Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) reported that its second-quarter revenue increased 228% to $44.7 million for the period ending June 30, 2019, over last year’s $13.6 million. Revenue grew 60% over the first quarter of 2019. The company said that the revenue growth was driven by organic growth across GTI’s consumer products and retail businesses, strategic acquisitions and increased store traffic.
Still, GTI delivered a net loss of $22.2 million versus a net loss of $9.7 million in the first quarter. The loss was attributed to a decrease in value from a variable note receivable in other income and debt-related interest expenses.
“We are pleased to report another solid quarter of positive yet disciplined momentum with record revenue and positive adjusted operating EBITDA as our strategic plan delivers on operating efficiencies from scale. Continued execution of key priorities such as the closing of Integral Associates, accelerated store openings, and expanded distribution of our brand portfolio sets us up well for the future,” said GTI Founder and Chief Executive Officer Ben Kovler.
The company saw a heavy increase in total operating expenses to $32.5 million versus $12.1 million for the same period last year and $26.1 million in the first quarter. The company said that increased headcount contributed to the rising expenses as the company grow and also non-cash expenses related to stock-based compensation of $6.3 million for the quarter.
In May, the company closed on a $105.5 million senior secured non-brokered private placement of notes. GTI said it plans to use the proceeds for general working capital purposes, strategic growth initiatives and to retire existing debt.
As of June 30, 2019, GTI had cash and cash equivalents of $135.8 million and long-term liabilities of $153.4 million, plus $96.3 million in total debt.
“We are deep in the chapter of maximizing the levers in our business to drive long-term operational performance that delivers value for our shareholders and the communities in which we operate, ” Kovler continued. “We are focused on optimizing our wholesale and retail businesses, integrating our acquisitions, and further strengthening compliance across the organization.”