High Tide Announces $34.5M Cash, Sells 1,400 Shares in Q2, Expands Cannabis Share – High Tide (NASDAQ:HITI)

High Tide Inc. HITI indicators, particularly continued positive free cash flow and improved net income, suggest financial recovery and increased investment attractiveness, signaling potential value for investors. High Tide reported free cash flow of $9.4 million in fiscal second quarter 2024.

The rate of return on free cash flow in relation to the enterprise value exceeded 8%. Net income for the quarter was $0.2 million, a significant improvement from the year-over-year loss of $1.6 million.

This means that the company is generating a high cash yield compared to its overall market value.

Revenues and profitability

Revenue for the quarter increased 5% to $124.3 million, and gross profit reached $35.3 million, a 12% increase over the prior year.

Adjusted EBITDA for the quarter was $10 million, representing a 52% year-over-year increase. Adjusted EBITDA margin remained stable at 8.1%.

“Our team generated positive net income and a record $22.7 million in free cash flow over the last four quarters,” he said Raj Groverfounder and CEO of High Tide.

“We were able to increase our store count and increase our Canadian market share to 10.9%. We remain the world’s second-largest cannabis retailer by store count and ended the quarter with a record cash position of $34.5 million while setting a goal of opening 30 new stores by the end of the year,” Grover continued.

Strategic development

This quarter, new Canna Cabana locations were opened and intellectual property was acquired from the Queen of Bud brand. High Tide has completed the acquisition of the remaining interest in NuLeaf Naturals, LLC, in line with its growth strategy, which includes plans to open 20-30 new locations by the end of the year.

The number of Cabana Club loyalty program members increased to over 1.43 million, an increase of 38% year-on-year. The number of ELITE members increased to 44,000, an increase of 226%.

Market share in Alberta and Ontario was 20% and 10%, respectively, with an overall market share of 10.9% across all provinces in which it operates.

High Tide plans to continue to expand through organic growth and potential mergers and acquisitions, supported by a strong cash position of $34.5 million.

Share offer

During fiscal second quarter 2024, High Tide Inc. issued 1,400 ordinary shares under its at-market share offering program (ATM program), raising PLN 3,000. dollars on the TSX Venture Exchange and Nasdaq, and nominal commissions were paid to ATB Capital Markets Inc. and ATB Capital Markets USA Inc.

Net proceeds from the ATM Program are intended to fund strategic initiatives, support operational development, finance future acquisitions and cover general corporate costs.

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Photo: AI-generated image.