GTI Grows Q3 Revenue 52% from Q2 to $68 Million

Green Thumb Industries (GTI) Reports Increased Third Quarter Revenue of $68 Million and Adjusted Operating EBITDA of $14.1 Million
  • Third quarter revenue increased 296% year-over-year
  • Expect to generate over $200 million in total revenue for fiscal year 2019
  • Retail expansion on pace with four new Rise™ stores opened during the quarter, bringing total new stores opened year-to-date to 14
  • Ample liquidity and financial flexibility to support growth strategy

CHICAGO and VANCOUVER, British Columbia, Nov. 20, 2019 (GLOBE NEWSWIRE) — Green Thumb Industries Inc. (“GTI” or the “Company”) (CSE: GTII) (OTCQX: GTBIF), 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.

Financial Highlights

  • Third quarter 2019 revenue increased 296% year-over-year to $68.0 million. Quarter-over-quarter revenue increased 52%. Topline results were driven both by organic growth across the Company’s consumer products and retail businesses as well as a full quarter of Integral Associates revenue.
  • Gross margin before biological adjustments for the third quarter 2019 was 51.2% as compared to 45.6% in the prior year and 52.0% in the prior quarter.
  • Net loss for the third quarter 2019 was $17.1 million, as compared to net loss of $22.2 million in the second quarter 2019.
  • EBITDA¹ and Adjusted Operating EBITDA1 for the quarter, as described in the accompanying financial table, was $1.6 million and $14.1 million, respectively as compared to a loss of $9.4 million and gain of $5.0 million, respectively for the prior quarter. Adjusted Operating EBITDA margin improved to 20.7% in the third quarter from 11.3% in the prior quarter.
  • Current assets totaled $123.8 million and included cash and cash equivalents of $66.1 million. Total debt outstanding was $96.9 million.
  • Subsequent to quarter end, the Company completed a sale and leaseback transaction of its Danville, Pennsylvania cultivation and manufacturing facility with Innovative Industrial Properties (IIP). IIP’s total investment in the property will be $39.6 million; proceeds will be used to support strategic expansion initiatives.

Management Commentary

We are 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.

GTI Founder and Chief Executive Officer Ben Kovler

“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 continued. “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. To meet growing demand in key markets such as Illinois, Pennsylvania and Massachusetts, we continue to expand our cultivation and manufacturing capacity. Our stores are delivering same store sales that exceed our expectations. We are well positioned to end 2019 on a strong note and expect to generate over $200 million in total revenue for the year as planned.”

Consumer Packaged Goods Business Development

  • As of September 30th, GTI’s family of consumer brands are produced, distributed, and available in retail locations in eight states (California, Colorado, Florida, Illinois, Maryland, Massachusetts, Nevada, and Pennsylvania), supporting the growing scale of branded product distribution.
  • Branded product sales grew in all eight markets and increased approximately 50% quarter-over-quarter. Growth was driven by a combination of market growth, acquisitions and new distribution of the Company’s brand portfolio. As of September 30th, GTI’s branded products are sold in over 700 retail stores, including the Company’s Rise and Essence retail stores.
  • On August 22nd, GTI was awarded a cultivation license by the Ohio Department of Commerce. The cultivation operation will be located in Toledo and will also include a processing and manufacturing facility to produce its branded product portfolio.
  • On August 23rd, the Company closed the acquisition of New York-based Fiorello Pharmaceuticals Inc., which includes one of only ten licenses for a cultivation and manufacturing facility in Schenectady County. Integration efforts remain on track.
  • Expansion efforts of the Company’s cultivation and manufacturing facilities continue to progress according to plan in Illinois, Massachusetts, and Pennsylvania.

Retail Business Development

  • Retail revenue increased 68% quarter-over-quarter, driven by organic growth generated from increased transaction activity in the Company’s retail stores and a full quarter of Essence retail sales. Third quarter revenue included sales generated from 32 open stores across GTI’s retail footprint.
  • Comparable sales (stores open for at least 12 months) exceeded 50% off a base of 13 stores, driven primarily by increased transactions. Quarter-over-quarter comparable sales were up 22% off a base of 17 stores.
  • During the quarter, GTI opened four new Rise™ retail stores in Florida, Pennsylvania and Ohio, bringing total new stores opened year-to-date to 14:
    • Florida: Opened two Rise™ stores in Oviedo and Hallandale Beach, bringing total open stores in the state to five with licenses to open 30 additional locations.
    • Pennsylvania: Opened Rise™ Hermitage, bringing total open stores in the state to seven with licenses to open 11 additional locations.
    • Ohio: Opened Rise™ Cleveland, bringing total open stores in the state to three. Future stores include two stores in Lakewood.
  • On August 23rd, GTI closed the acquisition of New York-based Fiorello Pharmaceuticals Inc., which includes four retail stores in high traffic areas in Manhattan, Rochester, Halfmoon and Nassau County, three of which are open.
  • Subsequent to the quarter on October 5th, the Company expanded its footprint in the Connecticut retail market with the acquisition of Bluepoint Wellness, a medical dispensary located in city of Branford. The acquisition complements its cultivation center in West Haven, and a future dispensary slated for Westport, Connecticut.
  • Including the recent New York license and Connecticut retail acquisitions, the Company currently has 33 open stores across the nation with licenses to open a total of 96 locations. The Company reaffirms its previous guidance of 35 to 40 open stores at year-end.
  • Following the launch of the Rise™ retail re-brand in the third quarter, the Company is rolling out the remodel of its Illinois adult use store locations ahead of adult-use legalization on January 1, 2020.

Corporate Development

  • On August 27th, GTI launched its Illinois License Education Application Program (LEAP) to reduce the barriers to cannabis business ownership for minorities and others most impacted by the war on drugs by lending the expertise of the Company’s in-house license application team to qualified social equity applicants. Since launch, the pro-bono program has counseled over one hundred applicants in the Illinois dispensary applications process.
  • During the quarter, GTI was recognized as one of the Green Entrepreneur Top 100 Cannabis Companies.
  • Subsequent to the quarter, Chief Strategy Officer Jennifer Dooley was named to the High Times Female 50 list, which honors the most influential women across the cannabis industry.
  • Subsequent to the quarter, Senior Vice President, Government and Regulatory Affairs Dina Rollman was included in the Chicago Business Journal’s Women of Influence list, which highlights successful business leaders who demonstrate a commitment to the community and mentoring other women.
  • Subsequent to the quarter on October 15th, Macias Gini & O’Connell, LLC was appointed to succeed MNP, LLC as the Company’s new auditor.
  • Subsequent to the quarter on October 31st, GTI hired Beth Burk as the Interim Chief Legal and Compliance Officer.

Third Quarter 2019 Financial Overview

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. 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. 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.

Balance Sheet and Liquidity

As of September 30, 2019, current assets were $123.8 million, including cash and cash equivalents of $66.1 million and long-term liabilities of $154.5 million. The Company had $96.9 million total debt.

Total shares on a fully converted basis were 205,060,672 at September 30, 2019. Total fully diluted shares were 214,061,263 including options, warrants and restricted stock units (RSUs).

Additional Information

Additional information relating to the Company’s third quarter 2019 results is available on SEDAR at in the Company’s Interim Financial Statements and Management Discussion & Analysis (“MD&A”).

GTI refers to certain non-IFRS financial measures such as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), and adjusted operating EBITDA earnings defined as earnings before interest, taxes, depreciation, amortization, less certain non-cash equity compensation expense, including one-time transaction fees and all other non-cash items. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers.

  1. Please see the “Supplemental Information (Unaudited and Unreviewed) Regarding Non-IFRS Financial Measures” at the end of this press release for more detailed information regarding non-IFRS financial measures.

Conference Call and Webcast

GTI will host a conference call on Wednesday, November 20, 2019 at 5:00 pm ET to discuss its financial results for the third quarter ended September 30, 2019. The conference call may be accessed by dialing 877-273-8145 (Toll-Free) or 647-689-5400 (International) with conference ID: 7085899. A live audio webcast of the call will also be available on the Investor Relations section of GTI’s website at and will be archived for replay.

About Green Thumb Industries:

Green Thumb Industries (GTI), a national cannabis consumer packaged goods company and retailer, is dedicated to providing dignified access to cannabis while giving back to the communities in which they serve. GTI manufactures and distributes a portfolio of branded cannabis products including Rythm, Dogwalkers, The Feel Collection, incredibles and Beboe, among others. The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, GTI has 13 manufacturing facilities, licenses for 96 retail locations and operations across 12 U.S. markets. Established in 2014, GTI employs approximately 1,300 people and serves thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business. More information is available at


Original press release

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