Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) has reported its earnings for the third quarter of 2020. Overall, the company’s balance sheet was strong and retained a positive cash flow for the third consecutive quarter.
Green Thumb’s revenue increased 31.3% quarter-over-quarter, and year-over-year 131.% to $157.1 million. The company’s gross margin for the third quarter of 2020 was 55.4%, an increase from a 53.2% gross margin the quarter prior.
The company’s adjusted operating EBITDA increased by 50% to $53.2 million, or 33.9% of revenue for the third quarter of 2020. The prior quarter ended with an adjusted EBITDA of $35.4 million, or 29.6% of revenue.
As of September 30th, 2020, Green Thumb’s current assets totaled $159.1 million and included cash and cash equivalents equaling $78.1 million. The company reported a total debt outstanding of $97.1 million, $0.3 million being due within 12 months.
Green Thumb Industries reported a net income attributable to the company of $9.6 million, or $0.4 per basic diluted share, calling this feat a “new milestone.”
“This was an excellent quarter for Green Thumb as we delivered substantial revenue growth and our ‘Enter, Open, Scale’ strategy is generating meaningful operating leverage across our business,” said Ben Kovler, Chairman, Founder, and CEO of Green Thumb Industries. We expanded gross margins and EBITDA margins quarter-over-quarter while delivering positive net income for the first time. This was driven by the execution of our capital projects in Illinois, New Jersey, Pennsylvania and Ohio, and the rebound in our Nevada and Massachusetts markets following the initial impact of COVID-19. We are poised to further benefit from the strong tailwinds driving a robust, multi-billion-dollar marketplace.”
Kovler continued, “Momentum remains strong across the country and in our business. The national election saw a green wave sweep across the country with five states – New Jersey, Montana, South Dakota, Arizona and Mississippi – all legalizing their respective cannabis programs. New Jersey is great news for us as we think that legal market has the potential to mirror Illinois – a single state, multi-billion dollar legal cannabis market about to be born. There was resounding support for our mission to promote well-being through cannabis and we remain bullish on our strategic position and the long-term prospects of our business.”
Consumer Packaged Goods Data
As of September 30th, 2020, the company’s family of consumer brands are available in retail locations in eleven states: Colorado, California, Connecticut, Illinois, Florida, Maryland, Massachusetts, Nevada, New Jersey, Ohio and Pennsylvania.
The company’s gross branded-product sales grew sequentially by approximately 32.6% quarter-over-quarter, primarily driven by a production distribution expansion. The company continues to diversify its brand portfolio with the launch of Snoozzzeberry, a gummies line under the incredibles brand in Illinois and Nevada.
Retail revenue increased by 27.9% quarter-over-quarter, primarily being driven by increased foot traffic in established stores. Comparable sales growth exceeded 65%, on a base of 25 stores.
Green Thumb Industries also partnered with the Last Prisoner Project in an attempt to help raise awareness and funds towards the incredibly important cause. The company also announced the launch of the License Education Assistance Program, designed to equip social equity business applicants for success in Illinois.