Post by
PortlandBlazer on Sep 30, 2020 12:45pm
Solid - Revenues, margins, cash flow and effort
Last night's press release pre-announcing Q3 was great.
Yes, revenues were up 41% from continuing operations (I think that means same store sales growth), in a rising industry. GLH is ahead of the industry, i.e. is taking market share, even as the industry expands rapidly. https://www.marijuanamoment.net/oregon-marijuana-sales-spike-could-continue-as-consumers-permanently-adjust-their-behavior-following-covid/
Margins at 35% were solid. For reference, Q2 revenues were US$5.52 million, and gross margins were 26.8% (from the q2 financial statements file don SEDAR). It would be easy to grow revenues but sacrifice margins. Not at GLH.
Cash flow positive from operations is a huge milestone. There's nothing I can add to provide color on this, it's just huge.
I love that the efforts we can see are being rewarded. We can see credit cards accepted at stores, and can read that the CEO is visiting seniors' homes to educate them about cannabis (HT to JamesHolzhauer for post "How GLH converts seniors to customers") If we can see these evidences of hard work, we can have confidence that lots more hard work is being done we can not see. These results are being earned the old fashioned way, with boots on the ground and attention to detail.
Congrats and thanks to the whole Golden Team. I look forward to the shares waking up to reality.