Trulieve Q3 Revenue Improves 64% YoY To $224M, Reports 15th Consecutive Quarter Of Profitability

Trulieve Cannabis Corp. TRUL TCNNF reported its third-quarter financial results Monday with net revenue of $224.1 million, up by 64% from the same period in 2020.  

Q3 Financial Highlights

• Gross profit of $153.9 million and gross margin of 68.7% compared to gross profit of $102.2 million and gross margin of 75.0% in the third quarter 2020. 
• Net income of $18.6 million, impacted by $16.4 million of one-time compensation and transaction costs primarily associated with the Harvest acquisition. 
• Adjusted EBITDA of $98.0 million, or 43.7% of revenue. 
• Trulieve and Harvest combined third-quarter revenue of approximately $316 million, net loss of approximately $9.8 million and adjusted EBITDA of approximately $121 million.
• Cash of $213.6 million as of September 30, 2021. 

Q3 Operational Summary 

• Opened 7 new dispensaries, increasing retail footprint to 101 retail locations nationwide. 
• Began first cultivation operations in West Virginia. 
• Closed the acquisition of the equity of Keystone Shops in Pennsylvania. 
• Completed the acquisition of a dispensary license and commenced wholesale operations in Massachusetts. 
• Received a notice of intent to award a Class 1 production license in Georgia. 
• Launched product portfolio: Cultivar Collection, Momenta, Muse and Sweet Talk. 
• Launched sale of hydrocarbon extraction concentrates with first available products in the state of Florida.

Recent Events

• Completed the acquisition of Harvest Health & Recreation Inc. on October 1, 2021. 
• Closed $350 million private placement of 8% senior secured notes due October 2026, representing industry-leading terms for U.S. plant-touching cannabis operators. 
• Retired $270.1 million of high-cost and short-term Harvest debt, including debt due upon a change in control. 
• Retired $18 million in Trulieve notes payable. 

"Our third quarter results underscore our commitment to operational excellence and adherence to our stated goals," Kim Rivers, Trulieve CEO stated. "We continue to deliver on our promise to pursue profitable growth while executing on our hub strategy. Our team closed the Harvest acquisition in under five months while simultaneously meeting expansion targets in several markets. We are excited to keep the momentum going into 2022 as we fully integrate Harvest while further building scale and depth in our cornerstone markets." 

Price Action 

Trulieve’s shares closed Friday market session 7.28% higher at $30.96 per share. 

Photo: Courtesy of Mathematical Michael on Unsplash