Trulieve Reports Fourth Quarter and Full Fiscal Year 2019 Financial Results
A strong year end with continued operational success supported by industry leading profitability
Fourth Quarter 2019 Financial & Operational Highlights
- Achieved record revenue of
$79.7 million , an increase of 13% on a sequential quarter-to-quarter basis - Adjusted EBITDA1,2 increased from
$36.9 million in Q3 2019 to$45.0 million in Q4 2019 - Significant, sustained market share in
Florida , demonstrating Trulieve's ability to maintain its brand and customer loyalty - Continued initiatives for the optimization of efficiencies and economies of scale
- Enhanced strategic capabilities with the appointment of
Susan Thronson andThomas Millner to serve as advisors to the Trulieve Board of Directors - Appointed
Valda Coryat as Chief Marketing Officer, adding extensive consumer packaged goods and agricultural experience - Opened seven additional dispensaries in
Florida in the fourth quarter, to reach 44 stores nationally atDecember 31, 2019 - Increased total current cultivation capacity to approximately 1.7 million square feet, with plans to continue indoor cultivation build-out at
Jefferson County, FL location to match expected demand
Recent Highlights & Developments
- Implemented quick changes in response to COVID-19 pandemic, including adding health and safety procedures for employees and facilities, increasing production rates to ensure adequate supply in stores, and investments in vehicles in anticipation of increased delivery demand
"Our fourth quarter results reflect our strong brand and customer loyalty, which were key factors in our success for the year. We continued to grow our footprint in
"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% market share in Florida. Our solid foundation and cash position enable us to monitor opportunities that meet our disciplined criteria and we remain optimistic about expansion in 2020."
2019 Quarterly and Full Year Financial Highlights
Results of operations |
For the three months |
For the three months |
For the year ended |
||||||
(Figures in millions and % |
2019 |
2019 |
% |
2019 |
2018 |
% |
2019 |
2018 |
% |
Total Revenue |
|
|
13% |
|
|
122% |
|
|
146% |
Revenue less production |
|
|
17% |
|
|
148% |
|
|
138% |
Revenue less production |
65% |
62% |
- |
65% |
58% |
- |
64% |
67% |
- |
Operating Expenses |
|
|
30% |
|
|
124% |
|
|
54% |
Operating Expenses % |
29% |
25% |
- |
29% |
29% |
- |
27% |
43% |
- |
Adjusted EBITDA1,2,3 |
|
|
22% |
|
|
276% |
|
|
159% |
Reconciliation of Non-IFRS (Figures in millions) |
For the three months ended |
For the year ended |
Net Income (IFRS) |
|
|
Add (Deduct) Impact of Net Effect |
|
|
Grow Cost adjustment for |
|
|
Interest Expense, Net |
|
|
Depreciation and Amortization |
|
|
Depreciation included in Cost of |
|
|
Provision for Income Taxes |
|
|
Other Income, Net |
|
|
Total Adjustments |
|
|
Adjusted EBITDA1,2,3 |
|
|
1. |
Adjusted EBITDA is a non-IFRS financial measure. See Non-IFRS Measures section of this news release. |
2. |
Adjusted EBITDA and Revenue less production expenses and cost of goods from third party suppliers do not include the net effect of changes in the fair value of biological assets. |
3. |
ease refer to "RECONCILIATIONS OF NON-IFRS FINANCIAL AND PERFORMANCE MEASURES" of the Company's 2019 Annual MD&A for Adjusted EBITDA calculations. |
The Company determined that share-based compensation expense for previously disclosed warrants was understated by approximately
The Management Discussion and Analysis for the period and the accompanying financial statements and notes are available under the Company's profile on SEDAR at www.sedar.com and on its website at https://www.trulieve.com/investors.
This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Financial Guidance
Reflecting continued leverage of scale and financial discipline, the Company is reaffirming guidance for full year 2020. Guidance for 2020 can be found in our first quarter press release available at: https://www.newswire.ca/news-releases/trulieve-reports-another-quarter-of-record-revenue-898676764.html
Conference Call
The Company will host a conference call and live audio webcast on 2020,
All interested parties can join the conference call by dialing 1-888-231-8191 or 1-647-427-7450, conference ID: 9576534. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until
A live audio webcast of the conference call will be available at:
https://produceredition.webcasts.com/starthere.jsp?ei=1294031&tp_key=ea54bd8915
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 by clicking the link above.
Non-IFRS Measures
Adjusted EBITDA is not a recognized performance measure under IFRS, does not have a standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is included as a supplemental disclosure because Management believes that such measurement provides a better assessment of the Company's operations on a continuing basis by eliminating certain material non-cash items and certain other adjustments Management believes are not reflective of the Company's ongoing operations and performance. Adjusted EBITDA has limitations as an analytical tool as it excludes from net income as reported interest, tax, depreciation, non-cash expenses, RTO expense, other income, grow cost expensed for biological assets and unsold inventory, and the non-cash fair value effects of accounting for biological assets and inventories. Because of these limitations, Adjusted EBITDA should not be considered as the sole measure of the Company's performance and should not be considered in isolation from, or as a substitute for, analysis of the Company's results as reported under IFRS. The most directly comparable measure to Adjusted EBITDA calculated in accordance with IFRS is operating income (loss). See "Reconciliation of non-IFRS measures" in the Company's Management's Discussion and Analysis for the year ended
About
Trulieve is a vertically integrated "seed-to-sale" company and is the first and largest fully licensed medical cannabis company in the
This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "
Forward-Looking Statements
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Such statements include statements regarding the future demand for the Company's products, the financial performance of the Company, potential acquisitions and expansion of the Company's operations. Words such as "expects", "continue", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein, including, without limitation, the risk factors discussed in the Company's filings on SEDAR at www.sedar.com. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
To learn more about Trulieve, visit www.Trulieve.com.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
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