Trulieve Reports Record Third Quarter 2021 Results and 15th Consecutive Profitable Quarter
Continues Execution of Hub Strategy with Harvest Acquisition
3.5 Million Square Feet of Cultivation and Processing Capacity
Q3 2021 Financial and Operational Highlights
- Net revenue increased 64% year-over-year to
$224.1 million . - 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 EBITDA1 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 .2- Positive cash flow from operations of
$75.1 million for the nine months endedSeptember 30, 2021 . - Cash of
$213.6 million as ofSeptember 30, 2021 . - Opened 7 new dispensaries, increasing retail footprint to 101 retail locations nationwide.
- Began first cultivation operations in the state of
West Virginia . - Closed the acquisition of the equity of
Keystone Shops inPennsylvania . - 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 .
1. See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP. |
2. Q3 2021 combined results represent the simple addition of |
Recent Events
- Completed the acquisition of
Harvest Health & Recreation Inc. onOctober 1, 2021 . - Closed
$350 million private placement of 8% senior secured notes dueOctober 2026 , representing industry leading terms forU.S. plant touching cannabis operators. - Retired
$270.1 million of high-cost and short-term Harvest debt, including debt due upon change in control. - Retired
$18 million inTrulieve notes payable. - Opened first medical dispensaries in
West Virginia with new retail locations inMorgantown andWeston . - Converted 14 former Harvest dispensaries to
Trulieve branded retail locations and opened 3Trulieve locations inFlorida . - Currently operate 155 retail dispensaries and 3.5 million square feet of cultivation and processing capacity in
the United States .
"Our third quarter results underscore our commitment to operational excellence and adherence to our stated goals," said
Rivers continued, "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."
Financial Highlights
Results of Operations |
For the Three Months Ended |
For the Nine Months Ended |
||||||||
(Figures in millions |
September |
September |
change |
September |
September |
change |
||||
Total Revenue |
$ |
224.1 |
$ |
136.3 |
64% |
$ |
633.0 |
$ |
353.1 |
79% |
Gross Profit |
$ |
153.9 |
$ |
102.2 |
51% |
$ |
433.7 |
$ |
266.5 |
63% |
Gross Profit % |
69% |
75% |
-6% |
69% |
75% |
-7% |
||||
Operating Expenses |
$ |
87.7 |
$ |
42.7 |
105% |
$ |
218.6 |
$ |
112.1 |
95% |
Operating Expenses % |
39% |
31% |
8% |
35% |
32% |
3% |
||||
Net income |
$ |
18.6 |
$ |
17.4 |
7% |
$ |
89.6 |
$ |
60.0 |
49% |
Adjusted EBITDA |
$ |
98.0 |
$ |
68.7 |
43% |
$ |
283.7 |
$ |
178.7 |
59% |
The Company's Form 10-Q for the quarter ended
This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Conference Call
The Company will host a conference call and live audio webcast on November 15, 2021 at
All interested parties can join the conference call by dialing 1-855-669-9657, conference ID: 10161240. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until November 22, 2021. To access the archived conference call, please dial 1-855-669-9658 and enter the encore code 10161240.
A live audio webcast of the conference call will be available at: https://investors.trulieve.com/events-presentations
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.
About
To learn more about
Non-GAAP Financial Measures
Our management uses financial measures that are not in accordance with generally accepted accounting principles in
Adjusted EBITDA reported by
Reconciliation of Non-GAAP Adjusted EBITDA
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA, for each of the periods presented for
Three Months Ended |
Nine Months Ended |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
(dollars in millions) |
||||||||||||||||
Net income and comprehensive income |
$ |
18.6 |
$ |
17.4 |
$ |
89.6 |
$ |
60.0 |
||||||||
Add impact of: |
||||||||||||||||
Interest expense, net |
6.1 |
5.4 |
20.7 |
16.6 |
||||||||||||
Provision for income taxes |
41.6 |
25.9 |
105.3 |
67.1 |
||||||||||||
Depreciation and amortization |
7.7 |
3.3 |
19.8 |
8.6 |
||||||||||||
Depreciation included in cost of goods sold |
5.7 |
2.5 |
14.4 |
7.4 |
||||||||||||
EBITDA |
79.8 |
54.6 |
249.7 |
159.7 |
||||||||||||
Acquisition and transaction costs |
11.1 |
— |
14.3 |
— |
||||||||||||
COVID related expenses |
0.5 |
2.9 |
6.0 |
6.0 |
||||||||||||
Share-based compensation and related premiums |
4.9 |
0.5 |
6.4 |
2.2 |
||||||||||||
Inventory step up, fair value |
0.7 |
— |
3.2 |
— |
||||||||||||
Integration and transition costs |
0.8 |
— |
2.7 |
— |
||||||||||||
Other non-recurring costs |
0.2 |
— |
1.6 |
— |
||||||||||||
Other expense (income), net |
(0.1) |
10.8 |
(0.4) |
10.8 |
||||||||||||
Total adjustment |
18.2 |
14.2 |
34.0 |
19.0 |
||||||||||||
Adjusted EBITDA |
$ |
98.0 |
$ |
68.7 |
$ |
283.7 |
$ |
178.7 |
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA, for each of the periods presented for
Three Months Ended |
||||||||||||||||
|
Harvest3 |
Eliminations |
Combined |
|||||||||||||
(dollars in millions) |
||||||||||||||||
Net income and comprehensive income |
$ |
18.6 |
$ |
(25.6) |
$ |
(2.9) |
$ |
(9.8) |
||||||||
Add impact of: |
||||||||||||||||
Interest expense, net |
6.1 |
9.8 |
— |
15.9 |
||||||||||||
Provision for income taxes |
41.6 |
4.7 |
— |
46.3 |
||||||||||||
Depreciation and amortization |
7.7 |
3.0 |
— |
10.7 |
||||||||||||
Depreciation included in cost of goods sold |
5.7 |
1.0 |
— |
6.7 |
||||||||||||
EBITDA |
79.8 |
(7.1) |
(2.9) |
69.9 |
||||||||||||
Acquisition and transaction costs |
11.1 |
24.4 |
— |
35.5 |
||||||||||||
COVID related expenses |
0.5 |
0.1 |
— |
0.6 |
||||||||||||
Share-based compensation and related premiums |
4.9 |
1.9 |
— |
6.8 |
||||||||||||
Inventory step up, fair value |
0.7 |
— |
— |
0.7 |
||||||||||||
Integration and transition costs |
0.8 |
— |
— |
0.8 |
||||||||||||
Other non-recurring costs |
0.2 |
— |
— |
0.2 |
||||||||||||
Other expense (income), net |
(0.1) |
7.0 |
— |
6.9 |
||||||||||||
Total adjustment |
18.2 |
33.3 |
— |
51.6 |
||||||||||||
Adjusted EBITDA |
$ |
98.0 |
$ |
26.3 |
$ |
(2.9) |
$ |
121.4 |
3. Harvest results are preliminary unaudited amounts which do not include the impacts of alignment of accounting policies, methods and estimates nor any impact of purchase accounting. These amounts may differ significantly when reported on a proforma basis in future filings. |
Forward-Looking Statements
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 financial performance for fiscal 2021, its plans for expansion, the scope and timing of adoption of cannabis in the
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