Mr. Ben Kovler reports

GREEN THUMB INDUSTRIES REPORTS SECOND QUARTER 2023 RESULTS

Green Thumb Industries Inc. has released its financial results for the second quarter ended June 30, 2023. Financial results are reported in accordance with U.S. generally accepted accounting principles ("GAAP") and all currency is in U.S. dollars.

Highlights for the second quarter and six months ended June 30, 2023:

• Second quarter revenue of $252-million increased 2 per cent sequentially; first half 2023 revenue increased 1 per cent to $501-million year-over-year.
• GAAP net income of $13-million or $0.05 per basic and diluted share.
• Adjusted EBITDA was $76-million or 30 per cent of revenue.
• Six months cash flow from operations of $93-million, net of $52-million of tax payments.
• Cash at quarter end totaled $149-million.
• Six RISE retail stores were opened: two in Pennsylvania; two in Virginia and one each in Minnesota and Nevada.

Additionally, immediately after quarter end, on July 1, adult-use cannabis sales commenced at the company's four RISE retail stores in Maryland.

Management Commentary

"In the second quarter, we delivered solid results of $252-million in revenue, up slightly from the first quarter, and GAAP net income of $13-million or $0.05 per basic and diluted share. Adjusted EBITDA was $76-million or 30 per cent of revenue. Importantly, cash flow from operations was $18-million after paying $52-million of taxes this quarter. For the first six months of 2023, the company had Adjusted EBITDA of $152-million and cash flow from operations of $93-million. Finally, we ended the second quarter with a strong balance sheet and $149-million in cash. As we move into the second half of the year, we are pleased with our overall position and our team's ability to execute on our long-term strategy," said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler.

Green Thumb President Anthony Georgiadis added, "While the cannabis industry continues to face challenges, at Green Thumb, we have been able to navigate a path to profitability and strong operating cash flow. Generating cash and carefully managing it has been core to our DNA since our founding. In addition, over the last 12 months we have made approximately $240-million in capital investments to position the company for continued strong performance across our diversified portfolio of states."

Second Quarter 2023 Financial Overview

Total revenue for the second quarter 2023 was $252.4-million, down 1.0 per cent from the prior year period. The decline in revenue was primarily driven by price compression. This was partially offset by continued growth in existing markets such as New Jersey, Virginia and Connecticut, as well as revenue generated from new stores opened in the current period.

Overall retail revenue decreased 2.4 per cent versus the second quarter of 2022. Second quarter 2023 comparable sales (stores open at least 12 months) decreased 3.3 per cent versus the prior year on a base of 76 stores. Consumer Packaged Goods gross revenue increased 12.8 per cent versus the second quarter of 2022.

Gross profit for the second quarter 2023 was $125.3-million or 49.6 per cent of revenue compared with $125.8-million or 49.5 per cent of revenue year-over-year. The company was able to offset price compression headwinds through operational efficiencies as well as an increase in Consumer Packaged Goods sales through Green Thumb-owned retail stores.

Total selling, general and administrative expenses for the second quarter were $84.2-million or 33.4 per cent of revenue, compared with $63.5-million or 25.0 per cent of revenue for the second quarter 2022. The increase in total expenses was primarily due to a one-time acquisition-related non-cash fair value credit in the prior year period. In addition, Green Thumb incurred increased expenses associated with opening new stores, as well as the preparation for the recent launch of adult-use cannabis sales in Maryland.

Net income attributable to the company for the second quarter 2023 was $13.4-million or $0.05 per basic and diluted share, compared with a net income of $24.4-million, or income of $0.11 per basic and $0.10 per diluted share in the prior year period.

In the second quarter 2023, EBITDA was $65.3-million or 25.9 per cent of revenue versus $86.5-million or 34.0 per cent of revenue for the comparable period. Adjusted EBITDA, which excluded non-cash stock-based compensation of $7.4-million and other non-operating adjustments of $3.1-million, was $75.8-million or 30.0 per cent of revenue as compared with $78.7-million or 31.0 per cent of revenue for the second quarter 2022.

Balance Sheet and Liquidity

As of June 30, 2023, current assets were $341.3-million, including cash and cash equivalents of $149-million. Total debt outstanding was $289.9-million.

Total basic and diluted weighted average shares outstanding for the three months ended June 30, 2023, were 238-million shares and 238.4-million shares, respectively.

Business Developments

During the second quarter, the company opened six retail stores:

• RISE Dispensary New Hope, Minnesota; profits from the first day of sales were donated to Balanced Veterans Network.
• RISE Dispensary Grove City, Pennsylvania; profits from the first day of sales were donated to Grove City Community Food Pantry.
• RISE Dispensary Bristol, Virginia; profits from the first day of sales were donated to Virginia NORML.
• RISE Dispensary Las Vegas on Nellis; profits from the grand opening were donated to Opportunity Village.
• RISE Dispensary Philadelphia, Pennsylvania; profits from the grand opening were donated to Philadelphia Lawyers for Social Equity (PLSE).
• RISE Dispensary Danville, Virginia; profits from the grand opening were donated to Virginia NORML.

Subsequent to quarter end, on August 2, 2023, Green Thumb opened its 84th retail store nationwide in Las Vegas on Craig Road. Profits from the grand opening were donated to Opportunity Village. On July 1, 2023, Green Thumb commenced adult-use sales at its four Maryland retail stores in Hagerstown, Joppa, Silver Spring and Bethesda. Each store donated a portion of profits from the first day of adult-use sales to a local nonprofit organization, including Mission of Love Charities, Explore MD Cannabis and I Support The Girls.

Green Thumb in the Community

In partnership with 40 Tons, an African American and woman-owned social impact organization committed to restorative justice and equitable access to career opportunities, Good Green, a cannabis flower brand owned by Green Thumb, presented the sixth 40 Tons Level Up Career Conference & Business Expo in Chicago. The conference was an innovative employment resource that promotes social justice and brings together employers who encourage equitable hiring practices with diverse job seekers.

Conference Call and Webcast

Green Thumb will host a conference call on Tuesday, August 8, 2023, at 5:00 pm ET to discuss its second quarter 2023 financial results for the quarter ended June 30, 2023. The earnings call may be accessed by dialing 844-883-3895 (toll-free) or 412-317-5797 (international). A live audio webcast of the call will also be available on the Investor Relations section of Green Thumb's website at https://investors.gtigrows.com and will be archived for replay.

About Green Thumb Industries:

Green Thumb Industries Inc. ("Green Thumb"), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves. Green Thumb manufactures and distributes a portfolio of branded cannabis products including &Shine, Beboe, Dogwalkers, Doctor Solomon's, Good Green, incredibles and RYTHM. The company also owns and operates rapidly growing national retail cannabis stores called RISE. Headquartered in Chicago, Illinois, Green Thumb has 18 manufacturing facilities, 84 open retail locations and operations across 15 U.S. markets. Established in 2014, Green Thumb employs approximately 4,300 people and serves millions of patients and customers each year. The company was named to Crain's Chicago Business Fast 50 list in 2021, 2022 and 2023 and a Best Workplace by MG Retailer magazine in 2018, 2019 and 2021. More information is available at www.gtigrows.com.

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