CHICAGO and VANCOUVER, British Columbia, Nov. 7, 2024 – PRESS RELEASE – Green Thumb Industries Inc., a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, reported its financial results for the quarter ended Sept. 30, 2024. 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 Sept. 30, 2024:
- Third quarter revenue of $287 million increased 4% year-over-year.
- Cash at quarter end totaled $174 million.
- Third quarter GAAP net income of $9 million or $0.04 per basic and diluted share.
- Third quarter adjusted EBITDA of $89 million or 31% of revenue.
- Nine months cash flow from operations of $152 million, net of $88 million of tax payments.
- Opened four RISE Dispensaries in the quarter: three in Florida and one in New York.
- Entered into a $150 million, 5-year credit facility at an industry-leading interest rate of SOFR +5.00%.
- Retired $225 million senior secured debt, due April 30, 2025.
- Authorized $50 million for the repurchase of subordinate voting shares from Sept. 23, 2024, to Sept. 22, 2025.
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Management Commentary
“In the third quarter, our team delivered impressive results, including $287 million in revenue, adjusted EBITDA of $89 million, or 31% of revenue, and $48 million of cash flow from operations,” Green Thumb founder, Chairman and CEO Ben Kovler said. “Importantly, that cash flow from operations is after paying $35 million in taxes in the quarter.
“This quarter we achieved a major milestone for our company and the cannabis industry broadly when we entered a five-year, $150 million syndicated bank loan facility. This transaction strengthens our balance sheet by allowing us to retire our previous $225 million senior secured debt that matured in 2025. The new facility matures in 2029, giving us five years of valuable time to continue executing our growth strategy. Following this transaction, we plan to double down on our efforts to build brands that Americans want and love. As we begin our second decade as a company, we are even more confident in the future of cannabis in America as a means for well-being, and America needs a healthy dose of well-being now more than ever. Good news, it’s still day one—every day.”
Green Thumb President Anthony Georgiadis said, “We are incredibly proud of our team and the results they delivered this quarter. In addition to launching legal sales in Ohio in early August and opening four new RISE Dispensaries, we continued to make meaningful market share gains across our consumer packaged goods brand portfolio in a number of states. As we look ahead to the balance of the year and 2025, we are confident that our focus on operational excellence, superior product quality, and brands that resonate with consumers is a winning combination for Green Thumb.”
Third Quarter 2024 Financial Overview
Total revenue for the third quarter 2024 was $286.9 million, up 4.2% from the prior year period. Revenue growth in the third quarter was primarily driven by increased retail and consumer packaged goods sales in 13 incremental RISE Dispensaries since the prior year period, continued growth in existing markets such as New York and Maryland, and the addition of adult-use sales in Ohio. The increase was partially offset by continued price compression in certain markets.
Retail revenue for the third quarter of 2024 increased 0.3% versus the third quarter 2023. Third quarter 2024 comparable sales (stores open at least 12 months) decreased 2.7% versus the prior year on a base of 82 stores. Consumer packaged goods’ gross revenue increased 10% versus the third quarter of 2023.
Gross profit for the third quarter of 2024 was $147.6 million or 51.4% of revenue compared to $133.8 million or 48.6% of revenue year-over-year. The company was able to offset price compression headwinds through operational efficiencies as well as favorable pricing on the purchase of retail inventory.
Total selling, general and administrative (SG&A) expenses for the third quarter were $105 million or 36.6% of revenue, compared to $84.8 million or 30.8% of revenue for the third quarter 2023. The increase in total expenses was primarily due to costs associated with ongoing claims and litigation as well as employee compensation during the current period.
Net income attributable to the company for the third quarter of 2024 was $8.6 million or $0.04 per basic and diluted share, compared to net income of $10.5 million, or income of $0.05 per basic and diluted share in the prior year period.
In the third quarter of 2024, EBITDA was $71.1 million or 24.8% of revenue versus $74.7 million or 27.1% of revenue for the comparable period. Adjusted EBITDA, which excluded non-cash stock-based compensation of $8.3 million and other nonoperating adjustments of $9.7 million, was $89.2 million or 31.1% of revenue as compared to $83 million or 30.1% of revenue for the third quarter 2023.
For additional information on these non-GAAP financial measures, see below under “Non-GAAP Financial Information.”
Balance Sheet and Liquidity
As of Sept. 30, 2024, current assets were $391.9 million, including cash and cash equivalents of $173.6 million. The total debt outstanding was $255.6 million.
The total basic and diluted weighted average shares outstanding for the three months ended Sept. 30, 2024, were 236.3 million shares and 238.3 million shares, respectively.
Capital Allocation
On Sept. 13, the company’s board of directors authorized up to $50 million to be used to repurchase up to 10,573,860 of the company’s subordinate voting shares from Sept. 23, 2024, through Sept. 22, 2025.
Under the company’s previous share repurchase program that expired on Sept. 10, 2024, the company repurchased a total of approximately 6.6 million shares for $73.3 million.
Business Developments
During the third quarter of 2024, the company opened four retail stores:
- RISE Dispensary Jacksonville, Florida; profits from the grand opening were donated to Minorities for Medical Marijuana (M4MM).
- RISE Dispensary East Syracuse, New York; profits from the grand opening were donated to We Rise Above The Streets Recovery Outreach Inc.
- RISE Dispensary Tallahassee, Florida on Mahan Drive; profits from the grand opening were donated to the Minorities for Medical Marijuana (M4MM).
- RISE Dispensary Tallahassee, Florida on Tennessee Street; profits from the grand opening were donated to the Minorities for Medical Marijuana (M4MM).
In addition to the four new retail locations, legal cannabis sales launched in Ohio on Aug. 6 at all five RISE Dispensaries in Ohio.
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.
