Trulieve Reports First Quarter 2023 Results Marking Progress on Cash Objectives
- Record 4/20 results with traffic, customers served, and units sold up 10%, 11%, and 9%, respectively, year over year
- Cost reduction initiatives deliver $24 million decrease in SG&A expenses
- Industry leading U.S. retail network of 184 dispensaries, up 14% year over year, supported by over 4 million square feet of cultivation and processing capacity as of March 31, 2023
TALLAHASSEE, Fla., May 10, 2023 /PRNewswire/ -- Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced its results for the quarter ended March 31, 2023. Results are reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles unless otherwise indicated. Numbers may not sum perfectly due to rounding.
Q1 2023 Financial and Operational Highlights*
- Revenue of $289 million, with 95% of revenue from retail sales.
- Achieved GAAP gross margin of 52%, with gross profit of $150 million.
- SG&A expenses lowered by $24 million sequentially to $102 million.
- Reported net loss of $64 million. Adjusted net loss of $21 million* excludes non-recurring charges, asset impairments, disposals and discontinued operations.
- Generated adjusted EBITDA of $78 million*, or 27% of revenue.
- Cash at quarter end of $195 million.
- Opened three new dispensaries in Palatka and Winter Haven, Florida and Beckley, West Virginia.
- Launched adult-use sales in Bristol, Connecticut.
- First U.S. cannabis company to launch advertising campaigns on Twitter.
- Exited the quarter with operations in 11 states, with 32% of retail locations outside of the state of Florida.
*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics. |
Recent Developments
- First to launch medical sales in Georgia with two new dispensaries in Macon and Marietta.
- Achieved record traffic, customers served, and units sold on 4/20 holiday, up 10%, 11%, and 9%, respectively, year over year.
- Currently operate 186 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States.
Management Commentary
"Our team is laser focused on cash preservation and generation as we set the stage for the next phase of accelerated growth," said Kim Rivers, Trulieve CEO. "Trulieve's scale and service, operational flexibility, and strong balance sheet are essential for success in the current environment."
Rivers continued, "With increasing adoption and expanding state level access to cannabis, the industry is well beyond the tipping point. Tremendous opportunities lie ahead for companies that can successfully adapt within evolving landscapes."
Financial Highlights*
Results of Operations | For the Three Months Ended | |||||||||
(Figures in millions except per | March 31, | March 31, | change | December 31, | change | |||||
Revenue | $ | 289 | $ | 318 | (9 %) | $ | 302 | (4 %) | ||
Gross Profit | $ | 150 | $ | 180 | (17 %) | $ | 150 | 0 % | ||
Gross Margin % | 52 % | 57 % | 50 % | |||||||
Operating Expenses | $ | 163 | $ | 151 | 8 % | $ | 156 | 5 % | ||
Operating Expenses % | 56 % | 48 % | 52 % | |||||||
Net Loss** | $ | (64) | $ | (32) | --- | $ | (77) | --- | ||
Net Loss Continuing Ops | $ | (66) | $ | (30) | --- | $ | (76) | --- | ||
Adjusted Net Income (Loss) | $ | (21) | $ | 2 | --- | $ | (35) | --- | ||
Diluted Shares Outstanding | 189 | 187 | 189 | |||||||
EPS Continuing Ops | $ | (0.34) | $ | (0.16) | --- | $ | (0.40) | --- | ||
Adjusted EPS | $ | (0.11) | $ | 0.01 | --- | $ | (0.18) | --- | ||
Adjusted EBITDA | $ | 78 | $ | 105 | (26 %) | $ | 85 | (8 %) | ||
Adjusted EBITDA Margin % | 27 % | 33 % | 28 % |
*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics. |
**Net loss and comprehensive loss attributable to common shareholders which Includes discontinued operations and excludes non-controlling interest. |
Conference Call
The Company will host a conference call and live audio webcast on May 10, 2023, at 8:30 A.M. Eastern time, to discuss its first quarter 2023 financial results. Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.
North American toll free: 1-888-317-6003 | Passcode: 2035918 |
International: 1-412-317-6061 | Passcode: 2035918 |
A live audio webcast of the conference call will be available at:
https://app.webinar.net/bR5Wgq9gJLx
A powerpoint presentation and archived replay of the webcast will be available at:
https://investors.trulieve.com/events
The Company's Form 10-Q for the quarter ended March 31, 2023, will be available on the SEC's website or at https://investors.trulieve.com/quarterly-results. The Company's Management Discussion and Analysis for the period and the accompanying financial statements and notes will be available under the Company's profile on SEDAR and on its website at https://investors.trulieve.com/quarterly-results. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Trulieve Cannabis Corp. Condensed Consolidated Balance Sheets (Unaudited) (in millions, expect per share data) | ||||||||
March 31, 2023 | December 31, | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 188.1 | $ | 212.3 | ||||
Restricted cash | 7.2 | 6.6 | ||||||
Accounts receivable, net | 8.0 | 9.4 | ||||||
Inventories, net | 297.6 | 297.8 | ||||||
Prepaid expenses and other current assets | 70.7 | 63.6 | ||||||
Notes receivable - current portion | 0.7 | 0.7 | ||||||
Assets associated with discontinued operations | 1.9 | 2.5 | ||||||
Total current assets | 574.2 | 593.0 | ||||||
Property and equipment, net | 782.4 | 796.9 | ||||||
Right of use assets - operating, net | 101.8 | 101.4 | ||||||
Right of use assets - finance, net | 70.7 | 76.2 | ||||||
Intangible assets, net | 967.4 | 1,012.6 | ||||||
Goodwill | 791.5 | 791.5 | ||||||
Notes receivable, net | 11.9 | 12.0 | ||||||
Other assets | 15.8 | 14.7 | ||||||
Long-term assets associated with discontinued operations | 0.7 | 0.7 | ||||||
TOTAL ASSETS | $ | 3,316.4 | $ | 3,399.0 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 92.5 | $ | 83.1 | ||||
Income tax payable | 35.7 | 49.0 | ||||||
Deferred revenue | 5.1 | 9.6 | ||||||
Notes payable - current portion, net | 9.8 | 12.5 | ||||||
Operating lease liabilities - current portion | 10.4 | 10.4 | ||||||
Finance lease liabilities - current portion | 8.0 | 8.7 | ||||||
Construction finance liabilities - current portion | 1.3 | 1.2 | ||||||
Contingencies | 25.5 | 34.7 | ||||||
Liabilities associated with discontinued operations | 0.0 | 0.5 | ||||||
Total current liabilities | 188.3 | 209.7 | ||||||
Long-Term Liabilities: | ||||||||
Notes payable, net | 93.5 | 94.2 | ||||||
Private placement notes, net | 543.0 | 541.7 | ||||||
Warrant liabilities | — | 0.3 | ||||||
Operating lease liabilities | 103.1 | 102.4 | ||||||
Finance lease liabilities | 72.0 | 75.8 | ||||||
Construction finance liabilities | 182.4 | 182.4 | ||||||
Deferred tax liabilities | 216.2 | 224.1 | ||||||
Other long-term liabilities | 37.2 | 26.2 | ||||||
Long-term liabilities associated with discontinued operations | 14.6 | 14.6 | ||||||
TOTAL LIABILITIES | 1,450.3 | 1,471.3 | ||||||
Commitments and contingencies | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Common Stock, no par value; unlimited shares authorized. 185,987,512 | — | — | ||||||
Additional paid-in-capital |
By: PR Newswire Association LLC.
- 10 May 2023
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