Mr. Ben Kovler reports

GREEN THUMB INDUSTRIES REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Green Thumb Industries Inc. has released its financial results for the fourth quarter and full year ended Dec. 31, 2023. Financial results are reported in accordance with U.S. generally accepted accounting principles, and all currency is in U.S. dollars.

Highlights for the fourth quarter ended Dec. 31, 2023:

• Fourth quarter revenues of $278-million increased 7 per cent year over year;
• Cash at quarter-end of $162-million;
• GAAP net income for the fourth quarter of $3-million or one cent per basic and diluted share;
• Adjusted earnings before interest, taxes, depreciation and amortization of $91-million or 33 per cent of revenues; cash flow from operations of $71-million;
• Opened seven RISE dispensaries: six in Florida and one in New York;
• Purchased $25-million of senior debt and $15-million of the company's subordinate voting shares under its share repurchase program.

Highlights for the year ended Dec. 31, 2023:

• Revenues of $1.1-billion increased 4 per cent over the prior year;
• Cash flow from operations of $225-million increased 42 per cent year over year;
• GAAP net income of $36-million or 15 cents per basic and diluted share;
• Adjusted EBITDA of $326-million or 31 per cent of revenues, an increase of 5 per cent over the prior year;
• Purchased $40-million of the company's shares during the year;
• Strong balance sheet and disciplined capital allocation to support continued future growth.

Additionally, on Feb. 28, 2024, the company'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.

Management commentary

"As I reflect on the past year, the Green Thumb team has been amazing. 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 [capital expenditures] to fuel future growth. 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," said Green Thumb founder, chairman and chief executive officer Ben Kovler. "In 2023, we completed our major capex program that spanned over the past couple of years. With this heavy investment lift behind us, our board of directors authorized Green Thumb's first share repurchase program to return capital to our valued shareholders, and I am pleased to announce that this morning, our board of directors approved an additional $50-million for the program. As I look to the future in 2024 and beyond, I am very optimistic we have industry-leading brands that are gaining momentum, the best team in the business, a loyal and growing customer base, and the financial flexibility to keep riding the green wave."

Green Thumb president Anthony Georgiadis added: "We accomplished a great deal in 2023, thanks to all the hard work and dedication across our team. We opened 15 new stores, bringing our total to 91 dispensaries across 14 states. 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 prerolls, that both engaged our customers and won market share. We look forward to carrying this strong momentum into 2024."

Conference call and webcast

Green Thumb will host a conference call on Wednesday, Feb. 28, 2024, at 5 p.m. ET, to discuss its fourth quarter and full-year 2023 financial results for the quarter ended Dec. 31, 2023. The earnings call will be available by dialling 844-883-3895 (toll-free) or 412-317-5797 (international). A live audio webcast of the call will also be available in the investor relations section of Green Thumb's website and will be archived for replay.

About 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 dispensaries. Headquartered in Chicago, Ill., Green Thumb has 20 manufacturing facilities, 91 open retail locations and operations across 14 U.S. markets. Established in 2014, Green Thumb employs approximately 4,600 people and serves millions of patients and customers each year.

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