Green Thumb Industries Inc - GTBIF stock
Company Profile[edit]
Green Thumb Industries Inc. (OTC: GTBIF, CSX: GTII) is a Chicago-based cannabis consumer packaged goods operator in the United States. The company engages in the manufacture and distribution of an array of cannabis products for both the medical and adult-use markets. It oversees its operations via the Consumer Packaged Goods and Retail segments. The firm produces and sells cannabis flower and processed and packaged goods which include concentrates, pre-rolls, edibles, vapes, topicals, and other hemp-related products across the cannabis market. It distributes its product pipeline under a portfolio of brands including the Beboe, Good Green, incredibles, Dogwalkers, Doctor Solomon’s, and RHYTHM. Green Thumb basically supplies its pipeline to authorized third-party retail stores. The firm also directly sells its finished products to consumers through its outlets distributed in the United States. It owns and operates RISE, a quickly growing national chain. The company’s operations are cut across fifteen markets, including California, Florida, Illinois, Massachusetts, Minnesota, Nevada, New York, Ohio, Pennsylvania, and Virginia. Green Thumb was incorporated in 2014 and has its headquarters in Chicago, Illinois. Its common shares are publicly traded on OTCQX under the GTBIF symbol.[1]
Overview of Business Operations[edit]
The company is dedicated to providing the safest finished cannabis products for existing and potential customers who enjoy cannabis for comfort, happiness, health, or any other reasons. It promotes the well-being of society via the hidden power of cannabis while ensuring commitment and sustainability and profitable growth to shareholders. The company avails its finished products with unique preferences and lifestyles under the brands listed above. As of Sept. 30, 2022, Green Thumb had approximately 3,800 employees and served hundreds of thousands of customers across the United States. The company on March 1, 2022, closed the acquisition of the remaining 50% interest of ILDISP, LLC from its former partner in the quest to expand its operational volume in the Illinois market. Green Thumb had initially consolidated RISE Effingham, one of ILDISP’s two retail stores for the interest of the venture. The remaining store was accounted for as equity investment as a result of the company’s 50% ownership and ability to facilitate the store’s operations. The equity investment method associated with the second store was estimated at a fair value of $14,500 thousand as of the day of the agreement.[2]
As of August 2, 2023, the company had 84 locations after the opening of it's dispensary in Las Vegas. [3] Besides its cannabis business operations, the company has numerous equity interests in firms dealing in cannabis-related businesses. It has also invested in convertible notes as a means of generating extra revenue to fuel its expansion vision and increase shareholders’ cake. The company’s interests and convertible notes had a total fair value of f $79,981 thousand and $94,902 thousand as of Sept. 30, 2022, and Dec. 31, 2021, respectively. As of Sept. 30, 2022, Green Thumb held Level 1 equity investments worth $4,022 thousand in publicly traded entities.[4]
Corporate and Industry Updates[edit]
The company announced its Q3, 2022, financial and operational results for the period that ended Sept. 30, 2022, on Nov. 02, 2022. Highlights of the third quarter and the nine months’ results included:
- Revenue witnessed a sequential increase of 3% and a 12% year-over-year to $261 million
- Revenue increased by 17% to $758 million In the first nine months of 2022 compared to the same timeline in 2021
- The firm recorded $10 million or $0.04 per basic and diluted share, a ninth consecutive quarter of increasing GAAP net income
- It grew its EBITDA by 7%, to $84 million, accounting for 32% of the firm’s revenue
- Its cash flow from operations amounted to $48 million
While commenting on the company’s performance, Ben Kovler, Founder, Chairman, and CEO expressed his delight at the company’s positive results and continued progress on the backbone of an economic backdrop with higher inflation and strenuous economic uncertainty. He also expressed extreme optimism in the U.S. cannabis industry going into the new year 2023. Mr. Kolver was also keen to mention the team’s focus on execution, maintaining a robust balance sheet, and exploring investment opportunities that would see the company generate higher long-term returns for its shareholders.[5]
The sale and distribution of adult-use cannabis commodities in Illinois increased tremendously by 13% in 2022 compared to 2021 to a new record high of $1.56 billion. Data retrieved from Illinois’ Department of Financial and Professional Regulation show that approximately $ 1.1 billion of the sales were realized from the state’s residents while the remaining bit was generated from non-residents. Illinois harbors multi-state cannabis operators including Cresco Labs, Verano Holdings, Curaleaf, and Green Thumb, among others.[6]
Leadership Team[edit]
Executive Team[edit]
Ben Kovler, CEO, Founder, and Chairman
- Has exclusive experience gained from managing complex operating firms and his outstanding commitment.
- He founded the company in 2014 and has successfully developed it into a national-level cannabis product distributor
- Ben is also a co-founder and the CEO of Invest For Kids, IFK, a forum that attracts portfolio managers, and family offices to exchange investment ideas. IFK has donated approximately $20 million to more than 70 high-performing institutions
- Has a BA in Philosophy, Politics, and Economics from Pomona College and an MBA in Accounting and Finance earned from the University of Chicago
Matt Faulkner, CFO
- Joined the company in 2018
- He played a key role in propelling the company’s IPO in the USA and was vital in the transition from reporting standards in Canada to reporting with the U.S. security exchange
- Before joining Green Thumb, he served a wide range of finance roles at Walgreens including financial planning and analysis, general accounting, mergers and acquisitions, technical accounting, and designing, reporting, and implementing financial systems.
- Holds a Bachelor’s degree in Accounting and an MBA from Northern Illinois University. He is also a CPA.
Other members of the executive team include Anthony Georgiadis, President, Rachel Albert, Chief Administrative Officer, Ryan Marek, Marketing, Kate Lloyd, Securities & Governance, among others.[7]
Code of Business Conduct[edit]
The company’s code of business conduct is founded on several core corporate values.
People First. The firm believes in treating people right with honesty, openness, and transparency, ranging from customers to its shareholders.
Integrity. The company prioritizes doing right by each other from staff members to its clients even when nobody is watching to build a healthy working environment and relationships.
High Quality. The firm challenges itself to continuously improve its services by taking ownership and accountability for the team’s efforts.[8]
- ↑ Company Profile – seekingalpha.com/symbol/GTBIF. Accessed on 01/22/2023.
- ↑ Green Thumb Industries Inc. QUARTERLY REPORT under SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934, pages 10 and 13. Retrieved on 01/22/2023.
- ↑ GlobeNewsire. Green Thumb to Open RISE Dispensary Las Vegas on Craig, its 84th Retail Location in the Nation, on August 2nd. August 1, 2023.
- ↑ Green Thumb Industries Inc. QUARTERLY REPORT under SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934, pages 15. Retrieved on 01/22/2023.
- ↑ Green Thumb Industries Reports Third Quarter 2022 Results – Yahoo Finance. Accessed on 01/23/2023.
- ↑ Illinois adult cannabis sales rise 13% in 2022, surpassing $1.5B – Seeking Alpha News. Retrieved on 01/23/2023.
- ↑ Leadership Team- Green Thumb Industries website. Retrieved on 01/23/2022.
- ↑ Green Thumb Industries Code of Business Conduct – GTI website. Accessed on 01/23/2022.
OTC Symbol: GTBIF | OTC Tier: OTCQX International
