Cannabis Market Flourishes Amid Global Legalization, Driving Concerns About Road Safety

FinancialBuzz.com News Commentary

Over the past decade, the cannabis market has undergone significant expansion, driven largely by a wave of legalization efforts across the United States and other parts of the world. As state and national governments reassess their legal stance on cannabis, both for medical and recreational use, the industry has seen a surge in legitimacy and economic interest. In the United States, a majority of states have legalized cannabis in some form, reflecting a shift in public opinion and an acknowledgement of the potential medical benefits and revenue generation opportunities. Globally, countries like Canada, Uruguay, and several European nations have moved towards more liberal cannabis policies, further propelling the market's growth. The financial implications of these legalization efforts are substantial and continue to evolve. According to a report by Grand View Research, the global legal cannabis market size was valued at USD 13.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 25.5% from 2022 to 2030. Cannabix Technologies Inc. (OTC: BLOZF) (CSE: BLO), Cronos Group Inc. (NASDAQ: CRON), Canopy Growth Corporation (NASDAQ: CGC), Aurora Cannabis Inc. (NASDAQ: ACB), Curaleaf Holdings, Inc. (OTC: CURLF)

While the cannabis market demonstrates significant economic promise and potential for growth, concerns persist regarding its broader societal impacts, particularly in relation to public safety and health. One of the primary concerns is the correlation between cannabis use and impaired driving. Studies have shown that cannabis can significantly impair motor coordination, reaction times, and decision making, which are critical skills for safe driving. With the increase in cannabis accessibility and consumption following legalization, there is an urgent need for effective measures to mitigate these risks. This includes developing reliable roadside testing for cannabis impairment, public education campaigns to raise awareness about the dangers of driving under the influence, and clear legal frameworks to handle such offenses effectively.

Cannabix Technologies Inc. (OTC: BLOZF) (CSE: BLO), a developer of marijuana breathalyzer devices for law enforcement and the workplace just announced that, "it will be presenting at the International Association for Chemical Testing (IACT) conference in April. Cannabix's Dr. Bruce Goldberger Ph.D., will be presenting on Science & Technology Behind Cannabis Breath Testing and the Company's marijuana breathalyzer system at the conference workshop session. IACT is composed of governmental agency personnel involved in chemical testing related to traffic safety. IACT members are scientific and criminal justice professionals, including forensic scientists, regulatory inspectors, and law enforcement personnel with representatives from a majority of states and international members. IACT has standing committees to address various areas including legislation, training, new equipment and procedures and manufacturers of breath testing equipment.

The Cannabis Breath Testing workshop at IACT 2024 is designed to provide background information regarding the pharmacokinetics and pharmacodynamics of cannabinoids in breath, present the current technology for collection devices from commercial vendors, and discuss the necessary laboratory workflows and analytical considerations when testing these samples.

Dr. Bruce Goldberger is a professor and the former Chief of the Forensic Medicine Division in the Department of Pathology, Immunology and Laboratory Medicine in the College of Medicine at the University of Florida. Dr. Goldberger served as Director of the University of Florida forensic toxicology laboratory for 30 years. Dr. Goldberger is the Principal Investigator of the Florida Drug-Related Outcomes Surveillance and Tracking System and Co-investigator of the National Drug Early Warning System. Dr. Goldberger is a consultant for the Centers for Disease Control and Prevention's National Center for Injury Prevention and Control, Overdose Mortality Team, and the National Center for Health Statistics, Division of Vital Statistics. Dr. Goldberger is a consultant and senior advisor to Cannabix Technologies Inc."

Cronos Group Inc. (NASDAQ: CRON) reported recently its first entry into the chocolate edibles category. Cronos' newest edible innovation was developed and designed by an expert team of culinary chefs, food scientists, and leaders in cannabis product development. The bite-sized Chocolate Fusions™ feature a dynamic, multi-texture experience, combining a soft and chewy center, crunch inclusions, and an outer layer of rich creamy chocolate that delivers a decadent sweet treat for adult cannabis consumers. "We are thrilled to bolster the recent successful launch of the Lord Jones® brand in Canada with our first chocolate edibles," said Jeff Jacobson, Chief Growth Officer, Cronos. "These hand-crafted and artfully created chocolates demonstrate our passion for delivering a differentiated experience through an innovative cannabis product that our consumers will love. This breakthrough innovation is the result of our continuous commitment to and investment in R&D and product development, and we're excited to add Chocolate Fusions™ to our growing family of premium and THC-focused Lord Jones® products in Canada, which are designed to take adult consumers above and beyond."

Canopy Growth Corporation (NASDAQ: CGC) announced earlier in February the introduction of five new pre-roll products across the Company's adult-use cannabis portfolio from brands 7ACRES and Hiway. "Forging ahead with our commitment to innovation, we're excited to offer new pre-roll offerings that meet consumers across a range of occasions and price points," said Dave Paterson, President, Canada, Canopy Growth. "With convenience and enjoyment in mind, our new 7ACRES Smooth Burners offer a high-quality pre-roll with a unique filter design enabling a smooth and slow session, while our new Hiway Water Hash Infused pre-rolls provide consumers a premium experience in a value package."

Aurora Cannabis Inc. (NASDAQ: ACB) together with subsidiary company, MedReleaf Australia, have announced last month the availability of medical cannabis pastilles for doctors to prescribe to patients in Australia. The novel product is produced by Aurora and distributed by MedReleaf Australia, a leading distributor of medical cannabis products with the number two position in the Australian market. "Australia is the largest nationally legal medical market globally, and as a long-standing supplier to MedReleaf Australia and recently announced parent company, we're eager to support the continued growth and development of the market," said Andre Jerome, Executive Vice President of Global Business Development, Aurora. "The introduction of innovative and differentiated products, such as pastilles, and planned upcoming innovation, will provide Australian doctors expanded options for patient care and enhance patient access to the premium medical cannabis they seek," continued Jerome.

Curaleaf Holdings, Inc. (OTCQX: CURLF) announced last month it has signed a deal to acquire Northern Green Canada ("NGC"), a vertically integrated Canadian licensed cannabis producer focused primarily on expanding in the international market through its EU-GMP certification. NGC also partners with Canadian GACP cultivators to produce and distribute finished cannabis products to both the domestic and global markets. NGC is one of the few Canadian cultivators with EU-GMP certification. As such, NGC has consistently supplied high THC, non-irradiated flower to the German market, which is expected to see exponential growth following the recent removal of cannabis from the narcotics list. NGC is also increasingly supplying Australia and New Zealand, the world's fastest-growing cannabis markets.

Subscribe Now! Watch us report LIVE https://www.youtube.com/FinancialBuzzMedia

Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz

Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz

Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz/

About FinancialBuzz.com

FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.

FinancialBuzz.com is not a financial advisory or advisor, investment advisor or broker-dealer and do not undertake any activities that would require such registration. The information provided on http://www.FinancialBuzz.com (the 'Site') is either original financial news or paid advertisements provided [exclusively] by our affiliates (sponsored content), FinancialBuzz.com, a financial news media and marketing firm enters into media buys or service agreements with the companies which are the subject to the articles posted on the Site or other editorials for advertising such companies. FinancialBuzz.com has not been compensated directly by any of the companies mentioned here in this editorial unless mentioned otherwise. We are not an independent news media provider and therefore do not represent or warrant that the information posted on the Site is accurate, unbiased or complete. FinancialBuzz.com receives fees for producing and presenting high quality and sophisticated content on FinancialBuzz.com along with other financial news PR media services. FinancialBuzz.com does not offer any personal opinions, recommendations or bias commentary as we purely incorporate public market information along with financial and corporate news. FinancialBuzz.com only aggregates or regurgitates financial or corporate news through our unique financial newswire and media platform. For cannabix technologies inc. video production, filming editing, news reporting, financial and corporate news dissemination, FinancialBuzz.com has been compensated five thousand dollars by the company. Our fees may be either a flat cash sum or negotiated number of securities of the companies featured on this editorial or site, or a combination thereof. The securities are commonly paid in segments, of which a portion is received upon engagement and the balance is paid on or near the conclusion of the engagement. FinancialBuzz.com will always disclose any compensation in securities or cash payments for financial news PR advertising. FinancialBuzz.com does not undertake to update any of the information on the editorial or Site or continue to post information about any companies the information contained herein is not intended to be used as the basis for investment decisions and should not be considered as investment advice or a recommendation. The information contained herein is not an offer or solicitation to buy, hold or sell any security. FinancialBuzz.com, members and affiliates are not responsible for any gains or losses that result from the opinions expressed on this editorial or Site, company profiles, quotations or in other materials or presentations that it publishes electronically or in print. Investors accept full responsibility for any and all of their investment decisions based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. FinancialBuzz.com. By accessing this editorial and website and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy, as may be amended from time to time. None of the content issued by FinancialBuzz.com constitutes a recommendation for any investor to purchase, hold or sell any particular security, pursue a particular investment strategy or that any security is suitable for any investor. This publication is provided by FinancialBuzz.com. Each investor is solely responsible for determining whether a particular security or investment strategy is suitable based on their objectives, other securities holdings, financial situation needs, and tax status. You agree to consult with your investment advisor, tax and legal consultant before making any investment decisions. We make no representations as to the completeness, accuracy or timeless of the material provided. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. For our full disclaimer, disclosure and Terms of Use, please visit: http://www.financialbuzz.com

info@financialbuzz.com
+1-877-601-1879
www.FinancialBuzz.com

SOURCE FinancialBuzz.com


Primary Logo

News Provided by GlobeNewswire via QuoteMedia

CRON:CA,CRON
The Conversation (0)
Cannabis Investing

Ongoing Growth in North America’s Cannabis Space

An article curated by Bazinga highlighted the cannabis market trends from last week. Even though last week was short, the cannabis sector was a busy. The article went on to highlight a number of the cannabis companies looking preparing for their IPOs, among other cannabis related news.

The article went on to highlight the Flowr Corporation as one of numerous companies looking to go public by the end of the year. Flowr’s management team is responsible for the creation and success of MedReleaf, an R&D focused company in the medical cannabis space. In preparation for its RTO in Canada, the company has raised $36 million in financing.

Keep reading...Show less

Breathalyzer Innovations Meet Rising Demand as Cannabis Market Booms

-

FinancialBuzz.com News Commentary

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Trulieve to Open Medical Cannabis Dispensary in Stuart, Florida

New Martin County location will host grand opening celebration Friday, May 17 th

Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced the opening of a new medical cannabis dispensary in Stuart, Florida .

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Cronos Group Reports 2024 First Quarter Results

Industry-leading balance sheet with $855 million in cash and cash equivalents

Net revenue in Q1 2024 increased by 30% year-over-year to $25.3 million

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Trulieve Reports First Quarter 2024 Results Demonstrating Core Business Strength and Cash Generation

  • First quarter performance of $298 million in revenue, up 4% sequentially, and 58% gross margin
  • Strong cash flow from operations of $139 million and free cash flow of $124 million * in Q1 2024
  • Definitive progress made on Smart and Safe Florida adult use initiative and federal rescheduling of cannabis to Schedule III

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 March 31, 2024 . 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.)

Q1 2024 Financial and Operational Highlights*

  • Revenue of $298 million increased 4% sequentially and year over year , with 96% of revenue from retail sales. Strong first quarter sales were driven by higher retail traffic and average basket size.
  • Achieved GAAP gross margin of 58%, with gross profit of $174 million .
  • Reported net loss of $23 million , an improvement of 31% sequentially and 64% year over year . Adjusted net loss of $10 million * excludes non-recurring charges, asset impairments, disposals and discontinued operations.
  • Achieved EBITDA of $85 million *, or 29% of revenue and adjusted EBITDA of $106 million *, or 36% of revenue , up 21% sequentially and 35% year over year.
  • Generated cash flow from operations of $139 million and free cash flow of $124 million *.
  • Cash at quarter end was $327 million , inclusive of $50 million in tax refunds, from amended returns, related to our tax challenge of 280E received during the first quarter.
  • Opened three new dispensaries in Cocoa Beach , Palm Bay , and Pinellas Park, Florida .
  • Ended the quarter with 31% 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

  • Smart & Safe Florida initiative for adult use will be included on the ballot for the November 2024 election. If passed by voters, sales are anticipated to begin in May 2025 .
  • Department of Justice confirmed progress on federal rescheduling of cannabis to Schedule III, which would allow research and remove 280E tax burden.
  • Opened one retail location in North Palm Beach, FL.
  • Currently operate 196 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States .

Management Commentary
"With strong performance in our core business and several meaningful catalysts on the horizon, the outlook has never been brighter," said Kim Rivers , Trulieve CEO. "The team has done a phenomenal job carrying forward the momentum from last year, driving further improvements in production and retail. Given our financial performance and significant scale in key markets, Trulieve is best positioned for the coming wave of growth catalysts."

Financial Highlights*

Results of Operations

For the Three Months Ended

(Figures in millions except per share data and %
change based on these figures)

March 31,
2024

March 31,
2023

change

December 31,
2023

change

Revenue

$

298

$

285

4 %

$

287

4 %

Gross Profit

$

174

$

150

16 %

$

154

13 %

Gross Margin %


58 %


53 %



54 %


Operating Expenses

$

128

$

133

(4 %)

$

125

2 %

Operating Expenses %


43 %


47 %



43 %


Net loss**

$

(23)

$

(64)

64 %

$

(33)

31 %

Net loss continuing operations

$

(23)

$

(34)

32 %

$

(37)

36 %

Adjusted net loss

$

(10)

$

(18)

43 %

$

(23)

55 %

Basic and diluted shares outstanding


189


189



189


EPS continuing operations

$

(0.16)

$

(0.18)

9 %

$

(0.19)

17 %

Adjusted EPS

$

(0.05)

$

(0.09)

44 %

$

(0.12)

58 %

Adjusted EBITDA

$

106

$

78

35 %

$

88

21 %

Adjusted EBITDA Margin %


36 %


27 %



31 %



*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 May 9, 2024, at 8:30 A.M. Eastern time , to discuss its first quarter 2024 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: 3368806




International: 1-412-542-4136


Passcode: 3368806

A live audio webcast of the conference call will be available at:
Trulieve Cannabis Corp Q1 2024 Earnings

A powerpoint presentation and archived replay of the webcast will be available at:
https: //investors.trulieve.com/events

The Company's Form 10-Q for the quarter ended March 31, 2024 , 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.

Condensed Consolidated Balance Sheets (Unaudited)

(in millions, except for share data)






March 31,
2024


December 31,
2023

ASSETS




Current Assets:




Cash and cash equivalents

$                320.3


$                201.4

Restricted cash

6.6


6.6

Accounts receivable, net

5.9


6.7

Inventories

209.4


213.1

Prepaid expenses

17.4


17.6

Other current assets

20.3


23.7

Notes receivable - current portion, net

4.4


6.2

Assets associated with discontinued operations

0.9


2.0

Total current assets

585.3


477.3

Property and equipment, net

672.1


676.4

Right of use assets - operating, net

97.2


95.9

Right of use assets - finance, net

58.0


58.5

Intangible assets, net

901.7


917.2

Goodwill

483.9


483.9

Notes receivable, net

6.3


7.4

Other assets

12.8


10.4

Long-term assets associated with discontinued operations

2.0


2.0

TOTAL ASSETS

$            2,819.3


$            2,729.1

LIABILITIES




Current Liabilities:




Accounts payable and accrued liabilities

$                  82.8


$                  83.2

Income tax payable

1.2


Deferred revenue

2.1


1.3

Notes payable - current portion

3.8


3.8

Operating lease liabilities - current portion

10.5


10.1

Finance lease liabilities - current portion

7.8


7.6

Construction finance liabilities - current portion

1.6


1.5

Contingencies

4.4


4.4

Liabilities associated with discontinued operations

3.1


3.0

Total current liabilities

117.2


114.8

Long-Term Liabilities:




Private placement notes, net

363.6


363.2

Notes payable, net

115.0


115.9

Operating lease liabilities

93.6


92.2

Finance lease liabilities

61.6


61.7

Construction finance liabilities

136.4


136.7

Deferred tax liabilities

217.0


207.0

Uncertain tax position liabilities

278.0


180.4

Other long-term liabilities

5.0


7.1

Long-term liabilities associated with discontinued operations

40.9


41.6

TOTAL LIABILITIES

$            1,428.3


$            1,320.4

MEZZANINE EQUITY




Redeemable non-controlling interest

$                    7.7


$                      —

SHAREHOLDERS' EQUITY




Common stock, no par value; unlimited shares authorized. 187,253,410 and
186,235,818 shares issued and outstanding as of March 31, 2024 and
December 31, 2023, respectively.

$                      —


$                      —

Additional paid-in-capital

2,054.1


2,055.1

Accumulated deficit

(663.7)


(640.6)

Non-controlling interest

(7.0)


(5.9)

TOTAL SHAREHOLDERS' EQUITY

1,383.3


1,408.6

TOTAL LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS' EQUITY

$            2,819.3


$            2,729.1

Trulieve Cannabis Corp.

Condensed Consolidated Statements of Operations (Unaudited)

(in millions, except for share data)




Three Months Ended March
31,


2024


2023

Revenue

$            297.6


$            285.2

Cost of goods sold

123.8


135.0

Gross profit

173.8


150.2

Expenses:




Sales and marketing

61.1


60.7

General and administrative

40.2


39.3

Depreciation and amortization

27.8


29.6

Impairment and disposal of long-lived assets, net of (recoveries)

(1.4)


3.4

Total expenses

127.7


133.0

Income from operations

46.1


17.2

Other income (expense):




Interest expense, net

(14.7)


(21.2)

Interest income

3.3


1.1

Other (expense) income, net

(2.7)


4.1

Total other expense, net

(14.2)


(16.0)

Income before provision for income taxes

31.9


1.2

Provision for income taxes

55.4


35.5

Net loss from continuing operations

(23.5)


(34.3)

Net loss from discontinued operations, net of tax benefit of zero and $(0.5), respectively

(1.4)


(31.3)

Net loss

(24.8)


(65.6)

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

(1.4)


(1.0)

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

(0.3)


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


(0.5)

Net loss attributable to common shareholders

$            (23.1)


$            (64.1)





EPS Numerator Reconciliation




Net loss attributable to common shareholders

$            (23.1)


$            (64.1)

Net loss from discontinued operations

1.4


30.8

Adjustment of redeemable non-controlling interest to maximum redemption value

(8.8)


Net loss from continuing operations available to common shareholders

$            (30.6)


$            (33.3)





Net loss per share - Continuing operations:




Basic and diluted

$            (0.16)


$            (0.18)

Net loss per share - Discontinued operations:




Basic and diluted

$            (0.01)


$            (0.16)

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




Basic and diluted

189.5


188.9

Trulieve Cannabis Corp.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)




Three Months Ended March
31,


2024


2023

Cash flows from operating activities




Net loss

$            (24.8)


$            (65.6)

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




Depreciation and amortization

27.8


30.4

Depreciation included in cost of goods sold

13.5


13.6

Non-cash interest expense, net

0.4


1.4

Impairment and disposal of long-lived assets, net of recoveries

(1.4)


31.0

Amortization of operating lease right of use assets

2.6


2.6

Accretion of construction finance liabilities

0.2


0.4

Share-based compensation

5.2


2.4

Proceeds received from insurance - inventory and business interruption

1.5


Change in fair value of derivative liabilities - warrants


(0.3)

Non-cash change in contingencies


(3.7)

Allowance for credit losses

3.0


(0.2)

Deferred income tax expense (benefit)

10.0


(7.9)

Changes in operating assets and liabilities:




Inventories

3.5


0.3

Accounts receivable

1.5


1.6

Prepaid expenses and other current assets

1.0


(1.8)

Other assets

(2.4)


1.9

Accounts payable and accrued liabilities

1.0


9.2

Income tax payable

2.7


(13.4)

Other current liabilities


(5.4)

Operating lease liabilities

(2.2)


(2.5)

Deferred revenue

0.8


(4.5)

Uncertain tax position liabilities

97.6


9.8

Other long-term liabilities

(2.1)


1.2

Net cash provided by operating activities

139.2


0.4

Cash flows from investing activities




Purchases of property and equipment

(15.6)


(13.7)

Capitalized interest

0.1


(0.6)

Purchases of internal use software

(5.0)


(2.0)

Proceeds received from insurance recoveries on property and equipment

0.5


Cash paid for licenses


(3.5)

Proceeds from sales of long-lived assets


0.3

Payments received from notes receivable

0.3


0.2

Proceeds from sale of held for sale assets

0.7


0.6

Net cash used in investing activities

(19.0)


(18.8)

Cash flows from financing activities




Proceeds from redemption of non-controlling interest

3.0


Proceeds from equity exercises

0.2


Payments on notes payable

(0.9)


(3.4)

Payments on finance lease obligations

(1.9)


(2.0)

Payments on construction finance liabilities

(0.8)


(0.3)

Distributions to subsidiary non-controlling interest

(1.1)


(0.1)

Net cash used in financing activities

(1.6)


(5.8)

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

118.6


(24.2)

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

208.0


213.8

Cash and cash equivalents of discontinued operations, beginning of period

0.3


5.7

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


(2.5)

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

$            326.9


$            192.8

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 EBITDA, adjusted EBITDA, adjusted EBITDA margin %, adjusted net loss (income), adjusted net income (loss) per diluted share and free cash flow. The Company calculates EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization; adjusted EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization and also excludes certain extraordinary items; adjusted net income (loss) as net income (loss) less certain extraordinary items; and free cash flow as cash flow from operations less capital expenditures. 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 EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin % (Unaudited)
The following table presents a reconciliation of GAAP net loss to non-GAAP EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin %, for each of the periods presented:

(Amounts expressed in millions of United States dollars)

Three Months Ended

March 31,
2024

March 31,
2023

December 31,
2023

Net loss attributable to common shareholders

$

(23.1)

$

(64.1)

$

(33.4)

Add (deduct) impact of:







Interest expense, net

$

14.7

$

21.2

$

20.6

Interest income

$

(3.3)

$

(1.1)

$

(1.8)

Provision for income taxes

$

55.4

$

35.5

$

45.4

Depreciation and amortization

$

27.8

$

29.6

$

27.2

Depreciation included in cost of goods sold

$

13.5

$

12.1

$

14.5

EBITDA (Non-GAAP)

$

85.0

$

33.2

$

72.5

EBITDA Margin % (Non-GAAP)


29 %


12 %


25 %








Impairment and disposal of long-lived assets, net of (recoveries)

$

(1.4)

$

3.4

$

1.2

Legislative campaign contributions

$

9.2

$

10.5

$

0.5

Acquisition, transaction, and other non-recurring costs

$

3.7

$

1.9

$

10.7

Share-based compensation

$

5.2

$

2.4

$

3.2

Other expense (income), net

$

2.7

$

(4.1)

$

(0.7)

Discontinued operations, net of tax, attributable to common shareholders

$

1.4

$

30.8

$

(1.8)

Gain on debt extinguishment, net

$

$

$

2.2

Adjusted EBITDA (Non-GAAP)

$

105.8

$

78.1

$

87.8

Adjusted EBITDA Margin % (Non-GAAP)


36 %


27 %


31 %

Reconciliation of Non-GAAP Adjusted Net 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

(Amounts expressed in millions of United States dollars)

March 31,
2024

March 31,
2023

December 31,
2023

Net loss attributable to common shareholders

$

(23.1)

$

(64.1)

$

(33.4)

Net loss (income) from discontinued operations

$

1.4

$

30.8

$

(1.8)

Adjustment of redeemable non-controlling interest to maximum redemption value

$

(8.8)

$

$

Net loss from continuing operations available to common shareholders

$

(30.6)

$

(33.3)

$

(35.2)

Add (deduct) impact of:







Adjustment of redeemable non-controlling interest to maximum redemption value

$

8.8

$

$

Fair value of derivative liabilities - warrants

$

$

(0.3)

$

Acquisition, transaction, and other non-recurring costs

$

3.7

$

1.9

$

10.7

Legislative campaign contributions

$

9.2

$

10.5

$

0.5

Impairment and disposal of long-lived assets, net of (recoveries)

$

(1.4)

$

3.4

$

1.2

Adjusted net loss (Non-GAAP)

$

(10.2)

$

(17.7)

$

(22.8)

Reconciliation of Non-GAAP Adjusted Loss Per Share (Unaudited)
The following table presents a reconciliation of GAAP loss per share to non-GAAP adjusted loss per share, for each of the periods presented:


For the Three Months Ended

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

March 31,
2024

March 31,
2023

December 31,
2023

Net loss attributable to common shareholders

$

(0.12)

$

(0.34)

$

(0.18)

Net loss (income) from discontinued operations

$

0.01

$

0.16

$

(0.01)

Adjustment of redeemable non-controlling interest to maximum redemption value

$

(0.05)

$

$

Net loss from continuing operations available to common shareholders

$

(0.16)

$

(0.18)

$

(0.19)

Add (deduct) impact of:







Adjustment of redeemable non-controlling interest to maximum redemption value

$

0.05

$

$

Fair value of derivative liabilities - warrants

$

$

0.00

$

Acquisition, transaction, and other non-recurring costs

$

0.02

$

0.01

$

0.06

Legislative campaign contributions

$

0.05

$

0.06

$

0.00

Impairment and disposal of long-lived assets, net of (recoveries)

$

(0.01)

$

0.02

$

0.01

Adjusted net loss per share (Non-GAAP)

$

(0.05)

$

(0.09)

$

(0.12)

Basic and diluted shares outstanding


189.5


188.9


189.0

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

(Amounts expressed in millions of United States dollars)

March 31,
2024

March 31,
2023

December 31,
2023

Cash flow from operating activities

$

139.2

$

0.4

$

131.5

Payments for property and equipment

$

(15.6)

$

(13.7)

$

(9.4)

Free cash flow

$

123.6

$

(13.3)

$

122.1

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 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-first-quarter-2024-results-demonstrating-core-business-strength-and-cash-generation-302140588.html

SOURCE Trulieve Cannabis Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2024/09/c0061.html

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Goodness Growth Holdings Announces First Quarter 2024 Results

Q1 2024 revenue of $21.1 million excluding discontinued operations and NY increased 44.5% year-over-year –

– Submitted a substantial legal filing on May 2nd in the ongoing litigation with Verano –

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Trulieve Announces May 2024 Event Participation

Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced planned event participation in May.

Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

  • 19 th Annual Needham Technology, Media, & Consumer Conference, May 16, 2024 : Christine Hersey , VP of Investor Relations, will participate in virtual meetings on May 16 .

  • Canaccord Genuity 8th Annual Global Cannabis Conference, May 23, 2024 : Founder and CEO Kim Rivers will participate in a fireside chat and investor meetings.

Information about our events, links to events where available, and slide presentations can be found at: https://investors.trulieve.com/events

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-announces-may-2024-event-participation-302137377.html

SOURCE Trulieve Cannabis Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2024/07/c6835.html

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×