Green Thumb Industries crushes fourth-quarter, full-year earnings

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) reported its revenue rose to $278 million in the fourth quarter that ended Dec. 31, 2023. That 7% increase was primarily attributed to higher sales in Maryland, reflecting the legalization of adult-use cannabis on July 1. The fourth quarter also beat aver Yahoo Finance average analyst estimate for revenues of $269 million.

Fourth quarter 2023 comparable sales (stores open at least 12 months) increased 1.3% versus the prior year on a base of 76 stores.

In addition to the strong sales, net income for the fourth quarter of 2023 was $3.2 million, or $0.01 per basic and diluted share, compared to a net loss of $51.2 million, or a loss of $0.22 per basic and diluted share, in the prior-year period.

GTI reported GAAP net income for the fourth quarter of $3 million, or $0.01 per basic and diluted share. The company said it had $162 million in cash at the end of the quarter.

Full-year results

Full-year results for the Chicago-based multistate operator were as good as the fourth quarter. Revenue of $1.1 billion increased 4% over the prior year, while cash flow from operations of $225 million increased 42% year-over-year.

The company delivered a net income of $36.3 million for the period, or $0.15 per basic and diluted share, versus a net income of $12.0 million, or $0.05 per basic and diluted share, in 2022. GAAP net income was $36 million, or $0.15 per basic and diluted share.

“We delivered a strong fourth quarter, including record revenue of $278 million, record adjusted EBITDA of $91 million, and full-year 2023 cash flow from operations of $225 million – all the while investing over $200 million in capex to fuel future growth,” CEO Ben Kovler said. “We ended the year with a strong balance sheet including $162 million in cash, net of $65 million returned to shareholders via share buybacks and debt repurchases.”

Balance sheet news

During the fourth quarter, the company said it had repurchased $25 million of senior debt at 95% of its original value. As a result, the remaining principal balance was $225 million as of Dec. 31, 2023.

GTI said it purchased $40 million of the company’s shares during the year. Then, on Feb. 28, GTI’s board of directors authorized an increase in its share repurchase program by $50 million, bringing the total remaining repurchase ability to approximately $60 million.

Total selling, general, and administrative expenses for the fourth quarter were $92.3 million versus $80 million for the fourth quarter of 2022. Total selling, general, and administrative expenses for the full year 2023 were $341.9 million, an increase from $294.4 million in the prior year, primarily driven by non-cash credits associated with acquisition-related obligations recorded in 2022.

“We opened 15 new stores bringing our total to 91 dispensaries across fourteen states,” President Anthony Georgiadis said. “We also built and expanded our cultivation and production facilities to meet increased demand for both medical and adult-use cannabis in several of our markets as well as developed new product types, such as Dogwalkers Show Dogs infused pre-rolls, that both engaged our customers and won market share.”

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