CHICAGO and VANCOUVER, British Columbia, Aug. 28, 2019 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (“GTI” or the “Company”) (CSE:GTII) (GTBIF), a leading national cannabis consumer packaged goods company and owner of Rise™ and Essence retail stores, today reported its financial results for the second quarter ended June 30, 2019. All currency is in U.S. dollars, unless noted otherwise.
Second quarter 2019 revenue increased 228% year-over-year to $44.7 million. Quarter-over-quarter revenue increased 60%, a record sequential growth for GTI. Revenue growth was driven by organic growth across the Company’s consumer products and retail businesses, strategic acquisitions and increased store traffic.
Gross margins before biological adjustments for the second quarter 2019 improved to 52% from 46% in the prior year and from 47% in the prior quarter due to increased operating efficiencies as the business continues to scale.
Net loss for the second quarter 2019 was $22.2 million, as compared to net loss of $9.7 million in the first quarter 2019, primarily due to a decrease in value from a variable note receivable in other income (expense) and debt-related interest expenses.
EBITDA1 and Adjusted Operating EBITDA1 for the quarter, as described in the accompanying financial table, was a loss of $9.4 million and a gain of $5.0 million, respectively.
Current assets totaled $189.2 million and included cash and cash equivalents of $135.8 million. Total debt outstanding was $96.3 million.
On May 23rd, closed $105.5 million senior secured non-brokered private placement of notes. GTI intends to use the proceeds for general working capital purposes, strategic growth initiatives and to retire the Company’s existing debt.
“We are pleased to report another solid quarter of positive yet disciplined momentum with record revenue and positive adjusted operating EBITDA as our strategic plan delivers on operating efficiencies from scale. Continued execution of key priorities such as the closing of Integral Associates, accelerated store openings, and expanded distribution of our brand portfolio sets us up well for the future,” said GTI Founder and Chief Executive Officer Ben Kovler.
“We are deep in the chapter of maximizing the levers in our business to drive long-term operational performance that delivers value for our shareholders and the communities in which we operate,” Kovler continued. “We are focused on optimizing our wholesale and retail businesses, integrating our acquisitions, and further strengthening compliance across the organization. We are pleased to see many of these efforts already bearing fruit as we head into the second half of 2019 and I want to thank our team for all of their hard work.”