Green Thumb Industries Archives - Green Market Report

Video StaffApril 21, 2022

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Green Thumb Industries (OTC: GTBIF) began selling adult-use cannabis for the first time at its Rise dispensaries in New Jersey. April 21 was the first day that the state of New Jersey cannabis companies could legally sell recreational marijuana. The company was able to start sales at the Bloomfield and Patterson New Jersey stores. Customers showed up at 6 am on the dot to be able to buy legal recreational marijuana for the first time in their state. With a steel drum player in the parking lot and free donuts, the mood was festive. Even the police seemed to enjoy the party atmosphere.


StaffMarch 15, 2022
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GREEN THUMB INDUSTRIES

 

DINA ROLLMAN – SVP GOVERNMENT & REGULATORY AFFAIRS, GREEN THUMB INDUSTRIES

 

What is your proudest accomplishment in the cannabis industry?

I started working with Green Thumb Industries when Illinois’ cannabis industry was just taking off, so I’m proud to have played a part in building out and launching this market while at the same time normalizing cannabis law as a profession. Working at Green Thumb has allowed me to use my legal experience in new ways by creating and running our social equity License Education Assistance Program (LEAP) and securing several competitive licenses. 

 

Do you feel that the cannabis industry has more opportunity for female-identifying people than other industries?

When I co-founded Illinois Women in Cannabis (IWC) in 2014 with Green Thumb’s board member Wendy Berger, our motto was that this is “an industry too new to have a glass (or grass) ceiling.” We were optimistic that by raising awareness of the professional opportunities in a nascent industry, we would see women leading from the start rather than having to play catch up. Unfortunately, statistics today show that women are a minority in ownership of licenses and the C-suite, so there is still much work to be done.

 

Do you feel you have to work twice as hard as male colleagues or do you think the industry has moved past that?

I do not think I have to work twice as hard as male colleagues. In general, I have had very professional and respectful conversations and relationships with the men in the industry. Additionally, we all understand the importance of making diversity, equity and inclusion a priority in cannabis. 

 

However, I hope that certain industry players will move past marketing campaigns centered around objectifying women.  While there is certainly an overlap between cannabis and sex that deserves more research and attention, it’s important to remember that women are fighting hard to be taken seriously in this industry as owners, operators, suppliers,  customers and more. We can do more than look sexy while consuming cannabis! 

 

What was your biggest challenge in business and how did you overcome it?

My biggest challenge has been the lack of predictability in this industry. It seems like every Monday morning I go into the week with a set agenda, and I have to recalibrate immediately because of another industry curveball. I now have a mindset of expecting the unexpected and I try to remember to stay loose and ride the wave as it comes.

 

What have you or your company done to help give more opportunities for women?

In 2014 I co-founded IWC with Green Thumb board member Wendy Berger. It is a nonprofit that provides networking and educational opportunities for women seeking to start or advance their role in the regulated cannabis industry.  We have grown our membership and have established IWC as the leading cannabis networking organization for cannabis in Illinois.

 

What are your personal goals for 2022?

Now that travel is opening up again, I’m itching to learn how to surf in Hawaii. In the meantime, I’ll be working on improving my joint rolling skills – I’ve been working in cannabis for almost eight years, after all!

 


Debra BorchardtMarch 1, 2022
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Green Thumb Industries Inc.  (CSE: GTII) (OTCQX: GTBIF) reported its financial results for the fourth quarter and full-year ended December 31, 2021. GTI delivered total revenue for the fourth quarter of 2021 was $243.6 million, up 37.4% from $177.2 million for the fourth quarter of 2020. Net income for the fourth quarter of 2021 was $22.8 million or $0.10 per basic and diluted share, compared to net income of $22.4 million, or $0.11 per share in the prior year. this also beat the Yahoo Finance average analyst estimates for earnings of $0.08.

For the full year 2021, total revenue was $893.6 million, up 60.5% from the prior year. GTI said that revenue growth was primarily driven by increased scale in its consumer packaged goods and retail businesses, especially in Illinois and Pennsylvania. Key year-over-year performance drivers were the expanded distribution of Green Thumb’s branded products, 10 new store openings, 12 acquired stores, and increased traffic in the Company’s 73 open and operating retail stores. Net income for the full year 2021 was $75.4 million or $0.34 per basic share and $0.33 per diluted share. Green Thumb’s family of consumer brands—RYTHM, Dogwalkers, Incredibles, Beboe, Doctor Solomon’s, and Good Green—were produced, distributed, and available in retail locations across the country.

“Green Thumb’s strong fourth-quarter results reflect our company’s continued deliberate execution. Our team delivered our sixth consecutive quarter of positive GAAP net income, eighth consecutive quarter of positive cash flow from operations and Adjusted Operating EBITDA of $76 million. On a full-year basis, revenue grew 61% to $894 million, GAAP net income more than quadrupled to $75 million and Adjusted EBITDA expanded 71% to $308 million,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “We continue to keep our heads down while focused on executing the business plan. I want to express our gratitude and appreciation to our team, customers, and communities who continue to support us and position us well for the future.”

GTI also noted that this was the eighth consecutive quarter of positive cash flow from operations and that the company had cash of $230.4 million at the end of the quarter. Green Thumb’s fourth quarter included revenue generated from 15 states: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Virginia.

“Everything we have accomplished in 2021 was specifically designed to build long-term value for all of our stakeholders. Cannabis is a complex business but you can rely on us to continue our Enter, Open, Scale strategy to drive value. As I’ve said before, we are still in the early innings of this great American cannabis growth story, and we feel it’s our responsibility to shape this industry, which is being born out of the failed War on Drugs. America is the land of opportunity and we believe the cannabis opportunity should be made available to all Americans, regardless of race, gender or religion. As more states legalize, we hope the industry can include new participants.”

For the full year, GTI reported that total selling, general and administrative expenses were $277.1 million or 31.0% of revenue, an increase from $198.1 million or 35.6% of revenue in the prior year. Decreased operating costs as a percentage of revenue were driven primarily by operating leverage.

 


StaffFebruary 14, 2022
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Green Thumb Industries

Jai Kensey – Director of Social Impact at Green Thumb Industries (OTC: GTBIF)

 

When did you formally enter the cannabis space?

I entered the legal cannabis space in 2021 as the Director of Social Impact at Green Thumb Industries, but I’ve been connected to the legacy market most of my life and even grew up in a cannabis-friendly household. Before joining Green Thumb, I managed community relations and corporate communications for non-profit and private companies in the U.S. and Australia. I currently serve as Green Thumb’s representative on the Board of the National Hispanic Cannabis Council, a non-profit focused on increasing Hispanic representation within the regulated cannabis industry.

 What made you decide to work in the cannabis industry?

Cannabis has always been part of my life, but it was Green Thumb’s “Growing for Good” program –which supports Black and Brown communities disproportionately impacted by the War on Drugs –that persuaded me to pivot to cannabis.

After the murder of George Floyd and the civil unrest that followed, I knew that I wanted to work in a space that was more aligned with my desire to support communities of color in a meaningful way. I was also ready to move into a space that not only provided new professional and personal growth opportunities but also valued what I brought to the table as a Black woman. So far, leading Green Thumb’s social impact initiatives has certainly surpassed my expectations.

I have the privilege of working with colleagues and advocates who are so passionate about supporting local communities as well as Black and Brown cannabis entrepreneurs who are trailblazers in this industry. More importantly, I am encouraged to be my authentic self at Green Thumb, which I believe is my superpower in this industry.

 Do you feel there is more opportunity for Black Americans in the cannabis industry versus a more traditional industry? Yes or no and why?

Yes, there are so many opportunities outside of cultivation and retail. The cannabis industry needs more ancillary businesses of color. There is an enormous demand for services like packaging and labeling materials, marketing, security, delivery, software development, construction and real estate throughout the supply chain – the opportunities in the ancillary space are abundant! And if you have an existing business, see if you can pivot your business model to include serving the cannabis industry.

There is so much media attention around state-issued licenses to grow and sell cannabis, but I don’t want my community to miss out on equally essential opportunities that are probably more accessible. Right now, many large multi-state operators are eager to work with BIPOC-owned ancillary businesses to diversify their vendors and suppliers. On the retail side, operators like Green Thumb are also designating more shelf space to Black and other diverse brands to bring these products to new audiences.

There are also countless opportunities for professionals like me who transferred their existing skills to the cannabis industry. Companies around the country are trying to build truly diverse and inclusive teams, and I encourage Black professionals from mainstream sectors interested in cannabis to attend as many educational and networking events as possible.

 What is the most successful social equity effort in your opinion? Can be a charity or company program.

I come from the non-profit world, so I like to highlight the work of Green Thumb’s non-profit partners who are in the trenches doing the hard work. I can’t focus on just one because this type of work, what I call “heart” work, is a community effort. When the community wins, we all win, and Green Thumb has the privilege of supporting these local and national organizations through donations, sponsorships and partnerships.

I will say, what’s personal for me is the work some of our non-profit partners lead in expunging criminal records associated with cannabis and other offenses.

I often tell people about my family’s story. My nephew, who is now 21, was charged with two cannabis-related felonies at 18. This was his first run-in with the law, and the injustice system tried to throw the book at him. Even worse, the white cannabis distributor involved in the case received immunity to testify against my nephew, who is now on probation for five years and unable to live a normal life. These punitive rulings have a tremendous negative impact on individuals and their families – mentally, emotionally and financially. People with cannabis offenses deserve to have their records expunged to access jobs, housing and voting privileges. I’m thankful my role as the Social Impact Director allows me to help organizations focused on expunging records nationwide.

 What is your personal goal for 2022?

This year, I will continue listening to the needs of the communities we serve, as well as our social equity partners, to develop more effective initiatives with Green Thumb’s Social Impact team. I want to help create a seat at our table for Black entrepreneurs, vendors, suppliers and cannabis advocates. I’m like my grandmother, “I don’t meet a stranger,” so I want our partners to feel that when working with Green Thumb and our Social Impact team. I want them to know that we are sincere in our efforts, and we are working hard to help create a more inclusive cannabis industry.


Debra BorchardtJanuary 3, 2022
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There was no rest for the M&A department at Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF) during the holidays. The company announced last week that it closed on an acquisition of Minnesota-based LeafLine Industries. As one of only two licensed cultivators in the Minnesota medical cannabis market, LeafLine is licensed to grow, process, and dispense cannabis directly to patients.

“We are excited to enter the Minnesota medical market and broaden access to cannabis products for Minnesota patients,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “We look forward to caring for LeafLine’s existing patients while ensuring a seamless transition. And looking ahead, we are ready to begin providing patients access to high-quality flower and edible products, both of which have been recently approved. As we kick off 2022, Green Thumb is thrilled to welcome over 100 new team members, a new state and five new retail locations.”

While Minnesota began medical cannabis sales in 2015, the state has been slow to expand its program with only about 29,000 registered active patients according to the Minnesota Department of Health. The state has reported that over 56,000 patients have been approved to date, but many don’t seem to be active in the program. The state currently has 17 qualifying conditions, including chronic pain, multiple sclerosis, post-traumatic stress disorder and seizures. There are only 1,291 approved caregivers. Products available include vape, tinctures and topicals, with flower and edibles coming later in 2022.

According to the Minnesota Legislative Reference Library, “Minnesota has not legalized recreational marijuana, despite legislative proposals to do so. Several bills were introduced in the 2019-2020 session that would legalize or otherwise modify laws around cannabis possession and use in Minnesota, including a proposal to establish a cannabis task force to more closely investigate issues surrounding legalization (see HF717). While the issue generated much discussion, none of the bills to legalize recreational marijuana passed in the 2019-2020 session. Discussion continued in the 2021-2022 session, as bills were again introduced to legalize recreational marijuana (e.g. HF600).”

GTI said in a statement that the acquisition of LeafLine includes a cultivation facility and five open and operating retail locations in Eagan, Hibbing, St. Cloud, St. Paul and Willmar. Green Thumb said it will also maintain the opportunity to open up to three additional retail locations in the state.


Debra BorchardtNovember 29, 2021
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A new report from Headset has found that Americans aren’t as into pre-rolls as Canadian consumers. Between August 2020 and August 2021, the market share of pre-rolls in Canada averaged 18.6%, while in the US, the market share of pre-rolls only averaged 9.5%. The only exception it seems is the Massachusetts market. Apparently, they really like pre-rolls in that state. 

Cooper Ashley Senior Data Analyst at Headset said he could think of two reasons that could partly explain why the pre-roll market share is higher in Canada than in the US.
  • Firstly, PreRolls were one of the few product formats that have been available since the beginning of Canada’s cannabis market. A regulation change, dubbed ‘Cannabis 2.0’, allowed previously-prohibited product formats (such as vapor pens, edibles, and concentrates) to be sold in Canadian cannabis retailers at the beginning of 2020 – more than a year after the market originally launched. Most product categories that were introduced in ‘Cannabis 2.0’ still have significantly lower market shares in Canada than in the US. For example, over the previous 90 days, edibles made up about 11% of sales in the US, but only 5% of sales in Canada.
  • Secondly, Canadian Pre-Roll products tend to be larger. By that, I mean that there tends to be more total cannabis in a single Canadian pre-roll product than in a US pre-roll product. For example, over the previous 90 days the highest volume package size of pre-roll in the US was 1g, but 1.5g in Canada. A tendency towards larger package sizes unsurprisingly pushes up the average price of these products as well. Eg. Over the previous 90 days the average price of a pre-roll product was about $11 in the US and about $18 in Canada. That difference in size and price could cause consumers to think of a pre-roll more as a primary purchase, rather than a low-cost add-on item.

When Americans want to buy pre-rolls, they typically choose the connoisseur/infused segment, which makes up 32.4% of sales. Canadians aren’t as picky and this same segment makes up only 0.1% of sales. Pricing is a possible reason for the large difference in Connoisseur/Infused market share between the two countries. In Canada, they are priced 57% higher than the average item price of the other segments, while in the US they are priced only 18% higher than the other segments.

However, pricing might not be the only reason that Americans are choosing the infused joints.  Andrew DeAngelo, Cannabis Industry Consultant, and Strategic Advisor said, “The quality of legal cannabis in the U.S is better in full flower form not in pre-roll form motivating consumers to roll their own rather than getting a subpar pre-roll.”

Scott Grossman, Vice President of Corporate Development at Turning Point Brands (NASDAQ: TPB) (maker of ZigZag rolling papers) agrees with DeAngelo on the perceived quality of cannabis in pre-rolls. He said, “In the U.S., the old pre-rolls were historically viewed as a lower quality flower which may have capped sales—in addition, these items are typically additions to the basket versus the main intent of purchase.” Grossman thinks that Americans prefer to roll their own so that they can control the quality of the product. Despite that, he thinks the perception is slowly changing. 

Innovation

“Companies like Old Pal, Space Coyote, etc. have innovated to create shareable pre-roll packs which make a lot of sense, especially during the pandemic—no one wants to pass around a single joint,” said Grossman.”Nearly 30% of the U.S. pre-roll market is driven by infused pre-rolls—ie. flower either dipped in Kief, but more recently, pre-rolls with hash concentrates within (a better form factor).” 

More companies are producing mini-pre-roll packages so that people can have the social aspect of smoking joints together but without the passing around of a joint. The smaller size also means fewer unsmoked joints that the consumer now has to store without it falling apart or making a mess. For example, Green Thumb Industries (OTC: GTBIF) sells a package of five mini-pre-rolls called Dogwalkers. The idea is that the little joint is small enough to be enjoyed walking one’s dog. 

Cones could be another reason why Americans are rolling their own versus buying pre-rolls. The innovation of selling a cone-shaped empty joint with a small plunger to tamp down dry herb can turn those without joint-rolling skills into a master. Grossman said, “Without question for the consumer. Not only does it make it easier to roll, but new innovation at the cultivation/manufacturing facilities allows the production of pre-rolls at scale (which, to be clear, is still much more labor-intensive than tubes). In addition, a conical joint versus a straight tube/joint actually makes the burn better due to the “Venturi Effect” — because there’s more material on top, it produces a more consistent flavor because you’re burning more in the beginning (and less in the end). This creates less resin and because of increased pressure, it tends to burn smoother. Punchline—a more concentrated hit. Cones also tend to produce less waste (because there is less material near the tip).”

Joint burning performance is also a key issue for these consumers. DeAngelo said that rolling joints at home avoids the joint running problem (burning unevenly) associated with almost all store-bought joints in the US. “A joint that is stuffed by a machine runs like crazy compared to a joint rolled by hand. The way the fibers intertwine works better with a hand roll so the joint burns evenly. Americans are more sensitive to this perhaps. I know I am.” 

More Pre-Roll Differences

Headset also determined in its report that market shares of the Indica and Sativa Single Strain segments in Canada were more than double the size of their market share in the U.S. where Hybrid – Single Strain has more category share than Indica and Sativa combined. “We also find that the Cannagars/Blunts segment owned 4.2% of the Pre-Roll market in the US, while it only held 0.1% within Canada. 

While Americans haven’t been big buyers of pre-rolls to date, that could be changing. It seems companies have learned that tossing the crummy trim into a pre-roll isn’t going to sell. Social media accounts have shown various people buying these pre-rolls and then unwrapping them on camera to expose the insides. That exposure may have turned the tide on poor-quality pre-rolls. As consumers spread the word of an improved product, sales are likely to grow and could make this an improving category.

 


Video StaffSeptember 14, 2021

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Green Thumb Industries (OTC: GTBIF) is breaking ground on a cultivation center in Warwick NY, a town 54 miles north of New York City. The location is unique because the site used to be a prison that at one time held people incarcerated for cannabis. GTI’s CEO Ben Kovler told the Green Market Report that he appreciates the history of the site and notes the location is key for distribution to New York consumers. He is also pleased that the town has shown its appreciation for GTI’s investment into the facility and the jobs that it will bring.

Here are some fast facts:

The former Warwick medium-security prison, which housed about 1,000 inmates, many for drug offenses, closed just a decade ago.

  • There’s a great full-circle story here – building the modern cannabis campus on the site of a prison that was previously used to incarcerate cannabis users.
  • The $150 million investment made by Green Thumb to refurbish and remodel the site will create hundreds of construction jobs and permanent employment in the region.
  • Senator John Martucci and Assemblymember Karl Brabenec were in attendance at the groundbreaking ceremony
  • The area has a rich history. Before being a prison, the site was also home to the Warwick State Training School for Boys, which was founded in the 1920s. Eleanor Roosevelt and then-Senator Franklin Roosevelt were supporters of the school.

StaffSeptember 1, 2021
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Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF) has bought Massachusetts-based GreenStar Herbals, Inc. The value of the transaction was not disclosed. The single state operator owns and operates two adult-use retail locations in Massachusetts. The acquisition also includes a third retail location, set to open in 2021 near Logan International Airport and the Encore Casino.

“Expanding our retail footprint throughout Massachusetts continues our Enter, Open, Scale strategy,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “With this acquisition, we have the maximum number of retail locations in the state, which directly supports the increased production capacity from our acquisition of Liberty Compassion in June. We are excited to work together with the GreenStar team to serve the massive demand for cannabis throughout the Commonwealth.”

In a statement, GTI noted that with the acquisition of GreenStar Herbals Inc., it now has two operational adult-use retail stores in Dracut and Maynard, with a third to open in Chelsea this year, and three medical-use retail stores in Amherst, Boston, and West Springfield. Green Thumb’s existing Rise Amherst store reverted to a medical cannabis store in August.

GreenStar Herbals Chief Executive Officer Thomas Morey added, “We are thrilled to partner with Green Thumb and to continue providing Massachusetts consumers with the highest quality and most diversified cannabis product offerings, along with a premiere in-store retail experience. Green Thumb’s expertise in the industry, along with the company’s values, vision, and emphasis on community impact made this the right partner for our team.”

It may have been slow to be established. but the Massachusetts recreational cannabis market has sold more than $1.5 billion in cannabis products since launching adult-use sales in 2018, according to the state’s Cannabis Control Commission, with daily sales averaging over $3 million so far in 2021. Adult-use cannabis sales in the state have reached nearly $755 million so far in 2021 and are projected to reach $1.2 billion by the end of the year.

Green Thumb’s branded products, including Rythm premium flower and vapes; Dogwalkers brand pre-roll joints; and Incredibles gummies, chocolates, and tarts, are produced in the Commonwealth and available at licensed cannabis dispensaries across Massachusetts. The company began serving medical patients in Massachusetts in 2018 and has two operational cultivation and production facilities in Holyoke and Clinton to serve the growing consumer demand for cannabis.

 


Debra BorchardtAugust 11, 2021
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Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) reported its financial results for the second quarter ending June 30, 2021, with total revenue jumping by 85% to $221.9 million. Green Thumb’s revenue rose 14.1% sequentially and beat the average analyst estimate per Yahoo Finance of $205 million. Net income for the second quarter was $22.1 million or $0.10 per basic and diluted share, compared to a net loss of $12.9 million, or a loss of $0.06 per basic and diluted share in the prior year. This beat the average analyst estimate per Yahoo Finance which was $0.07.

GTI said that the revenue growth was primarily driven by increased scale in the Consumer Packaged Goods and Retail businesses, especially in Illinois and Pennsylvania. Overall performance was driven by the expanded distribution of Green Thumb’s branded products, 10 additional stores, and increased traffic in the Company’s 58 open and operating retail stores. In the second quarter of 2021, Green Thumb generated revenue from all 12 of its markets: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio and Pennsylvania. The Company continued to invest in expanding its cultivation and manufacturing capabilities.

“The second quarter continued to be about disciplined execution and the team should be proud of the results. On a year-over-year basis, we grew revenue by 85% to $222 million; more than doubled Adjusted EBITDA to $79 million and continued to deliver positive cash flow. Since the first quarter, we closed three acquisitions, expanding our manufacturing capabilities in Massachusetts and geographic footprint into two new states, Virginia and Rhode Island. These critical steps strengthened our position to distribute our brands to more patients and consumers in existing and new markets,” said Green Thumb Chairman, Founder and Chief Executive Officer Ben Kovler.

In the second quarter 2021, EBITDA was $65.9 million or 29.7% of revenue versus $28.3 million or 23.6% of revenue in the prior year period. Adjusted Operating EBITDA, which excluded non-cash stock-based compensation of $5.7 million and other non-operating expenses of $7.7 million, was $79.3 million or 35.7% of revenue as compared to $35.4 million or 29.6% of revenue for the second quarter 2020. The improvement in EBITDA and Adjusted Operating EBITDA over the prior year period largely reflected revenue growth and increased scale-driven operating leverage from both the Consumer Packaged Goods and Retail businesses. For additional information on these non-GAAP financial measures, see below under “Non-GAAP Financial Information.”

“Finding new and meaningful ways to support the communities we serve is a mission we all share at Green Thumb. We are especially proud of our recently announced Good Green grant program for heroes helping to fight problems created by the failed War on Drugs. Ahead of launching the Good Green brand of products later this year, we are allocating at least $1,300,000 in social equity grants to qualified 501(c)(3) organizations over the next 18 months to jump start this important initiative,” said Kovler.

Expenses increased as total selling, general and administrative expenses for the second quarter were $72.1 million or 32.5% of revenue versus $49.6 million or 41.5% of revenue for the second quarter 2020. Improved operating costs as a percentage of revenue reflected increased operating leverage in the company’s Consumer Packaged Goods and Retail businesses.

“The great American growth story in cannabis is happening–the momentum is undeniable. Consumers demand safe, reliable alternatives for well-being and we are excited to meet their needs with high-quality cannabis experiences. There is still incredible untapped potential in all of our operating regions, and we will continue our strategy to invest in high-return initiatives that prepare us for the growth ahead and future value creation for our stakeholders,” concluded Kovler.


StaffMay 12, 2021
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Green Thumb Industries Inc.  (OTCQX: GTBIF) continues to show its strength as an industry leader after reporting solid financial results for the first quarter ended March 31, 2021. GTI delivered total revenue of $194.4 million, up 9.7% sequentially and up 89.5% from $102.6 million in the prior-year period. this beat the Yahoo Finance average analyst estimate for revenue of $187 million.

The company also delivered a net income of $10.4 million or $0.05 per basic and diluted share, compared to a net loss of $4.2 million, or a loss of $0.02 per basic and diluted share in the prior year. This was lower than the Yahoo Finance analyst estimates for $0.08 per share.

GTI said that revenue growth was primarily driven by increased scale in the Consumer Packaged Goods and Retail businesses, especially in Illinois and Pennsylvania. Overall performance was driven by the expanded distribution of Green Thumb’s branded products, 13 new store openings, and increased traffic in the company’s 56 open and operating retail stores. In the first quarter of 2021, Green Thumb generated revenue from all 12 of its markets: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio and Pennsylvania. The company continued to invest in the expansion of its cultivation and manufacturing capabilities in Illinois, Maryland, Massachusetts, New Jersey, Ohio and Pennsylvania.

“2021 is off to a strong start. In the first quarter, we delivered year-over-year revenue growth of 90%, reported adjusted operating EBITDA growth of 179%, and recorded our third sequential quarter of positive net income. Our business continues to scale as the demand for cannabis swells across the country, and our team continues to rise to the occasion for our patients and customers,” said Green Thumb Chairman, Founder and Chief Executive Officer Ben Kovler.

Total selling, general and administrative expenses for the first quarter were $59.3 million or 30.5% of revenue, compared to $45.4 million or 44.3% of revenue for the first quarter 2020. Improved operating costs as a percentage of revenue reflected increased operating leverage in the Company’s Consumer Packaged Goods and Retail businesses.

“We are excited to expand our east coast footprint by signing an agreement to enter the Virginia cannabis market. This follows the recent sweep of adult use legalization measures across Virginia, New York and New Jersey where we see material untapped market potential. Our recent debt financing at industry leading rates positions us to capitalize on the opportunities ahead. A strong balance sheet, supported by a low cost of capital, is key to staying ahead in this fast-paced new industry. As the green wave continues to gain momentum, it is more important than ever to maintain our focus on strong execution and high-value capital allocation.  This is the best way for us to build long-term sustainable value for all of our stakeholders,” said

Solid Balance Sheet

The company closed the quarter with cash and cash equivalents of $275 million. Following the end of the quarter, the company closed a $216.7 million senior secured non-brokered private placement financing through the issuance of senior secured notes. GTI said it intends to use the proceeds to retire its existing $105.5 million senior secured debt and for general working capital and various growth initiatives.

 


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