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. Trulieve’s scale and service, operational flexibility, and strong balance sheet are essential for success in the current environment.
Kim Rivers, Trulieve CEO
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*
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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.
The following table presents a reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA, for each of the periods presented:
The following table presents a reconciliation of GAAP net loss to non-GAAP adjusted net income, for each of the periods presented:
The following table presents a reconciliation of GAAP loss per share to non-GAAP adjusted earnings per share, for each of the periods presented:
Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with established hubs in the Northeast, Southeast, and Southwest, anchored by leading market positions in Arizona, Florida, and Pennsylvania. Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com.
