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Homes are selling fast across the region, but where are they selling the fastest? Reporter Dennis Rodkin joins host Amy Guth to discuss in a livestreamed recap this week’s real estate news.

Miss this week’s livestream? Watch a recording below.

Plus: White House enlists McDonald’s to promote vaccines, Joffrey Ballet expanding to South Loop, city’s marketing chief made permanent head of World Business Chicago and a 29-story Loop office building goes back on the market.

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The favorable backdrop in cattle will help Tyson as it faces thinner returns in chicken and pork. Ranchers fared relatively well during the supply chain disruptions of the pandemic, but hog farmers were forced to cull thousands of animals, poultry producers destroyed eggs and dairy farmers dumped milk. That’s resulted in tighter pork and chicken supplies.

Meanwhile, cattle farmers are getting left out of the beef profits, and more headwinds are coming, namely high grain prices. Hog herds have been expanding in China as professional farms replace backyard operations. That’s boosting demand for feed grains because smallholders tended to feed pigs table scraps, while the farms use corn and soy meal. As China makes massive grain purchases off world markets, prices are soaring to eight-year highs.

“Looking ahead, we are increasingly concerned about the cattle industry reducing supply, particularly now that corn is approaching $8 a bushel and pasture conditions are the worst in years.,” Goldman and Naughton said. “For the time being, however, cattle remain plentiful, particularly with packers struggling to find labor to run at full capacity.”

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Fassnacht, 53, was hired as Chicago’s chief marketing officer, a new position Mayor Lori Lightfoot created, in April 2020. He was then tapped to serve the dual roles after Andrea Zopp left WBC for a job at Cleveland Avenue, a venture capital firm run by former McDonald’s CEO Don Thompson, in December.

WBC pledged to start a national search for Zopp’s replacement just as the organization was rebuilding from its own cuts: revenues shrunk in recent years—from $10.8 million in 2017 to $8.9 million in 2019. The city’s non-profit tourism arm, Choose Chicago, is simultaneously weakened just as the beginning of the COVID recovery is on the horizon.

In 2019, Fassnacht left FCB, one of Chicago’s biggest and oldest advertising agencies, after 13 years, including roughly five as CEO.

“Getting through and beyond economic recovery requires a steady grip, focus and expertise. Michael brings that and more to the city of Chicago,” Lightfoot said in a statement. “Time and time again, Michael has demonstrated his passion for inclusive economic development and investment while simultaneously creating eye-catching and memorable marketing initiatives that center the authenticity of our residents. 

Fassnacht was supposed to earn a $1 salary for his first year as city CMO, where he helped guide the messaging around public health campaigns and wrangled pro bono work from local powerhouse ad firms. 

His salary was not immediately available for the job as president and CEO of WBC, a public-private, nonprofit partnership meant to serve as the city’s corporate recruiter. His compensation will be similar to his WBC predecessors, a mayoral spokeswoman said. Zopp earned roughly $375,000, according to 2018 tax filings. WBC currently has 30 employees and more than five open positions.

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Grubhub has offered back-end technology services for several years, but mainly to large restaurant chains. DoorDash already offers a similar service to restaurants.

“We’re constantly listening and learning from our independent restaurant partners, and we’ve heard them. Restaurants want more options to build their brands online and maintain a loyal base of diners through their own channels,” Grubhub CEO Matt Maloney said in a statement.

Restaurants have long bristled at losing regular customers to mobile apps such as Grubhub, which then keep the data on those diners. Services such as Grubhub were marketed to restaurants as ways to reach new customers. But as those apps grew, existing customers began ordering on them, as well.

“It’s nothing special,” Dan Raskin, co-owner of Manny’s Deli in the South Loop, says of the new offering from Grubhub. “This is offered by many companies at reasonable fees. When our diners order on Grubhub, they’re still getting all my data.”

Losing commissions from restaurants that opt for monthly subscription could cut into Grubhub’s revenue. Restaurants will pay a one-time $99 sign-up fee and $49 monthly, although Grubhub is waiving both fees through April 2022.

Now seems as good a time as any for the move. The company’s shareholders will vote June 10 on its merger with a European company, Just Eat Takeaway.com, which should reduce some of the focus on Grubhub’s bottom line. Grubhub and other delivery platforms have been enjoying big increases in business as the COVID-19 pandemic forced diners to order out. Grubhub’s first-quarter revenue was up 52 percent from a year earlier.

But Grubhub and peers already are at risk from regulators and legislators who are questioning their fees and business practices, such as control over customer data, as well as listing restaurants on the apps without their permission. During the pandemic, cities such as Chicago imposed limits on marketing and delivery fees that the companies can charge to restaurants. Some cities and states are considering making those caps permanent.

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The Chicago figure is the highest among the 20 largest metro areas in Attom’s study. In 15 of the 20, the figure is below four percent.

That is not to say the fast-paced housing market hasn’t helped. A year earlier, more than 10 percent of Chicago-area mortgages were seriously underwater. The difference in a year—about two percentage points—means that nearly 30,000 Chicago households rose out of seriously underwater status between the first quarter of 2020 and the first quarter of 2021.  

On the other end of the spectrum are people who are equity rich, meaning their equity stake in the home is at least half its current market value. In the Chicago area, 18.4 percent of homeowners with a mortgage were equity rich at the end of the first quarter, according to Attom. In 15 of the 20 largest metro areas, at least 25 percent of homeowners were equity rich.

Chicago therefore has the smallest share of homeowners who can easily afford to sell and the largest share of people who can’t afford it.

This goes a long way toward explaining the super-low inventory of homes on the market: A lot of people just can’t afford to put their home on the market.

The data continues the pattern that Crain’s reported using Attom’s data from the end of the previous quarter. In the intervening months, prices have continued to jump, but not enough to heal homeowners’ equity stake that grew excruciatingly slowly for several years before the pandemic.

It wasn’t until the end of 2020 that home values here recovered to where they’d been at the height of the last boom, while all other major cities had already crossed that threshold.

In raw numbers, Chicago about 159,400 households seriously underwater, more than New York, Los Angeles and Dallas combined.

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The region’s overall activity rose to +42 in April from +22 in March, “well above” the long-term average, the Chicago Fed said in a statement. In fact, it was considerably better than that, topping the +40 mark hit in December 2017, and highest since several months above +50 in 2014.

The manufacturing index was particularly high, at +63. Non-manufacturing was +30, but that’s still the highest mark in several years.

Hiring leapt up for lower-paying jobs, likely a reflection of the reopening of much of the restaurant and hospitality industry as COVID-19 recedes. Hiring for higher-paying jobs actually dipped in the month to -9.

On the other hand, expectations for the pace of hiring over the next 12 months increased. So did labor cost pressures, but nonlabor cost pressures decreased.

The survey is conducted of a Fed-selected panel of business executives and other officials. A “0” index reading means there is no change from long-term averages. Readings above that figure indicate faster than usual growth, and readings below 0 slower than usual growth. 

UPDATE—The monthly report from the Chicago Loop Alliance also shows some reason for optimism,

 The group found that parking volumes in particular are up to 87 percent of capacity, easily the highest since the onset of the pandemic. However, Metra and the CTA have been slower to recover, with the latter a bit under 40 percent of normal, not much above where it’s been for the past year.

Hotel occupancy is up to 36 percent, and more downtown employers say they’re bringing their workers back to the office. But the number of people actually in offices remains below 20 percent of normal.

Still, said alliance President Michael Edwards in a statement, “we anticipate a bustling Loop this summer.”

 We’ll see.  

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But the fall is a doozy. New cases are also rising, people are still dying, the virus variants are wreaking havoc, and we’re already seeing vaccine demand slowing despite the fact that not even 50 percent are fully vaccinated.
 
With business executives, school superintendents and government officials feeling the pressure to open up, how are they to handle this balancing act?
 
The answer is surveillance testing.
 
A smart surveillance testing program is a powerful tool to mitigate the risk to your employees and give you some control over an extremely fluid situation. It can identify positive cases before they spread, alerting employees that they need to quarantine, and helping employers and building managers stay on top of infection levels. 
 
Such programs, in conjunction with masking and social distancing, have proven successful containing infection and preventing community spread at many businesses and colleges. They should be adopted more widely by those looking to bring employees back to the office.
 
Here’s what you need to know. Because a surveillance testing program works on the population level, meaning it tracks the virus risk in a defined group of people — a single business, an entire office building, a school, a federal courthouse, a college campus — it minimizes the inconvenience for any one person yet keeps everybody safer. Speedy test results — within 24 hours is best — is a crucial factor in assessing any testing protocol.
 
There are multiple tests available, including PCR and antigen, as well as varied collection methods, all of which can be used effectively. The good news is that the easy saliva tests are as accurate as, and often faster than, the unpleasant nasopharyngeal test.
 
Depending on your building or office circumstances and your budget, you might use a combination of tests. The key part of any testing program is to understand when the virus presents the greatest risk.
 
People become infectious about two days after contracting the virus. That’s still typically 2-3 days before symptoms develop, if they ever do. In fact, most people are at their most infectious before symptoms start, but remain infectious for about eight days after.
 
This timing explains why the University of Illinois Urbana-Champaign and electric vehicle maker Rivian in its Normal, Ill., plant are testing twice a week, optimizing the chance of catching people early, before they become infectious. 
 
High-wire acts are never easy. Let surveillance testing be your safety net.
 
Rebecca Lee Smith has a doctorate in epidemiology and in veterinary medicine and is an associate professor of pathobiology at the University of Illinois at Urbana-Champaign. She is a scientific adviser for the U of I’s covidSHIELD virus testing program.

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CHICAGO and VANCOUVER, British Columbia, May 12, 2021 (GLOBE NEWSWIRE) — Green Thumb Industries Inc. (“Green Thumb,” or the “Company”) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of Rise™ Dispensaries, today reported its financial results for the first quarter ended March 31, 2021. 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 quarter ended March 31, 2021:

• Revenue increased 9.7% sequentially and 89.5% year-over-year to $194.4 million
• Third consecutive quarter of positive GAAP net income, delivering $10.4 million or $0.05 per basic and diluted share.
• Adjusted Operating EBITDA grew 9.0% sequentially and 179.3% year-over-year to $71.4 million or 36.7% of revenue.
• Fifth consecutive quarter of positive cash flow from operations, delivering $39.7 million.
• In February 2021, the Company raised approximately $156.0 million through direct public sales of approximately 4.7 million shares in the Company’s U.S. initial public offering of securities (the “U.S. IPO”).
• On April 30, 2021, subsequent to quarter end, Green Thumb raised $216.7 million in senior secured debt at 7%. The Company intends to use the proceeds to retire its existing $105.5 million senior secured debt (at 12%) and for general working capital and to support various growth initiatives.
• On May 3, 2021, subsequent to quarter end, the Company announced the signing of an agreement for its strategic expansion into Virginia and acquisition of Dharma Pharmaceuticals, LLC (“Dharma”), the holder of one of five vertical licenses in Virginia, which includes an operating production facility with one retail location and the opportunity to open up to five additional retail locations in the state.

See definition and reconciliation of non-GAAP measures elsewhere in this release.

Management Commentary  

“2021 is off to a strong start. In the first quarter, we delivered year-over-year revenue growth of 90%, reported adjusted operating EBITDA growth of 179%, and recorded our third sequential quarter of positive net income. Our business continues to scale as the demand for cannabis swells across the country, and our team continues to rise to the occasion for our patients and customers,” said Green Thumb Chairman, Founder and Chief Executive Officer Ben Kovler.

“We are excited to expand our east coast footprint by signing an agreement to enter the Virginia cannabis market. This follows the recent sweep of adult use legalization measures across Virginia, New York and New Jersey where we see material untapped market potential. Our recent debt financing at industry leading rates positions us to capitalize on the opportunities ahead. A strong balance sheet, supported by a low cost of capital, is key to staying ahead in this fast-paced new industry. As the green wave continues to gain momentum, it is more important than ever to maintain our focus on strong execution and high-value capital allocation.  This is the best way for us to build long-term sustainable value for all of our stakeholders,” said Kovler.

First Quarter Financial Overview

Total revenue for the first quarter 2021 was $194.4 million, up 9.7% sequentially and up 89.5% from $102.6 million in the prior year period. Revenue growth was primarily driven by increased scale in the Consumer Packaged Goods and Retail businesses, especially in Illinois and Pennsylvania. Overall performance was driven by expanded distribution of Green Thumb’s branded products, 13 new store openings and increased traffic in the Company’s 56 open and operating retail stores.

In the first quarter of 2021, Green Thumb generated revenue from all 12 of its markets: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio and Pennsylvania. The Company continued to invest in the expansion of its cultivation and manufacturing capabilities in Illinois, Maryland, Massachusetts, New Jersey, Ohio and Pennsylvania.

Gross profit for the first quarter 2021 was $110.9 million or 57.0% of revenue compared to $53.0 million or 51.6% of revenue for the comparable period. Gross margin performance was driven by increased scale in the Consumer Packaged Goods and Retail businesses.

Total selling, general and administrative expenses for the first quarter were $59.3 million or 30.5% of revenue, compared to $45.4 million or 44.3% of revenue for the first quarter 2020. Improved operating costs as a percentage of revenue reflected increased operating leverage in the Company’s Consumer Packaged Goods and Retail businesses.

Total other expense was $9.2 million for the first quarter 2021, primarily reflecting warrant expense and interest associated with its senior secured notes.

Net income attributable to the Company for the first quarter 2021 was $10.4 million or $0.05 per basic and diluted share, compared to a net loss of $4.2 million, or a loss of $0.02 per basic and diluted share in the prior year.

EBITDA for the first quarter 2021 was $66.5 million or 34.2% of revenue compared to $20.3 million or 19.7% of revenue for the same period in the prior year. Adjusted Operating EBITDA for the first quarter 2021, which excluded non-cash stock-based compensation of $4.0 million, was $71.4 million or 36.7% of revenue as compared to $25.5 million or 24.9% of revenue for the first quarter 2020. The significant improvement in EBITDA and Adjusted Operating EBITDA largely reflected revenue growth and increased scale-driven operating leverage from both the Consumer Packaged Goods and Retail businesses. For additional information on these non-GAAP financial measures, see below under “Non-GAAP Financial Information.”

Balance Sheet and Liquidity

As of March 31, 2021, current assets were $381.0 million, including cash and cash equivalents of $275.9 million. Total debt outstanding was $100.1 million.

Total basic and diluted weighted average shares outstanding for the three months ended March 31, 2021 were 216,210,429 shares and 221,616,157 shares, respectively.

Capital Markets & Financing

In February 2021, in the Company’s U.S. IPO, the Company raised approximately $156.0 million through direct public sales of approximately 4.7 million shares registered with the U.S. Securities and Exchange Commission (“SEC”). The offering was made pursuant to the Form S-1 Registration Statement, declared effective by the SEC on February 8, 2021, and completed on a “self-underwritten, best efforts” basis.

On April 30, 2021, subsequent to quarter end, the Company closed a $216.7 million senior secured non-brokered private placement financing through the issuance of senior secured notes. The Company intends to use the proceeds to retire the Company’s existing $105.5 million senior secured debt and for general working capital and various growth initiatives.

Expansion of Consumer Packaged Goods Business

• As of March 31, 2021, Green Thumb’s family of consumer brands are produced, distributed, and available in retail locations in twelve states: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio and Pennsylvania.
• Consumer Packaged Goods gross revenue grew 7.7% sequentially, driven primarily by expanded scale in production and distribution of branded products.
• Green Thumb continued the expansion of its product offerings, entering the beverage category through a partnership with Cann, the leading cannabis-infused beverage brand. In April, the Company launched sales of Cann in Illinois and plans to expand distribution to other markets later this year.

Retail Business Development

• Green Thumb’s first quarter revenue included sales from 56 retail stores across eleven states: California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio and Pennsylvania.
• Comparable sales growth (stores opened at least 12 months) was 35.0% on a base of 40 stores, driven primarily by increased transactions. Sequential comparable sales were up 2.0% on a base of 48 stores.
• Retail revenue increased 7.6% sequentially, driven by increased foot traffic in established stores and new store openings.
• During the first quarter, and subsequent to quarter end, Green Thumb expanded its retail service in:
  • Pennsylvania: Opened Rise™ Erie Peach on February 3, 2021 and Rise™ Meadville on March 31, 2021. First day profits for Erie Peach were donated to 412 Food Rescue and Community Shelter Services, whose mission is to provide services and shelter to homeless and those at risk of being homeless. First day profits for Meadville were donated to Women’s Services, which strives to meet people’s needs in crisis due to domestic violence, sexual violence or homelessness.
  • California: Expanded the Company’s retail footprint into California with the opening of Essence Pasadena on March 10, 2021. First day profits were contributed to the Pasadena Chamber of Commerce Foundation with funds earmarked for the organization’s Minority Small Business Initiative, which offers support to minority and women-owned businesses.
  • New Jersey: Opened Rise™ Paramus, the second store in the state, on March 15, 2021. First day profits were donated to the Paramus Children’s Health Foundation, which provides financial support to families of children who suffer from a severe illness or injury. 
  • Illinois: Opened Rise™ Lake in the Hills, the ninth store in Illinois, on March 31, 2021. First day profits went to Habitat for Humanity of McHenry County, which is part of a global nonprofit housing organization.

Other Developments

On May 3, 2021, subsequent to quarter end, the Company announced the signing of an agreement for its strategic expansion into Virginia through the acquisition of Dharma. As one of only five licensees in the Virginia medical cannabis market, Dharma is licensed to grow, process and retail cannabis directly to patients. The acquisition includes a production facility and retail dispensary in Abingdon, Virginia. Following the closing of the acquisition, Green Thumb will have the opportunity to open five additional retail locations in the Commonwealth. Completion of the acquisition is subject to customary regulatory approvals and is expected to close in the second half of 2021.

On April 7, 2021, subsequent to quarter end, Swati Mylavarapu joined Green Thumb’s Board of Directors and will serve on the Compensation Committee. Mylavarapu brings nearly a decade of experience investing, advising and building mission-driven technology companies. Since 2017, Mylavarapu has served as Founder and Managing Partner of Incite.org, a hybrid incubator and investment fund that combines venture capital, philanthropy, and civic advocacy to accelerate bold ideas and solve some of the world’s most pressing challenges. From 2015 to 2017, she was an investment partner at venture capital firm Kleiner Perkins Caufield & Byers. Prior to that, Mylavarapu built the early international efforts for Square, the financial services and digital payments company. She also served as National Investment Chair for Transportation Secretary Pete Buttigieg’s 2019-2020 Presidential bid.

Green Thumb in the Community

• First day profits to local charities at each new retail location.
• Dogwalkers brand expanded its founding program of donating a portion of its pre-roll proceeds to local animal shelter programs with the creation of the ‘Bailey Legacy Fund’ to support animal rescue organizations.
• Scholarship grants to advance industry diversity through education.
• Partnership with American Corporate Partners, a veteran’s organization that helps members of the military transition to civilian life.

Non-GAAP Financial Information

This press release includes certain non-GAAP financial measures as defined by the SEC. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.  

Definitions

EBITDA: Earnings before interest, taxes, other income or expense and depreciation and amortization.

Adjusted Operating EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash stock-based compensation, one-time transaction related expenses, or other non-operating costs.

Conference Call and Webcast

Green Thumb will host a conference call on Wednesday, May 12, 2021 at 5:00 pm ET to discuss its first quarter 2021 financial results for the quarter ended March 31, 2021. The conference call may be accessed by dialing 833-502-0470 (Toll-Free) or 236-714-2182 (International) with conference ID: 6438759. 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, a national cannabis consumer packaged goods company and owner of Rise™ dispensaries, 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 Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection. The company also owns and operates rapidly growing national retail cannabis stores called Rise™. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 97 retail locations and operations across 12 U.S. markets. Established in 2014, Green Thumb employs over 2,400 people and serves thousands of patients and customers each year. The company was named a Best Workplace 2018 by Crain’s Chicago Business and MG Retailer magazine in 2018 and 2019.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements that we believe are, or may be considered to be, “forward-looking statements.” All statements other than statements of historical fact included in this document regarding the prospects of our industry or our prospects, plans, financial position or business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “may,” “will,” “expect,” “intend,” “estimate,” “foresee,” “project,” “anticipate,” “believe,” “plan,” “forecast,” “continue,” “suggests” or “could” or the negative of these terms or variations of them or similar terms. Furthermore, forward-looking statements may be included in various filings that we make with the SEC), or oral statements made by or with the approval of one of our authorized executive officers. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These known and unknown risks include, without limitation: cannabis remains illegal under federal law, and enforcement of cannabis laws could change; the Company may be subject to action by the U.S. federal government; state regulation of cannabis is uncertain; the Company may be subject to heightened scrutiny by Canadian regulatory authorities; the Company may face limitations on ownership of cannabis licenses; the Company may become subject to U.S. Food and Drug Administration or the U.S. Bureau of Alcohol, Tobacco Firearms and Explosives regulation; cannabis businesses are subject to applicable anti-money laundering laws and regulations and have restricted access to banking and other financial services; the Company may face difficulties acquiring additional financing; the Company lacks access to U.S. bankruptcy protections; the Company operates in a highly regulated sector and may not always succeed in complying fully with applicable regulatory requirements in all jurisdictions where we carry on business; the Company may face difficulties in enforcing its contracts; the Company has limited trademark protection; cannabis businesses are subject to unfavorable tax treatment; cannabis businesses may be subject to civil asset forfeiture; the Company is subject to proceeds of crime statutes; the Company faces exposure to fraudulent or illegal activity; the Company’s use of joint ventures may expose it to risks associated with jointly owned investments; the Company faces risks due to industry immaturity or limited comparable, competitive or established industry best practices; the Company faces risks related to its products; the Company is dependent on the popularity of consumer acceptance of the Company’s brand portfolio; the Company’s business is subject to the risks inherent in agricultural operations; the Company may be adversely impacted by rising or volatile energy costs; the Company faces an inherent risk of product liability or similar claims; the Company’s products may be subject to product recalls; the Company may face unfavorable publicity or consumer perception; the Company may face unfavorable publicity or consumer perception; the Company’s voting control is concentrated; the Company’s capital structure and voting control may cause unpredictability; issuances of substantial amounts of Super Voting Shares, Multiple Voting Shares or Subordinate Voting Shares may result in dilution; and the Company is governed by corporate laws in British Columbia, Canada which in some cases have a different effect on shareholders than the corporate laws in Delaware, United States. Further information on these and other potential factors that could affect the Company’s business and financial condition and the results of operations are included in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and elsewhere in the Company’s filings with the SEC, which are available on the SEC’s website or at https://investors.gtigrows.com. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this document, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. You are advised, however, to consult any additional disclosures we make in our reports to the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this document.

Coronavirus Pandemic

In March 2020, the World Health Organization categorized coronavirus disease 2019 (together with its variants, “COVID-19”) as a pandemic. COVID-19 continues to spread throughout the U.S. and other countries across the world, and the duration and severity of its effects are currently unknown. The Company continues to implement and evaluate actions to strengthen its financial position and support the continuity of its business and operations in the face of this pandemic and other events. The Company’s condensed consolidated financial statements presented herein reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expenses during the periods presented. Such estimates and assumptions affect, among other things, the Company’s goodwill; long-lived assets and intangible assets; operating lease right of use assets and operating lease liabilities; assessment of the annual effective tax rate; valuation of deferred income taxes; the allowance for doubtful accounts; assessment of the Company’s lease and non-lease contract expenses; and measurement of compensation cost for bonus and other compensation plans. While the Company’s revenue, gross profit and operating income were not impacted during first three months of 2021, the uncertain nature of the spread of COVID-19 and the uncertainty of the impact of nationwide vaccine programs, may impact the Company’s business operations for reasons including the potential quarantine of the Company’s employees or those of the Company’s supply chain partners, and the Company’s continued designation as an “essential” business in states where the Company does business that currently or in the future impose restrictions on business operations. The carrying value of the Company’s goodwill and other long-lived assets may change in future periods as the expected impacts from COVID-19 are revised, resulting in further potential impacts to the Company’s financial statements.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Investor Contact:	Media Contact:
Jennifer Dooley Chief Strategy Officer InvestorRelations@gtigrows.com  310-622-8257	Grace Bondy Corporate Communications gbondy@gtigrows.com 517-672-8001

Source: Green Thumb Industries

Green Thumb Industries Inc.
Highlights from Unaudited Consolidated Statements of Operations
For the Three Months Ended March 31, 2021, 2020 and December 31, 2020
(Amounts Expressed in United States Dollars, Except for Share Amounts)
		Three Months Ended
		March 31, 2021				March 31, 2020				December 31, 2020
		(Unaudited)				(Unaudited)				(Unaudited)
Revenues, net of discounts		$	194,430,584			$	102,602,602			$	177,226,522
Cost of Goods Sold, net			(83,565,084	)			(49,615,188	)			(76,696,427	)
Gross Profit			110,865,500				52,987,414				100,530,095
Expenses:
Selling, General, and Administrative			59,331,251				45,434,757				53,237,812
Total Expenses			59,331,251				45,434,757				53,237,812
Income (Loss) From Operations			51,534,249				7,552,657				47,292,283
Other Income (Expense):
Other Income (Expense), net			(5,149,817	)			6,786,110				7,875,180
Interest Income, net			49,890				88,115				3,745
Interest Expense, net			(4,123,176	)			(5,041,442	)			(4,430,045	)
Total Other Income (Expense)			(9,223,103	)			1,832,783				3,448,880
Income (Loss) Before Provision for Income Taxes And Non-Controlling Interest			42,311,146				9,385,440				50,741,163
Provision For Income Taxes			30,856,178				13,149,000				26,888,755
Net Income (Loss) Before Non-Controlling Interest			11,454,968				(3,763,560	)			23,852,408
Net Income Attributable To Non-Controlling Interest			1,086,302				442,704				1,387,601
Net Income (Loss) Attributable To Green Thumb Industries Inc.		$	10,368,666			$	(4,206,264	)		$	22,464,807
Net Income (Loss) per share – basic		$	0.05			$	(0.02	)		$	0.11
Net Income (Loss) per share – diluted		$	0.05			$	(0.02	)		$	0.11
Weighted average number of shares outstanding – basic			216,210,429				208,468,356				213,249,477
Weighted average number of shares outstanding – diluted			221,616,157				208,468,356				217,178,771

Green Thumb Industries Inc.
Highlights from the Consolidated Balance Sheet
(Amounts Expressed in United States Dollars)
		March 31,
		2021
		(Unaudited)
Cash and Cash Equivalents		$	275,898,839
Other Current Assets			105,059,800
Property and Equipment, Net			201,069,010
Right of Use Assets, Net			144,119,418
Intangible Assets, Net			396,014,963
Goodwill			382,697,467
Other Long-term Assets			44,264,525
Total Assets		$	1,549,124,022
Total Current Liabilities		$	108,444,304
Notes Payable, Net of Current Portion and Debt Discount			99,727,557
Lease Liability, Net of Current Portion			150,679,584
Other long-Term Liabilities			87,502,684
Total Equity			1,102,769,893
Total Liabilities and Equity		$	1,549,124,022

Green Thumb Industries Inc.
Supplemental Information (Unaudited) Regarding Non-GAAP Financial Measures
For the Three Months Ended March 31, 2021, 2020 and December 31, 2020
(Amounts Expressed in United States Dollars)
EBITDA, and Adjusted Operating EBITDA are non-GAAP measures and do not have standardized definitions under GAAP. We define each term as follows:
(1) EBITDA is defined as earnings before interest, taxes, other income or expense and depreciation and amortization.
(2) Adjusted Operating EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash stock-based compensation, one-time transaction related expenses, or other non-operating costs.
The following information provides reconciliations of the supplemental non-GAAP financial measures, presented herein to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented.
		Three Months Ended
Adjusted Operating EBITDA		March 31, 2021				March 31, 2020				December 31, 2020
(Amounts Expressed in United States Dollars)		(Unaudited)				(Unaudited)				(Unaudited)
Net Income (Loss) Before Noncontrolling Interest (GAAP)		$	11,454,968			$	(3,763,560	)		$	23,852,408
Interest Income, net			(49,890	)			(88,115	)			(3,745	)
Interest Expense, net			4,123,176				5,041,442				4,430,045
Income Taxes			30,856,178				13,149,000				26,888,755
Other (Income) Expense, net			5,149,817				(6,786,110	)			(7,875,180	)
Depreciation and Amortization			14,993,421				12,705,172				14,025,615
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (non-GAAP measure)		$	66,527,670			$	20,257,829			$	61,317,898
Stock-based Compensation, Non-Cash			4,030,655				5,073,742				4,127,198
Acquisition, Transaction, and Other Non-Operating Costs			796,956				213,353				–
Adjusted Operating EBITDA (non-GAAP measure)		$	71,355,281			$	25,544,924			$	65,445,096

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Home sales were up almost 25% in March 2021 compared to March 2020, according to data from the trade group Illinois Realtors. (WTTW News)

The number of local home sales skyrocketed in late 2020 and early this year, driving prices in the Chicago metro area to all-time highs.

Sales were up almost 25% in March 2021 compared to March 2020, according to data from the trade group Illinois Realtors.

That’s translated into lightning-fast turnover as people put their homes up for sale, as well as a decline in inventory of available houses and units.

The housing market “looks like a wildfire,” said Dennis Rodkin, who covers the residential real estate market for Crain’s Chicago Business. “It’s really hard to believe how quickly houses are selling, how fast prices are going up…since 2007, since the end of the last big boom, we have seen nothing like this.”

Rodkin says the local market really began turning around August, inspired by pandemic lifestyle changes and low interest rates.

“Interest rates have been so low it’s sort of hard to believe … the fact that interest rates have stayed below 3% for a very long time, in late 2020 and early 2021, means that houses have been more affordable than they have been in decades,” Rodkin said.

The local buying frenzy echoes trends across the country, as more and more people make the switch from renting to owning a home.

“When you look at it nationwide, the general trend is that consumers have been able to save quite a lot of money over the past 12 months, said Luis Lopez, an assistant professor at the Stuart Handler Department of Real Estate at the University of Illinois at Chicago. “Across the nation, what we’re seeing is that people who want to become homeowners have more money in their pocket and are bringing it to the negotiating table when putting a bid on property.”

The surge in the market has also led to a dearth of inventory in the local market, according to data from Illinois Realtors.

In March 2020, there were more than 33,000 homes for sale in the Chicago metro region. In March 2021, there were just over 16,000, a more than 50% drop.

“We started 2021 with the smallest number of homes on the market going back to about 2007, and we had a very high wave of demand, and it hasn’t solved itself yet. We haven’t brought enough homes on the market,” Rodkin said.

The market boom has prompted concerns that it could lead to a repeat of the last market boom in the mid-2000s, which created a housing bubble leading to the Great Recession.

But Lopez says because of changes to housing loans and additional oversight, he’s not expecting a repeat of 2008.

“Leading up to the previous recession, a lot of loans that should not have been made were made. And during this period, today, the underwriting standards are substantially higher,” Lopez said. “People need higher credit scores, they need to show they have the right debt-to-income ratio in order to qualify for a loan. So the borrowers out there … they’re more likely to pay them back.”

Note: This story will be updated with video.

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According to Gov. J.B. Pritzker’s office, the state was informed this week that it will get roughly $8.1 billion in ARP funds, up from the $7.5 billion that had been expected. Outside sources confirm that figure.

That’s a lot of money in a state operating budget that generally runs around $40 billion a year or little more, and could set off a bit of a Springfield food fight over how to spend it.

First though, officials will have to try to undo new guidance from the Treasury Department that appears to indicate the state cannot use any of that money—the $7.5 billion, or the extra $600 million—to repay roughly $2.6 billion it still owes the Federal Reserve for borrowing amid COVID to pay bills and keep workers on the payroll as tax receipts plunged.

The new language “clearly prevents them from directly using any of this money to pay back the Federal Reserve,” said Laurence Msall, president of the Civic Federation, a Chicago tax watchdog group.

But Pritzker and his spokeswoman Jordan Abudayyeh both say they’re working to get Treasury to change its mind.

“The rules are still being worked on in Washington,” Pritzker said at unrelated press event today. “We’re in daily conversations with them” and hope that, as with previous tranches of COVID aid, the final rules will be different than the preliminary one. Either way, he said, “We’re going to be paying back” the Fed.

Abudayyeh said the borrowed money wasn’t for old debts but to make the state whole for COVID-related spending, and therefore ought to be a justified use.

“Right now, I don’t think this is a particularly huge issue,” she said. “These are interim rules. This isn’t a panic moment.”

Msall said the state clearly “needs to get clarification.” But even if Treasury holds to its position, the state may be able to use the ARP infusion to pay for things such as aid to public grade and high schools, normal pension costs, and some capital expenditures that would easily exceed what the Fed is owed. That would free up cash to repay the Federal Reserve debt. The question is “how much fungibility” is allowed.

Illinois House Revenue Committee Chairman Mike Zalewski, who earlier had described the Treasury guidance as a “bombshell,” today was milder in his comments.

Switching money around as Msall suggested wouldn’t be easy, he said, but overall the situation is “problematic, but not insurmountable.”

The real problem is timing, with the General Assembly supposed to adopt a new budget by May 31, Zalewski added. ”The problem there is we don’t have 60 days to wait for an appeal unless Sen. (Dick) Durbin gets us an expedited response. The clock is ticking.”

Abudayyeh said the administration has not yet appealed to Durbin, the Senate’s No. 2 Democrat. 

UPDATE— Pritzker’s office now is saying the outstanding, still unpaid portion of the state’s borrowing from the Federal Reserve is smaller than I’d been told, roughly $2.15 billion instead of $2.6 billion. That somewhat more manageable figure increases the odds the state will somehow figure a way to get through this.

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