abrooklyn
2 months ago
GREEN THUMB INDUSTRIES INC.
FORM 10-K
(Annual Report)
Filed 02/29/24 for the Period Ending 12/31/23
https://www.otcmarkets.com/filing/conv_pdf?id=17322838&guid=Zod-kWAqNviqJth
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GlobeNewswire
Green Thumb Industries Reports Fourth Quarter and Full Year 2023 Results
Green Thumb Industries
Wed, Feb 28, 2024 at 4:02 PM EST18 min read
In This Article:
GTBIF
+3.92%
Green Thumb IndustriesGreen Thumb Industries
Green Thumb Industries
CHICAGO and VANCOUVER, British Columbia, Feb. 28, 2024 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (“Green Thumb” or the “Company”) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today reported its financial results for the fourth quarter and full year ended December 31, 2023. 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 fourth quarter ended December 31, 2023:
Fourth quarter revenue of $278 million increased 7% year-over-year.
Cash at quarter end of $162 million.
GAAP net income for the fourth quarter of $3 million or $0.01 per basic and diluted share.
Adjusted EBITDA of $91 million or 33% of revenue; cash flow from operations of $71 million.
Opened seven RISE Dispensaries: six in Florida and one in New York.
Purchased $25 million of senior debt and $15 million of the Company’s Subordinate Voting Shares (“Shares”) under its share repurchase program.
Highlights for the year ended December 31, 2023:
Revenue of $1.1 billion increased 4% over the prior year.
Cash flow from operations of $225 million increased 42% year-over-year.
GAAP net income of $36 million or $0.15 per basic and diluted share.
Adjusted EBITDA of $326 million or 31% of revenue, an increase of 5% over the prior year.
Purchased $40 million of the Company’s Shares during the year.
Strong balance sheet and disciplined capital allocation to support continued future growth.
Additionally, on February 28, 2024, the Company’s Board of Directors authorized an increase in its share repurchase program by $50 million, bringing the total remaining repurchase ability to approximately $60 million.
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Management Commentary
“As I reflect on the past year, the Green Thumb team has been amazing. We delivered a strong fourth quarter, including record revenue of $278 million, record Adjusted EBITDA of $91 million, and full year 2023 cash flow from operations of $225 million—all the while investing over $200 million in capex to fuel future growth. We ended the year with a strong balance sheet including $162 million in cash, net of $65 million returned to shareholders via share buybacks and debt repurchases,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. “In 2023, we completed our major capex program that spanned over the past couple of years. With this heavy investment lift behind us, our Board of Directors authorized Green Thumb’s first share repurchase program to return capital to our valued shareholders, and I am pleased to announce that this morning, our Board of Directors approved an additional $50 million for the program. As I look to the future in 2024 and beyond, I am very optimistic—we have industry-leading brands that are gaining momentum, the best team in the business, a loyal and growing customer base, and the financial flexibility to keep riding the Green Wave.”
Green Thumb President Anthony Georgiadis added, “We accomplished a great deal in 2023, thanks to all the hard work and dedication across our team. We opened fifteen new stores bringing our total to 91 dispensaries across fourteen states. We also built and expanded our cultivation and production facilities to meet increased demand for both medical and adult-use cannabis in several of our markets as well as developed new product types, such as Dogwalkers Show Dogs infused pre-rolls, that both engaged our customers and won market share. We look forward to carrying this strong momentum into 2024.”
Fourth Quarter and Full Year Financial Overview
Total revenue for the fourth quarter 2023 was $278.2 million, up 7.3% from the prior year period. For the full year 2023, total revenue increased 3.7% to $1.1 billion. Revenue growth in the fourth quarter was primarily driven by increased retail and consumer packaged goods sales in Maryland, reflecting the legalization of adult-use cannabis on July 1.
Overall retail revenue increased 5.5% versus the fourth quarter of 2022 and 3.7% for the full year 2023. Fourth quarter 2023 comparable sales (stores open at least 12 months) increased 1.3% versus the prior year on a base of 76 stores. Consumer Packaged Goods gross revenue increased 16.6% versus the fourth quarter of 2022 and 13.0% versus the full year 2023.
Gross profit for the fourth quarter 2023 was $142.7 million or 51.3% of revenue compared to $124.0 million or 47.8% of revenue for the fourth quarter 2022. For the full year, gross profit was $526.5 million or 49.9% of revenue versus $504.0 million or 49.5% in 2022. The increase in gross margin was primarily driven by revenue growth in the quarter.
Total selling, general and administrative expenses for the fourth quarter were $92.3 million or 33.2% of revenue, compared to $80.0 million or 30.9% of revenue for the fourth quarter 2022. Total selling, general and administrative expenses for the full year 2023 were $341.9 million or 32.4% of revenue, an increase from $294.4 million or 28.9% of revenue in the prior year, primarily driven by non-cash credits associated with acquisition related obligations recorded in 2022.
Net income attributable to the Company for the fourth quarter 2023 was $3.2 million or $0.01 per basic and diluted share, compared to a net loss of $51.2 million, or a loss of $0.22 per basic and diluted share in the prior year period. Net income for the full year 2023 was $36.3 million or $0.15 per basic and diluted share, compared to a net income of $12.0 million or $0.05 per basic and diluted share in the prior year.
In the fourth quarter 2023, EBITDA was $77.8 million or 28.0% of revenue versus ($19.6) million or (7.5%) of revenue for the comparable period. EBITDA for the full year 2023 was $285.4 million, or 27.1% of revenue, versus $217.7 million, or 21.4% of revenue for the comparable period. Fourth quarter Adjusted EBITDA, which excluded non-cash stock-based compensation of $7.4 million and other non-operating adjustments of $5.7 million, was $90.8 million or 32.6% of revenue as compared to $81.2 million or 31.3% of revenue for the fourth quarter 2022. Adjusted EBITDA for the full year was $325.8 million or 30.9% of revenue, compared to $311.5 million or 30.6% of revenue last year.
For additional information on these non-GAAP financial measures, see below under “Non-GAAP Financial Information.”
Balance Sheet and Liquidity
As of December 31, 2023, current assets were $342.8 million, including cash and cash equivalents of $161.6 million. Total debt outstanding was $308.5 million.
Total basic and diluted weighted average shares outstanding for the three months ended December 31, 2023, were 237.9 million shares and 239.8 million shares, respectively.
Capital Allocation
In September 2023, the Board of Directors authorized a one-year $50 million program to repurchase up to approximately 10.5 million of the Company’s Subordinate Voting Shares. In the year ended December 31, 2023, Green Thumb repurchased 3.8 million shares for $39.9 million. On February 28, 2024, the Board approved an additional $50 million for the repurchase program, bringing the remaining authority to repurchase shares to approximately $60 million.
Green Thumb is not obligated to purchase any additional shares. If management determines it has better uses for its cash reserves, including for debt refinancing, strategic mergers and acquisitions or net working capital, it is under no obligation to purchase shares and share purchases may be suspended or terminated at any time at Green Thumb’s discretion. The actual number of shares purchased, timing of purchases and share price will depend upon market conditions at the time and securities law requirements. All shares acquired are returned to the treasury and cancelled.
During the fourth quarter, the Company repurchased $25 million of senior debt at 95% of their original value. As a result, the remaining principal balance was $225 million as of December 31, 2023.
Fourth Quarter Business Developments
On October 14, Green Thumb opened RISE Dispensary Brandon, Florida; profits from the grand opening were donated to Florida Justice Center.
On October 27, Green Thumb opened RISE Dispensary Sun City Center, Florida; profits from the grand opening were donated to Minorities for Medical Marijuana.
On November 10, Green Thumb opened RISE Dispensary Clearwater, Florida; profits from the grand opening were donated to Minorities for Medical Marijuana.
On December 1, Green Thumb opened RISE Dispensary Tampa and RISE Dispensary Crystal River, Florida; profits from the grand opening were donated to Tu Canna Foundation and The Bridge 4 Veterans, respectively.
On December 14, Green Thumb opened RISE Dispensary Long Beach, New York.
On December 15, Green Thumb opened RISE Dispensary Port Orange, Florida; profits from the grand opening were donated to Minorities for Medical Marijuana.
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 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, February 28, 2024, at 5:00 pm ET to discuss its fourth quarter and full year 2023 financial results for the quarter ended December 31, 2023. 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 Dispensaries. Headquartered in Chicago, Illinois, Green Thumb has 20 manufacturing facilities, 91 open retail locations and operations across 14 U.S. markets. Established in 2014, Green Thumb employs approximately 4,600 people and serves millions of patients and customers each year. 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: cannabis remains illegal under U.S. federal law, and enforcement of cannabis laws could change; state regulation of cannabis is uncertain; the Company may not be able to obtain or maintain necessary permits and authorizations; 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, Firearms, and Explosives regulation; as a cannabis business, the Company is subject to applicable anti-money laundering laws and regulations and have restricted access to banking and other financial services; the Company may face difficulties acquiring additional financing; the Company faces intense competition; the Company faces competition from the illicit market as well as actual or purported Farm Bill compliant hemp products; the Company is dependent upon the popularity and consumer acceptance of its brand portfolio; the Company lacks access to U.S. bankruptcy protections; 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; 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 due to industry immaturity or limited comparable, competitive or established industry best practices; the Company faces risks related to its products; 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 relies on third-party software providers for numerous capabilities the Company depends upon to operate, and a disruption of one or more of these systems could adversely affect its business; the Company faces an inherent risk of product liability or similar claims; the Company’s products may be subject to product recalls; the Company relies on the expertise of our management team and other employees experienced in the cannabis industry, and the loss of key personnel could negatively affect our business, financial condition and results of operations; the Company may face unfavorable publicity or consumer perception; the Company’s voting control is concentrated; the Company’s capital structure and voting control may cause unpredictability; sales of substantial amounts of Subordinate Voting Shares by its shareholders in the public market may have an adverse effect on the market price of its Subordinate Voting Shares. 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 most recent Annual Report on Form 10-K 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
InvestorRelations@gtigrows.com
310-622-8257
Media Contact:
MATTIO Communications
GTI@mattio.com
GE_Jim
6 months ago
FYI- Lawsuit Seeks Equal Treatment for Cannabis Businesses
1:48 pm ET October 26, 2023 (PR Newswire) Print
Federal criminalization of safe, regulated intrastate cannabis legal in 38 states is unconstitutional—and unfair to small businesses
Cannabis businesses are unconstitutionally prevented from getting small business loans, investments; unable to have normal banking relations; and subject to discriminatory taxes
A coalition of U.S. cannabis operators and investors working in state-legal medical and adult-use cannabis markets today filed a lawsuit against U.S. Attorney GeneralMerrick Garland. The coalition, represented by the law firm Boies Schiller Flexner, seeks to enjoin the federal government from enforcing the Controlled Substances Act in a manner that interferes with the intrastate cultivation, manufacture, possession, and distribution of cannabis, pursuant to state law. The lawsuit asserts that the federal government has no basis for enforcing the Controlled Substances Act against intrastate, state-regulated cannabis operations.
Boies Schiller Flexner and Lesser, Newman, Aleo & Nasser LLP filed the lawsuit in the United States District Court for the District of Massachusetts, Western Division, and will represent plaintiffs Gyasi Sellers (CEO and Founder of Treevit), Canna Provisions, and Wiseacre Farm, all of which are local independent operators in Massachusetts who have suffered significant harm and business challenges due to federal prohibition. Verano Holdings (OTCQX: VRNOF) is also named as a plaintiff, while foundational supporters of the suit include Ascend Wellness Holdings (OTCQX: AAWH), TerrAscend (TSX: TSND) and Green Thumb Industries (OTCQX: GTBIF), as well as Eminence Capital and Poseidon Investment Management.
The lawsuit seeks to confirm the rights of Massachusetts and other states to regulate cannabis within their borders, and to confirm the corresponding limits on the federal government's power to regulate commerce. The federal government's power to regulate commerce is based on the Interstate Commerce Clause of the Constitution. The law at issue in this suit, the Controlled Substances Act, exceeds that limited authority: it bars the production, distribution, and possession of marijuana, regardless of whether those activities cross state lines or, as in the case of Plaintiffs' cannabis businesses, are intrastate. This unjustified and unconstitutional prohibition on intrastate cannabis harms Plaintiffs and hinders the efforts of states to provide patients and adults with access to strictly-regulated and tested cannabis.
In 2005, the Supreme Court rejected a challenge to the Controlled Substance Act's cannabis prohibitions, but the facts today compel a different result. A critical factor in that decision, Gonzales v. Raich, was that the federal government intended to "eradicate" the market for cannabis nationwide. The Court concluded that the federal goal of eliminating commerce in cannabis, combined with the assumption in 2005 that intrastate marijuana could not be differentiated from interstate cannabis, justified the Controlled Substances Act's prohibitions on intrastate cannabis. Neither of those facts, however, are true today. In the eighteen years since Gonzales, Congress and the Executive Branch have abandoned any intent to "eradicate" cannabis, and numerous states have developed regulatory programs for legal marijuana that is not fungible with, and is readily distinguished from, illicit cannabis.
Today, 38 states including Washington D.C. have medical or adult-use cannabis programs with significant regulatory oversight. They require compliance with a multitude of stringent regulations aimed to protect patients, customers, and the public at large, including video surveillance and seed-to-sale tracking. The cannabis that is cultivated, processed, and distributed under these regulations is not fungible with, and is readily distinguishable from, illicit interstate cannabis. The regulated cannabis products in these states can be traced back all the way to the original batch of seeds from which they grew.
These changed facts compel a different result than was reached eighteen years ago in Gonzales. Absent the relief sought in this lawsuit, Plaintiffs and other state-regulated cannabis operators will continue to suffer severe harms. State-regulated cannabis businesses are deemed illegal under the CSA; their everyday activities are considered federal crimes. As a result, they are cut off from numerous federal programs and protections (including small business loans), they are subject to discriminatory tax penalties, and many organizations—including banks and credit card processors—refuse to do business with them, rather than risk being deemed conspirators, aiders and abettors, or money launderers.
The result is that many cannabis businesses are suffering, people are losing their jobs and individual wealth is being destroyed. In addition, social equity licensees harmed by the War on Drugs and who were supposed to have equal access to the industry do not have the same benefits as otherwise situated business owners to start a business and build their wealth.
"The federal criminalization of safe, regulated marijuana commerce in states where it is legal unfairly burdens legal operations and expands the production and sale of illegal marijuana that is unregulated, can be unsafe, and is likely to find its way to other states," said David Boies, Chairman, Boies Schiller Flexner LLP. "Federal criminalization also denies small, legal marijuana businesses of access to SBA loans, investors, benefits for their employees, and normal banking regulations (which among other things, forces them to rely on cash transactions with all of the dangers to them, and to the community, that result) - as well as burdening them with discriminatory taxes," said Mr. Boies. "Americans believe that cannabis should be legal and available subject to reasonable regulation by the states. 38 states have legalized some form of cannabis. The federal government lacks authority to prohibit intrastate cannabis commerce. Outdated precedents from decades ago no longer apply - the Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce; moreover, the facts on which those precedents are based are no longer true," said Mr. Boies.
"While reforms such as the SAFER Banking Act and rescheduling cannabis under the Controlled Substances Act would improve certain aspects of this broken and antiquated system, they will not solve the fundamental issue. The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions," said Darren Weiss, President of Verano. "We are prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years. We believe that the Supreme Court will adhere to the core value on which our country was founded and which is central to guaranteeing freedom: that the federal government's powers are limited."
"We want to be treated equally, on an even playing field with any other small business in Massachusetts," said Meg Sanders, CEO and co-founder of Canna Provisions, an award-winning independent craft cultivation, with two retail dispensaries in Western Massachusetts.
Plaintiffs are represented by David Boies, Jonathan D. Schiller, Matthew L. Schwartz, Joshua I. Schiller, and David Barillari of Boies Schiller Flexner LLP and Thomas Lesser and Michael Aleo of Lesser, Newman, Aleo & Nasser LLP.
GE_Jim
9 months ago
Press Release: Green Thumb Industries Reports Second Quarter 2023 Results
4:02 pm ET August 8, 2023 (Dow Jones) Print
Green Thumb Industries Reports Second Quarter 2023 Results
CHICAGO and VANCOUVER, British Columbia, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. ("Green Thumb" or "the Company") (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today reported its financial results for the second quarter ended June 30, 2023. 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, 2023:
-- Second quarter revenue of $252 million increased 2% sequentially; first
half 2023 revenue increased 1% to $501 million year-over-year.
-- GAAP net income of $13 million or $0.05 per basic and diluted share.
-- Adjusted EBITDA was $76 million or 30% of revenue.
-- Six months cash flow from operations of $93 million, net of $52 million
of tax payments.
-- Cash at quarter end totaled $149 million.
-- Six RISE retail stores were opened: two in Pennsylvania; two in Virginia
and one each in Minnesota and Nevada.
Additionally, immediately after quarter end, on July 1, adult-use cannabis sales commenced at the Company's four RISE retail stores in Maryland.
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Management Commentary
"In the second quarter, we delivered solid results of $252 million in revenue, up slightly from the first quarter, and GAAP net income of $13 million or $0.05 per basic and diluted share. Adjusted EBITDA was $76 million or 30% of revenue. Importantly, cash flow from operations was $18 million after paying $52 million of taxes this quarter. For the first six months of 2023, the Company had Adjusted EBITDA of $152 million and cash flow from operations of $93 million. Finally, we ended the second quarter with a strong balance sheet and $149 million in cash. As we move into the second half of the year, we are pleased with our overall position and our team's ability to execute on our long-term strategy," said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler.
Green Thumb President Anthony Georgiadis added, "While the cannabis industry continues to face challenges, at Green Thumb, we have been able to navigate a path to profitability and strong operating cash flow. Generating cash and carefully managing it has been core to our DNA since our founding. In addition, over the last 12 months we have made approximately $240 million in capital investments to position the Company for continued strong performance across our diversified portfolio of states."
Second Quarter 2023 Financial Overview
Total revenue for the second quarter 2023 was $252.4 million, down 1.0% from the prior year period. The decline in revenue was primarily driven by price compression. This was partially offset by continued growth in existing markets such as New Jersey, Virginia and Connecticut, as well as revenue generated from new stores opened in the current period.
Overall retail revenue decreased 2.4% versus the second quarter of 2022. Second quarter 2023 comparable sales (stores open at least 12 months) decreased 3.3% versus the prior year on a base of 76 stores. Consumer Packaged Goods gross revenue increased 12.8% versus the second quarter of 2022.
Gross profit for the second quarter 2023 was $125.3 million or 49.6% of revenue compared to $125.8 million or 49.5% of revenue year-over-year. The Company was able to offset price compression headwinds through operational efficiencies as well as an increase in Consumer Packaged Goods sales through Green Thumb-owned retail stores.
Total selling, general and administrative expenses for the second quarter were $84.2 million or 33.4% of revenue, compared to $63.5 million or 25.0% of revenue for the second quarter 2022. The increase in total expenses was primarily due to a one-time acquisition-related non-cash fair value credit in the prior year period. In addition, Green Thumb incurred increased expenses associated with opening new stores, as well as the preparation for the recent launch of adult-use cannabis sales in Maryland.
Net income attributable to the Company for the second quarter 2023 was $13.4 million or $0.05 per basic and diluted share, compared to a net income of $24.4 million, or income of $0.11 per basic and $0.10 per diluted share in the prior year period.
In the second quarter 2023, EBITDA was $65.3 million or 25.9% of revenue versus $86.5 million or 34.0% of revenue for the comparable period. Adjusted EBITDA, which excluded non-cash stock-based compensation of $7.4 million and other non-operating adjustments of $3.1 million, was $75.8 million or 30.0% of revenue as compared to $78.7 million or 31.0% of revenue for the second quarter 2022.
For additional information on these non-GAAP financial measures, see below under "Non-GAAP Financial Information."
Balance Sheet and Liquidity
As of June 30, 2023, current assets were $341.3 million, including cash and cash equivalents of $149.0 million. Total debt outstanding was $289.9 million.
Total basic and diluted weighted average shares outstanding for the three months ended June 30, 2023, were 238.0 million shares and 238.4 million shares, respectively.
Business Developments
During the second quarter, the Company opened six retail stores:
-- RISE Dispensary New Hope, Minnesota; profits from the first day of sales
were donated to Balanced Veterans Network.
-- RISE Dispensary Grove City, Pennsylvania; profits from the first day of
sales were donated to Grove City Community Food Pantry.
-- RISE Dispensary Bristol, Virginia; profits from the first day of sales
were donated to Virginia NORML.
-- RISE Dispensary Las Vegas on Nellis; profits from the grand opening were
donated to Opportunity Village.
-- RISE Dispensary Philadelphia, Pennsylvania; profits from the grand
opening were donated to Philadelphia Lawyers for Social Equity (PLSE).
-- RISE Dispensary Danville, Virginia; profits from the grand opening were
donated to Virginia NORML.
Subsequent to quarter end, on August 2, 2023, Green Thumb opened its 84(th) retail store nationwide in Las Vegas on Craig Road. Profits from the grand opening were donated to Opportunity Village. On July 1, 2023, Green Thumb commenced adult-use sales at its four Maryland retail stores in Hagerstown, Joppa, Silver Spring and Bethesda. Each store donated a portion of profits from the first day of adult-use sales to a local nonprofit organization, including Mission of Love Charities, Explore MD Cannabis and I Support The Girls.
Green Thumb in the Community
In partnership with 40 Tons, an African American and woman-owned social impact organization committed to restorative justice and equitable access to career opportunities, Good Green, a cannabis flower brand owned by Green Thumb, presented the sixth 40 Tons Level Up Career Conference & Business Expo in Chicago. The conference was an innovative employment resource that promotes social justice and brings together employers who encourage equitable hiring practices with diverse job seekers.
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.
GE_Jim
1 year ago
Press Release: Green Thumb Industries Reports Fourth Quarter and Full Year 2022 Results
4:02 pm ET February 28, 2023 (Dow Jones) Print
Green Thumb Industries Reports Fourth Quarter and Full Year 2022 Results
CHICAGO and VANCOUVER, British Columbia, Feb. 28, 2023 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. ("Green Thumb," or the "Company") (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, today reported its financial results for the fourth quarter and full year ended December 31, 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 fourth quarter ended December 31, 2022:
-- Revenue of $259 million increased 6% year-over-year and decreased 1%
sequentially.
-- Cash flow from operations of $70 million.
-- Cash at quarter end totaled $178 million.
-- GAAP net loss of ($51 million) or ($0.22) per basic and diluted share.
-- Adjusted net income of $12 million or adjusted basic and diluted earnings
per share of $0.05, excluding non-cash impairment charges.
-- Adjusted Operating EBITDA of $81 million or 31% of revenue.
Highlights for the year ended December 31, 2022:
-- Revenue of $1 billion increased 14% over the prior year.
-- Cash flow from operations of $159 million.
-- GAAP net income of $12 million or $0.05 per basic and diluted share.
-- Adjusted net income of $75 million or adjusted basic and diluted earnings
per share of $0.32, excluding non-cash impairment charges recognized in
the fourth quarter.
-- Adjusted Operating EBITDA of $311 million or 31% of revenue.
-- Strong balance sheet and disciplined capital allocation to support
continued future growth.
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Management Commentary
"In 2022, Green Thumb reached $1 billion in annual revenue while delivering over $300 million in Adjusted Operating EBITDA. Our team continued to execute on our mission by building authentic brands that resonate with consumers. As a federally illegal business with limited access to capital, we remain focused on our cash position, while consistently paying interest and taxes on time. The lack of progress regarding cannabis regulation from our elected officials in Congress is mind-numbing. The crippling tax burden continues to hurt new operators by greatly reducing their prospects for a profitable and sustainable cannabis business," said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler.
"While there is notable price compression in the market right now, units sold continues to climb, up 28% year-over-year according to BDSA, indicating that demand for cannabis products remains strong. I am confident that Green Thumb has the right team, the right brands, and the right operational setup to navigate the middle innings of this industry and beyond. Equally important, Green Thumb had $178 million in cash at year end, which is a $31 million increase over last quarter, and we delivered $159 million in cash flow from operations for the year. This financial strength provides for both optionality and durability going forward."
Fourth Quarter and Full Year 2022 Financial Overview
Total revenue for the fourth quarter 2022 was $259.3 million, up 6.4% from $243.6 million for the fourth quarter 2021. For the full year 2022, total revenue increased 13.9% to $1.0 billion. Revenue growth in the fourth quarter was primarily driven by the legalization of adult-use sales in New Jersey, which began on April 21, 2022, as well as revenue generated from acquisitions made throughout 2021.
Overall retail revenue increased 14.2% versus the fourth quarter of 2021 and 24.1% for the full year 2022. Fourth quarter 2022 comparable sales (stores open at least 12 months) increased 3.4% versus prior year on a base of 65 stores. Consumer Packaged Goods gross revenue increased 1.7% versus the fourth quarter of 2021 and 6.0% for the full year 2022.
Gross profit for the fourth quarter 2022 was $124.0 million or 47.8% of revenue compared to $128.6 million or 52.8% of revenue for the fourth quarter 2021. For the full year, gross margin was $504.0 million or 49.5% of revenue versus $491.9 million or 55.1% in 2021. The decline in gross margin percentage was primarily driven by price compression.
Total selling, general and administrative expenses for the fourth quarter were $80.0 million or 30.9% of revenue, compared to $74.3 million or 30.5% of revenue for the fourth quarter 2021. Total selling, general and administrative expenses for the full year 2022 were $294.4 million or 28.9% of revenue, an increase from $277.1 million or 31.0% of revenue in the prior year. During the fourth quarter 2022, the Company also recorded a non-cash impairment charge of $88.5 million related to its Nevada business. This consisted of two charges: a $57.4 million goodwill impairment charge and a $31.1 million write off of the Essence tradename intangible.
Total other expense was $14.1 million for the fourth quarter 2022, primarily reflecting interest expense associated with the Company's senior secured notes, as well as various fair value adjustments associated with the Company's existing investment portfolio. Total other expense for the full year was $12.6 million.
Net loss attributable to the Company for the fourth quarter 2022 was ($51.2 million) or ($0.22) per basic and diluted share, compared to net income of $22.8 million, or $0.10 per basic and diluted share in the prior year. Net income for the full year 2022 was $12.0 million or $0.05 per basic and diluted share. Excluding the non-cash impairment charges of $88.5 million, adjusted net income for the fourth quarter and full year 2022 was $12 million and $75 million, or adjusted basic and diluted earnings per share of $0.05 and $0.32, respectively.
EBITDA for the fourth quarter 2022 was ($19.6 million) or (7.5%) of revenue compared to $75.6 million or 31.0% of revenue for the fourth quarter 2021. EBITDA for the full year 2022 was $217.7 million, or 21.4% of revenue. Adjusted Operating EBITDA for the fourth quarter 2022, which excluded non-cash stock-based compensation, other non-operating costs, and impairment charges, was $81.2 million or 31.3% of revenue as compared to $76.0 million or 31.2% of revenue for the fourth quarter 2021. Adjusted Operating EBITDA for the full year was $311.5 million or 30.6% of revenue, compared to $307.8 million or 34.5% of revenue last year.
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