Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF) reported its financial results for the third quarter ending September 30, 2021. Revenue at Green Thumb increased 5.3% sequentially and 48.7% year-over-year to $233.7 million. This beat the average analyst estimate from Yahoo Finance for revenue of $231 million.
The company also delivered net income in the quarter of $20 million or $0.08 per diluted share. This missed the average estimate for earnings of $0.10 per share. It was the seventh consecutive quarter of positive cash flow from operations, delivering $82.8 million year-to-date.
Green Thumb generated revenue from all 14 of its markets: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Virginia. The company has continued to invest in expanding the cultivation and production of its branded products, including premium Rythm flower, nationwide. As of September 30, 2021, current assets were $420.8 million, including cash and cash equivalents of $285.8 million. The total debt outstanding for GTI was $206.5 million.
“Our third-quarter results reflected continued execution on our long-term goal to be a brand leader in this rapidly emerging, high-growth consumer category. On a year-over-year basis, we grew revenue by 49% to $234 million; Adjusted EBITDA by 53% to $81 million and we delivered positive cash flow from operations for the seventh consecutive quarter. We ended the quarter with $286 million in cash, which gives us flexibility to generate long-term returns for our stakeholders,” said Green Thumb Chairman, Founder and Chief Executive Officer Ben Kovler.
GTI’s comparable sales growth (stores opened at least 12 months) was 14% on a base of 48 stores, driven primarily by increased transactions. The sequential comparable sales were up 1% on a base of 56 stores. Retail revenue increased 7.3% sequentially, driven by increased foot traffic in established stores and new store openings.
Kovler added, “Green Thumb is laying tracks for strong growth in 2022, 2023 and beyond. Our net capital expenditures exceeded $70 million in the third quarter bringing year-to-date net capex to over $115 million. Today, the U.S. cannabis market is a $24 billion industry and we believe as new states, new products and new consumers come into the market, it can triple over the next decade.”