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Wednesday, May 18, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

The weed wire

Trulieve posts record revenues in quarterly report

The Floridian medical cannabis giant had a total of 44 stores nationwide by the end of 2019

Trulieve Cannabis partners with Lutheran church to connect Floridians to resources

The largest operator in Florida’s medical market, Trulieve Cannabis Corp. (CSE: TRUL), has posted record revenues in its latest earnings report.

On Wednesday, the company posted record revenues of US$79.7 million for the three months ended Dec. 31, 2019.

While revenues increased 13 per cent from the previous quarter, Trulieve’s earnings before interest, taxes, depreciation and amortization increased 22 per cent to US$49 million from US$36.9 over the same period.

Stock in the company slid slightly on the day, by less than two per cent, to $13.64 a share.

The “seed-to-sale” company reported opening seven additional dispensaries in Florida in the quarter, for a total of 44 stores nationally. Trulieve has over 40 medical pot shops in Florida alone.

Results of operations

For the three months
ended

For the three months
ended December 31

For the year ended
December 31

(Figures in millions and %
change based on these
figures)

Dec 31

2019

Sept 30

2019

%
change

2019

2018

%
change

2019

2018

%
change

Total Revenue

$79.7

$70.7

13%

$79.7

$35.9

122%

$252.8

$102.8

146%

Revenue less production
expenses and cost of
goods purchased2

$51.5

$44.0

17%

$51.5

$20.8

148%

$163.0

$68.6

138%

Revenue less production
expenses and cost of
goods purchased %

65%

62%

65%

58%

64%

67%

Operating Expenses

$23.4

$18.0

30%

$23.4

$10.4

124%

$68.0

$44.2

54%

Operating Expenses %

29%

25%

29%

29%

27%

43%

Adjusted EBITDA1,2,3

$45.0

$36.9

22%

$45.0

$12.0

276%

$132.5

$51.2

159%

The company reported expanding its cultivation capacity to approximately 1.7 million square feet, with plans to continue building out its indoor cultivation facility in Jefferson County, FL, to match expected demand.

The report also included Trulieve’s operational changes in response to the COVID-19 pandemic.

Read more: Trulieve Cannabis partners with Lutheran Church to connect Floridians with online services

CEO Kim Rivers said the strong fourth quarter results reflect the company’s strong brand and customer loyalty.

“We continued to grow our footprint in Florida and made significant strides building out the infrastructure needed to maximize efficiencies and achieve economies of scale,” she said.

“Despite recent developments surrounding COVID-19 and the uncertainty in the global economy, we see strong medical cannabis demand in our target markets and expect to continue maintaining our over 50 per cent market share in Florida,” Rivers said. “Our solid foundation and cash position enable us to monitor opportunities that meet our disciplined criteria and we remain optimistic about expansion in 2020.”

In its full financial report filed on sedar.com, Trulieve reported a cash position of US$91.8 million at the end of 2019.

Top image via Trulieve

 

nick@mugglehead.com

@nick_laba

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