by MG Retailer magazine in 2018, 2019 and 2021. More information is available at www.gtigrows.com.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements that we believe are, or may be considered to be, “forward-looking statements.” All statements other than statements of historical fact included in this document regarding the prospects of our industry or our prospects, plans, financial position or business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “may,” “will,” “expect,” “intend,” “estimate,” “foresee,” “opportunity,” “project,” “potential,” “risk,” “anticipate,” “believe,” “plan,” “forecast,” “continue,” “suggests” or “could” or the negative of these terms or variations of them or similar terms or expressions of similar meaning. Furthermore, forward-looking statements may be included in various filings that we make with the Securities and Exchange Commission (the “SEC”), or oral statements made by or with the approval of one of our authorized executive officers. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These known and unknown risks include, without limitation: the impact of COVID-19; cannabis remains illegal under U.S. federal law, and enforcement of cannabis laws could change; the Company may be subject to action by the U.S. federal government; state regulation of cannabis is uncertain; the Company may be subject to heightened scrutiny by Canadian regulatory authorities; the Company may face limitations on ownership of cannabis licenses; the Company may become subject to U.S. Food and Drug Administration or the U.S. Bureau of Alcohol, Tobacco and Firearms; cannabis businesses are subject to applicable anti-money laundering laws and regulations and have restricted access to banking and other financial services; the Company lacks access to U.S. bankruptcy protections; the Company may face difficulties acquiring additional financing; the Company operates in a highly regulated sector and may not always succeed in complying fully with applicable regulatory requirements in all jurisdictions where it carries on business; the Company has limited trademark protections; the Company may face difficulties in enforcing its contracts; cannabis businesses are subject to unfavorable tax treatment; cannabis businesses may be subject to civil asset forfeiture; the Company is subject to proceeds of crime statutes; the Company faces exposure to fraudulent or illegal activity; the Company’s use of joint ventures may expose it to risks associated with jointly owned investments; the Company faces risks related to its products; the Company is dependent on the popularity of consumer acceptance of the Company’s brand portfolio; the Company’s business is subject to the risks inherent in agricultural operations; the Company faces risks related to its information technology systems and potential cyber-attacks and security breaches; the Company faces an inherent risk of product liability and similar claims; the Company’s products may be subject to product recalls; the Company may face unfavorable publicity or consumer perception; the Company faces intense competition; the Company’s voting control is concentrated; the Company’s capital structure and voting control may cause unpredictability; sales of substantial amounts of the Company’s Subordinate Voting Shares by our shareholders in the public market may have an adverse effect on the market price of the Subordinate Voting Shares; and the Company is governed by the corporate laws of British Columbia, Canada which in some cases have a different effect on shareholders than the laws in Delaware, United States. Further information on these and other potential factors that could affect the Company’s business and financial condition and the results of operations are included in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and elsewhere in the Company’s filings with the SEC, which are available on the SEC’s website or at https://investors.gtigrows.com. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this document, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. You are advised, however, to consult any additional disclosures we make in our reports to the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this document.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Investor Contact:
Andy Grossman
EVP, Capital Markets & Investor Relations
[e-mail]
312-471-6720

Media Contact:
MATTIO Communications
[e-mail]

Source: Green Thumb Industries


Green Thumb Industries Inc.
Highlights from Unaudited Interim Condensed Consolidated Statements of Operations
For the Three Months Ended September 30, 2022, June 30, 2022 and September 30, 2021
(Amounts Expressed in Thousands of United States Dollars, Except for Share Amounts)

[TheGanjaGuru]

Will it matter if MJ is rescheduled and banking allowed? Seems like someone knows the end is nigh for prohibition and is taking the steps to be ready for legal

[retired early]

Imagine having a green thumb! Would you hide it? Let's all sing. :)

[olivernoyes]

https://www.bizjournals.com/albuquerque/news/2022/10/20/circle-k-dispensary-green-thumb-industries.html

[RangerPete]

Florida Department of Health, which is the state regulatory body for the Medical Marijuana industry, announced today that they have no approved of this Circle K deal, and stated they have no intention of allowing dispensaries at gas stations.

Stay tuned.

[DarthYoda]

Whoah...

[RangerPete]

The tale will be in the election.

[CaptHowdy]

That's why it's going to be a separate entity from the store itself. Will not be accessible to general public like the service station convenience stores are in Florida.

[RangerPete]

Hate to throw shade, but in Florida you cannot have a facility that is in space accessible to the public at large.

Good luck.

[FUNMAN]

Green Thumb to Launch “RISE Express” Dispensaries in Florida
OCTOBER 19, 2022

The irony here is Alimentation Couche-Tard https://corpo.couche-tard.com/en/ is Canadian based, and they own / control over 15,000 c-stores in about 28 countries.

They also have the right to buy 51% of Fire & Flower; Canada's largest cannabis retailer. ACT and Fire & Flower have been prepared and positioned to enter the USA upon federal legalization. This deal appears to show their impatience.

https://investors.gtigrows.com/investors/news-and-events/press-releases/press-release-details/2022/Green-Thumb-to-Launch-RISE-Express-Dispensaries-in-Florida/default.aspx

Company Expands Retail Footprint Through Exclusive Lease Agreement with Circle K, one of the Largest Convenience Store Chains in the U.S.

CHICAGO and VANCOUVER, British Columbia, Oct. 19, 2022 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today announced plans to expand its medical retail footprint in Florida through a lease agreement with Circle K, the global convenience store retailer. Starting in 2023, Green Thumb plans to launch its test and learn phase of the rollout with approximately ten “RISE Express” branded dispensaries adjacent to Circle K stores in various Florida locations.

Through the exclusive agreement, Green Thumb can lease space from Circle K in Florida, where the retailer currently operates approximately 600 locations. The “RISE Express” stores will offer patients a selection of branded cannabis products including RYTHM premium flower, Dogwalkers pre-rolls, incredibles gummies and &Shine vapes.

“The opening of RISE Express stores at Circle K locations is a game-changer. Convenience is a strong channel in retail, and people want more access to cannabis,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. “The new RISE Express model is a huge step forward in making it easier and more efficient for patients to purchase high-quality cannabis as part of their everyday routine when stopping by their local convenience store.”

The products available at these retail stores will come from the Company’s new 28-acre cultivation facility in Ocala that will be operational by the end of 2022. Green Thumb entered the Florida market in 2018 and currently owns and operates medical cannabis retail stores in Bonita Springs, Deerfield Beach, Hallandale Beach, Kendall, Oviedo, Pinellas Park and West Palm Beach. The Company also has an existing cultivation and processing facility in Homestead.

According to the Florida Department of Health, over 700,000 Floridians are currently registered active cardholders in the state’s medical marijuana program. For more information on Florida’s medical marijuana program, visit www.knowthefactsmmj.com.

About Green Thumb Industries:

Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 17 manufacturing facilities, 77 open retail locations and operations across 15 U.S. markets. Established in 2014, Green Thumb employs approximately 4,000 people and serves millions of patients and customers each year. The company was named to Crain’s Chicago Business Fast 50 list in 2021 and 2022 and a Best Workplace by MG Retailer magazine in 2018, 2019 and 2021. More information is available at www.GTIgrows.com.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements which may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect,” or similar expressions and include information regarding the filing of the Documents and the timing thereof. The forward-looking information in this news release is based upon the expectations of future events which management believes to be reasonable. Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Green Thumb does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information in this news release is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those express or implied. When considering these forward-looking statements, readers should keep in mind the risk factors and other cautionary statements in Green Thumb’s public filings with the applicable securities regulatory authorities, including with the U.S. Securities and Exchange Commission on its website at www.sec.gov and with Canada’s System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, as well as on Green Thumb’s website at https://investors.gtigrows.com, including in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

[GE_Jim]

FYI Green Thumb Industries Inc. gtbif ca:gtii said Wednesday it will launch retail sales of cannabis for medical patients at "about" 10 Circle K stores in Florida. The Chicago and Vancouver-based cannabis company said its Rise Dispensaries inked a lease agreement with Circle K to test the rollout of more potential stores out of the gas station chain's 600 stores in Florida. At last check, more than 700,000 Florida residents currently hold medical cards in the Sunshine State, according to data from the state's Department of Health. Green Thumb CEO Ben Kovler said the effort marks a "huge step forward in making it easier and more efficient" for patients to buy cannabis products "as part of their everyday routine." Shares of Green Thumb Industries are down 51% in 2022, compared to a 31% drop by the Nasdaq ndaq and a loss of 59.8% by the AdvisorShares Pure U.S. Cannabis ETF msos.

[retired early]

MJ stocks have been beaten down and now the trend is reversing. The sector will be a saver place to be than most sectors, if we head to a mini recession. :)

[retired early]

Out with the bad air, in with the good. :)

[FUNMAN]

More On The Exodus From The Top At Green Thumb Industries

Bureau Staff
October 10, 2022

This story was reprinted with permission from Crain’s Chicago and written by John Pletz.

Board members weren’t the only ones who resigned last week from marijuana company Green Thumb Industries (OTC: GTBIF).

The company’s general counsel, Beth Burk, also departed, according to a U.S. Securities & Exchange Commission filing made Oct. 7. Burk was a chief compliance officer at Aon before joining Green Thumb, one of Chicago’s largest cannabis companies, in early 2020.

Burk resigned Oct. 4, along with three of GTI’s four independent directors: YMCA of Metropolitan Chicago CEO Dorri McWhorter; William Gruver, a former Bucknell University professor and Goldman Sachs executive; and Glen Senk, a private-equity executive. All three were members of the company’s audit committee.

The company said when it announced the board changes, “the resigning directors informed management that their cause for resignation was not related to Green Thumb’s business performance, operations, financial performance, financial statements or financial controls, but rather over a disagreement as to the company’s policies and practices related to personal misconduct. It became clear that the former directors and existing management could not find a resolution satisfactory to all parties.”

GTI didn’t provide any details on the circumstances around Burk’s departure, nor did it respond to a request for comment.

“It’s not a good sign when the audit committee and general counsel depart in one fell swoop,” says Charles Elson, a corporate governance expert and retired professor of finance at the University of Delaware.

In its regulatory filing, the company disclosed the terse resignation letter from the three board members, which was written by Senk, a former CEO of Urban Outfitters who joined GTI when it went public in 2018. “We confirm our resignations from the Green Thumb board of directors as of 11:59 PM CT on October 3, 2022, because of our material differences with company management,” the letter states. “This correspondence supersedes our prior written correspondence to you on this matter.”

SEC filings did not contain any previous correspondence. The company also said in its filing that Jeff Goldman, one of two board members selected to replace those who resigned, has been working for GTI as a marketing consultant since November.

[RangerPete]

Agreed. Normally the SEC would be all over this on a public listed company. Must be a Canadian thing

[GE_Jim]

Well, at the end of the day we don't have enough of the rest of the story. I'm not much on guessing, so.

[RangerPete]

PERSONAL MISCONDUCT? Reason for three directors to say goodbye?

Maybe the details are not good for GTI

Bad move. Had this happened at US listed company all hell would be breaking lose.

[GE_Jim]

This is big news - https://www.cnn.com/2022/10/06/politics/marijuana-decriminalization-white-house-joe-biden/index.html

[GE_Jim]

Green Thumb Industries Announces Changes to Board of Directors
7:00 am ET October 6, 2022 (Globe Newswire) Print
Richard Drexler, former CEO and Chairman of the Board at Quality Products, and Jeff Goldman, seasoned entrepreneur with expertise in CPG brand-building, join Board of DirectorsGlobeNewswireOctober 06, 2022
CHICAGO and VANCOUVER, British Columbia, Oct. 06, 2022 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods (CPG) company and owner of RISE Dispensaries, today announced that Richard Drexler, a proven financial executive who currently serves as Chairman of the Audit and Finance Committee at Bison Gear and Engineering and previously served as CEO and Chairman of the Board at Quality Products, and Jeff Goldman, a seasoned entrepreneur with expertise in CPG brand-building, will join the Company's board of directors. Drexler will assume the role of Chair of the Audit Committee in this new capacity. The appointments follow the resignation of three board members, William Gruver, Glen Senk and Dorri McWhorter. The resigning directors informed management that their cause for resignation was not related to Green Thumb's business performance, operations, financial performance, financial statements or financial controls, but rather over a disagreement as to the Company's policies and practices related to personal misconduct. It became clear that the former directors and existing management could not find a resolution satisfactory to all parties.


"There comes a time in a company's evolution that a change in leadership is required, and we regret that there was an impasse with the former board members," said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. "There are massive opportunities in front of us and we now have a board aligned with management to provide increased shareholder value. As we enter this next phase for the company, Richard's financial discipline and Jeff's strategic brand experience will help us continue to win as we deliver on our long-term vision."

Drexler was CEO and later Chairman of the Board at Quality Products, a manufacturer and distributor of products for aircraft ground support equipment for the military and hydraulic machine tool markets. Under his leadership, Drexler orchestrated strategic changes that pulled the company out of debt and resulted in significant positive cash flow. In addition to his role at Quality Products, Drexler held senior advisory roles at several multi-million dollar manufacturing and product companies.

"GTI has proven itself as a truly remarkable cannabis company with a strong purpose," said Drexler. "I am thrilled to join Ben and the team at such a pivotal time and drive growth and operational excellence as we help deliver on the Company's growth strategies to maximize shareholder value."

Goldman is a brand veteran and seasoned entrepreneur that has operated and scaled multiple CPG businesses. Under his leadership, Goldman has grown Carol's Cookies, a family-owned business founded by his mother in 1979, into a multi-million dollar, nationally distributed brand by successfully partnering with Fortune 500 companies such as Whole Foods Market and Sysco Foodservice. In addition to his role with Carol's Cookies, Goldman was the owner and operator of Reed-Union Corporation, known for the top-selling automotive appearance brand in North America, Nu Finish. As the head of domestic and international sales, Goldman forged partnerships with Fortune 100 companies such as Walgreens, Target, Walmart and AutoZone. In 2018, Jeff orchestrated the sale of the company's brands to Energizer Holdings.

"I'm honored to join Green Thumb, a company creating some of the most iconic brands within the cannabis space," said Goldman. "Their ability to innovate with products and create brands and retail environments that resonate with consumers is extremely valuable. I am excited to work alongside Ben and the entire team to ensure that GTI remains the undisputed market leader."

Senk served as Chair of the Executive Committee and a member of the Audit and Compensation Committees. Gruver served as Chair of the Audit Committee and a Member of the Executive Committee. McWhorter served as a member of the Audit Committee.

[StockLogistics]

Watching lower bollinger band for close below and reversal near 7.72 by 10/12 imo

[GE_Jim]

Looking forward to it, thanks!

[FUNMAN]

Green Thumb Industries to Hold Third Quarter 2022 Earnings Conference Call on November 2, 2022
SEPTEMBER 28, 2022

https://investors.gtigrows.com/investors/news-and-events/press-releases/press-release-details/2022/Green-Thumb-Industries-to-Hold-Third-Quarter-2022-Earnings-Conference-Call-on-November-2-2022/default.aspx

CHICAGO and VANCOUVER, British Columbia, Sept. 28, 2022 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today announced it will release third quarter financial results after the market closes on Wednesday, November 2, 2022.

A conference call and audio webcast will also be held on Wednesday, November 2, 2022, at 5:00 p.m. Eastern Time/4:00 p.m. Central Time to discuss the results and answer any questions.

Live conference call: 844-883-3895 (Toll-Free) and 412-317-5797 (International)
Live and archived webcast: https://investors.gtigrows.com
Participants may pre-register for the live conference call any time prior to the start of the call by navigating to https://dpregister.com/sreg/10171308/f484a984c4 and entering their contact information. You will then receive a personalized phone number and PIN to dial into the live conference call.

About Green Thumb Industries:
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 17 manufacturing facilities, 77 open retail locations and operations across 15 U.S. markets. Established in 2014, Green Thumb employs approximately 4,000 people and serves millions of patients and customers each year. The company was named to Crain’s Fast 50 list in 2021 and 2022 and a Best Workplace by MG Retailer magazine in 2018, 2019 and 2021. More information is available at www.GTIgrows.com.

[FUNMAN]

Green Thumb Q3 2022 Earnings Call
NOVEMBER 2, 2022 05:00 PM ET

https://investors.gtigrows.com/investors/news-and-events/events-and-presentations/event-details/2022/Green-Thumb-Q3-2022-Earnings-Call/default.aspx

[GE_Jim]

Green Thumb Industries (GTBIF)

U.S. multi-state operator Green Thumb delivered market-beating second-quarter results despite challenging market conditions. Green Thumb has 17 manufacturing facilities and 77 retail locations across 15 U.S. markets. The company’s RISE retail cannabis stores are expanding at a rapid rate. It’s worth noting that Green Thumb has delivered positive net income for eight consecutive quarters, in contrast to many of its peers, who continue to be unprofitable.
Green Thumb’s Q2 revenue increased 14.6% year-over-year to $254.3 million, thanks to strong traffic in existing stores, the beginning of adult-use cannabis sales in New Jersey, higher sales from Illinois, and the opening of 19 new retail locations over the past year. EPS was flat at $0.10 on a year-over-year basis.
Is Green Thumb Industries a Buy?
Following the Q2 print, Alliance Global Partners analyst Aaron Grey reiterated a Buy rating on Green Thumb. However, he lowered his price target for the company’s shares trading on the Canadian stock exchange to C$25 from C$40.
Grey believes that Green Thumb is “among the best positioned to weather the storm” amid a competitive environment, challenging capital markets, and illegality at the federal level. The analyst is bullish on the company based on its solid balance sheet, focus on premium offerings, and positive operating cash flows.
Other analysts seem to agree with Grey’s bullish stance, as Green Thumb scores a Strong Buy consensus rating based on 11 unanimous Buys. At $23.41, the average GTBIF price target implies 80.6% upside potential.
https://www.tipranks.com/news/article/which-strong-buy-cannabis-stock-could-offer-the-highest-upside-potential?utm_source=advfn.com&utm_medium=referral

[GE_Jim]

A little high on the RSI scale. A pull back seems the most likely direction. Pretty good run from 8 however.

[FUNMAN]

RISE Dispensaries Announce Premier Sponsorship of HeadCount’s Cannabis Voter Project

AUGUST 25, 2022

RISE Dispensaries Urges Consumers to “Roll Up to the Polls” for Cannabis Policy Reform Across the Nation

CHICAGO and VANCOUVER, British Columbia, Aug. 25, 2022 (GLOBE NEWSWIRE) -- RISE Dispensaries, a rapidly growing cannabis retail chain owned by Green Thumb Industries Inc. (“Green Thumb”) (CSE: GTII) (OTCQX: GTBIF), today announced that RISE Dispensaries will serve as a premier sponsor of HeadCount’s Cannabis Voter Project, which aims to register and inform voters who support cannabis policy reform. Ahead of this year’s midterm elections, HeadCount and RISE Dispensaries are teaming up to encourage voters to “Roll Up to the Polls” through Cannabis Voter Project resources now available at all RISE-branded locations and online at www.headcount.org/rise.

“There are massive inconsistencies in cannabis policy across America created by long-standing political figures,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. “We are proud to partner with HeadCount and the Cannabis Voter Project to increase voter registration. The best way to create change is to drive more people to vote, which is exactly the mission of this partnership.”

HeadCount is a nonprofit, non-partisan voter engagement organization that encourages voter registration and promotes participation in democracy. The organization has partnered with leading festivals and artists including Lollapalooza, Ariana Grande, Billie Eilish, Dead & Company and more to encourage civic engagement.

In 2018, HeadCount launched the Cannabis Voter Project to register and turn out voters interested in cannabis policy, providing online voter registration and an interactive online map of where elected officials stand on cannabis in all 50 states. Leading up to the midterm elections this year, Cannabis Voter Project’s “Roll Up to the Polls” campaign further encourages voters to turn out and exert their power at the ballot box.

“HeadCount is excited to launch our partnership with RISE Dispensaries in time for the midterm elections,” said Sam D’Arcangelo, Director of HeadCount’s Cannabis Voter Project. “The leaders we elect decide how cannabis is treated at the federal, state and local level, so it’s important for the cannabis community to be an active and informed voting bloc. Cannabis Voter Project is grateful to have RISE’s support and we look forward to helping their customers make their voices heard at the polls.”

More information on cannabis policy resources is available at www.cannabisvoter.info and https://risecannabis.com/resources/.

Information on the Cannabis Voter Project will be available at all RISE-branded locations beginning Monday, August 22nd. For more information about RISE store locations and hours, please visit https://risecannabis.com/dispensaries/.

About Green Thumb Industries:

Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 17 manufacturing facilities, 77 open retail locations and operations across 15 U.S. markets. Established in 2014, Green Thumb employs approximately 4,000 people and serves millions of patients and customers each year. The company was named to Crain’s Fast 50 list in 2021 and a Best Workplace by MG Retailer magazine in 2018, 2019 and 2021. More information is available at www.GTIgrows.com.

About Cannabis Voter Project:

Cannabis Voter Project informs, registers and turns out voters who want to change cannabis policy. Launched by civic engagement organization HeadCount.org in 2018, the Cannabis Voter Project believes it’s important for the cannabis community to be an active and informed voting bloc. For more information visit cannabisvoter.info.

About HeadCount:

HeadCount is a non-partisan non-profit organization that harnesses the power of music, culture and digital media to register voters and inspire participation in democracy. Since 2004, we’ve registered over one million voters through our work with musicians like Ariana Grande, Beyoncé, Dead & Co, Harry Styles and Megan Thee Stallion; events including Lollapalooza, Bonnaroo, Pride Festivals, and RuPaul's DragCon; plus partnerships with brands like Spotify, Ben & Jerry’s, and GrubHub. Our award-winning online campaigns have been seen over a billion times, while our 50,000 volunteers can be seen at more than 1,000 live events each year. We reach young people where they already are – at concerts and online – to inform and empower. For more information visit HeadCount.org.

Investor Contact:
Andy Grossman
EVP, Capital Markets & Investor Relations
[e-mail]
310-622-8257

Media Contact:
MATTIO Communications
[e-mail]


Source: Green Thumb Industries

https://investors.gtigrows.com/investors/news-and-events/press-releases/press-release-details/2022/RISE-Dispensaries-Announce-Premier-Sponsorship-of-HeadCounts-Cannabis-Voter-Project/default.aspx

[FUNMAN]

Green Thumb Industries: Still At The Top In Cannabis
Aug. 09, 2022 11:00 AM ET

By: Ted Waller

Summary

• Green Thumb is one of the strongest companies in the still emerging cannabis industry.

• Second quarter results confirm Green Thumb's strength and path to success.

• With a share price disconnected from fundamentals, investors should maintain or increase their allocation to Green Thumb.

Introduction

Green Thumb Industries Inc's (OTCQX:GTBIF) 2nd quarter 2022 results are out, and it's time to review the company's status as one of the pre-eminent companies in the fast-growing cannabis industry. This report will be in two parts. First, we will review the financial data for the latest quarter. Second, we will highlight some of the intangibles, things that provide insights into management and company culture, that were discussed in the earnings call. These intangibles are often overlooked but are at least as important as the quarterly numbers that are so closely scrutinized every three months, and perhaps more important to long term success.

The numbers

Revenues were a record $254.3 million, a 4.8% increase sequentially (up 14.6% over Q2 2021), returning to positive growth after a slight decline in the previous quarter. Net income was $24.4 million (.10 per share), up sequentially from $22.1 million. This was the eighth consecutive quarter of positive GAAP earnings, which far surpasses any other MSO.

Green Thumb has essentially two lines of business: retail and consumer packaged goods [CPG]. The 14.6% revenue growth vs. Q2 2021 came entirely from the retail side: the opening of adult-use sales in New Jersey, higher retail sales in the growing Illinois market, the addition of 19 retail stores since Q2 2021, and increased traffic in the 77 stores Green Thumb now operates.

CPG revenue comes from selling packaged product to their own retail outlets and other companies, and flat CPG revenue is consistent with trends throughout the industry. CPG business has been capacity constrained, as companies struggle to supply enough product to meet demand. We saw this most recently in New Jersey, where adult use was delayed until companies could prove they could meet the anticipated demand. In addition, recent inflation and consumer insecurities have started a shift to lower cost value product lines, which mean lower total sales. Interestingly, Founder/CEO Ben Kovler noted in the earnings call that the profit margins from value products were similar to premium lines, which is good news for the bottom line.

Overall, the company reported pricing headwinds in Maryland, Pennsylvania, Massachusetts, and Nevada that counteracted stronger sales in New Jersey and elsewhere. Shareholders should temper expectations for the much hyped New York market, where regulations, delays and taxes are dragging down the future for cannabis. CEO Kovler continues to be enthusiastic about positioning Green Thumb in new and expanding markets. The furious geographic expansion of cannabis in recent years continues unabated. Green Thumb was there when New Jersey initiated adult use earlier this year, and will be in New York, Connecticut, and Rhode Island when they begin later in 2022. A regulatory logjam in Green Thumb's home market of Illinois has finally been cleared. Virginia is on tap for 2023. Numerous states, including Ohio, Missouri, Arkansas, South Dakota, and Oklahoma, are preparing adult use ballot initiatives for this year that will keep the growth pipeline flowing in 2024 and beyond. Readers should note that cannabis ballot initiatives have had a 100% success rate.

As I wrote in a recent article, cash flow is perhaps the single most important financial metric for any company. For the first time in 10 quarters (also an industry record), Green Thumb had negative cash flow of -$15.4 million. While this surprised shareholders, management stated in the earnings call that it was expected. They gave three reasons. First, there were two large tax payments totaling $65 million vs. none in the first quarter. Second, There were large inventory builds in Maryland and Ohio, and inventory builds often skew quarterly results. Third, 2021 compensation bonuses were scheduled for this quarter. Management is confident Green Thumb will quickly resume its industry leading positive cash flow.

Gross profit margin, which is sales minus the cost of goods sold, [COGS] is an important measure of performance. An increasing gross margin percentage indicates the company is doing a better job in sales and/or becoming more efficient in production. For the latest quarter, Green Thumb gross profit increased by $2.9 million sequentially to $125.8 million, but the gross margin declined from 55.4% a year ago to 49.5%. This reflects the margin compression seen across the industry from increased competition and cost inflation, which overtook increased overall sales. It also included a negative impact of 1.5% from reclassifying certain expenses from SG&A to COGS, which will reduce future taxes on an ongoing basis.

What the numbers mean for investors

Taken as a whole, the Q2 2022 results reflect a steady hand in the C-suite and a robust company strategy. Sales and profits continue to go up. The number of stores increases to position the company where growth will be strong. There were few surprises, which shows the company's skill in managing investor expectations and delivering on promises. The biggest surprise, negative cash flow, was fully discussed in the earnings call (as reported above) and does not appear to be cause for concern. Management also acknowledged that the stickier issues of cost inflation, consumer sentiment, and margin compression are affecting business performance. The first two will change sooner or later. The third is a normal part of any developing industry, not a sign of impending doom that some commenters suggest. Overall, the Q2 results show a company still on track to be one of the dominant players in cannabis.

The message for investors from the latest quarter is to stay the course. The forward P/E estimate for 2023 is 31, which is respectable for an emerging growth company. The 2024 P/E estimate is 21, which matches the current S&P500 P/E and significantly below the norm for a company like Green Thumb. Since 2017 revenues have jumped from $40 million to $893 million and the company has become consistently profitable, but as the chart below shows the share price is the same as five years ago. It's only a matter of time before the stock catches up to financial performance, and now is a very good time to add to your Green Thumb investment or start a position.

As with any emerging growth company, there are risks. Margin compression is here to stay. The stock price is somewhat tied to the economy and investor sentiment, both of which could remain as headwinds for some time. Inflation could continue to hurt sales and profit margins. The big catalyst, federal cannabis reform legislation, could mean stock gains of 100%, 200% or more, but its progress in the short term is uncertain.

More important than the numbers

The most important factor in business success is the quality of management. Superior management takes advantage of good business conditions and surmount bad business conditions. At a higher level, it establishes principles and values that define the company's "personality" and overarching approach to business, and promotes business success. It establishes the way the company does business and informs short- and long-term decision making. Assessing management quality can be difficult, but one way is to study a company's principles and how committed they are to following them.

Green Thumb has stated their principles explicitly, and the earnings call included evidence that they are following through. CFO Anthony Georgiadis underscored their importance by making them the last item investors heard in his earnings report. They are:

1. Tune out the noise: Green Thumb doesn't make decisions based on stock price action or investor sentiment. They are willing to take actions like the reclassification of SG&A expenses reported above that might hurt a quarterly report if it benefits the long term business. In a different vein, they put investors on notice in the earnings call that they are ignoring the noise about federal legislation, or as CEO Kovler put it, "Despite the noise [about legislation] we are doing what we do best, keeping our heads down on execution and our eyes on the prize."

2. Be the consumer: Everything the company does is based on the consumer. In any industry, having customers that feel satisfied, respected, and understood is a key to success. One small example: retail staff at Green Thumb are not "budtenders," they are "People Care Specialists." The recent push into value products is another example.


3. Watch the cash: No one watches cash better than Green Thumb. As reported above and in my recent article titled Green Thumb: Undisputed Cash Flow Champion In Cannabis, the company is the industry leader in cash flow and GAAP income. Their cash stewardship has been rewarded by allowing them to borrow money at an industry best 7%.

4. Be opportunistic when others are fearful: Over the past year, as stock prices plummeted, consumers lost confidence, and inflation hit hard, Green Thumb continued its full bore expansion, opening 19 stores, expanding cultivation, and developing new product lines. They invested $69 in capital expenditures in the latest quarter.


Finally, CEO Kovler ended the earnings presentation with what he called "one of the most important aspects of our culture" - giving back to the community. Green Thumb is on track to donate over $1 million in support of communities damaged by the war on drugs by the end of the year. Although many investors may view such initiatives as a distraction or an afterthought, businesses don't operate in a hermetic customer-company dyad. They operate in communities, and a healthy community fosters a healthy company. It is a big advantage that Green Thumb sees beyond quarterly profit and loss and understands the bigger picture.

[GE_Jim]

Thanks for the post. I think this company will be just fine. I like the way they run their business. I happen to follow Pablo Zuanic, he's not pone to bluesky views. About as close as you can get for a analyst

[FUNMAN]

GTI - On pace for $1B (NOW) - Green Thumb Industries Reports Second Quarter 2022 Results

If the Senate and House remain in Dem control next November, pot stocks might jump again ala when they took over in 2020. - FUNMAN

Revenue increased 4.8% sequentially and 14.6% year-over-year to $254.3 million.


CHICAGO and VANCOUVER, British Columbia, Aug. 03, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Green Thumb Industries Inc. (Green Thumb) (CSE: GTII) (OTCQX: GTBIF), a national cannabis consumer packaged goods company and owner of RISE dispensaries, today reported its financial results for the second quarter ended June 30, 2022. Financial results are reported in accordance with U.S. generally accepted accounting principles (GAAP) and all currency is in U.S. dollars.

Highlights for the second quarter and six months ended June 30, 2022:

• Revenue increased 4.8% sequentially and 14.6% year-over-year to $254.3 million.
• First half 2022 revenue increased 19.4% to $496.9 million compared to the first half of 2021.
• Eighth consecutive quarter of positive GAAP net income, delivering $24.4 million or $0.11 per basic and $0.10 per diluted share.
• Adjusted Operating EBITDA grew 17.4% sequentially to $78.7 million or 31.0% of revenue.
• Cash flow from operations of $39.9 million year-to-date.
See definitions and reconciliation of non-GAAP measures elsewhere in this release.

Management Commentary

“We are pleased with our second quarter results, especially in this challenging economic environment. Five percent revenue growth and greater than 300 basis point improvement in Adjusted EBITDA margins over the previous quarter demonstrate the results of our focus. We continue to maintain a strong balance sheet, which gives us ample flexibility to support our growth initiatives,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler.

“Despite the macro and consumer headwinds, our team continued to execute and build momentum. The complexity in U.S. cannabis makes us work harder and smarter every day to create long-term value for all our stakeholders. We are confident in our strategy, we believe in our brands, and we are committed to promoting well-being through the power of cannabis for the American people,” concluded Kovler.

Second Quarter 2022 Financial Overview

Total revenue for the second quarter 2022 was $254.3 million, up 4.8% sequentially and up 14.6% from $221.9 million in the prior year period. Revenue growth was primarily driven by increased retail sales in New Jersey, reflecting the legalization of adult-use cannabis; increased retail sales in Illinois; 19 additional retail locations versus second quarter last year, and increased traffic in the company’s 77 open and operating retail stores.

All 15 of Green Thumb’s state markets contributed to second quarter revenue: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia. The company continued to invest in expanding its cultivation and manufacturing capabilities across its footprint.

Gross profit for the second quarter 2022 was $125.8 million or 49.5% of revenue compared to $122.9 million or 55.4% of revenue year-over-year. Gross profit performance was driven by increased sales in the company’s retail business, new store openings, New Jersey adult-use sales and continued growth in the Illinois market.

Total selling, general and administrative expenses for the second quarter were $63.5 million or 25.0% of revenue, compared to $72.1 million or 32.5% of revenue for the second quarter 2021. The decrease in total expenses primarily reflected a non-cash reduction in acquisition-related contingent liabilities.

Net income attributable to the company for the second quarter 2022 was $24.4 million or $0.11 per basic and $0.10 per diluted share, compared to a net income of $22.1 million, or income of $0.10 per basic and diluted share in the prior year period.

In the second quarter 2022, EBITDA was $86.5 million or 34.0% of revenue versus $65.9 million or 29.7% of revenue for the comparable period. Adjusted Operating EBITDA, which excluded non-cash stock-based compensation of $6.8 million and other non-operating adjustments of ($14.6 million), was $78.7 million or 31.0% of revenue as compared to $79.3 million or 35.7% of revenue for the second quarter 2021.

For additional information on these non-GAAP financial measures, see below under “Non-GAAP Financial Information.”

Balance Sheet and Liquidity

As of June 30, 2022, current assets were $311.5 million, including cash and cash equivalents of $145.3 million. Total debt outstanding was $253.4 million.

Total basic and diluted weighted average shares outstanding for the three months ended June 30, 2022, were 236.8 million shares and 237.8 million shares, respectively.

Consumer Packaged Goods Business

As of June 30, 2022, Green Thumb’s family of consumer brands including RYTHM, Dogwalkers, incredibles, Beboe, Doctor Solomon’s, Good Green and &Shine were produced, distributed, and available in retail locations across the country.

Good Green, the Company’s newest brand, has expanded to seven total markets with additional markets coming later this year.

Consumer Packaged Goods gross revenue was flat sequentially, with intercompany sales increasing 17.1% quarter-over-quarter. The launch of New Jersey adult-use sales was the main driver of the increase of intercompany sales.

Retail Business Development

Green Thumb’s second quarter revenue included sales from 77 retail stores in the following states: California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia.

Retail revenue increased 11.7% quarter-over-quarter. Comparable sales growth (stores opened at least 12 months) were down 1.5% on a base of 56 stores. Sequential quarter-over-quarter comparable sales were up 9.9% on a base of 73 stores.

The company opened one new retail store in Minnesota, RISE Mankato. Profits from the first day of sales were donated to Habitat for Humanity of Minnesota (Habitat Minnesota).

Capital Markets and Financing

On July 14, 2022, Green Thumb announced it exercised its right to extend the maturity date of its senior non-brokered debt by one year, from April 30, 2024 to April 30, 2025. The company’s senior secured notes (the “Notes”), which have a total principal amount of approximately $250 million, bear interest at a rate of 7.0% per annum that is paid quarterly. The extended maturity date did not involve any amendments to the Notes or any additional consideration to the existing lenders.

On June 29, 2022, the company entered into the third amendment (the Amendment) to its existing lease agreement with Innovative Industrial Properties, Inc. associated with one of its cultivation and production facilities. The Amendment provided an additional tenant improvement allowance of $55 million to be used on enhancements to the facility.

Green Thumb in the Community

On June 2, 2022, the company opened applications for the third round of Good Green grant applications to 501(c)3 organizations that encompass one or more of the brand’s three pillars: education, employment and expungement. Good Green is a flower brand delivering a high-quality, affordable product that gives back to communities disproportionately affected by the War on Drugs. Green Thumb plans to donate more than $1 million in grants via Good Green by year end. Applications and additional information are available at www.good.green.

Non-GAAP Financial Information

This press release includes certain non-GAAP financial measures as defined by the U.S. Securities and Exchange Commission. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.

Definitions

EBITDA: Earnings before interest, taxes, other income or expense and depreciation and amortization.

Adjusted Operating EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash stock-based compensation, one-time transaction related expenses, or other non-operating costs.

Conference Call and Webcast

Green Thumb will host a conference call on Wednesday, Aug. 3, 2022, at 5:00 pm ET to discuss its second quarter 2022 financial results for the quarter ended June 30, 2022. The earnings call may be accessed by dialing 844-883-3895 (Toll-Free) or 412-317-5797 (International). A live audio webcast of the call will also be available on the Investor Relations section of Green Thumb’s website at https://investors.gtigrows.com and will be archived for replay.