Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF), a constituent in the munKNEE Pure-Play Cannabis Stock Index reported its financial results for the second quarter (Q2) ended June 30, 2022, this week.

Q2 Financial Highlights

In their press release regarding Q2 Green Thumb management compared the results with those of the same quarter a year ago instead of comparing the results with those of the previous quarter. The true nature of Canopy's performance is presented below to provide investors and potential investors with an accurate understanding of the recent progression of the health of its business. (All figures are in US dollars and compared to the previous quarter)

• Revenue: +4.8% to $254.3M
• Gross Profit: +2.4% to $125.8M
• Net Income: -15.6% to $24.4M
• Adj. Operating EBITDA: +17.4% to $78.7M
• SG&A: -7.2% to $63.5%

Q2 Operational Highlights

• Retail revenue increased 11.7% quarter-over-quarter and sequential quarter-over-quarter comparable sales of 77 retail stores, in 14 states, were up 9.9%.
• Opened one new retail store in Minnesota.
• Distribution of the Company’s newest brand, Good Green, has expanded to seven total markets with additional markets coming later this year.
• Current assets were $311.5 million, including cash and cash equivalents of $145.3 million.
• Total debt outstanding was $253.4 million.
• Entered into the third amendment to its existing lease agreement with Innovative Industrial Properties, Inc., to provide an additional tenant improvement allowance of $55 million to be used on enhancements to one of its cultivation and production facilities.

Management Commentary

Green Thumb Founder, Chairman, and Chief Executive Officer Ben Kovler, said:

• “We are pleased with our second quarter results...Despite the macro and consumer headwinds, our team continued to execute and build momentum...
• We continue to maintain a strong balance sheet, which gives us ample flexibility to support our growth initiatives...”

Stock Performance

Green Thumb's stock price is beginning to advance. It is up declined 22.5% since the end of June but remains DOWN 55.5% YTD and DOWN 74.3% from its 2021 high.

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