- Generated cash flow from operations of $93 million and free cash flow of $87 million
- Reduced debt with purchase of $57 million of 2026 notes and announced redemption of $130 million of 2024 notes, resulting in $20 million in interest savings through maturity
- Expect 2023 operating cash flow of at least $100 million and free cash flow of at least $70 million
TALLAHASSEE, Fla., Nov. 9, 2023 /PRNewswire/ — Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company in the U.S., today announced its results for the quarter ended September 30, 2023. Results are reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles unless otherwise indicated. Numbers may not sum perfectly due to rounding.
Q3 2023 Financial and Operational Highlights*
- Revenue of $275 million, with 96% of revenue from retail sales.
- Achieved GAAP gross margin of 52%, with gross profit of $143 million.
- SG&A expenses lowered by $2 million sequentially to $94 million.
- Reported net loss of $25 million. Adjusted net loss of $15 million* excludes non-recurring charges, disposals and discontinued operations.
- Achieved EBITDA of $74 million*, or 27% of revenue and adjusted EBITDA of $78 million*, or 28% of revenue.
- Purchased $57 million face value senior secured 2026 notes for USD $47.6 million in September, which represents a 16.5% discount to par, plus accrued interest.
- Cash as of September 30, 2023 of approximately $200 million.
- Generated cash flow from operations of $93 million and free cash flow of $87 million in the third quarter. Anticipate 2023 cash flow from operations of at least $100 million and free cash flow generation of at least $70 million.
- Realized 235% increase in Maryland traffic in Q3 compared to Q2 following the launch of adult-use sales at our three dispensaries.
- Opened five new dispensaries in Pace and Sanford, FL, Evans and Pooler, GA, and Columbus, OH and relocated one dispensary in Kissimmee, FL.
- Ended the quarter with 32% of 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.
Recent Developments
- Announced redemption of $130 million of senior secured notes due June 18, 2024 with redemption date of December 1, 2023.
- Filed amended federal tax returns for 2019, 2020, and 2021 claiming a $143 million refund from taxes paid.
- On November 8, 2023, the Florida Supreme Court heard oral arguments regarding the Smart and Safe Florida ballot initiative for adult use. The court is expected to rule prior to April 2024.
- Launched distribution through independent pharmacies in Georgia.
- Added retail locations in Apollo Beach and Marianna, FL and relocated one dispensary in Melbourne, FL.
- Currently operate 190 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States.
Management Commentary
This year our team has done a phenomenal job executing on our plan to generate cash while making investments to support future growth. As demonstrated this quarter, Trulieve remains aligned with our shareholders, and is committed to strengthening our balance sheet with non-dilutive measures. With significant scale and service, strong cash generation, and a clearly defined strategy, Trulieve is best positioned for the coming wave of meaningful growth catalysts.
Kim Rivers, Trulieve CEO
