High Tide Reports Second Quarter 2024 Financial Results Featuring Record Free Cash Flow of $9.4 Million and Positive Net Income

Core Insights - High Tide has been recognized as one of Canada's Top Growing Companies for three consecutive years and is ranked among the top-performing diversified industry stocks [1][10] - The company remains the largest non-franchised cannabis retailer in Canada and the second largest globally by store count, with 172 operating locations [5][25] - High Tide generated $9.4 million in positive free cash flow in the second fiscal quarter of 2024, totaling $22.7 million over the past four quarters, representing a trailing free cash flow yield of over 8% [5][20] - The company reported a positive net income of $0.2 million in Q2 2024, a significant improvement from a net loss of $1.6 million in the same period last year [7][19] - High Tide's revenue for Q2 2024 reached $124.3 million, a 5% increase year-over-year, with gross profit rising to $35.3 million, marking a 12% increase [19][20] Financial Highlights - Adjusted EBITDA for Q2 2024 was $10.0 million, a 52% increase year-over-year, with an adjusted EBITDA margin of 8.1% [19][20] - The company achieved a gross profit margin of 28.4%, the highest in the past nine quarters [19] - Cash on hand as of April 30, 2024, was $34.5 million, an increase of 54% year-over-year [7][20] Market Position and Growth Strategy - High Tide's market share in the provinces where it operates rose to 10.9%, up from 9.9% year-over-year, while only representing 4.8% of the total cannabis retail store count [26] - The company aims to achieve a 15% market share in every province it operates and plans to open 20 to 30 new stores by the end of 2024 [25][26] - High Tide's loyalty programs, Cabana Club and ELITE, have seen significant growth, with Cabana Club exceeding 1.43 million members and ELITE membership increasing by 226% year-over-year [21][40] Recent Developments - The company has opened five new Canna Cabana locations in Ontario and has plans for further expansion [10][13] - High Tide has acquired the intellectual property of the Queen of Bud cannabis brand, enhancing its product offerings [10][14] - The company is actively pursuing strategic mergers and acquisitions to expand its market presence and operational scale [8][9]