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HIGH TIDE third qrt Up 98 per cent increase

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High Tide Reports Third Quarter 2022 Financial Results Featuring a 98% Increase in Revenue and Tenth Straight Quarter of Positive Adjusted EBITDA
4:08 PM ET 9/14/22 | BusinessWire

This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated December 3, 2021, to its short form base shelf prospectus dated April 22, 2021.

   -- Same-store Sales Increased by 46% Compared to the Same Quarter Last Year 
      and 18% Sequentially 
   -- Reports 77% Sequential Increase in Adjusted EBITDA to $4.2 Million 
   -- Current Annual Revenue Run Rate of Over $400 Million and Is Now Within 
      Striking Distance of Having the Highest Revenue of Any Cannabis Company 
      Reporting in Canadian Dollars 
   -- The Cabana Club Loyalty Program, which is the largest in Canadian 
      cannabis retail, has Surpassed 750,000 Members, with over 90% of daily 
      transactions conducted by club members 
   -- Anticipates Launching Enhanced Fee-Based Cabana Elite Membership Program 
      by the end of calendar 2022 
CALGARY, Alberta--(BUSINESS WIRE)--September 14, 2022-- 

Calgary, AB, September 14, 2022 / CNW / - High Tide Inc. ("High Tide" or the "Company") (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, filed its financial results for the third fiscal quarter of 2022 ended July 31, 2022, the highlights of which are included in this news release. The full set of condensed interim consolidated financial statements for the three and nine months ended July 31, 2022 (the "Financial Statements") and accompanying management's discussion and analysis can be accessed by visiting High Tide's website at, its profile pages on SEDAR at, and EDGAR at

Third Quarter 2022 -- Financial Highlights:

   -- Revenue increased to $95.4 million in the third quarter of 2022 compared 
      to $48.1 million in the same quarter last year, representing an increase 
      of 98%. Sequentially, revenue increased by 18% compared to the second 
      quarter of 2022 
   -- Gross profit increased by 54% to $25.8 million in the third quarter of 
      2022 compared to $16.7 million in the same quarter last year 
   -- Gross profit margin in the three months ended July 31, 2022, was 27% 
      compared to 35% in the same quarter last year. The shift in the gross 
      margin was due to a change in retail pricing strategy to a discount club 
      model. Sequentially, the gross profit margin was relatively on par with 
      the previous quarter, which closed at 28% 
   -- Adjusted EBITDA1 for the three months ended July 31, 2022, was $4.2 
      million compared to $1.5 million for the same quarter last year, 
      representing an increase of 176%. Sequentially, Adjusted EBITDA increased 
      by 77% compared to $2.4 million during the previous quarter 
   -- Cabanalytics data sales were $5.5 million in the third quarter of 2022 
      compared to $3.8 million for the same quarter last year. Sequentially, 
      Cabanalytics data sales increased by 7% compared to $5.1 million the 
      previous quarter 
   -- For locations operational throughout the third fiscal quarter of 2022 and 
      2021, same-store sales increased by 46%. Sequentially, same-store sales 
      increased by 18% compared to the previous quarter 
   -- Geographically, in the third quarter of 2022, $80.7 million of revenue 
      was earned in Canada, $12.7 million in the United States and $1.9 million 
      internationally. Compared to the third quarter of 2021, revenue increased 
      by 110% in Canada, 33% in the United States, and 1,486% internationally 
   -- Cash on hand as of July 31, 2022, totalled $18.3 million compared to 
      $14.0 million as of October 31, 2021 

"Our team continues to deliver strong execution, and this shows in our third quarter results, which feature quarterly revenue of $95 million, representing 98% annual growth, as well as a 176% annual increase in Adjusted EBITDA, making this the tenth consecutive quarter of positive Adjusted EBITDA for High Tide. These impressive numbers come despite hyper-competitive cannabis retail markets across Canada and a global softening of e-commerce sales as pandemic-related restrictions are continuing to be lifted. High Tide now sits within striking distance of having the highest revenue of any cannabis company reporting in Canadian dollars. Our same-store sales have continued their upward trajectory, increasing by 46% year over year and 18% sequentially. This growth continues to be propelled by our innovative discount club model, which is specifically tailored to our Company's unique position in the market through our diversified ecosystem. I am also very happy to report that our Cabana Club loyalty program, which is the largest of its kind in Canada, now sits at over 750,000 members, which represents more than 12% of the cannabis users across the country, excluding Quebec per Statistics Canada data. This membership number was our initial goal when we launched our discount club model last October, and we have now met our target in under a year. We look forward to rolling out our Cabana Elite program in the near term. This program will let members access additional benefits for a small recurring fee, while the existing Cabana Club program will remain free of charge," said Raj Grover, President and Chief Executive Officer of High Tide.

"Our rapidly increasing sales and focus on cost control led us to generating $2.3 million in cash flow from operations before non-cash working capital for the quarter ended July 31, 2022, which was up meaningfully versus the prior quarter and the third fiscal quarter of 2021. Our selling, general and administrative expenses ("SG&A") relative to our peer group has always been conservative; however, we remain focused on further controlling our costs to drive even more cash flows for our shareholders. On the mergers and acquisitions ("M&A") front, subsequent to the end of the quarter, we added nine stores from Choom Holdings Inc. ("Choom"), and currently have many other prospects which are both accretive and strategic, that we are in the process of analyzing.

"I have always strived to underpromise and over-deliver. This is a value that I consistently instill in our team. We set targets and are held accountable as a team if we do not meet them. I am happy to report that based on our latest financial results, we are consistently outperforming our targets as communicated to the market. One example of this is the fact that we were able to improve our balance sheet with a commitment letter from Connect First Credit Union Ltd. ("connectFirst"), despite the process taking longer than we had initially anticipated. This facility, which is expected to close imminently, will inject additional fuel to power our growth. As of August 2022, our annualized revenue run rate sits at over $400 million, and our Adjusted EBITDA is clearly on the right trajectory. Although, in our view, these strong fundamentals are not currently reflected in our market capitalization, myself and our team maintain a laser-like focus on the continued improvement of our fundamentals, as that is what we can control. We believe that sooner or later, the market sentiment will catch up to our business fundamentals. I would like to give a huge thanks to our customers, team, investors, and Board of Directors for their continued support." added Mr. Grover.

Third Quarter 2022 -- Operational Highlights:

   -- Organic retail store expansion continued with 5 new Canna Cabana 
      locations: 2 in Alberta, 1 in Ontario, 1 in Saskatchewan, and the 
      Company's first store in British Columbia 
   -- The Company completed the acquisition of the final store operating under 
      the name Crossroads Cannabis in Woodstock, Ontario 
   -- The Company completed the acquisition of an 100% equity interest of 
      Livonit Foods Inc. operating as Bud Heaven, adding two established 
      cannabis retail stores in Bracebridge, Ontario 
   -- The Company continued the rollout of its Fastendr(TM) retail kiosk and 
      smart locker technology, with 22 Canna Cabana locations having been 
      equipped with the technology by the end of the quarter 
   -- On June 13, 2022, the Company launched its Cabana Cannabis Co. line of 
      house-branded products in Saskatchewan, with anticipated launches in 
      Ontario and Manitoba by the end of 2022, pending listing approval 
   -- On June 22, 2022, the Company secured $5 million subordinated debt to 
      power continued growth 
   -- On July 7, 2022, the Company announced the acquisition of a nine-store 
      portfolio from Choom through Companies' Creditors Arrangement Act 
      ("CCAA") proceedings, the acquisition of the portfolio was subsequently 
      closed in tranches on August 9, 2022 and September 1, 2022, respectively 
   -- On July 11, 2022, the Company's subsidiary, Enigmaa Ltd., operating as 
      Blessed CBD, launched sales of hemp-derived CBD products on Amazon United 
      Kingdom platform 
   -- On July 22, 2022, the Company closed a bought deal equity financing for 
      aggregate gross proceeds of $11.5 million, inclusive of the exercise in 
      full of the over-allotment option 
   -- On July 29, 2022, the Company announced that it had seized the shares of 
      Halo Kushbar Retail Inc. ("Kushbar"), taking control of three operating 
      cannabis retail stores in Alberta 

Subsequent Events:

   -- The Company's Cabana Club loyalty program continued its rapid growth, 
      sitting at over 750,000 members as of today, representing over 90% of 
      daily transactions 
   -- Rollout of Fastendr(TM) continued, with 28 Canna Cabana locations 
      equipped with the technology as of today 
   -- On August 18, 2022, the Company executed a binding commitment letter with 
      connectFirst for $19 million in non-dilutive credit facilities 
   -- The Company acquired nine operating retail cannabis stores from Choom. As 
      of today, the Company operates a total of 140 retail cannabis stores 
      across Canada 

New Member
Joined: 1 second ago
Posts: 0

I am very pleased with this earnings. Beyond pleased as a high tide share holder. High tide seems to really be taking market share. They are becoming a very dominant player. I do worry a little about future dilution….but that been said that is what seems to be needed for the aggressive growth track they are on. I look forward to DH review if this earnings Q. 


Noble Member Admin
Joined: 3 years ago
Posts: 1185

High Tide absolutely crushed the revenue growth picture.  Period.  I am updating my analysis and the page for HITI stock and should have that up this afternoon.  Mostly, everything remains in line.  However, I have increased revenue projections over the next few years as High Tide is outperforming.  Small tweaks in the DCF for High Tide are keeping the price target at about the same price.  The fact that HITI is a Nasdaq-listed stock will mean when things take off, this will be a serious target for Kyle - Karen's boyfriend who has little actual knowledge about investing... but, a Robinhood account.  I welcome him chasing after these current price levels.  

Honorable Member
Joined: 2 years ago
Posts: 246
Topic starter  

The stock price rose slightly on the news, then went back down to its current low.  HITI is Nasdaq listed stock which didnt help it at all.  

D. H. Taylor reacted

Noble Member Admin
Joined: 3 years ago
Posts: 1185

@gtosali1967  I think the environment we are now in with the economy is going to make it difficult for anyone to step in and buy any stock with conviction. However, we are awaiting the lame-duck session where potentially we see Congress pass something.  This will bring in a slew of individuals who have seen their respective account balances decimated wanting to catch a ride from any surges in cannabis stocks.  

Regardless of that, High Tide is one of the more solid companies.  Look at the revenue!  If this company cannot move up, none will.  But, that will not be the story forever.  The environment for the economy and cannabis stocks will ebb toward a more favorable investing atmosphere.  It's a process... not an event.  

Estimable Member
Joined: 2 years ago
Posts: 68

Great points DH, and awesome video on your analysis. One question I have tho the earnings report they showed that they still have a lot of offerings that they can use….and we all saw what happened the last time they used one a couple months ago. Do you have any worries over future dilution? I understand dilution can be accretive…and it has my opinion. But we all know how investors feel toward it. 


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