Trulieve Reports Fourth Quarter and Record Full Year 2022 Results Exceeding $1.2 Billion in Revenue
- Record revenue of $1.24 billion in 2022, up 32% year over year, and quarterly revenue of $302 million, with 2% retail revenue growth sequentially
- Industry leading U.S. retail network of 181 dispensaries, up 14% from 2021, supported by over 4 million square feet of cultivation and processing capacity as of December 31, 2022
- Achieved fourth quarter operating cash flow of $55 million and free cash flow of $21 million
TALLAHASSEE, Fla., March 8, 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 fourth quarter and full year ended December 31, 2022. 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.
Q4 2022 Financial and Operational Highlights*
- Revenue of $302 million, with 2% retail revenue growth and 96% of revenue from retail sales.
- Achieved GAAP gross margin of 50%, with gross profit of $150 million.
- Reported net loss of $77 million. Adjusted net loss of $35 million* excludes non-recurring charges, asset impairments, disposals and discontinued operations.
- Generated adjusted EBITDA of $85 million*, or 28% of revenue. Adjusted EBITDA reflects one time charges, idle capacity, and inventory reduction tied to cash generation efforts.
- Reduced inventory by $4 million versus $32 million build in the third quarter.
- Achieved operating cash flow of $55 million and free cash flow of $21 million.
- Closed $90 million in commercial loans with average interest rate of 7.5% interest.
- Opened five new dispensaries in Sierra Vista, Arizona; Hobe Sound, Lake Worth, and Land O’ Lakes, Florida; and Huntington, West Virginia and rebranded Trulieve dispensary in Glendale, Arizona.
*See “Non-GAAP Financial Measures” below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
2022 Full Year Financial and Operational Highlights*
- Revenue of $1.2 billion increased 32% year-over-year.
- Gross profit of $682 million and gross margin of 55% in 2022.
- GAAP net loss of $246 million and adjusted net loss of $30 million*, which excludes non-recurring charges, asset impairments, disposals and discontinued operations, associated with the Harvest acquisition and strategic repositioning of assets to improve cash flow.
- Adjusted EBITDA of $400 million, or 32% of revenue.*
- Cash at year end of $219 million.
- Closed $75 million in senior secured notes at 8% interest due October 2026.
- Commenced cultivation operations in Georgia to support retail launch in 2023.
- Opened 25 dispensaries in 2022, increasing retail footprint by 14% to 181 retail locations nationwide at year end.
- Exited 2022 with operations in 11 states, with 32% 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.
Recent Developments
- Opened three new dispensaries in Palatka and Winter Haven, Florida and Beckley, West Virginia.
- Launched adult-use sales in Bristol, Connecticut.
- First U.S. cannabis company to launch advertising campaigns on Twitter.
- Launched proprietary brands Roll One and Modern Flower in West Virginia and Massachusetts.
- Currently operate 184 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States.
Management Commentary
Trulieve has grown to surpass $1.2 billion in revenue in less than seven years, a notable milestone and a testament to the agility of our team. Our success is the culmination of thoughtful intention, superb execution, and best in class capabilities for rapid growth.
Kim Rivers, Trulieve CEO
With increasing mainstream support and meaningful regulatory reform on the horizon, tremendous growth opportunities lie ahead for U.S. legal cannabis. In 2023, we are laser focused on cash generation while investing to build a sustainable company designed to thrive in an integrated commerce environment.
Financial Highlights*
Conference Call
The Company will host a conference call and live audio webcast on March 8, 2023, at 8:30 A.M. Eastern time, to discuss its fourth quarter and full year 2022 financial results. Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.
North American toll free: 1-888-317-6003 – Passcode: 0344386
International: 1-412-317-6061 – Passcode: 0344386
A live audio webcast of the conference call will be available at:
https://app.webinar.net/ablVoLE61N3
A powerpoint presentation and archived replay of the webcast will be available at:
https://investors.trulieve.com/events
The Company’s Form 10-K for the year ended December 31, 2022, will be available on the SEC’s website or at https://investors.trulieve.com/annual-reports-and-proxy. The Company’s Management Discussion and Analysis for the period and the accompanying financial statements and notes will be available under the Company’s profile on SEDAR and on its website at https://investors.trulieve.com/quarterly-results. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted EBITDA, adjusted gross profit, adjusted net income (loss), adjusted net income (loss) per diluted share. 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 are not, and should not be considered as, measures of liquidity. 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.
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:
Reconciliation of Non-GAAP Adjusted Gross Profit
The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:
Reconciliation of Non-GAAP Adjusted Net Income
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:
Reconciliation of Non-GAAP Adjusted Earnings Per Share
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:
About Trulieve
Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with established hubs in the Northeast, Southeast, and Southwest, anchored by leading market positions in Arizona, Florida, and Pennsylvania. Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com.
