Trulieve Reports Third Quarter 2024 Results Ahead of Florida Adult-Use Vote
Third quarter revenue of $284 million, up 3% year over year, in line with guidance
Gross margin of 61%, compared to 52% during the third quarter of 2023
Year to date cash flow from operations of $241 million and free cash flow of $162 million*
Florida adult-use campaign support of $48 million during the third quarter
TALLAHASSEE, Fla., Nov. 5, 2024 /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 September 30, 2024. 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.
Q3 2024 Financial and Operational Highlights*
Revenue of $284 million increased 3% year over year, with 95% of revenue from retail sales.
Achieved gross margin of 61%, with GAAP gross profit of $173 million.
Reported net loss attributable to common shareholders of $60 million. Adjusted net loss of $12 million* excludes $48 million in campaign support and other non-recurring charges, asset impairments, disposals and discontinued operations.
Achieved adjusted EBITDA of $96 million*, or 34% of revenue, up 24% year over year.
Generated cash flow from operations of $30 million and free cash flow of $(7) million*, both of which were impacted by $48 million in campaign support.
Cash and short term investments at quarter end totaled $319 million.
Launched adult use sales at three Ohio locations: Beavercreek, Columbus, and Westerville.
Rolled out #YesOn3 product line to support Smart and Safe Florida adult-use campaign.
Entered partnership with Professional Pickleball Association and Major League Pickleball to sponsor events in Arizona, Florida, and Georgia.
Opened 15 new dispensaries in Florida and Pennsylvania.
Ended the quarter with 30% 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
Opened five new retail locations in Bonita Springs, Hallandale, Lake Placid, Orlando, and St. Augustine, Florida.
Currently operate 220 retail dispensaries and over four million square feet of cultivation and processing capacity in the United States.
Management Commentary
"As voters in Florida cast their ballots across the state today, there is an opportunity to make history by approving cannabis legalization for personal use," said Kim Rivers, Trulieve CEO. "With 156 stores in Florida, scaled production capacity, and sufficient capital to support further investment, if approved, Trulieve is best positioned to fully prepare for the launch of recreational sales next Spring."
Financial Highlights*
Results of Operations
For the Three Months Ended
For the Nine Months Ended
(Figures in millions except per share data)
September 30, 2024
September 30, 2023
% Better / (Worse)
June 30, 2024
% Better / (Worse)
September 30, 2024
September 30, 2023
% Better / (Worse)
Revenue
$
284
$
275
3 %
$
303
(6 %)
$
885
$
842
5 %
Gross profit
$
173
$
143
21 %
$
182
(5 %)
$
529
$
435
22 %
Gross margin %
61 %
52 %
60 %
60 %
52 %
Operating expenses
$
173
$
120
(44 %)
$
132
(31 %)
$
432
$
686
37 %
Operating expenses %
61 %
43 %
43 %
49 %
81 %
Net loss**
$
(60)
$
(25)
(137 %)
$
(12)
NMF
$
(95)
$
(493)
81 %
Net loss continuing operations
$
(60)
$
(23)
(163 %)
$
(11)
NMF
$
(94)
$
(399)
76 %
Adjusted net (loss) income
$
(12)
$
(15)
19 %
$
0
NMF
$
(22)
$
(47)
53 %
Basic and diluted shares outstanding
190
189
190
190
189
EPS continuing operations
$
(0.32)
$
(0.12)
(168 %)
$
(0.04)
NMF
$
(0.52)
$
(2.09)
75 %
Adjusted EPS
$
(0.06)
$
(0.08)
20 %
$
0.00
NMF
$
(0.12)
$
(0.25)
54 %
Adjusted EBITDA
$
96
$
78
24 %
$
107
(10 %)
$
309
$
235
32 %
Adjusted EBITDA Margin %
34 %
28 %
35 %
35 %
28 %
NMF - No Meaningful Figure
*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
**Net loss attributable to common shareholders which excludes non-controlling interest.
Conference Call
The Company will host a conference call and live audio webcast on November 5, 2024, at 8:30 A.M. Eastern time, to discuss its third quarter 2024 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: 1-844-824-3830
Passcode: 3735709
International: 1-412-542-4136
Passcode: 3735709
A live audio webcast of the conference call will be available at:Trulieve Cannabis Corp Q3 2024 Earnings
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 September 30, 2024, 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 https://www.sedarplus.ca/landingpage/ 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, except for share data)
September 30,2024
December 31,2023
ASSETS
Current Assets:
Cash and cash equivalents
$ 237.7
$ 201.4
Short-term investments
80.2
—
Restricted cash
0.9
6.6
Accounts receivable, net
9.0
6.7
Inventories
220.9
213.1
Income tax receivable
5.8
—
Prepaid expenses
19.2
17.6
Other current assets
26.6
23.7
Notes receivable - current portion, net
1.8
6.2
Assets associated with discontinued operations
0.9
2.0
Total current assets
603.0
477.3
Property and equipment, net
701.6
676.4
Right of use assets - operating, net
116.1
95.9
Right of use assets - finance, net
65.6
58.5
Intangible assets, net
873.3
917.2
Goodwill
483.9
483.9
Notes receivable, net
5.8
7.4
Other assets
23.0
10.4
Long-term assets associated with discontinued operations
2.0
2.0
TOTAL ASSETS
$ 2,874.2
$ 2,729.1
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities
$ 96.1
$ 83.2
Deferred revenue
6.7
1.3
Notes payable - current portion
3.3
3.8
Operating lease liabilities - current portion
11.6
10.1
Finance lease liabilities - current portion
9.1
7.6
Construction finance liabilities - current portion
1.8
1.5
Contingencies
4.6
4.4
Liabilities associated with discontinued operations
3.5
3.0
Total current liabilities
136.7
114.8
Long-Term Liabilities:
Private placement notes, net
364.4
363.2
Notes payable, net
112.8
115.9
Operating lease liabilities
113.4
92.2
Finance lease liabilities
68.4
61.7
Construction finance liabilities
135.9
136.7
Deferred tax liabilities
204.2
207.0
Uncertain tax position liabilities
384.1
180.4
Other long-term liabilities
6.5
7.1
Long-term liabilities associated with discontinued operations
39.4
41.6
TOTAL LIABILITIES
$ 1,565.8
$ 1,320.4
MEZZANINE EQUITY
Redeemable non-controlling interest
$ 7.1
$ ,
SHAREHOLDERS' EQUITY
Common stock, no par value; unlimited shares authorized. 189,154,228 and 186,235,818 shares issued and outstanding as of September 30,2024 and December 31, 2023, respectively.
$ ,
$ ,
Additional paid-in-capital
2,048.0
2,055.1
Accumulated deficit
(736.0)
(640.6)
Non-controlling interest
(10.7)
(5.9)
TOTAL SHAREHOLDERS' EQUITY
1,301.3
1,408.6
TOTAL LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS' EQUITY
$ 2,874.2
$ 2,729.1
Trulieve Cannabis Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in millions, except for share data)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2024
2023
2024
2023
Revenue
$ 284.3
$ 275.2
$ 885.3
$ 842.2
Cost of goods sold
111.0
132.3
356.6
407.4
Gross profit
173.3
142.9
528.7
434.8
Expenses:
Sales and marketing
66.7
59.4
191.0
181.2
General and administrative
81.9
34.5
161.5
108.7
Depreciation and amortization
28.3
27.0
84.2
82.6
Impairment and disposal of long-lived assets, net of (recoveries)
