Ms. Kim Rivers reports
TRULIEVE REPORTS STRONG CONSECUTIVE GROWTH AND RAISES GUIDANCE
Trulieve Cannabis Corp. has released its second quarter of 2020 ended June 30, 2020. Unless otherwise stated, all currency is expressed in U.S. dollars.
Second quarter 2020 financial and operational highlights:
Achieved record revenue of $120.8-million, an increase of 26 per cent on a sequential quarter-to-quarter basis;
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $60.5-million, or 50 per cent of revenue, representing the 10th quarter of consecutive growth and profitability;
- Achieved free cash flow of $39.6-million;
Sustained strong cash position with cash and cash equivalents of $150.3-million at June 30, 2020;
- Achieved GAAP (generally accepted accounting principles) adjusted margin of 75 per cent;
Announcement of transitioning to a U.S. domestic issuer subject to Securities and Exchange Commission reporting requirements as of January, 2021;
- Opened five new stores in Florida, ending the second quarter with 52 stores nationwide;
Continued to implement best-in-class, industry-leading health and safety protocols in response to COVID-19.
Recent highlights and developments:
Company provides updated 2020 financial guidance.
"Once again our financial results reflect our exceptional ability to grow our business quarter over quarter, through continued organic expansion of our retail footprint, while maintaining industry-leading profitability. We are pleased to be able to demonstrate strong financial performance in revenue, adjusted EBITDA and free cash flow while pivoting our business to meet the changing behaviours and needs due to COVID," stated
Kim Rivers, Trulieve chief executive officer. "Looking ahead, we are excited about the second half of the year and will continue focusing on execution and expansion. We anticipate exceeding our goal of 68 stores and will continue our strong growth in Florida. Massachusetts is getting closer to completion and we are excited to enter that market in 2021. And, we believe the M&A pipeline and application processes under way will present new opportunities for expansion. Lastly, we are moving quickly down the path toward registering with the SEC and SOX compliances. This is a great start on our next level of strategic growth."
2020 QUARTERLY FINANCIAL HIGHLIGHTS
(figures in millions)
Results of operations For the three months ended Three months ended June 30
June 30, 2020 March 31, 2020 2020 2019
Total revenue $120.8 $96.1 $120.8 $57.9
Revenue less production expenses
and cost of goods purchased $91.1 $67.1 $91.1 $37.6
Revenue less production expenses
and cost of goods purchased (%) 75% 70% 75% 65%
Operating expenses $33.1 $28.3 $33.1 $14.8
Operating expenses (%) 27% 29% 27% 26%
Adjusted EBITDA $60.5 $49.4 $60.5 $31.6
RECONCILIATION OF NON-IFRS ADJUSTED EBITDA
(figures in millions)
For the three months ended June 30, 2020
Net income (IFRS) $6.6
Add (deduct) impact of net effect
of change in fair value of biologicals $16.8
Grow (cost) adjustment for
biological assets and unsold inventory $(1.1)
Share-based compensation $0.5
Interest expense, net $6.8
Depreciation and amortization $3.7
Depreciation included in cost of goods sold $3.1
Provision for income taxes $19.2
Other income, net $5.0
Total adjustments $54.0
Adjusted EBITDA $60.5
The management discussion and analysis for the period and the accompanying financial statements and notes are available under the company's profile on SEDAR and on the company's website.
This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Updated financial guidance
Given Trulieve's strong financial performance in the first half of 2020, the company expects full-year 2020 financial results to materially exceed previously issued revenue and adjusted EBITDA guidance ranges, driven principally by continued market share gains and operating leverage. The company is raising its guidance as shown in the associated table.
In millions Previous guidance Updated guidance
Revenue $380.0-$400.0 $465.0-$485.0
Adjusted EBITDA $140.0-$160.0 $205.0-$225.0
The company will host a conference call and live audio webcast on Aug. 12, 2020, at 8:30 a.m. Eastern Time to discuss its second quarter 2020 financial results.
All interested parties can join the conference call by dialling 1-888-231-8191 or 1-647-427-7450, conference ID 4364705. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until Aug. 19, 2020, at midnight ET. To access the archived conference call, please dial 1-855-859-2056 and enter the encore code 3582877.
Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.
About Trulieve Cannabis Corp.
Trulieve is a vertically integrated seed-to-sale company and is the first and largest fully licensed medical cannabis company in the state of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the state of Florida as well as directly to patients through home delivery. Trulieve also operates in California, Massachusetts and Connecticut. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF.
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