Green Thumb Industries Inc, release financial results for their third quarter
Green Thumb Industries Inc, a leading national cannabis consumer packaged goods company and owner of Rise™ and Essence retail stores, today reported its financial results for the third quarter ended September 30, 2019. All currency is in U.S. dollars, unless noted otherwise.
Total revenue for the third quarter of 2019 was $68.0 million, up 296% from $17.2 million for the third quarter of 2018 and up 52% from $44.7 million for the second quarter of 2019.
Revenue growth was driven by expanded distribution of GTI's consumer product portfolio to third-party retailers and increased store traffic to GTI's 32 open and operating retail stores, particularly in Florida, Illinois, Nevada, and Pennsylvania.
In the third quarter, GTI generated revenue from 11 of its 12 markets: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New York, Ohio and Pennsylvania.
We are starting to see leverage in the platform that we built. Our brand portfolio is now produced, distributed and sold in eight markets, a significant improvement from our position just one year ago, and yet this is just the beginning.GTI Founder and Chief Executive Officer, Ben Kovler
The Company also ramped up expenses related to the build out of New Jersey, in preparation for revenue generation over the next six months.
Gross profit before biological asset adjustment for the third quarter was $34.8 million or 51.2%, as compared to $7.8 million or 45.6% for the same period last year. Gross profit after net gains on biological asset transformation for the third quarter was $36.1 million or 53.2% as compared to $8.5 million or 49.6% for the same period last year.
Year-over-year gross margin improvement was driven by increased scale across the consumer packaged goods and retail businesses.
Total operating expenses for the third quarter were $36.7 million, or 54.0% of revenue, as compared to $13.9 million, or 80.8% of revenue, for the same period last year and $32.5 million, or 72.6% of revenue, for the prior quarter.
According to the Founder and Chief Executive Officer of GTI, Ben Kovler, the company is extremely "pleased to deliver another quarter of solid execution highlighted by significant improvements to profitability on top of strong revenue growth."
"Our consumer products and retail businesses continue to scale as expected. Critical to our ongoing success is a strong balance sheet that provides us with ample liquidity and financial flexibility to support our growth plans."
"We continue to make progress on the 'Open and Scale' chapter of the business, solidifying our position in our current markets by investing in the infrastructure that is required to distribute brands at scale," Kovler said.
Total operating expenses include general and administrative ("G&A") expenses, which totaled $27.9 million for the quarter. G&A expenses include non-recurring acquisition and real estate related expenses of $1.2 million and non-cash expenses related to stock-based compensation of $4.7 million for the quarter.
Total other expenses were $13.0 million for the third quarter as compared to total other income of $8.1 million for the same period last year.
The change primarily reflects a decrease in value from a variable note receivable in other income (expense) and debt-related interest expenses.
GTI generated Adjusted Operating EBITDA1 of $14.1 million, or 20.7% of revenue, for the third quarter of 2019 as compared to $5.0 million, or 11.3% of revenue, in the prior quarter. EBITDA1 was $1.6 million for the third quarter of 2019 as compared to a loss of $9.4 million in the prior quarter. Net loss attributable to GTI for the third quarter was $17.1 million.
To learn more about Green Thumb Industries Inc visit their Company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
Disclaimer: past performance is not an indicator of future performance
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