Trulieve Caps Transformational Year with Record Fourth Quarter and Full Year 2021 Results
- Record revenue of
$938.4 million in 2021, up 80% year over year, and quarterly revenue of$305.3 million , up 36% sequentially - Industry leading
U.S. retail network of 162 dispensaries, up 116% from 2020, supported by over 4.0 million square feet of cultivation and processing capacity, up 107% from 2020, as ofMarch 30, 2022
- Revenue increased 80% year-over-year to
$938.4 million in 2021. - Gross profit of
$566.1 million and gross margin of 60.3% in 2021 compared to gross profit of$386.4 million and gross margin of 74.1% in 2020. - Adjusted gross profit of
$621.4 million and adjusted gross margin of 66.2% in 2021 compared to adjusted gross profit of$389.9 million and adjusted gross margin of 74.8% in 2020.* The decline in adjusted gross margin is primarily attributable to strategic diversification into new lower margin markets and channels. - Net income of
$18.0 million and adjusted net income of$123.4 million *, which excludes$105.4 million of non-recurring compensation, fair value of inventory step up, and transaction, acquisition and integration charges primarily associated with theHarvest Health & Recreation Inc. ("Harvest") acquisition. - Adjusted EBITDA of
$384.6 million , or 41.0% of revenue in 2021 compared to adjusted EBITDA of$260.1 million , or 49.9% of revenue in 2020.* - Cash at year end of
$234 million . - Raised
$227 million in equity and$350 million in five year senior secured notes at 8% interest, representing industry leading terms forU.S. plant touching cannabis operators. - Welcomed two new members to the Board of Directors, which now includes four women representing half of the Board.
- Closed seven total acquisitions valued at
~$1.5 billion in 2021 including Harvest andKeystone Shops . The Harvest acquisition closed in less than five months from the announcement, accelerating integration and optimization activities. - Added 84 dispensaries in 2021, increasing retail footprint by 112% to 159 retail locations nationwide at year end.
- Added ~1.6 million square feet of cultivation and processing capacity through organic growth and acquisitions in 2021, increasing capacity by 89% to over 3.5 million square feet at year end.
- Commenced cultivation and retail operations in
Massachusetts andWest Virginia and received a notice of intent to award a Class 1 production license inGeorgia . - Exited 2021 with operations in 11 states, with 30% of our 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.
- Revenue increased 81% in the fourth quarter compared to the fourth quarter of 2020 and 36% sequentially to
$305.3 million . - Gross profit of
$132.4 million and gross margin of 43.4% in the fourth quarter of 2021 compared to gross profit of$119.9 million and gross margin of 71.2% in the fourth quarter of 2020. - Adjusted gross profit of
$180.6 million and adjusted gross margin of 59.1% in the fourth quarter of 2021 compared to adjusted gross profit of$121.7 million and adjusted gross margin of 72.2% in the fourth quarter of 2020.* - Net loss of
$71.5 million and adjusted net income of$1.8 million *, which excludes$73.3 million of non-recurring fair value of inventory step up, and transaction, acquisition and integration charges primarily associated with the Harvest acquisition. - Adjusted EBITDA of
$100.9 million , or 33.0% of revenue in the fourth quarter of 2021 compared to adjusted EBITDA of$81.4 million or 48.3% of revenue in the same period of the prior year. - Added 58 dispensaries in the fourth quarter including 49 acquired through Harvest and Purplemed, 9 opened in
Florida ,Pennsylvania , andWest Virginia , and completed the relocation of two dispensaries inFlorida . - Rebranded and reopened fourteen legacy Harvest dispensaries in
Florida during October as required following the Harvest acquisition. - Released our inaugural ESG report, building upon the work done in our Sustainability Report in 2020.
*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
- Closed second tranche of private placement of 8% senior secured notes due
October 2026 totaling$75 million . - Opened 3 new dispensaries in
Boca Raton andRiverview, Florida andPhiladelphia, Pennsylvania . - Completed the rebranding to
Trulieve of 22 affiliated and acquired retail locations inMaryland andPennsylvania . - Currently operate 162 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in
the United States . - Acquired 64K square feet of operational indoor cultivation capacity in
Arizona . - Expanded or entered into new branded partnerships with Connected, El Blunto,
Khalifa Kush , andMiami Mango . - Announced a partnership with Survivor's
Ethan Zohn as a brand ambassador for Momenta branded products. - Launched nationwide Supplier Diversity Initiative.
"2021 was a phenomenal year for
Rivers continued, "Our team built upon our established track record of success, further expanding our distribution network through our hub strategy while setting the stage for continued growth. In 2022 we expect to deliver improved performance as our efforts to optimize assets and teams across our platform provide meaningful contributions to our results."
Results of Operations |
For the Three Months Ended |
For the Full Year Ended |
||||||||||
(Figures in millions and % change based on these figures) |
|
|
change |
|
|
change |
||||||
Revenue |
$ |
305.3 |
$ |
168.4 |
81% |
$ |
938.4 |
$ |
521.5 |
80% |
||
Gross Profit |
$ |
132.4 |
$ |
119.9 |
10% |
$ |
566.1 |
$ |
386.4 |
47% |
||
Gross Margin % |
43% |
71% |
60% |
74% |
||||||||
Adjusted Gross Profit |
$ |
180.6 |
$ |
121.7 |
48% |
$ |
621.4 |
$ |
389.9 |
59% |
||
Adjusted Gross Margin % |
59% |
72% |
66% |
75% |
||||||||
Operating Expenses |
$ |
150.6 |
$ |
56.0 |
169% |
$ |
369.2 |
$ |
168.1 |
120% |
||
Operating Expenses % |
49% |
33% |
39% |
32% |
||||||||
Net Income (Loss) |
$ |
(71.5) |
$ |
3.0 |
--- |
$ |
18.0 |
$ |
63.0 |
-71% |
||
Adjusted Net Income |
$ |
1.8 |
$ |
41.8 |
-96% |
$ |
123.4 |
$ |
120.5 |
2% |
||
Diluted Shares Outstanding |
145.1 |
119.4 |
146.8 |
118.3 |
||||||||
EPS |
$ |
(0.49) |
$ |
0.03 |
--- |
$ |
0.12 |
$ |
0.53 |
-77% |
||
Adjusted EPS |
$ |
0.01 |
$ |
0.35 |
-97% |
$ |
0.84 |
$ |
1.02 |
-18% |
||
Adjusted EBITDA |
$ |
100.9 |
$ |
81.4 |
24% |
$ |
384.6 |
$ |
260.1 |
48% |
||
Adjusted EBITDA Margin % |
33% |
48% |
41% |
50% |
The Company will host a conference call and live audio webcast on
Interested parties can join the conference call by dialing in as directed below. Participants are asked to request the
International dial in: 1-412-542-4136
A live audio webcast of the conference call will be available at:
https://app.webinar.net/m21krRWnGKb
A powerpoint presentation is available at
https://investors.trulieve.com/events-presentations
An archived replay of the webcast will be available at:
https://investors.trulieve.com/events-presentations
The Company's Form 10-K for the year ended
Facebook: @Trulieve
Instagram: @Trulieve_
Twitter: @Trulieve
In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted gross profit, adjusted net income, adjusted net income per diluted share, and adjusted cash flow from operations. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to evaluate our operating results and financial performance. We believe these measures are useful to investors as they are widely used measures of performance and can facilitate comparison to other companies. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP.
The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:
(Amounts expressed in millions of |
For the Three Months Ended |
For the Full Year Ended |
||||||||
|
|
|
|
|||||||
Gross Profit GAAP |
$ |
132.4 |
$ |
119.9 |
$ |
566.1 |
$ |
386.4 |
||
Gross Margin % GAAP |
43% |
71% |
60% |
74% |
||||||
Add (Deduct) Impact of: |
||||||||||
Inventory Step Up Fair Value |
$ |
38.0 |
$ |
1.0 |
$ |
41.2 |
$ |
1.0 |
||
Transaction, Acquisition, and Integration Costs |
$ |
10.2 |
$ |
0.9 |
$ |
14.0 |
$ |
2.6 |
||
Adjusted Gross Profit Non-GAAP |
$ |
180.6 |
$ |
121.7 |
$ |
621.4 |
$ |
389.9 |
||
Adjusted Gross Margin % Non-GAAP |
59% |
72% |
66% |
75% |
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:
(Amounts expressed in millions of |
For the Three Months Ended |
For the Full Year Ended |
||||||||
|
|
|
|
|||||||
Net Income (Loss) GAAP |
$ |
(71.5) |
$ |
3.0 |
$ |
18.0 |
$ |
63.0 |
||
Add (Deduct) Impact of: |
||||||||||
Share-Based Compensation |
$ |
0.0 |
$ |
0.0 |
$ |
4.2 |
$ |
0.0 |
||
Warrant Liability Adjustment |
$ |
(0.2) |
$ |
29.9 |
$ |
(0.2) |
$ |
42.7 |
||
Inventory Step Up Fair Value |
$ |
38.0 |
$ |
1.0 |
$ |
41.2 |
$ |
1.0 |
||
Transaction, Acquisition, and Integration Costs |
$ |
30.0 |
$ |
4.7 |
$ |
48.7 |
$ |
4.7 |
||
Covid Related Expenses |
$ |
0.2 |
$ |
3.2 |
$ |
6.2 |
$ |
9.1 |
||
Impairment Intangible Assets |
$ |
5.4 |
$ |
0.0 |
$ |
5.4 |
$ |
0.0 |
||
Adjusted Net Income Non-GAAP |
$ |
1.8 |
$ |
41.8 |
$ |
123.4 |
$ |
120.5 |
The following table presents a reconciliation of GAAP earnings (loss) per share to non-GAAP adjusted earnings per share, for each of the periods presented:
(Amounts expressed in millions of |
For the Three Months Ended |
For the Full Year Ended |
||||||||
|
|
|
|
|||||||
Earnings (Loss) Per Share GAAP |
$ |
(0.49) |
$ |
0.03 |
$ |
0.12 |
$ |
0.53 |
||
Add (Deduct) Impact of: |
||||||||||
Share-Based Compensation |
$ |
0.00 |
$ |
0.00 |
$ |
0.03 |
$ |
0.00 |
||
Warrant Liability Adjustment |
$ |
0.00 |
$ |
0.25 |
$ |
0.00 |
$ |
0.36 |
||
Inventory Step Up Fair Value |
$ |
0.26 |
$ |
0.01 |
$ |
0.28 |
$ |
0.01 |
||
Transaction, Acquisition, and Integration Costs |
$ |
0.21 |
$ |
0.04 |
$ |
0.33 |
$ |
0.04 |
||
Covid Related Expenses |
$ |
0.00 |
$ |
0.03 |
$ |
0.04 |
$ |
0.08 |
||
Impairment Intangible Assets |
$ |
0.04 |
$ |
0.00 |
$ |
0.04 |
$ |
0.00 |
||
Adjusted Earnings Per Share Non-GAAP |
$ |
0.01 |
$ |
0.35 |
$ |
0.84 |
$ |
1.02 |
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA, for each of the periods presented:
(Amounts expressed in millions of |
For the Three Months Ended |
For the Full Year Ended |
||||||||
|
|
|
|
|||||||
Net Income (Loss) GAAP |
$ |
(71.5) |
$ |
3.0 |
$ |
18.0 |
$ |
63.0 |
||
Add (Deduct) Impact of: |
||||||||||
Interest Expense, net |
$ |
14.1 |
$ |
3.7 |
$ |
34.8 |
$ |
20.2 |
||
Provision For Income Taxes |
$ |
40.8 |
$ |
27.3 |
$ |
146.1 |
$ |
94.5 |
||
Depreciation and Amortization |
$ |
28.3 |
$ |
4.0 |
$ |
48.1 |
$ |
12.6 |
||
Depreciation in COGS |
$ |
9.7 |
$ |
4.1 |
$ |
24.1 |
$ |
11.5 |
||
EBITDA |
$ |
21.3 |
$ |
42.2 |
$ |
271.0 |
$ |
201.8 |
||
Inventory Step Up Fair Value |
$ |
38.0 |
$ |
1.0 |
$ |
41.2 |
$ |
1.0 |
||
Integration and Transition Costs |
$ |
22.9 |
$ |
0.0 |
$ |
25.6 |
$ |
0.0 |
||
Acquisition and Transaction Costs |
$ |
1.5 |
$ |
4.7 |
$ |
15.8 |
$ |
4.7 |
||
Share-Based Compensation |
$ |
7.0 |
$ |
0.6 |
$ |
13.4 |
$ |
2.8 |
||
Other Non-Recurring Expenses |
$ |
5.2 |
$ |
0.0 |
$ |
6.8 |
$ |
0.0 |
||
Covid Related Expenses |
$ |
0.2 |
$ |
3.2 |
$ |
6.2 |
$ |
9.1 |
||
Impairment and Disposal of Long-lived Assets |
$ |
5.4 |
$ |
0.1 |
$ |
5.4 |
$ |
0.1 |
||
Non-Controlling Interest |
$ |
0.5 |
$ |
0.0 |
$ |
0.5 |
$ |
0.0 |
||
Other Expense (Income), net |
$ |
(0.8) |
$ |
(0.1) |
$ |
(1.1) |
$ |
(2.1) |
||
Fair Value of Derivative Liabilities - Warrants |
$ |
(0.2) |
$ |
29.9 |
$ |
(0.2) |
$ |
42.7 |
||
Adjusted EBITDA Non-GAAP |
$ |
100.9 |
$ |
81.4 |
$ |
384.6 |
$ |
260.1 |
The following table presents a reconciliation of GAAP cash provided by operating activities to non-GAAP Adjusted cash provided by operating activities, for each of the periods presented:
(Amounts expressed in millions of |
For the Three Months Ended |
For the Full Year Ended |
||||||||
|
|
|
|
|||||||
Net Cash Provided by Operating Activities GAAP |
$ |
(62.2) |
$ |
26.8 |
$ |
12.9 |
$ |
99.6 |
||
Add (Deduct) Impact of: |
||||||||||
Share-Based Compensation |
$ |
0.0 |
$ |
0.0 |
$ |
4.2 |
$ |
0.0 |
||
Warrant Liability Adjustment |
$ |
(0.2) |
$ |
29.9 |
$ |
(0.2) |
$ |
42.7 |
||
Inventory Step Up Fair Value |
$ |
38.0 |
$ |
1.0 |
$ |
41.2 |
$ |
1.0 |
||
Transaction, Acquisition, and Integration Costs and NCI |
$ |
30.0 |
$ |
4.7 |
$ |
48.7 |
$ |
4.7 |
||
Covid Related Expenses |
$ |
0.2 |
$ |
3.2 |
$ |
6.2 |
$ |
9.1 |
||
Impairment Long-lived Assets |
$ |
5.4 |
$ |
0.0 |
$ |
5.4 |
$ |
0.0 |
||
Adjusted Cash Provided by Operating Activities Non-GAAP |
$ |
11.1 |
$ |
65.5 |
$ |
118.3 |
$ |
157.1 |
This news release includes forward-looking information and statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to the Company's expectations or forecasts of business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs and include statements regarding the Company's expected revenue and adjusted EBITDA for fiscal 2022, its plans for expansion, the scope and timing of adoption of cannabis in the
Investor Contact
+1 (424) 202-0210
Christine.Hersey@Trulieve.com
Media Contact
+1 (404) 218-3077
Robert.Kremer@Trulieve.com
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