Fourth quarter performance delivered highest revenue and gross margin for the year
Record cash flow from operations of $202 million and free cash flow of $161 million* in 2023
Expect 2024 cash flow from operations of at least $225 million
TALLAHASSEE, Fla., Feb. 29, 2024 /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, 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.
Q4 2023 Financial and Operational Highlights*
Revenue of $287 million increased 4% sequentially, with 95% of revenue from retail sales.
Achieved GAAP gross margin of 54%, with gross profit of $154 million.
Reported net loss of $33 million. Adjusted net loss of $23 million* excludes non-recurring charges, asset impairments, disposals and discontinued operations.
Generated cash flow from operations of $131 million and free cash flow of $122 million*.
Achieved EBITDA of $73 million*, or 25% of revenue and adjusted EBITDA of $88 million*, or 31% of revenue.
Outperformed the third quarter as a result of consumer strength and holiday sales, driven by higher traffic, basket size, and units sold.
Redeemed $130 million of senior secured notes due June 18, 2024 on December 1, 2023.
Closed $25 million five-year mortgage financing at 8.31% interest.
Filed amended federal tax returns for 2019, 2020, and 2021 claiming $143 million of refunds, also filed corresponding amended state returns claiming $31 million of refunds. Received $62 million in refunds in the fourth quarter and a total of $113 million in refunds to date alongside one rejection notice in the amount of $1.2 million.
Relocated one and opened four new dispensaries in Florida.
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.
**Fourth quarter results were the highest of the year on an absolute and percentage basis.
2023 Full Year Financial and Operational Highlights*
Revenue of $1.13 billion, with 96% of revenue from retail sales.
Achieved GAAP gross margin of 52%, with gross profit of $589 million.
SG&A expenses lowered by $61 million from prior year to $386 million.
Reported net loss of $527 million. Adjusted net loss of $70 million* excludes non-recurring charges, asset and goodwill impairments, disposals and discontinued operations.
Generated cash flow from operations of $202 million and free cash flow of $161 million*.
Achieved adjusted EBITDA of $322 million*, or 29% 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 December 31, 2023 of approximately $208 million.
Launched adult-use sales in Connecticut and Maryland and opened new markets with medical dispensaries in Georgia and Ohio.
Exited California retail assets and operations in Massachusetts as part of cash preservation and generation plan to bolster business resilience.
Opened 17 dispensaries in 2023, increasing retail footprint to 192 retail locations nationwide at year end.
*See “Non-GAAP Financial Measures” below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
Recent Developments
The Smart and Safe Florida campaign for adult use presented oral arguments to the Florida Supreme Court in November. The deadline for a ruling is April 1, 2024.
Added two executives to the leadership team in January, Wes Getman, Chief Financial Officer, and Marie Zhang, Chief Operating Officer.
Opened one retail location in Pinellas Park, Florida.
Currently operate 193 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States.
Management Commentary
“Last year we successfully executed on our plan to bolster our business resilience with a focus on cash generation and preservation while making investments to support future growth,” said Kim Rivers, Trulieve CEO. “Fourth quarter momentum was underpinned by improved consumer trends. We entered 2024 in a position of significant strength just as the outlook for industry growth and reform brightened. With strong cash generation and a clearly defined strategy, Trulieve is best positioned for the coming wave of meaningful growth catalysts.”
Financial Highlights*
Results of Operations
For the Three Months Ended
For the Full Year Ended
(Figures in millions
except per share data and
% change based on these
figures)
December 31,
2023
December 31,
2022
change
September 30,
2023
change
December 31,
2023
December 31,
2022
change
Revenue
$
287
$
298
(4 %)
$
275
4 %
$
1,129
$
1,218
(7 %)
Gross Profit
$
154
$
157
(2 %)
$
143
8 %
$
589
$
689
(15 %)
Gross Margin %
54 %
53 %
52 %
52 %
57 %
Operating Expenses
$
125
$
152
(18 %)
$
120
4 %
$
810
$
639
27 %
Operating Expenses %
43 %
51 %
43 %
72 %
52 %
Net Loss**
$
(33)
$
(77)
(57 %)
$
(25)
32 %
$
(527)
$
(246)
114 %
Net Loss Continuing Ops
$
(37)
$
(64)
(43 %)
$
(23)
60 %
$
(436)
$
(183)
139 %
Adjusted Net Income (Loss)
$
(23)
$
(34)
(33 %)
$
(15)
55 %
$
(70)
$
(19)
272 %
Diluted Shares Outstanding
189
189
189
189
188
EPS Continuing Ops
$
(0.19)
$
(0.33)
(44 %)
$
(0.12)
57 %
$
(2.28)
$
(0.95)
140 %
Adjusted EPS
$
(0.12)
$
(0.18)
(33 %)
$
(0.08)
50 %
$
(0.37)
$
(0.10)
270 %
Adjusted EBITDA
$
88
$
83
6 %
$
78
13 %
$
322
$
398
(19 %)
Adjusted EBITDA Margin %
31 %
28 %
28 %
29 %
33 %
*See “Non-GAAP Financial Measures” below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
**Net loss includes discontinued operations and non-controlling interest.
Conference Call
The Company will host a conference call and live audio webcast on February 29, 2024, at 8:30 A.M. Eastern time, to discuss its fourth quarter and full year 2023 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: 1-844-824-3830
Passcode: 1674609
International: 1-412-542-4136
Passcode: 1674609
A live audio webcast of the conference call will be available at:
https://app.webinar.net/rGl0B9nPzjZ
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, 2023, will be available on the SEC’s website or at https://investors.trulieve.com/quarterly-results. 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.
Trulieve Cannabis Corp.
Consolidated Balance Sheets (Unaudited)
(in millions, except share data)
December 31,
2023
December 31,
2022
ASSETS
Current Assets:
Cash and cash equivalents
$ 201.4
$ 207.2
Restricted cash
6.6
6.6
Accounts receivable, net
6.7
6.5
Inventories
213.1
276.5
Prepaid expenses
17.6
11.0
Other current assets
23.7
51.2
Notes receivable – current portion
6.2
0.7
Assets associated with discontinued operations
2.0
33.7
Total current assets
477.3
593.5
Property and equipment, net
676.4
743.3
Right of use assets – operating, net
95.9
98.9
Right of use assets – finance, net
58.5
70.5
Intangible assets, net
917.2
984.8
Goodwill
483.9
791.5
Notes receivable, net
7.4
12.0
Other assets
10.4
12.8
Long-term assets associated with discontinued operations
2.0
93.1
TOTAL ASSETS
$ 2,729.1
$ 3,400.4
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities
$ 83.2
$ 82.0
Income tax payable
—
49.6
Deferred revenue
1.3
9.5
Notes payable – current portion
3.8
12.5
Operating lease liabilities – current portion
10.1
10.3
Finance lease liabilities – current portion
7.6
8.3
Construction finance liabilities – current portion
1.5
1.2
Contingencies
4.4
34.7
Liabilities associated with discontinued operations
3.0
2.3
Total current liabilities
114.8
210.3
Long-Term Liabilities:
Notes payable, net
115.9
94.2
Private placement notes, net
363.2
541.7
Operating lease liabilities
92.2
99.9
Finance lease liabilities
61.7
69.9
Construction finance liabilities
136.7
137.1
Deferred tax liabilities
207.0
224.9
Uncertain tax position liabilities
180.4
19.5
Other long-term liabilities
7.1
6.8
Long-term liabilities associated with discontinued operations
41.6
68.4
TOTAL LIABILITIES
$ 1,320.4
$ 1,472.7
SHAREHOLDERS’ EQUITY
Common stock, no par value; unlimited shares authorized. 186,235,818 and
185,987,512 shares issued and outstanding as of December 31, 2023 and
December 31, 2022, respectively.
$ —
$ —
Additional paid-in-capital
2,055.1
2,045.0
Accumulated deficit
(640.6)
(113.8)
Non-controlling interest
(5.9)
(3.5)
TOTAL SHAREHOLDERS’ EQUITY
1,408.6
1,927.7
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$ 2,729.1
$ 3,400.4
Trulieve Cannabis Corp.
Consolidated Statements of Operations (Unaudited)
(in millions, except for share data)
Three Months Ended
Full Year Ended
December
31, 2023
December
31, 2022
December
31, 2023
December
31, 2022
Revenue
$ 287.0
$ 298.5
$ 1,129.2
$ 1,218.2
Cost of goods sold
133.1
141.4
540.6
529.1
Gross profit
153.9
157.1
588.6
689.1
Expenses:
Sales and marketing
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