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Green Thumb Industries Inc. (CSE: GTII|OTCQX: GTBIF) reported its financial results today for the third quarter (Q3) that ended September 30th, 2024. Financial results are reported in U.S. dollars and are in comparison to those reported in Q2.
 

Q3 Financial Highlights

• Revenue: UP 2.4% to $286.9M
• Gross Profit: DOWN 1.9% to $147.6M
  • as a % of revenue: DOWN  to 51.4% from 53.7%
  • (Gross Profit Margin is the profit remaining after subtracting the cost of goods sold from revenue. A high gross profit margin indicates that a company is successfully producing profit over and above its costs.)
• SG&A Exp.:  UP 8.8% to $105.0M
  • as a % of revenue: Increased to 36.6% from 34.5%
  • (SG&A expenses are the costs a company incurs to run its business, which include salaries, marketing, rent, utilities, and office supplies and the SG&A margin is the percentage of revenue consumed by these expenses and shows how much revenue is being absorbed by overhead costs. In this instance a lower margin reflects how efficiently a company manages its operating expenses.)
• Net Income (Loss): DOWN 58.5% to $8.6M
  • Net Income/Share: DOWN to $0.04 from $0.09
  • (Net profit margin, or simply net margin, measures how much net income or profit a company generates as a percentage of its revenue. The net profit margin illustrates how much of each dollar in revenue collected by a company translates into profit. A higher margin reflects the cash profit generated by the company's operations.)
• Adj. EBITDA: DOWN 4.9% to $89.2M
  • as a % of revenue: DOWN  to 31.1% from 33.5%
  • (Adjusted EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, represents the cash profit generated by the company's operations excluding non-recurring, irregular, and one-time items such as unrealized gains or losses; non-cash expenses such as depreciation and amortization; litigation expenses; gains or losses on foreign exchange; goodwill impairments; non-operating income; and share-based compensation that may distort the EBITDA. Remember, a higher margin reflects the cash profit generated by the company's operations.)
• Cash on Hand: DOWN 11.4% to $173.6M
   

Q3 Operational Highlights

• Opened 3 dispensaries in Florida (now totally 21) and 1 in New York for a total of 99 nationwide.
• Entered into a $150 million 5-year credit facility at an industry-leading interest rate of SOFR +5.00%.
• Retired $225 million senior secured debt, due April 30, 2025.
• Authorized $50 million for the repurchase of Subordinate Voting Shares from September 23, 2024 to September 22, 2025.
   

Stock Performance 

Green Thumb's stock price went DOWN 11.4% in Q3 (i.e. during July, August, September), DOWN 3.6% in October, UP 6.2% by the close of trading on November 5th only to collapse 17% on November 6th as a result of the defeat of Amendment 3 proposed legislation in Florida only to bounce back by 4.1% at the close today. The stock's reaction to the Q3 financials will not be observed until after tomorrow morning's opening.

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