Green Thumb Industries Fourth Quarter And Full Year Financial Results Discussed By TDR Panel

In this new Trade To Black Podcast, TDR Founder Shadd Dales and lead financial writer Benjamin A. Smith join ranks with millennial entrepreneur and OnlyGems Founder Anthony Varrell. With Green Thumb Industries Inc. GTBIF recently announcing fourth quarter and full year financial results, there was plenty to discuss.

The panel also commented on this week’s earnings report pertain to Innovative Industrial Properties IIPR a publicly traded cannabis REIT trading on the NYSE, and Cronos Group (NASDAQ: CRON), a Canadian licensed producer that currently owned the number one selling edibles brand in Canada.

Regarding Green thumb Industries earnings, the panel was largely affirmative on the report. While there was some erosion in revenue, adjusted EBITDA and gross margin on a sequential basis, the company registered a big jump in operational cash flow and balance sheet cash in Q4.

Consequently, cash on the balance sheet grew to $177,8 million in Q4 from $147.3 million the quarter prior, in what could be a sign that a reduction in operation expenses (OpEx) relative to OCF is helping the company boost its cash position.

Furthermore, as noted by Anthony Varrell, GTI kept operation costs under control, as evidenced by this G&A (general and administrative) observation: I noticed that the G&A (general and administrative) expenses on a percentage basis were actually lower. And in an inflationary environment, that’s a testament to the management team.”

Digging into some of the key sequential details discussed on the program:

• Green Thumb Industries’ revenue fell to $259.3 million dropped versus the $261.2 million generated in The 0.7% sequential drop was slightly ahead of consensus analyst estimate of 256.3 million

• Adjusted EBITDA fell to $81.2 million from $84.5 million, although the number was still ahead of analysts average expectation of $80.5 million

• As mentioned, gross margins dipped to 47.8% sequentially from 50.2% in Q3, which was the weakest gross margin readout over several quarters and below its long term historical goal of 50%.