Aurora Cannabis Announces Fiscal 2022 Fourth Quarter and Full Year Results

  • Remains #1 Canadian LP in High Margin Global Medical Cannabis Revenues; International Medical Cannabis Net Revenue Increased 35.4% from Q4 2021 and 70.3% from Fiscal 2021
  • Reiterates Adjusted EBITDA Profitability Run Rate by December 31, 2022
  • Reaffirms $150 to $170 Million in Annualized Cost Savings by December 31, 2022
  • Strengthens Balance Sheet Through Accretive Debt Reduction Totaling $155.3 Million in Q4 2022
  • Completed Profitable Acquisition of Thrive Cannabis and Majority Investment in Bevo Farms

 Aurora Cannabis Inc. (the "Company" or "Aurora" ) (NASDAQ: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, today announced its financial and operational results for the fourth quarter and fiscal year ended June 30, 2022 .

Aurora Cannabis Logo (CNW Group/Aurora Cannabis Inc.)

"We continue to enhance the long-term value of our differentiated global cannabis business by quickly identifying highly profitable growth opportunities, deploying capital in a disciplined manner, and continuing to rationalize our cost structure. We remain the #1 Canadian LP in global medical cannabis revenues and expect this high margin, high growth segment to be a key driver for future profitability. We continue to expect a positive adjusted EBITDA run rate by December 31, 2022 and remain on track with our previously announced cost saving targets of up to $170 million in annualized savings. Furthermore, our strengthened balance sheet enabled an early repurchase of $155.3 million in convertible debt during Q4 2022, while providing us with the ability to pursue strategic and accretive acquisitions. These include our purchase of a controlling interest in Bevo Farms, one of the largest suppliers of propagated vegetables and ornamental plants in North America , and Thrive Cannabis, which is widely known for its award-winning recreational brand, Greybeard," stated Miguel Martin , Chief Executive Officer of Aurora.

"During fiscal 2022, our international medical cannabis net revenues increased by over 70%; our leadership in key markets such as Germany , UK, Australia and Poland demonstrates our unique, portable and profitable international medical program. We are beginning to see signs of stabilization in our Canadian adult recreational segment and are excited about the contributions from the Thrive acquisition which continues to advance our premiumization strategy. Finally, our investment in science is beginning to pay dividends; we delivered nine new proprietary cultivars to market during the year, providing rotation and variety to consumers and driving meaningful improvements in yield," he concluded.

Fourth Quarter 2022 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q4 2022, Q3 2022, and Q4 2021 results and are in Canadian dollars)

Medical Cannabis:

  • Medical cannabis net revenue 1 was $36.6 million , a 4% increase from the prior year period, delivering 72.8% of Aurora's Q4 2022 consolidated net revenue 1 and 86.3% of adjusted gross profit before fair value adjustments 1 .
  • The increase in revenue was driven by growth in the international medical business, up 35.4% from the prior year quarter which was attributed primarily to the Company's increasing presence in key emerging international medical cannabis markets. The 7.1% sequential decrease from Q3 was due primarily to lower sales in the EU region, the result of a temporary limited supply of high-demand cultivars, and the weakening of the Euro to the Canadian dollar.
  • Adjusted gross margin before FV adjustments on medical cannabis net revenue 1 was 62% compared to 68% in the prior year period and 64% sequentially. The continued strength of the Company's medical adjusted gross margins 1 reflect the direct-to-patient model in Canada and sustained presence in the high margin international medical business. The decrease from Q4 2021 was attributed primarily to a shift in sales mix from domestic medical to export into certain international markets which yield a slightly lower margin. The decrease from Q3 2022 was due primarily to lower volumes sold in the high-margin EU region in Q4 2022.

Consumer Cannabis:

  • Consumer cannabis net revenue 1 was $12.6 million , as compared to the prior quarter net revenue of $10.3 million . The 22.2% increase was primarily due to the addition of Thrive's consumer cannabis net revenues 1 of $1.4 million for the period from May 6, 2022 to June 30, 2022 and a result of the Company's strengthened product offerings in certain categories.
  • Adjusted gross margin before FV adjustments on consumer cannabis net revenue 1 was 26% for the three months ended June 30, 2022 , compared to 29% in the prior quarter and 31% in the comparable prior year period. The decrease of 3% from Q3 2022 and 5% from Q4 2021 was due primarily to an increase in value segment vape sales.

Selling, General and Administrative ("SG&A"):

  • SG&A, including Research and Development ("R&D"), was $49.3 million in Q4 2022 which includes $6.8 million of restructuring related costs, $2.3 million of prior period regulatory fee accruals, and $1.1 million in non-recurring project and litigation costs. Excluding the restructuring and prior period items, SG&A and R&D continued to be well controlled at $39.1 million versus $39.5 million in the prior quarter and $44.8 million in the prior year period, presented on a comparable basis. SG&A is now at the lowest level in almost four years.

Consolidated:

  • Q4 2022 total cannabis net revenue 1 was $50.2 million , as compared to the prior quarter total cannabis net revenue 1 of $50.4 million . Excluding a $1.0 million provision related to anticipated returns on prior period U.S. CBD extract sales, cannabis net revenue was $51.2 million , an increase of $0.8 million in Q4 2022 as compared to Q3 2022, primarily due to the inclusion of less than two months of the recently acquired Thrive net revenues 1 of $1.4 million . The Q4 2022 average net selling price per gram of dried cannabis 1 , excluding the effect of bulk wholesale sales, decreased 6% to $5.10 from $5.41 in Q3 2022 reflecting the higher proportion of consumer market revenue in Q4 2022 results.
  • Adjusted gross margin before FV adjustments on cannabis net revenue 1 was 52% in Q4 2022 versus 57% in the prior quarter and 54% in Q4 2021. The change from Q3 is related to the gross margin impact from a greater portion of Q4 2022 revenue coming from the consumer business.
  • Adjusted EBITDA 1 loss increased to $12.9 million in Q4 2022 versus $11.4 million in Q3 2022 but narrowed from $21.8 million in the prior year period. The increased adjusted EBITDA 1 loss as compared to the previous quarter is driven mostly by the $3.4 million reduction in adjusted Gross Margin before FV adjustments 1 resulting primarily from a change in the Company's sales channel mix which yielded lower average net selling prices.
Net Loss:

Net loss for Q4 2022 was $618.8 million compared to $134.0 million for the same period in the prior year. The increase in net loss was primarily due to non-cash impairment charges of $505.1 million recorded in other income (expense) during the current quarter to write-down goodwill, intangibles assets and property, plant and equipment.  The impairment charges were triggered by changes in cannabis market conditions, and in the current capital market environment including higher rates of borrowing and lower foreign exchange rates.

Operational Efficiency Plan, Balance Sheet Strength, & Cash Use:

Aurora has previously identified annualized cash savings of up to $170 million in cash savings under this transformation program by the end December 2022 , split approximately evenly between costs of goods sold ("COGS") and SG&A. Projected COGS savings include the repurposing of the Aurora Sky facility in Edmonton , in keeping with our diversified business portfolio, a prudent approach to capital allocation, and focusing on higher margin categories in the Canadian adult-use market. These cash savings will be reflected in our P&L either as they occur within SG&A savings, or as inventory is drawn down for production-related savings.

At June 30, 2022 , the Company had $488.8 million of cash, including $51.0 million in restricted cash, and no secured term debt.

During Q4 2022, the Company completed an offering of 70,408,750 units of the Company (" June 2022 Offering") for gross proceeds of approximately US$172.5 million . Each unit consists of one common share and one common share purchase warrant (" June 2022 Offering Warrant") of the Company. Each June 2022 Offering Warrant entitles the holder to purchase one common share of the Company at a price of US$2.45 per warrant share until June 1, 2025 . The Company issued an additional 488,639 Common Shares of the Company during Q4 2022 for gross proceeds of US$1.5 million under the ATM Program.

As of June 30, 2022 , the Company has access to US$713.7 million under the 2021 Shelf Prospectus, including the balance of US$186.2 million pursuant to the ATM Program. At management's discretion, Aurora may sell shares under the ATM Program from time to time to be utilized for strategic purposes.

Fiscal 2023 will comprise of three quarters, with the new fiscal year end being March 31, 2023 .

The Company continues to materially improve cash use, as outlined in the following table:

($ thousands)

Q4 2022

Q3 2022

Q4 2021









Cash, Opening (1)

$480,552

$383,753

$520,238









Cash used in operations, including working capital

-$22,491

-$39,303

-$7,840

Capital expenditures and investments, net of disposals and
government grant income

-$7,168

$9,879

$6,230

Acquisition of business, net of cash acquired

-$24,467

-

-

Debt and interest payments

-$147,580

-$12,947

-$90,141

Cash use

-$201,706

-$42,371

-$91,751









Proceeds raised from sale of marketable securities and
investments in associates

-

-

$11,929

Proceeds raised through debt

-

-

-

Proceeds raised through equity financing

$209,933

$139,170

$435

Cash raised

$209,933

$139,170

$12,364





Cash, Ending (1)

$488,779

$480,552

$440,851



(1)

Includes restricted cash of $50M at Q4 2022, $50.7M at Q3 2022, and $19.4M at Q4 2021.

Key Quarterly Financial and Operating Results

($ thousands, except Operational Results)

Q4 2022

Q4 2021

$ Change

% Change

Q3 2022

$ Change

% Change

Financial Results








Total net revenue (1)(2)

$50,215

$54,825

($4,610)

(8 %)

$50,434

($219)

0 %

Medical cannabis net revenue (1)(2)

$36,570

$35,022

$1,548

4 %

$39,359

($2,789)

(7 %)

Consumer cannabis net revenue (1)(2)

$12,638

$19,514

($6,876)

(35 %)

$10,339

$2,299

22 %

Adjusted gross margin before FV adjustments on
cannabis net revenue (2)

47 %

54 %

N/A

(7 %)

54 %

N/A

(7 %)

Adjusted gross margin before FV adjustments on
core cannabis net revenue (2)

52 %

54 %

N/A

(2 %)

57 %

N/A

(5 %)

Adjusted gross margin before FV adjustments on
medical cannabis net revenue (2)

62 %

68 %

N/A

(6 %)

64 %

N/A

(2 %)

Adjusted gross margin before FV adjustments on
consumer cannabis net revenue (2)

26 %

31 %

N/A

(5 %)

29 %

N/A

(3 %)

SG&A expense (5)

$46,890

$46,902

($12)

0 %

$39,630

$7,260

18 %

R&D expense

$2,456

$3,034

($578)

(19 %)

$2,637

($181)

(7 %)

Adjusted EBITDA (2)(6)

($12,852)

($21,821)

$8,969

41 %

($11,367)

($1,485)

(13 %)









Balance Sheet








Working capital

$599,893

$549,517

$50,376

9 %

$577,566

$22,327

4 %

Cannabis inventory and biological assets (3)

$127,836

$120,297

$7,539

6 %

$118,729

$9,107

8 %

Total assets

$1,084,356

$2,604,731

($1,520,375)

(58 %)

$1,570,252

($485,896)

(31) %









Operational Results – Cannabis








Average net selling price of dried cannabis
excluding bulk sales (2)

$5.10

$5.11

($0.01)

0 %

$5.41

($0.31)

(6) %

Kilograms sold (4)

13,130

11,346

1,784

16 %

9,722

3,408

35 %



(1)

Includes the impact of actual and expected product returns and price adjustments (Q4 2022 - $1.8 million; Q3 2022 - $0.4 million; Q4 2021 - $0.7 million).

(2)

This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See " Non-GAAP Measures " below for reconciliations of non-GAAP financial measures to GAAP financial measures.

(3)

Represents total biological assets and cannabis inventory, exclusive of merchandise, accessories, supplies and consumables.

(4)

The kilograms sold is offset by the grams returned during the period.

(5)

Includes $6.8 million of restructuring related costs (Q3 2022 - $2.0 million, Q4 2021 - $5.2 million), $2.3 million of prior period employee-related accruals (Q3 2022 - $0.7 million, Q4 2021 - nil) and $1.1 in non-recurring project and litigation costs (Q3 2022 — million, Q4 2021 - nil).

(6)

Prior period comparatives were recast to include the adjustment for non-core, non-recurring adjusted wholesale bulk cannabis margins to be comparable to the current quarter as follows: Q3 2022 - $0.9 million; and Q4 2021 - $1.4 million.

Conference Call

Aurora will host a conference call today, Tuesday, September 20, 2022 , to discuss these results. Miguel Martin, Chief Executive Officer, and Glen Ibbott , Chief Financial Officer, will host the call starting at 5:00 p.m. Eastern time | 3:00 p.m. Mountain Time . A question and answer session will follow management's presentation.

Conference Call Details

DATE:

Tuesday, September 20, 2022

TIME:

5:00 p.m. Eastern Time | 3:00 p.m. Mountain Time

WEBCAST:

Click here

This weblink has also been posted to the Company's "Investor Info" link at https://investor.auroramj.com/ under "News & Events".

About Aurora

Aurora is a global leader in the cannabis industry, serving both the medical and consumer markets. Headquartered in Edmonton, Alberta , Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company's adult-use brand portfolio includes Aurora Drift , San Rafael '71 , Daily Special , Whistler , Being and Greybeard , as well as CBD brands, Reliva and KG7 . Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co. Aurora also has a controlling interest in Bevo Farms , North America's leading supplier of propagated agricultural plants. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, performance, wellness and adult recreational markets wherever they are launched. Learn more at www.auroramj.com and follow us on Twitter and LinkedIn .

Aurora's common shares trade on the NASDAQ and TSX under the symbol "ACB".

Forward Looking Statements

This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements made in this news release include, but are not limited to, statements with respect to:

  • pro forma measures including revenue, cash flow, Adjusted gross margin before fair value adjustments, and expected SG&A run-rates;
  • the Company's ability to execute on its business transformation plan, and path and timing to achieve Adjusted EBITDA profitability run rate;
  • anticipated cost savings and planned cost efficiencies including, but not limited to, the repurposing of the Aurora Sky facility;
  • the acquisition of Thrive and associated benefits, including advancement of the Company's premiumization strategy;
  • the majority investment in Bevo Farms and associated benefits;
  • future growth opportunities;
  • the Company's leadership in the global medical cannabis market, and that segment's impact on future profitability;
  • the use of proceeds from the ATM facility
  • the future repurchase of convertible notes; and the introduction of new products to the market.

These forward-looking statements are only predictions. Forward looking information or statements contained in this news release have been developed based on assumptions management considers to be reasonable. Material factors or assumptions involved in developing forward-looking statements include, without limitation, publicly available information from governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the risk of successful integration of acquired business and operations, management's estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises, including the current outbreak of COVID-19, and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information form dated September 20, 2022 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC's website at www.sec.gov . The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

Non-GAAP Measures

This news release contains reference to certain financial performance measures that are not recognized or defined under IFRS (termed " Non-GAAP Measures "). As a result, this data may not be comparable to data presented by other licensed producers of cannabis and cannabis companies. Non-GAAP Measures in this news release include "adjusted EBITDA", "net revenue", "adjusted gross profit before FV adjustments" and "adjusted gross margin before FV adjustments".

For an explanation of each measure to related comparable financial information presented in the consolidated financial statements prepared in accordance with IFRS, refer to the section of the Company's management's discussion and analysis for the years ended June 30, 2022 and 2021 (the " MD&A ") entitled " Cautionary Statement Regarding Certain Non-GAAP Performance Measures ", which is incorporated by reference into this news release. A copy of the MD&A is available under the Company's profile on SEDAR at www.sedar.com .

Non-GAAP Measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company's operating results, underlying performance and prospects in a manner similar to Aurora's management. Accordingly, the Non-GAAP Measures included in this news release are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Net Revenue, Adjusted Gross Profit and Margin

Net revenue, adjusted gross profit before FV adjustments and adjusted gross margin before FV adjustments are Non-GAAP Measures and can be reconciled with gross profit and gross margin, the most directly comparable GAAP financial measures, respectively, as follows:

$ thousands)

Medical
Cannabis

Consumer
Cannabis

Total Core
Cannabis

Non-Core
Wholesale
Bulk Cannabis

Total

Three months ended June 30, 2022






Gross revenue

39,553

16,994

56,547

1,007

57,554

Excise taxes

(2,983)

(4,356)

(7,339)

0

(7,339)

Net revenue

36,570

12,638

49,208

1,007

50,215

Non-recurring revenue adjustments (1)


1,023

1,023


1,023

Adjusted net revenue

36,570

13,661

50,231

1,007

51,238

Cost of sales

(23,237)

(17,700)

(40,937)

(6,323)

(47,260)

Gross profit (loss) before FV adjustments

13,333

(4,039)

9,294

(5,316)

3,978

Depreciation

3,489

2,506

5,995

816

6,811

Inventory impairment, non-recurring, and out-of-period
adjustments in cost of sales (1)

5,747

5,118

10,865

2,230

13,095

Adjusted gross profit (loss) before FV adjustments

22,569

3,585

26,154

(2,270)

23,884

Adjusted gross margin before FV adjustments

62 %

26 %

52 %

(228 %)

47 %







Three months ended March 31, 2022






Gross revenue

42,262

13,869

56,131

736

56,867

Excise taxes

(2,903)

(3,530)

(6,433)

0

(6,433)

Net revenue

39,359

10,339

49,698

736

50,434

Cost of sales

(31,275)

(23,242)

(54,517)

(5,920)

(60,437)

Gross profit (loss) before FV adjustments

8,084

(12,903)

(4,819)

(5,184)

(10,003)

Depreciation

4,198

2,165

6,363

482

6,845

Inventory impairment, non-recurring, and out-of-period
adjustments in cost of sales (1)

12,873

13,749

26,622

3,806

30,428

Adjusted gross profit (loss) before FV adjustments

25,155

3,011

28,166

(896)

27,270

Adjusted gross margin before FV adjustments

64 %

29 %

57 %

(122 %)

54 %







Three months ended June 30, 2021






Gross revenue

38,076

26,037

64,113

289

64,402

Excise taxes

(3,054)

(6,523)

(9,577)

0

(9,577)

Net revenue

35,022

19,514

54,536

289

54,825

Out-of-period revenue adjustments (1)

908

908

908

Adjusted net revenue

35,022

20,422

55,444

289

55,733

Cost of sales

(17,558)

(19,726)

(37,284)

(331)

(37,615)

Gross profit before FV adjustments

17,464

696

18,160

(42)

18,118

Depreciation

5,245

3,587

8,832

40

8,872

Inventory impairment, non-recurring, and out-of-period
adjustments in cost of sales (1)

1,028

2,017

3,045

3,045

Adjusted gross profit before FV adjustments

23,737

6,300

30,037

(2)

30,035

Adjusted gross margin before FV adjustments

68 %

31 %

54 %

(1 %)

54 %



(1)

Included in non-recurring and out-of-period adjustments are: Q4 2022 - $1.0 million and $(0.4) million related to expected returns on prior period revenues recorded in net revenues and cost of sales, respectively, $2.7 million related to a catch-up of prior period inventory adjustments, and $(0.5) million related to correction of prior quarter biological assets fair value inputs; Q3 2022 - $3.4 million related to correction of prior quarter biological assets fair value inputs; Q4 2021 - $0.9 million out-of-period revenue adjustment to reclassify prior period rebates against net revenue, and $5.5 million cost of sales adjustment related to a catch-up of prior year raw material count reconciliations.

Adjusted EBITDA

Adjusted EBITDA is a Non-GAAP Measure and can be reconciled with net income, the most directly comparable GAAP financial measure, as follows:

($ thousands)

Three months ended

Year ended

June 30, 2022

March 31,
2022 (5)

June 30, 2021
(5)

June 30, 2022

June 30, 2021
(5)

Net income (loss) from continuing operations

(618,777)

(1,012,175)

(133,969)

(1,717,979)

(693,477)

Non-operating expense (income) (1)

18,151

16,292

(8,508)

22,038

31,684

Income tax expense (recovery)

(1,363)

(202)

(9,970)

(2,141)

(6,321)

Depreciation and amortization

18,595

18,647

22,956

83,067

87,276

Inventory and biological assets fair value adjustments

(1,435)

4,186

4,565

(12,599)

9,529

Share-based compensation

3,472

3,538

2,162

13,757

20,243

Acquisition costs

3,720

585

4,657

4,689

5,761

Restructuring related charges (2)

7,788

2,406

14,550

3,011

Out-of-period adjustments (3)

1,833

4,074

66

5,873

1,325

Non-recurring items (4)(5)

7,667

896

(2,565)

8,786

(3,887)

Asset impairments

547,497

950,386

98,785

1,528,913

426,844

Adjusted EBITDA

(12,852)

(11,367)

(21,821)

(51,046)

(118,012)



(1)

Non-operating expense (income) includes: interest and other income; finance and other costs; foreign exchange gain (loss); share of loss from investment in associates; government grant income; and fair value changes on derivative investments, derivative liabilities, contingent consideration, loss on extinguishment of derivative investment, Gain (loss) on disposal of assets held for sale and property, plant and equipment, provisions, Realized loss on repurchase of convertible debt, Other gain (loss), and (gain) loss on the modification of debt. Refer to Note 21 of the Financial Statements.

(2)

Restructuring related charges includes costs related to closed facilities that are held for sale, legal contract termination fees, restructuring charges and severance associated with the business transformation plan and revenue provisions as a result of Company initiated product swap to replace low quality product with higher potency product at the provinces.

(3)

Included in out-of-period adjustments in Q4 2022 are $2.3 million related to Health Canada regulatory fee catch-up accruals, and $(0.5) million related to out of period impact of changes to Q1-Q3 inputs into the biological assets fair value model; Q3 2022 - $3.4 million related to a correction of prior quarter biological assets fair value measurement and $0.7 million in prior period related professional services expenses; Q4 2021 are $5.5 million cost of sales adjustment related to a catch-up of prior year raw material count reconciliations, (ii) a $0.9 million out-of-period 2021 revenue adjustment to reclassify prior period rebates against net revenue; offset by (iii) a $6.4 million other gain relating to prior periods identified through our period end reconciliations.

(4)

Included in non-recurring items in Q4 2022 are $2.3 million in non-core, non-recurring adjusted wholesale bulk cannabis margins; $0.3 million in litigation costs and $3.5 million in certain projects related to the Company's corporate reset and other costs that are non-recurring in nature. Included in YTD Q4 2022 are $3.4 million in non-core, non-recurring adjusted wholesale bulk cannabis margins (YTD Q4 2021 - $1.4 million), $0.3 million in litigation costs and $0.8 million in certain projects related to the Company's corporate reset and other costs that are non-recurring in nature.

(5)

Prior period comparatives were recast to include the adjustment for non-core, non-recurring adjusted wholesale bulk cannabis margins to be comparable to the current quarter as follows: Q3 2022 - $0.9 million; Q4 2021 - $1.4 million; and YTD Q4 2021 - $1.4 million.

___________________________

1 This news release includes certain Non-GAAP Measures (as defined below), which are intended to supplement, not substitute for, comparable GAAP financial measures. See " Non-GAAP Measures " below for reconciliations of each Non-GAAP Measure to its most directly comparable GAAP financial measure. Non-GAAP Measures in this news release include "adjusted EBITDA", "net revenue", "adjusted gross margin before FV adjustments" and "adjusted gross profit before FV adjustments".

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SOURCE Aurora Cannabis Inc.

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Cronos Group Reports 2023 Fourth Quarter and Full-Year Results¹

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Trulieve Reports Fourth Quarter and Full Year 2023 Results Highlighting Year End Momentum and Cash Generation

  • 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

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.

Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

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

59.0


57.9


240.2


277.6

General and administrative

37.3


64.9


146.0


169.5

Depreciation and amortization

27.2


29.8


109.8


116.4

Impairment and disposal of long-lived assets, net

1.2


(0.6)


6.7


75.5

Impairment of goodwill



307.6


Total expenses

124.7


151.9


810.2


639.0

Income (loss) from operations

29.2


5.2


(221.6)


50.2

Other income (expense):








Interest expense, net

(20.6)


(21.2)


(81.6)


(73.4)

Interest income

1.8


0.5


6.2


1.6

Gain on debt extinguishment, net

(2.2)



5.9


Other income (expense), net

0.7


(2.1)


6.5


2.4

Total other (expense) income, net

(20.4)


(22.8)


(62.9)


(69.4)

Income (loss) before provision for income taxes

8.8


(17.6)


(284.5)


(19.2)

Provision for income taxes

45.4


46.6


151.4


163.4

Net loss from continuing operations

(36.6)


(64.2)


(435.9)


(182.6)

Net gain (loss) from discontinued operations, net of tax
benefit (provision) of $21.5, $(2.4), $20.9, and $12.2,
respectively

1.8


(16.9)


(97.2)


(70.1)

Net loss

(34.8)


(81.2)


(533.1)


(252.7)

Less: net loss attributable to non-controlling interest
from continuing operations

(1.4)


(1.4)


(5.1)


(4.0)

Less: net loss attributable to non-controlling interest
from discontinued operations


(2.7)


(1.2)


(2.7)

Net loss attributable to common shareholders

$            (33.4)


$            (77.0)


$          (526.8)


$          (246.1)

Net loss per share - Continuing operations:








Basic and diluted

$            (0.19)


$            (0.33)


$            (2.28)


$            (0.95)

Net loss per share - Discontinued operations:








Basic and diluted

$              0.01


$            (0.08)


$            (0.51)


$            (0.36)

Weighted average number of common shares used in
computing net loss per share:








Basic and diluted

189.0


188.8


189.0


188.0

Trulieve Cannabis Corp.

Consolidated Statements of Cash Flows (Unaudited)

(in millions)



Three Months Ended


Full Year Ended


December
31, 2023


December
31, 2022


December
31, 2023


December
31, 2022

Cash flows from operating activities








Net loss

$            (34.8)


$            (81.2)


$          (533.1)


$          (252.7)

Adjustments to reconcile net loss to net cash provided by
operating activities:








Depreciation and amortization

27.2


30.7


110.8


121.8

Depreciation included in cost of goods sold

14.4


13.4


59.8


52.5

Non-cash interest expense, net

1.2


1.3


5.4


4.9

Gain on extinguishment of debt, net

2.2



(5.9)


Impairment and disposal of long-lived assets, net

1.2


(0.6)


6.7


75.5

Impairment of goodwill



307.6


Amortization of operating lease right of use assets

2.5


2.8


10.3


11.3

Accretion of construction finance liabilities

0.2


0.4


1.3


1.5

Share-based compensation

3.2


3.6


10.6


18.1

Change in fair value of derivative liabilities - warrants



(0.3)


(2.6)

Non-cash change in contingencies

0.8


6.4


(0.5)


23.0

Allowance for credit losses

1.9


1.3


2.8


3.6

Deferred income tax expense

1.5


7.7


(17.2)


(27.2)

Loss from disposal of discontinued operations

(0.4)


0.1


69.5


49.1

Changes in assets and liabilities:








Decrease/(increase) in inventories

16.8


3.7


83.3


(83.4)

Decrease/(increase) in accounts receivable

0.1


0.9


(1.7)


(4.2)

Decrease/(increase) in prepaid expenses and other
current assets

(2.5)


(0.5)


6.8


5.3

Decrease/(increase) in other assets

0.9


6.8


3.0


2.4

(Decrease)/increase in accounts payable and accrued
liabilities

(2.9)


(2.7)


1.6


(0.8)

(Decrease)/increase in income tax payable

1.0


44.4


(48.8)


19.8

(Decrease)/increase in other current liabilities

(0.2)


2.7


(13.3)


(1.4)

(Decrease)/increase in operating lease liabilities

(2.2)


(2.8)


(9.2)


(10.0)

(Decrease)/increase in deferred revenue

(2.2)


3.2


(8.2)


2.4

(Decrease)/increase in uncertain tax position liabilities

99.1


12.5


160.9


12.8

(Decrease)/increase in other long-term liabilities

2.4


1.0


(0.2)


1.5

Net cash provided by operating activities

131.5


55.0


201.8


23.1

Cash flows from investing activities








Purchases of property and equipment

(9.4)


(34.3)


(40.4)


(164.7)

Purchases of property and equipment related to
construction finance liabilities




(13.2)

Capitalized interest


(0.7)


0.1


(4.7)

Acquisitions, net of cash


(1.6)



(27.8)

Divestments


2.0


1.0


2.0

Payments made for issuance of note receivable

(0.8)



(0.8)


Capitalized internal use software

(2.9)


(1.9)


(10.6)


(9.2)

Cash paid for licenses

(0.7)



(4.6)


(1.9)

Proceeds from sales of long-lived assets

0.1


0.2


5.0


0.7

Proceeds received from notes receivable

0.3


0.2


0.9


1.5

Proceeds from sale of held for sale assets

6.0


0.1


11.9


2.3

Net cash used in investing activities

(7.2)


(36.1)


(37.5)


(215.1)

Cash flows from financing activities








Proceeds from notes payable, net of discounts

24.7


89.5


24.7


90.5

Proceeds from private placement notes, net of discounts




75.6

Proceeds from equity exercises




19.4

Proceeds from construction finance liabilities




7.0

Payments on notes payable

(6.3)


(0.2)


(11.8)


(2.9)

Payments on private placement notes

(130.0)



(177.6)


(1.9)

Payments on finance lease obligations

(1.9)


(2.1)


(7.6)


(7.4)

Payments on construction finance liabilities

(0.8)


(0.3)


(2.1)


(1.2)

Payments for debt issuance costs

(0.3)


(0.6)


(0.8)


(0.8)

Payments for taxes related to net share settlement of
equity awards

(0.5)


(0.3)


(0.5)


(0.6)

Distributions



(0.1)


(0.1)

Net cash (used in) provided by financing activities

(115.0)


85.9


(175.6)


177.8

Net increase (decrease) in cash, cash equivalents, and
restricted

9.3


104.8


(11.2)


(14.2)

Cash, cash equivalents, and restricted cash, beginning
of period

198.9


100.7


213.8


229.6

Cash and cash equivalents of discontinued operations,
beginning of period

0.1


14.0


5.7


4.0

Less: cash and cash equivalents of discontinued
operations, end of period

(0.3)


(5.7)


(0.3)


(5.7)

Cash, cash equivalents, and restricted cash, end of
period

$            208.0


$            213.8


$            208.0


$            213.8


The consolidated statements of cash flows include continuing operations and discontinued operations for the periods presented.

Non-GAAP Financial Measures (Unaudited)

In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted EBITDA, adjusted net loss (income), adjusted net income (loss) per diluted share and free cash flow. 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 (Unaudited)

The following table presents a reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA, for each of the periods presented:

(Amounts expressed in millions of United States
dollars)

Three Months Ended

For the Full Year Ended

December 31,
2023

December 31,
2022

September 30,
2023

December 31,
2023

December 31,
2022

Net Loss GAAP

$

(33.4)

$

(77.0)

$

(25.4)

$

(526.8)

$

(246.1)

Add (Deduct) Impact of:











Interest Expense, Net

$

20.6

$

21.2

$

20.8

$

81.6

$

73.4

Interest Income (1)

$

(1.8)

$

(0.5)

$

(1.9)

$

(6.2)

$

(1.6)

Provision For Income Taxes

$

45.4

$

46.6

$

36.6

$

151.4

$

163.4

Depreciation and Amortization

$

27.2

$

29.8

$

27.0

$

109.8

$

116.4

Depreciation in COGS

$

14.5

$

12.1

$

14.6

$

57.2

$

46.9

EBITDA

$

72.5

$

32.2

$

71.7

$

(133.0)

$

152.4












Impairment of Goodwill

$

$

$

$

307.6

$

Impairments and Disposals of Long-lived
Assets, Net

$

1.2

$

(0.6)

$

(1.2)

$

6.7

$

75.5

Results of Discontinued Operations

$

(1.8)

$

14.3

$

2.9

$

96.0

$

67.4

Acquisition and Transaction Costs

$

$

7.5

$

$

$

24.8

Integration and Transition Costs

$

10.7

$

4.0

$

8.5

$

26.9

$

21.0

Other Non-Recurring Costs

$

$

7.9

$

$

$

19.5

Share-Based Compensation

$

3.2

$

3.6

$

4.5

$

10.6

$

18.1

Legislative Campaign Contributions

$

0.5

$

10.0

$

0.5

$

20.1

$

20.0

Inventory Step Up Fair Value

$

$

$

$

$

1.0

Covid Related Expenses

$

$

$

$

$

0.8

Loss (Gain) on Debt Extinguishment, Net

$

2.2

$

$

(8.2)

$

(5.9)

$

Other (Income) Expense, Net

$

(0.7)

$

2.1

$

(1.1)

$

(6.5)

$

(2.4)

Results of Entities Not Legally Controlled

$

$

1.9

$

$

$

Adjusted EBITDA Non-GAAP

$

87.8

$

82.9

$

77.6

$

322.3

$

398.2


(1) Interest income for the three months ended December 31, 2022 and September 30, 2023 and the year ended December 31, 2022, of $(0.5) million, $(1.9) million, and $(1.6) million, respectively, was reclassified from other (income) expense, net to interest income in the presentation above.

Reconciliation of Non-GAAP Adjusted Net Income (Loss) (Unaudited)

The following table presents a reconciliation of GAAP net loss to non-GAAP adjusted net loss, for each of the periods presented:


For the Three Months Ended

For the Full Year Ended

(Amounts expressed in millions of United
States dollars)

December 31,
2023

December 31,
2022

September 30,
2023

December 31,
2023

December 31,
2022

Net Loss GAAP

$

(33.4)

$

(77.0)

$

(25.4)

$

(526.8)

$

(246.1)

Add (Deduct) Impact of:











Impairment of Goodwill

$

$

$

$

307.6

$

Fair Value of Derivative Liabilities - Warrants

$

$

(0.0)

$

$

(0.3)

$

(2.6)

Inventory Step Up Fair Value

$

$

$

$

$

1.0

Transaction, Acquisition, and Integration Costs

$

10.7

$

19.4

$

8.5

$

26.9

$

65.3

Legislative Campaign Contributions

$

0.5

$

10.0

$

0.5

$

20.1

$

20.0

Covid Related Expenses

$

$

$

$

$

0.8

Impairments and Disposals of Long-lived
Assets, Net

$

1.2

$

(0.6)

$

(1.2)

$

6.7

$

75.5

Results of Discontinued Operations

$

(1.8)

$

14.3

$

2.9

$

96.0

$

67.4

Adjusted Net (Loss) Income Non-GAAP

$

(22.8)

$

(34.0)

$

(14.7)

$

(69.8)

$

(18.7)

Reconciliation of Non-GAAP Adjusted Earnings (Loss) Per Share (Unaudited)

The following table presents a reconciliation of GAAP loss per share to non-GAAP adjusted earnings per share, for each of the periods presented:


For the Three Months Ended

For the Full Year Ended

(Amounts expressed are per share except for
shares which are in millions)

December 31,
2023

December 31,
2022

September 30,
2023

December 31,
2023

December 31,
2022

Loss Per Share GAAP

$

(0.18)

$

(0.41)

$

(0.13)

$

(2.79)

$

(1.31)

Add (Deduct) Impact of:











Impairment of Goodwill

$

$

$

$

1.63

$

Fair Value of Derivative Liabilities - Warrants

$

$

$

$

(0.00)

$

(0.01)

Inventory Step Up Fair Value

$

$

$

$

$

0.01

Transaction, Acquisition, and Integration Costs

$

0.06

$

0.10

$

0.04

$

0.14

$

0.35

Legislative Campaign Contributions

$

0.00

$

0.05

$

0.00

$

0.11

$

0.11

Covid Related Expenses

$

$

$

$

$

0.00

Impairments and Disposals of Long-lived
Assets, Net

$

0.01

$

(0.00)

$

(0.01)

$

0.04

$

0.40

Results of Discontinued Operations

$

(0.01)

$

0.08

$

0.02

$

0.51

$

0.36

Adjusted Earnings Per Share Non-GAAP

$

(0.12)

$

(0.18)

$

(0.08)

$

(0.37)

$

(0.10)

Basic and Diluted Shares


189.0


188.8


188.9


189.0


188.0

Reconciliation of Non-GAAP Free Cash Flow (Unaudited)

The following table presents a reconciliation of GAAP cash flow from operating activities to non-GAAP free cash flow, for each of the periods presented:


For the Three Months Ended

For the Full Year Ended

(Amounts expressed in millions of United
States dollars)

December 31,
2023

December 31,
2022

September 30,
2023

December 31,
2023

December 31,
2022

Cash Flow From Operating Activities

$

131.5

$

55.0

$

93.4

$

201.8

$

23.1

Payments for Property and Equipment

$

(9.4)

$

(34.3)

$

(6.3)

$

(40.4)

$

(164.7)

Free Cash Flow

$

122.1

$

20.7

$

87.2

$

161.5

$

(141.7)

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 growth opportunities and the Company's positioning for the future. 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 risks discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 and in our periodic reports subsequently filed with the United Sates Securities and Exchange Commission and 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.

About Trulieve

Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with 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 .

Facebook: @Trulieve
Instagram: @Trulieve_
X: @Trulieve

Investor Contact
Christine Hersey , Vice President of Investor Relations
+1 (424) 202-0210
Christine.Hersey@Trulieve.com

Media Contact
Phil Buck , APR, Corporate Communications Manager
+1 (406) 370-6226
Philip.Buck@Trulieve.com

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-reports-fourth-quarter-and-full-year-2023-results-highlighting-year-end-momentum-and-cash-generation-302075054.html

SOURCE Trulieve Cannabis Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2024/29/c7462.html

News Provided by Canada Newswire via QuoteMedia

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