Green Thumb Industries - Rocks
We will have a more detailed note on the GTI quarter out shortly, but in short, it was a robust quarter. GTI reports 2Q21 GAAP EPS $0.10 versus FS EPS consensus (non-GAAP) of $0.08 (4th consecutive quarter of positive net income.) Revenue for the quarter was $222 million, up 14% sequentially and up 85% year-over-year. To give you a sense of the accomplishments over the past few years, this quarter's revenue exceeded the companies entire annual revenue in 2019, only just 18 months ago. EBITDA grew 11% sequentially to $79 million, more than double the level from a year ago. The top 4 states discussed in rank order on the call are PA, NJ, OH, and NY. A the end of the quarter, current assets were $481.6M, including cash and cash equivalents of $359.2M, and total debt outstanding was $197.6M.
Bernie's Comments on Biden
During a recent podcast on Krystal Kyle & Friends, Bernie Sanders said that Biden should enact federal prohibition via executive action legislation. Still, the two have differences regarding drug policy. Bernie promised that if he were elected president, he would legalize marijuana on his first day in office. “Joe Biden and I on marijuana—I think the war on drugs has been just a disaster for this country, for the African-American community,” Sanders later said. “I think it should end. I think marijuana should be legalized. We do [could] that fairly simply. But yeah, so we have differences.” White House Press Secretary said that nothing has changed regarding Biden's opposition to adult-use legalization. However, the senators sponsoring the Cannabis Opportunity and Administration act are hoping to change Biden's mind. If the bill ever gets past the senate filibuster, they won't have any hurdles in the executive office.
Wisconsin Legalization
A group of Wisconsin Democrats has introduced a bill to legalize the recreational use of marijuana. The senator's sponsoring the bill gave many reasons why it should pass. A few of these reasons were that it could generate $160 Million in tax revenue for the state and address racial inequities caused by enforcement of drug laws. Illinois legalized recreational marijuana in 2019. Many Wisconsin residents flock to Illinois or Michigan to access legal cannabis. These are tax dollars that Wisconsin is missing out on and would like to acquire. “Legalization would be the economic boost our state so desperately needs without one penny of tax dollars going to the industry,” state Senator Melissa Agard said. It’s unclear if the legislative effort will pass the GOP-controlled Legislature as top Republicans in Madison remain unwilling to support legalization outright. Agard said the bill would circulate seeking co-sponsors for the next two weeks before moving forward.
Nevada Tracker
Nevada released three new months of sales data, and boy are they pretty. When travel started back up to Vegas in March, one can clearly see when sales shot up to a 123% increase YoY. In May's most recent month of data, sales were down slightly but still up 84% YoY. Nevada is having quite accelerating trends in their sales mainly due to the influx of tourism in the state. The 2021 run rate is $1.07 Billion for Nevada.
