Green Thumb Industries Inc. (CSE: GTII|OTCQX: GTBIF) reported its financial results today for the third quarter (Q3) ended September 30, 2022. Financial results are reported in U.S. dollars and are in comparison to those reported in Q2 (see details here).

Q3 Financial Highlights

• Revenue: increased 2.7% to $261.2M
  • Revenue growth was primarily driven by increased retail sales in New Jersey, reflecting the legalization of adult-use cannabis, increased retail sales in Illinois, additional retail locations, and increased traffic in the Company’s 77 open and operating retail stores across 15 markets
• Gross Profit: increased 4.3% to $131.2M
  • The increase in gross profit performance was as per the above
• SG&A Exp.: increased 29.8% to $82.5M
  •  The increase was attributable to retail salaries and benefits, intangible amortization expense and other operational and facility expenses primarily due to an increase in the Company’s store base
• Income from Operations: decreased 21.7% to $48.8M
  • Reduction in net income of $10.4 million was primarily due to favorable fair value adjustments to the Company’s warrant liability
• Net Income/Share: decreased to $0.04 from $0.11
• Adj. EBITDA: increased 7.3% to $84.5M
  • as a % of net revenue: increased to 32.3% from 30.8%
  • Adjusted Operating EBITDA defined as earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash stock-based compensation, one-time transaction related expenses, or other non-operating costs
• Cash on Hand: $147.3M
• Total Debt Outstanding: $255.5M

Q3 Operational Highlights

• Consumer Packaged Goods gross revenue increased 5.9% sequentially.
• Overall retail revenue increased 3.6% quarter-over-quarter.
  • Comparable sales (stores open at least 12 months) declined 1.6% on a base of 59 stores as continued traffic and volume growth were more than offset by price compression.
• Operates 17 manufacturing facilities.

Management Commentary

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

• “We are proud to report record revenue and Adjusted Operating EBITDA for the quarter against a backdrop of higher inflation and greater economic uncertainty...with positive GAAP net income for the ninth consecutive quarter...
• As we near the end of 2022, we are optimistic about the future of the U.S. cannabis market and proud of Green Thumb’s leadership position in the industry...Looking ahead, our focus remains on execution, maintaining a strong balance sheet and making strategic investments in markets that will generate strong returns for our stakeholders over time.” 

Stock Performance

Green Thumb's stock price increased 12.2% during Q3 and had increased 27.4% as of the close of business today. In spite of those impressive returns the stock is DOWN 48.3% YTD.

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