Cannabis News

Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the "Company" or "Koios") is pleased to announce that in June 2021, all four Fit Soda ™ flavours will be carried in over 100 gasoline and convenience outlets operated by Speedway LLC ("Speedway") in the Southwestern United States. Speedway is a national convenience chain with approximately 3,800 locations across the country, which was officially acquired last week by 7-Eleven, Inc. ("7-Eleven"), the largest chain in the convenience retailing industry 1 . Speedway was founded in 1938 in Michigan and rapidly grew throughout the Midwest under the ownership of the Marathon oil empire, before its acquisition by 7-Eleven at which time Speedway's presence had spread to 36 states.

As carbonated seltzer soft drinks with low/no sugar content or calories continue to gain market share in the global beverage industry, the Company has aggressively pursued strategic shelf placement opportunities for Fit Soda ™ in regional and national chains of grocery and convenience retailers. In Q2 2021 alone, the Company has added Fit Soda ™ to more than 1,100 new points of sale, primarily from a recent placement in all locations of Food Lion, a major supermarket chain in the Mid-Atlantic and Southeastern regions of the United States (announced in a press release dated May 11, 2021 ).

In its press release announcing the acquisition of Speedway, 7-Eleven indicated its portfolio of stores now amounts to approximately 14,000 North American stores including 47 of the 50 most populated metro areas of the United States 1 . The Company believes that its new indirect business relationship with 7-Eleven through one of its banner stores could also potentially lead to national placement opportunities for the Company's beverage products to include Fit Soda ™ and KOIOS™ .

At the outset, Fit Soda ™ will be sold in Speedway locations in select markets in the Southwestern U.S., which could complement the product's existing presence in regional chains such as Sprouts (as first announced in a press release dated March 4, 2021 ). Based on the performance of Fit Soda ™ in these markets, the Company may pursue an expanded presence in Speedway stores in other regions. After California (489 stores), the states with the most Speedway locations include: Ohio (488 stores), New York (328 stores), and Indiana (307 stores) 2 .

Koios CEO Chris Miller commented, "Continued interest in our beverage products from well-known convenience, sports nutrition and grocery chains is great assurance that we are gaining traction in the functional beverages category. Industry trends are clearly shifting towards ‘seltzer' type drinks with low/no sugar or calories, and the performance of Fit Soda ™ to date seems to reflect positive reception of the product. We are confident that patrons of Speedway stores in our initial markets will have similar impressions, and we look forward to working with Speedway's expert team of merchandisers to form an optimal strategy for making Fit Soda ™ a recognized brand name as an alternative to legacy carbonated soft drinks."

Sources

1 - https://corp.7-eleven.com/corp-press-releases/05-14-2021-7-eleven-inc-completes-acquisition-of-3-800-speedway-stores

2 - https://www.statista.com/statistics/1027705/speedway-convenience-store-by-state/

On behalf of the Board of Directors of the Company,

KOIOS BEVERAGE CORP.

"Chris Miller"

Chris Miller, CEO, and Director

THE CANADIAN SECURITIES EXCHANGE (CSE) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.

About Koios Beverage Corp.

The Company is an emerging functional beverage company which has an available distribution network of more than 4,400 retail locations across the United States in which to sell its products. Koios has relationships with some of the largest and most reputable distributors in the United States, including Europa Sports, Muscle Foods USA, KeHE, and Wishing-U-Well. Koios uses a proprietary blend of nootropics and natural organic compounds to enhance human productivity without using harmful chemicals or stimulants. Koios products have been shown to enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity. Its ingredients are specifically designed to target brain function by increasing blood flow, oxygen levels and neural connections in the brain.

Koios produces one of the only drinks in the world infused with MCT oil. MCT oil is derived from coconuts and has been shown to help the body burn fat more effectively, create lasting energy from a natural food source, produce ketones in the brain, allowing for greater brain function and clarity, support healthy hormone production and improve immunity. For more information, please visit our website: https://www.koiosbeveragecorp.com .

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking information and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this news release includes statements regarding: Potential placement of Fit Soda ™ in approximately 100 Speedway stores in the Southwestern United States, and potential performance of such placements. The forward-looking information reflects management's current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes to the growth and size of the functional beverage markets; and (iii) other factors beyond the control of the Company. The Company operates in a rapidly evolving environment. New risk factors emerge from time to time, and it is impossible for the Company's management to predict all risk factors, nor can the Company assess the impact of all factors on Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. The forward-looking information included in this news release are made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

The statements in this news release have not been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking the Company's products will vary from person to person. No claims or guarantees can be made as to the effects of the Company's products on an individual's health and well-being. The Company's products are not intended to diagnose, treat, cure or prevent any disease.

This news release may contain trademarked names of third-party entities (or their respective offerings with trademarked names) typically in reference to (i) relationships had by Koios with such third-party entities as referred to in this release and/or (ii) client/vendor/service provider parties whose relationship with Koios is/are referred to in this release. All rights to such trademarks are reserved by their respective owners or licensees.


For further information, please contact: Gina Burrus 844-255-6467 gina@koiosbeveragecorp.com

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The Greenrose Holding Company to Hold Second Quarter 2022 Conference Call on August 15, 2022 at 5:00 p.m. ET

The Greenrose Holding Company to Hold Second Quarter 2022 Conference Call on August 15, 2022 at 5:00 p.m. ET

The Greenrose Holding Company Inc. (OTC: GNRS, GNRSW) ("Greenrose" or the "Company"), a multi-state grower and producer of cannabis brands and products will hold a conference call on Monday, August 15, 2022, at 5:00 p.m. Eastern time to discuss its results for the second quarter ended June 30, 2022. The Company will provide its financial results in a press release prior to the conference call.

Greenrose management will host the conference call, followed by a question-and-answer session.

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Trulieve Delivers Record Second Quarter 2022 Results Driven by Organic Retail Sales

  • Revenue of $320.3 million , up 49% year over year and 1% sequentially
  • Retail revenue grew 3% sequentially across industry leading U.S. network of 168 dispensaries as of June 30, 2022
  • GAAP gross margin of 57% and Adjusted EBITDA* margin of 35%

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 June 30, 2022 . Results are reported in U.S. dollars unless otherwise indicated.

Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

Q2 2022 Financial Highlights*

  • Revenue increased 49% year over year to $320.3 million from $215.1 million and 1% sequentially.
  • Retail revenue increased 3% to $298.6 million and wholesale, licensing and other revenue declined by 22% sequentially to $21.7 million .
  • Gross profit of $182.2 million and GAAP gross margin of 57% in the second quarter compared to gross profit of $178.2 million and GAAP gross margin of 56% in the first quarter of 2022.
  • Net loss of $22.5 million , a sequential improvement of 30%. Adjusted net loss of $1.1 million * excludes $11.8 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, a $5.2 million earnout payment for acquired cultivation in Arizona , $4.3 million in asset impairments associated with the closing of redundant cultivation facilities in Florida and a loss of $0.7 million due to the repurposing of a development stage production site in Arizona .
  • Adjusted EBITDA grew 17% year over year to $111.0 million *, or 35% of revenue in the second quarter compared to Adjusted EBITDA of $105.5 million *, or 33% of revenue in the first quarter of 2022.
  • Cash at quarter end of $181.4 million .

*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.

Q2 2022 Operational Highlights

  • Opened 6 new dispensaries in Fort Myers and Zephyrhills, Florida ; Framingham, Massachusetts ; Coatesville, Pennsylvania ; and Parkersburg and South Charleston, West Virginia . Relocated one dispensary in New Port Richey, Florida .
  • Exited the second quarter with operations in 11 states, with 32% of our retail locations outside of the state of Florida .
  • Produced over 10 million finished goods units in the second quarter, up 79% year over year.
  • Received Notice of Award of Provisional Dispensary License for District Southeast-3 in Columbus, Ohio .
  • Successfully launched Modern Flower TM , Muse TM , Roll One TM , and Sweet Talk TM branded products across markets including Arizona , Florida , Maryland , Pennsylvania and West Virginia .
  • Hosted inaugural Analyst Day event featuring production facility tours including a new 750 thousand square foot automated cultivation facility and corporate presentation showcasing production, retail, branding and marketing, and data analytics capabilities.
  • Expanded roll out and applications of Customer Data Platform for targeted marketing campaigns.

Recent Events

  • Celebrated six year anniversary of first retail sale in Florida .
  • Opened 7 new dispensaries in Phoenix, Arizona ; Apopka , Coral Springs , Hollywood , and Kissimmee, Florida ; and Hurricane and Morgantown, West Virginia .
  • New Phoenix dispensary represented first branded Trulieve store in Arizona , kicking off statewide rebranding efforts to continue over the next year.
  • Currently operate 175 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States .
  • Elected to discontinue wholesale operations in Nevada and are currently evaluating options to exit the market.
  • Made an initial contribution to the Smart and Safe Florida campaign, which aims to legalize adult use marijuana in Florida through a ballot initiative in November 2024 .

Management Commentary
"Our team delivered strong second quarter results with topline growth and margin improvement by staying focused on our plan," said Kim Rivers , Trulieve CEO. "During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape."

Rivers continued, "We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company. We strongly believe that taking firm and decisive action now will better position the organization to capitalize on numerous catalysts in the years ahead. Trulieve has the capital, discipline, and experience to navigate short term headwinds and emerge as a stronger company."

Financial Guidance
Factoring in strategic changes across our business, the impact of inflation on consumer spending, softness in wholesale markets, and the lack of visibility in the current macroeconomic environment, we are adjusting 2022 revenue guidance by 5% from the low end of our prior outlook to $1.25 billion to $1.3 billion . Accordingly, we anticipate Adjusted EBITDA will be in the range of $415 million to $450 million .

Financial Highlights

Results of Operations

For the Three Months Ended

For the Six Months Ended





(Figures in millions and
% change based on these
figures)

June 30,
2022

June 30,
2021

change

March 31,
2022

change

June 30,
2022

June 30,
2021

change





Revenue

$

320.3

$

215.1

49 %

$

318.3

1 %

$

638.6

$

408.9

56 %



Gross Profit

$

182.2

$

144.5

26 %

$

178.2

2 %

$

360.3

$

279.7

29 %



Gross Margin %


57 %


67 %



56 %



56 %


68 %




Adjusted Gross Profit

$

183.4

$

146.7

25 %

$

185.4

-1 %

$

368.8

$

285.7

29 %



Adjusted Gross Margin %


57 %


68 %



58 %



58 %


70 %




Operating Expenses

$

144.2

$

68.2

111 %

$

149.5

-4 %

$

293.7

$

130.9

124 %



Operating Expenses %


45 %


32 %



47 %



46 %


32 %




Net Income (Loss)

$

(22.5)

$

40.9

---

$

(32.0)

---

$

(54.5)

$

71.0

---



Adjusted Net Income (Loss)

$

(1.1)

$

47.0

---

$

1.7

---

$

0.6

$

85.5

---



Diluted Shares Outstanding


187.2


133.0



187.1



187.1


127.9




EPS

$

(0.12)

$

0.31

---

$

(0.17)

---

$

(0.29)

$

0.55

---



Adjusted EPS

$

(0.01)

$

0.35

---

$

0.01

---

$

0.00

$

0.67

---



Adjusted EBITDA

$

111.0

$

94.9

17 %

$

105.5

5 %

$

216.5

$

185.7

17 %



Adjusted EBITDA Margin %


35 %


44 %



33 %



34 %


45 %




Conference Call
The Company will host a conference call and live audio webcast on August 10 , 2022, at 8:30 A.M. Eastern time , to discuss its second quarter 2022 financial results.

Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

North American toll free: 1-888-317-6003             passcode: 6100603
International: 1-412-317-6061                               passcode: 6100603

A live audio webcast of the conference call will be available at:
https://app.webinar.net/eNPDleGz6oj

A powerpoint presentation is available at
https://investors.trulieve.com/events-presentations

An archived replay of the webcast will be available at:
https://investors.trulieve.com/events-presentations

The Company's Form 10-Q for the quarter ended June 30, 2022 , will be available on the SEC's website or at https://investors.trulieve.com/financial-information/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/financial-information/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted gross profit, adjusted net income, adjusted net income per diluted share, and adjusted cash flow from operations. 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 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 Gross Profit
The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Gross Profit GAAP

$

182.2

$

144.5

$

178.2

$

360.3

$

279.7



Gross Margin % GAAP


57 %


67 %


56 %


56 %


68 %



Add (Deduct) Impact of:













Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

0.6

$

2.2

$

6.8

$

7.4

$

3.5



Adjusted Gross Profit Non-GAAP

$

183.4

$

146.7

$

185.4

$

368.8

$

285.7



Adjusted Gross Margin % Non-GAAP


57 %


68 %


58 %


58 %


70 %



Reconciliation of Non-GAAP Adjusted Net Income
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

17.0

$

4.5

$

17.2

$

34.2

$

6.5



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Divestment Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Adjusted Net Income (Loss) Non-GAAP

$

(1.1)

$

47.0

$

1.7

$

0.6

$

85.5



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Earnings (Loss) Per Share GAAP

$

(0.12)

$

0.31

$

(0.17)

$

(0.29)

$

0.55



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(0.01)

$

0.00

$

0.00

$

(0.01)

$

0.00



Inventory Step Up Fair Value

$

0.00

$

0.00

$

0.00

$

0.01

$

0.02



Transaction, Acquisition, and Integration Costs

$

0.09

$

0.03

$

0.09

$

0.18

$

0.05



Covid Related Expenses

$

0.00

$

0.01

$

0.00

$

0.00

$

0.04



Divestment Non-Operating Assets

$

0.00

$

0.00

$

0.01

$

0.02

$

0.00



Impairment and Disposal of Long-lived Assets

$

0.02

$

0.00

$

0.07

$

0.10

$

0.00



Adjusted Earnings Per Share Non-GAAP

$

(0.01)

$

0.35

$

0.01

$

0.00

$

0.67



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Interest Expense, net

$

19.7

$

6.6

$

17.9

$

37.6

$

14.5



Provision For Income Taxes

$

44.8

$

29.1

$

42.3

$

87.1

$

63.7



Depreciation and Amortization

$

30.9

$

6.7

$

29.3

$

60.2

$

12.1



Depreciation in COGS

$

13.8

$

5.0

$

10.7

$

24.5

$

8.7



EBITDA

$

86.7

$

88.3

$

68.2

$

154.9

$

169.9
















Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Integration and Transition Costs

$

5.1

$

1.5

$

5.3

$

10.4

$

1.9



Acquisition and Transaction Costs

$

7.0

$

1.6

$

3.3

$

10.3

$

3.2



Share-Based Compensation

$

5.7

$

0.7

$

4.6

$

10.3

$

1.5



Other Non-Recurring Expenses

$

4.9

$

1.4

$

8.6

$

13.5

$

1.4



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Divestment and Sale of Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Non-Controlling Interest

$

(1.1)

$

0.0

$

0.0

$

(1.1)

$

0.0



Other Expense (Income), net

$

(1.7)

$

(0.3)

$

(0.9)

$

(2.6)

$

(0.3)



Fair Value of Derivative Liabilities - Warrants

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Adjusted EBITDA Non-GAAP

$

111.0

$

94.9

$

105.5

$

216.5

$

185.7



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 expected revenue and adjusted EBITDA for fiscal 2022, its plans for streamlining operations and navigating short term headwinds to emerge stronger, and potential expansion of the Company's operations.  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, 2021 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. operating in 11 states, 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 _
Twitter: @Trulieve

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

Media Contact
Rob Kremer , Executive Director of Corporate Communications
+1 (404) 218-3077
Robert.Kremer@Trulieve.com

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SOURCE Trulieve Cannabis Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2022/10/c8218.html

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Trulieve Delivers Record Second Quarter 2022 Results Driven by Organic Retail Sales

  • Revenue of $320.3 million , up 49% year over year and 1% sequentially
  • Retail revenue grew 3% sequentially across industry leading U.S. network of 168 dispensaries as of June 30, 2022
  • GAAP gross margin of 57% and Adjusted EBITDA* margin of 35%

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 June 30, 2022 . Results are reported in U.S. dollars unless otherwise indicated.

Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

Q2 2022 Financial Highlights*

  • Revenue increased 49% year over year to $320.3 million from $215.1 million and 1% sequentially.
  • Retail revenue increased 3% to $298.6 million and wholesale, licensing and other revenue declined by 22% sequentially to $21.7 million .
  • Gross profit of $182.2 million and GAAP gross margin of 57% in the second quarter compared to gross profit of $178.2 million and GAAP gross margin of 56% in the first quarter of 2022.
  • Net loss of $22.5 million , a sequential improvement of 30%. Adjusted net loss of $1.1 million * excludes $11.8 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, a $5.2 million earnout payment for acquired cultivation in Arizona , $4.3 million in asset impairments associated with the closing of redundant cultivation facilities in Florida and a loss of $0.7 million due to the repurposing of a development stage production site in Arizona .
  • Adjusted EBITDA grew 17% year over year to $111.0 million *, or 35% of revenue in the second quarter compared to Adjusted EBITDA of $105.5 million *, or 33% of revenue in the first quarter of 2022.
  • Cash at quarter end of $181.4 million .

*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.

Q2 2022 Operational Highlights

  • Opened 6 new dispensaries in Fort Myers and Zephyrhills, Florida ; Framingham, Massachusetts ; Coatesville, Pennsylvania ; and Parkersburg and South Charleston, West Virginia . Relocated one dispensary in New Port Richey, Florida .
  • Exited the second quarter with operations in 11 states, with 32% of our retail locations outside of the state of Florida .
  • Produced over 10 million finished goods units in the second quarter, up 79% year over year.
  • Received Notice of Award of Provisional Dispensary License for District Southeast-3 in Columbus, Ohio .
  • Successfully launched Modern Flower TM , Muse TM , Roll One TM , and Sweet Talk TM branded products across markets including Arizona , Florida , Maryland , Pennsylvania and West Virginia .
  • Hosted inaugural Analyst Day event featuring production facility tours including a new 750 thousand square foot automated cultivation facility and corporate presentation showcasing production, retail, branding and marketing, and data analytics capabilities.
  • Expanded roll out and applications of Customer Data Platform for targeted marketing campaigns.

Recent Events

  • Celebrated six year anniversary of first retail sale in Florida .
  • Opened 7 new dispensaries in Phoenix, Arizona ; Apopka , Coral Springs , Hollywood , and Kissimmee, Florida ; and Hurricane and Morgantown, West Virginia .
  • New Phoenix dispensary represented first branded Trulieve store in Arizona , kicking off statewide rebranding efforts to continue over the next year.
  • Currently operate 175 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States .
  • Elected to discontinue wholesale operations in Nevada and are currently evaluating options to exit the market.
  • Made an initial contribution to the Smart and Safe Florida campaign, which aims to legalize adult use marijuana in Florida through a ballot initiative in November 2024 .

Management Commentary
"Our team delivered strong second quarter results with topline growth and margin improvement by staying focused on our plan," said Kim Rivers , Trulieve CEO. "During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape."

Rivers continued, "We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company. We strongly believe that taking firm and decisive action now will better position the organization to capitalize on numerous catalysts in the years ahead. Trulieve has the capital, discipline, and experience to navigate short term headwinds and emerge as a stronger company."

Financial Guidance
Factoring in strategic changes across our business, the impact of inflation on consumer spending, softness in wholesale markets, and the lack of visibility in the current macroeconomic environment, we are adjusting 2022 revenue guidance by 5% from the low end of our prior outlook to $1.25 billion to $1.3 billion . Accordingly, we anticipate Adjusted EBITDA will be in the range of $415 million to $450 million .

Financial Highlights

Results of Operations

For the Three Months Ended

For the Six Months Ended





(Figures in millions and
% change based on these
figures)

June 30,
2022

June 30,
2021

change

March 31,
2022

change

June 30,
2022

June 30,
2021

change





Revenue

$

320.3

$

215.1

49 %

$

318.3

1 %

$

638.6

$

408.9

56 %



Gross Profit

$

182.2

$

144.5

26 %

$

178.2

2 %

$

360.3

$

279.7

29 %



Gross Margin %


57 %


67 %



56 %



56 %


68 %




Adjusted Gross Profit

$

183.4

$

146.7

25 %

$

185.4

-1 %

$

368.8

$

285.7

29 %



Adjusted Gross Margin %


57 %


68 %



58 %



58 %


70 %




Operating Expenses

$

144.2

$

68.2

111 %

$

149.5

-4 %

$

293.7

$

130.9

124 %



Operating Expenses %


45 %


32 %



47 %



46 %


32 %




Net Income (Loss)

$

(22.5)

$

40.9

---

$

(32.0)

---

$

(54.5)

$

71.0

---



Adjusted Net Income (Loss)

$

(1.1)

$

47.0

---

$

1.7

---

$

0.6

$

85.5

---



Diluted Shares Outstanding


187.2


133.0



187.1



187.1


127.9




EPS

$

(0.12)

$

0.31

---

$

(0.17)

---

$

(0.29)

$

0.55

---



Adjusted EPS

$

(0.01)

$

0.35

---

$

0.01

---

$

0.00

$

0.67

---



Adjusted EBITDA

$

111.0

$

94.9

17 %

$

105.5

5 %

$

216.5

$

185.7

17 %



Adjusted EBITDA Margin %


35 %


44 %



33 %



34 %


45 %




Conference Call
The Company will host a conference call and live audio webcast on August 10 , 2022, at 8:30 A.M. Eastern time , to discuss its second quarter 2022 financial results.

Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

North American toll free: 1-888-317-6003             passcode: 6100603
International: 1-412-317-6061                               passcode: 6100603

A live audio webcast of the conference call will be available at:
https://app.webinar.net/eNPDleGz6oj

A powerpoint presentation is available at
https://investors.trulieve.com/events-presentations

An archived replay of the webcast will be available at:
https://investors.trulieve.com/events-presentations

The Company's Form 10-Q for the quarter ended June 30, 2022 , will be available on the SEC's website or at https://investors.trulieve.com/financial-information/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/financial-information/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted gross profit, adjusted net income, adjusted net income per diluted share, and adjusted cash flow from operations. 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 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 Gross Profit
The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Gross Profit GAAP

$

182.2

$

144.5

$

178.2

$

360.3

$

279.7



Gross Margin % GAAP


57 %


67 %


56 %


56 %


68 %



Add (Deduct) Impact of:













Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

0.6

$

2.2

$

6.8

$

7.4

$

3.5



Adjusted Gross Profit Non-GAAP

$

183.4

$

146.7

$

185.4

$

368.8

$

285.7



Adjusted Gross Margin % Non-GAAP


57 %


68 %


58 %


58 %


70 %



Reconciliation of Non-GAAP Adjusted Net Income
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

17.0

$

4.5

$

17.2

$

34.2

$

6.5



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Divestment Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Adjusted Net Income (Loss) Non-GAAP

$

(1.1)

$

47.0

$

1.7

$

0.6

$

85.5



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Earnings (Loss) Per Share GAAP

$

(0.12)

$

0.31

$

(0.17)

$

(0.29)

$

0.55



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(0.01)

$

0.00

$

0.00

$

(0.01)

$

0.00



Inventory Step Up Fair Value

$

0.00

$

0.00

$

0.00

$

0.01

$

0.02



Transaction, Acquisition, and Integration Costs

$

0.09

$

0.03

$

0.09

$

0.18

$

0.05



Covid Related Expenses

$

0.00

$

0.01

$

0.00

$

0.00

$

0.04



Divestment Non-Operating Assets

$

0.00

$

0.00

$

0.01

$

0.02

$

0.00



Impairment and Disposal of Long-lived Assets

$

0.02

$

0.00

$

0.07

$

0.10

$

0.00



Adjusted Earnings Per Share Non-GAAP

$

(0.01)

$

0.35

$

0.01

$

0.00

$

0.67



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Interest Expense, net

$

19.7

$

6.6

$

17.9

$

37.6

$

14.5



Provision For Income Taxes

$

44.8

$

29.1

$

42.3

$

87.1

$

63.7



Depreciation and Amortization

$

30.9

$

6.7

$

29.3

$

60.2

$

12.1



Depreciation in COGS

$

13.8

$

5.0

$

10.7

$

24.5

$

8.7



EBITDA

$

86.7

$

88.3

$

68.2

$

154.9

$

169.9
















Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Integration and Transition Costs

$

5.1

$

1.5

$

5.3

$

10.4

$

1.9



Acquisition and Transaction Costs

$

7.0

$

1.6

$

3.3

$

10.3

$

3.2



Share-Based Compensation

$

5.7

$

0.7

$

4.6

$

10.3

$

1.5



Other Non-Recurring Expenses

$

4.9

$

1.4

$

8.6

$

13.5

$

1.4



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Divestment and Sale of Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Non-Controlling Interest

$

(1.1)

$

0.0

$

0.0

$

(1.1)

$

0.0



Other Expense (Income), net

$

(1.7)

$

(0.3)

$

(0.9)

$

(2.6)

$

(0.3)



Fair Value of Derivative Liabilities - Warrants

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Adjusted EBITDA Non-GAAP

$

111.0

$

94.9

$

105.5

$

216.5

$

185.7



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 expected revenue and adjusted EBITDA for fiscal 2022, its plans for streamlining operations and navigating short term headwinds to emerge stronger, and potential expansion of the Company's operations.  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, 2021 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. operating in 11 states, 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 _
Twitter: @Trulieve

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

Media Contact
Rob Kremer , Executive Director of Corporate Communications
+1 (404) 218-3077
Robert.Kremer@Trulieve.com

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-delivers-record-second-quarter-2022-results-driven-by-organic-retail-sales-301603021.html

SOURCE Trulieve Cannabis Corp.

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Trulieve Delivers Record Second Quarter 2022 Results Driven by Organic Retail Sales

  • Revenue of $320.3 million , up 49% year over year and 1% sequentially
  • Retail revenue grew 3% sequentially across industry leading U.S. network of 168 dispensaries as of June 30, 2022
  • GAAP gross margin of 57% and Adjusted EBITDA* margin of 35%

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 June 30, 2022 . Results are reported in U.S. dollars unless otherwise indicated.

Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

Q2 2022 Financial Highlights*

  • Revenue increased 49% year over year to $320.3 million from $215.1 million and 1% sequentially.
  • Retail revenue increased 3% to $298.6 million and wholesale, licensing and other revenue declined by 22% sequentially to $21.7 million .
  • Gross profit of $182.2 million and GAAP gross margin of 57% in the second quarter compared to gross profit of $178.2 million and GAAP gross margin of 56% in the first quarter of 2022.
  • Net loss of $22.5 million , a sequential improvement of 30%. Adjusted net loss of $1.1 million * excludes $11.8 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, a $5.2 million earnout payment for acquired cultivation in Arizona , $4.3 million in asset impairments associated with the closing of redundant cultivation facilities in Florida and a loss of $0.7 million due to the repurposing of a development stage production site in Arizona .
  • Adjusted EBITDA grew 17% year over year to $111.0 million *, or 35% of revenue in the second quarter compared to Adjusted EBITDA of $105.5 million *, or 33% of revenue in the first quarter of 2022.
  • Cash at quarter end of $181.4 million .

*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.

Q2 2022 Operational Highlights

  • Opened 6 new dispensaries in Fort Myers and Zephyrhills, Florida ; Framingham, Massachusetts ; Coatesville, Pennsylvania ; and Parkersburg and South Charleston, West Virginia . Relocated one dispensary in New Port Richey, Florida .
  • Exited the second quarter with operations in 11 states, with 32% of our retail locations outside of the state of Florida .
  • Produced over 10 million finished goods units in the second quarter, up 79% year over year.
  • Received Notice of Award of Provisional Dispensary License for District Southeast-3 in Columbus, Ohio .
  • Successfully launched Modern Flower TM , Muse TM , Roll One TM , and Sweet Talk TM branded products across markets including Arizona , Florida , Maryland , Pennsylvania and West Virginia .
  • Hosted inaugural Analyst Day event featuring production facility tours including a new 750 thousand square foot automated cultivation facility and corporate presentation showcasing production, retail, branding and marketing, and data analytics capabilities.
  • Expanded roll out and applications of Customer Data Platform for targeted marketing campaigns.

Recent Events

  • Celebrated six year anniversary of first retail sale in Florida .
  • Opened 7 new dispensaries in Phoenix, Arizona ; Apopka , Coral Springs , Hollywood , and Kissimmee, Florida ; and Hurricane and Morgantown, West Virginia .
  • New Phoenix dispensary represented first branded Trulieve store in Arizona , kicking off statewide rebranding efforts to continue over the next year.
  • Currently operate 175 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States .
  • Elected to discontinue wholesale operations in Nevada and are currently evaluating options to exit the market.
  • Made an initial contribution to the Smart and Safe Florida campaign, which aims to legalize adult use marijuana in Florida through a ballot initiative in November 2024 .

Management Commentary
"Our team delivered strong second quarter results with topline growth and margin improvement by staying focused on our plan," said Kim Rivers , Trulieve CEO. "During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape."

Rivers continued, "We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company. We strongly believe that taking firm and decisive action now will better position the organization to capitalize on numerous catalysts in the years ahead. Trulieve has the capital, discipline, and experience to navigate short term headwinds and emerge as a stronger company."

Financial Guidance
Factoring in strategic changes across our business, the impact of inflation on consumer spending, softness in wholesale markets, and the lack of visibility in the current macroeconomic environment, we are adjusting 2022 revenue guidance by 5% from the low end of our prior outlook to $1.25 billion to $1.3 billion . Accordingly, we anticipate Adjusted EBITDA will be in the range of $415 million to $450 million .

Financial Highlights

Results of Operations

For the Three Months Ended

For the Six Months Ended





(Figures in millions and
% change based on these
figures)

June 30,
2022

June 30,
2021

change

March 31,
2022

change

June 30,
2022

June 30,
2021

change





Revenue

$

320.3

$

215.1

49 %

$

318.3

1 %

$

638.6

$

408.9

56 %



Gross Profit

$

182.2

$

144.5

26 %

$

178.2

2 %

$

360.3

$

279.7

29 %



Gross Margin %


57 %


67 %



56 %



56 %


68 %




Adjusted Gross Profit

$

183.4

$

146.7

25 %

$

185.4

-1 %

$

368.8

$

285.7

29 %



Adjusted Gross Margin %


57 %


68 %



58 %



58 %


70 %




Operating Expenses

$

144.2

$

68.2

111 %

$

149.5

-4 %

$

293.7

$

130.9

124 %



Operating Expenses %


45 %


32 %



47 %



46 %


32 %




Net Income (Loss)

$

(22.5)

$

40.9

---

$

(32.0)

---

$

(54.5)

$

71.0

---



Adjusted Net Income (Loss)

$

(1.1)

$

47.0

---

$

1.7

---

$

0.6

$

85.5

---



Diluted Shares Outstanding


187.2


133.0



187.1



187.1


127.9




EPS

$

(0.12)

$

0.31

---

$

(0.17)

---

$

(0.29)

$

0.55

---



Adjusted EPS

$

(0.01)

$

0.35

---

$

0.01

---

$

0.00

$

0.67

---



Adjusted EBITDA

$

111.0

$

94.9

17 %

$

105.5

5 %

$

216.5

$

185.7

17 %



Adjusted EBITDA Margin %


35 %


44 %



33 %



34 %


45 %




Conference Call
The Company will host a conference call and live audio webcast on August 10 , 2022, at 8:30 A.M. Eastern time , to discuss its second quarter 2022 financial results.

Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

North American toll free: 1-888-317-6003             passcode: 6100603
International: 1-412-317-6061                               passcode: 6100603

A live audio webcast of the conference call will be available at:
https://app.webinar.net/eNPDleGz6oj

A powerpoint presentation is available at
https://investors.trulieve.com/events-presentations

An archived replay of the webcast will be available at:
https://investors.trulieve.com/events-presentations

The Company's Form 10-Q for the quarter ended June 30, 2022 , will be available on the SEC's website or at https://investors.trulieve.com/financial-information/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/financial-information/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted gross profit, adjusted net income, adjusted net income per diluted share, and adjusted cash flow from operations. 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 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 Gross Profit
The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Gross Profit GAAP

$

182.2

$

144.5

$

178.2

$

360.3

$

279.7



Gross Margin % GAAP


57 %


67 %


56 %


56 %


68 %



Add (Deduct) Impact of:













Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

0.6

$

2.2

$

6.8

$

7.4

$

3.5



Adjusted Gross Profit Non-GAAP

$

183.4

$

146.7

$

185.4

$

368.8

$

285.7



Adjusted Gross Margin % Non-GAAP


57 %


68 %


58 %


58 %


70 %



Reconciliation of Non-GAAP Adjusted Net Income
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

17.0

$

4.5

$

17.2

$

34.2

$

6.5



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Divestment Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Adjusted Net Income (Loss) Non-GAAP

$

(1.1)

$

47.0

$

1.7

$

0.6

$

85.5



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Earnings (Loss) Per Share GAAP

$

(0.12)

$

0.31

$

(0.17)

$

(0.29)

$

0.55



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(0.01)

$

0.00

$

0.00

$

(0.01)

$

0.00



Inventory Step Up Fair Value

$

0.00

$

0.00

$

0.00

$

0.01

$

0.02



Transaction, Acquisition, and Integration Costs

$

0.09

$

0.03

$

0.09

$

0.18

$

0.05



Covid Related Expenses

$

0.00

$

0.01

$

0.00

$

0.00

$

0.04



Divestment Non-Operating Assets

$

0.00

$

0.00

$

0.01

$

0.02

$

0.00



Impairment and Disposal of Long-lived Assets

$

0.02

$

0.00

$

0.07

$

0.10

$

0.00



Adjusted Earnings Per Share Non-GAAP

$

(0.01)

$

0.35

$

0.01

$

0.00

$

0.67



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Interest Expense, net

$

19.7

$

6.6

$

17.9

$

37.6

$

14.5



Provision For Income Taxes

$

44.8

$

29.1

$

42.3

$

87.1

$

63.7



Depreciation and Amortization

$

30.9

$

6.7

$

29.3

$

60.2

$

12.1



Depreciation in COGS

$

13.8

$

5.0

$

10.7

$

24.5

$

8.7



EBITDA

$

86.7

$

88.3

$

68.2

$

154.9

$

169.9
















Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Integration and Transition Costs

$

5.1

$

1.5

$

5.3

$

10.4

$

1.9



Acquisition and Transaction Costs

$

7.0

$

1.6

$

3.3

$

10.3

$

3.2



Share-Based Compensation

$

5.7

$

0.7

$

4.6

$

10.3

$

1.5



Other Non-Recurring Expenses

$

4.9

$

1.4

$

8.6

$

13.5

$

1.4



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Divestment and Sale of Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Non-Controlling Interest

$

(1.1)

$

0.0

$

0.0

$

(1.1)

$

0.0



Other Expense (Income), net

$

(1.7)

$

(0.3)

$

(0.9)

$

(2.6)

$

(0.3)



Fair Value of Derivative Liabilities - Warrants

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Adjusted EBITDA Non-GAAP

$

111.0

$

94.9

$

105.5

$

216.5

$

185.7



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 expected revenue and adjusted EBITDA for fiscal 2022, its plans for streamlining operations and navigating short term headwinds to emerge stronger, and potential expansion of the Company's operations.  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, 2021 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. operating in 11 states, 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 _
Twitter: @Trulieve

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

Media Contact
Rob Kremer , Executive Director of Corporate Communications
+1 (404) 218-3077
Robert.Kremer@Trulieve.com

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-delivers-record-second-quarter-2022-results-driven-by-organic-retail-sales-301603021.html

SOURCE Trulieve Cannabis Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2022/10/c8218.html

News Provided by Canada Newswire via QuoteMedia

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Trulieve Delivers Record Second Quarter 2022 Results Driven by Organic Retail Sales

  • Revenue of $320.3 million , up 49% year over year and 1% sequentially
  • Retail revenue grew 3% sequentially across industry leading U.S. network of 168 dispensaries as of June 30, 2022
  • GAAP gross margin of 57% and Adjusted EBITDA* margin of 35%

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 June 30, 2022 . Results are reported in U.S. dollars unless otherwise indicated.

Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

Q2 2022 Financial Highlights*

  • Revenue increased 49% year over year to $320.3 million from $215.1 million and 1% sequentially.
  • Retail revenue increased 3% to $298.6 million and wholesale, licensing and other revenue declined by 22% sequentially to $21.7 million .
  • Gross profit of $182.2 million and GAAP gross margin of 57% in the second quarter compared to gross profit of $178.2 million and GAAP gross margin of 56% in the first quarter of 2022.
  • Net loss of $22.5 million , a sequential improvement of 30%. Adjusted net loss of $1.1 million * excludes $11.8 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, a $5.2 million earnout payment for acquired cultivation in Arizona , $4.3 million in asset impairments associated with the closing of redundant cultivation facilities in Florida and a loss of $0.7 million due to the repurposing of a development stage production site in Arizona .
  • Adjusted EBITDA grew 17% year over year to $111.0 million *, or 35% of revenue in the second quarter compared to Adjusted EBITDA of $105.5 million *, or 33% of revenue in the first quarter of 2022.
  • Cash at quarter end of $181.4 million .

*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.

Q2 2022 Operational Highlights

  • Opened 6 new dispensaries in Fort Myers and Zephyrhills, Florida ; Framingham, Massachusetts ; Coatesville, Pennsylvania ; and Parkersburg and South Charleston, West Virginia . Relocated one dispensary in New Port Richey, Florida .
  • Exited the second quarter with operations in 11 states, with 32% of our retail locations outside of the state of Florida .
  • Produced over 10 million finished goods units in the second quarter, up 79% year over year.
  • Received Notice of Award of Provisional Dispensary License for District Southeast-3 in Columbus, Ohio .
  • Successfully launched Modern Flower TM , Muse TM , Roll One TM , and Sweet Talk TM branded products across markets including Arizona , Florida , Maryland , Pennsylvania and West Virginia .
  • Hosted inaugural Analyst Day event featuring production facility tours including a new 750 thousand square foot automated cultivation facility and corporate presentation showcasing production, retail, branding and marketing, and data analytics capabilities.
  • Expanded roll out and applications of Customer Data Platform for targeted marketing campaigns.

Recent Events

  • Celebrated six year anniversary of first retail sale in Florida .
  • Opened 7 new dispensaries in Phoenix, Arizona ; Apopka , Coral Springs , Hollywood , and Kissimmee, Florida ; and Hurricane and Morgantown, West Virginia .
  • New Phoenix dispensary represented first branded Trulieve store in Arizona , kicking off statewide rebranding efforts to continue over the next year.
  • Currently operate 175 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States .
  • Elected to discontinue wholesale operations in Nevada and are currently evaluating options to exit the market.
  • Made an initial contribution to the Smart and Safe Florida campaign, which aims to legalize adult use marijuana in Florida through a ballot initiative in November 2024 .

Management Commentary
"Our team delivered strong second quarter results with topline growth and margin improvement by staying focused on our plan," said Kim Rivers , Trulieve CEO. "During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape."

Rivers continued, "We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company. We strongly believe that taking firm and decisive action now will better position the organization to capitalize on numerous catalysts in the years ahead. Trulieve has the capital, discipline, and experience to navigate short term headwinds and emerge as a stronger company."

Financial Guidance
Factoring in strategic changes across our business, the impact of inflation on consumer spending, softness in wholesale markets, and the lack of visibility in the current macroeconomic environment, we are adjusting 2022 revenue guidance by 5% from the low end of our prior outlook to $1.25 billion to $1.3 billion . Accordingly, we anticipate Adjusted EBITDA will be in the range of $415 million to $450 million .

Financial Highlights

Results of Operations

For the Three Months Ended

For the Six Months Ended





(Figures in millions and
% change based on these
figures)

June 30,
2022

June 30,
2021

change

March 31,
2022

change

June 30,
2022

June 30,
2021

change





Revenue

$

320.3

$

215.1

49 %

$

318.3

1 %

$

638.6

$

408.9

56 %



Gross Profit

$

182.2

$

144.5

26 %

$

178.2

2 %

$

360.3

$

279.7

29 %



Gross Margin %


57 %


67 %



56 %



56 %


68 %




Adjusted Gross Profit

$

183.4

$

146.7

25 %

$

185.4

-1 %

$

368.8

$

285.7

29 %



Adjusted Gross Margin %


57 %


68 %



58 %



58 %


70 %




Operating Expenses

$

144.2

$

68.2

111 %

$

149.5

-4 %

$

293.7

$

130.9

124 %



Operating Expenses %


45 %


32 %



47 %



46 %


32 %




Net Income (Loss)

$

(22.5)

$

40.9

---

$

(32.0)

---

$

(54.5)

$

71.0

---



Adjusted Net Income (Loss)

$

(1.1)

$

47.0

---

$

1.7

---

$

0.6

$

85.5

---



Diluted Shares Outstanding


187.2


133.0



187.1



187.1


127.9




EPS

$

(0.12)

$

0.31

---

$

(0.17)

---

$

(0.29)

$

0.55

---



Adjusted EPS

$

(0.01)

$

0.35

---

$

0.01

---

$

0.00

$

0.67

---



Adjusted EBITDA

$

111.0

$

94.9

17 %

$

105.5

5 %

$

216.5

$

185.7

17 %



Adjusted EBITDA Margin %


35 %


44 %



33 %



34 %


45 %




Conference Call
The Company will host a conference call and live audio webcast on August 10 , 2022, at 8:30 A.M. Eastern time , to discuss its second quarter 2022 financial results.

Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

North American toll free: 1-888-317-6003             passcode: 6100603
International: 1-412-317-6061                               passcode: 6100603

A live audio webcast of the conference call will be available at:
https://app.webinar.net/eNPDleGz6oj

A powerpoint presentation is available at
https://investors.trulieve.com/events-presentations

An archived replay of the webcast will be available at:
https://investors.trulieve.com/events-presentations

The Company's Form 10-Q for the quarter ended June 30, 2022 , will be available on the SEC's website or at https://investors.trulieve.com/financial-information/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/financial-information/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted gross profit, adjusted net income, adjusted net income per diluted share, and adjusted cash flow from operations. 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 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 Gross Profit
The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Gross Profit GAAP

$

182.2

$

144.5

$

178.2

$

360.3

$

279.7



Gross Margin % GAAP


57 %


67 %


56 %


56 %


68 %



Add (Deduct) Impact of:













Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

0.6

$

2.2

$

6.8

$

7.4

$

3.5



Adjusted Gross Profit Non-GAAP

$

183.4

$

146.7

$

185.4

$

368.8

$

285.7



Adjusted Gross Margin % Non-GAAP


57 %


68 %


58 %


58 %


70 %



Reconciliation of Non-GAAP Adjusted Net Income
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

17.0

$

4.5

$

17.2

$

34.2

$

6.5



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Divestment Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Adjusted Net Income (Loss) Non-GAAP

$

(1.1)

$

47.0

$

1.7

$

0.6

$

85.5



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Earnings (Loss) Per Share GAAP

$

(0.12)

$

0.31

$

(0.17)

$

(0.29)

$

0.55



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(0.01)

$

0.00

$

0.00

$

(0.01)

$

0.00



Inventory Step Up Fair Value

$

0.00

$

0.00

$

0.00

$

0.01

$

0.02



Transaction, Acquisition, and Integration Costs

$

0.09

$

0.03

$

0.09

$

0.18

$

0.05



Covid Related Expenses

$

0.00

$

0.01

$

0.00

$

0.00

$

0.04



Divestment Non-Operating Assets

$

0.00

$

0.00

$

0.01

$

0.02

$

0.00



Impairment and Disposal of Long-lived Assets

$

0.02

$

0.00

$

0.07

$

0.10

$

0.00



Adjusted Earnings Per Share Non-GAAP

$

(0.01)

$

0.35

$

0.01

$

0.00

$

0.67



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Interest Expense, net

$

19.7

$

6.6

$

17.9

$

37.6

$

14.5



Provision For Income Taxes

$

44.8

$

29.1

$

42.3

$

87.1

$

63.7



Depreciation and Amortization

$

30.9

$

6.7

$

29.3

$

60.2

$

12.1



Depreciation in COGS

$

13.8

$

5.0

$

10.7

$

24.5

$

8.7



EBITDA

$

86.7

$

88.3

$

68.2

$

154.9

$

169.9
















Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Integration and Transition Costs

$

5.1

$

1.5

$

5.3

$

10.4

$

1.9



Acquisition and Transaction Costs

$

7.0

$

1.6

$

3.3

$

10.3

$

3.2



Share-Based Compensation

$

5.7

$

0.7

$

4.6

$

10.3

$

1.5



Other Non-Recurring Expenses

$

4.9

$

1.4

$

8.6

$

13.5

$

1.4



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Divestment and Sale of Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Non-Controlling Interest

$

(1.1)

$

0.0

$

0.0

$

(1.1)

$

0.0



Other Expense (Income), net

$

(1.7)

$

(0.3)

$

(0.9)

$

(2.6)

$

(0.3)



Fair Value of Derivative Liabilities - Warrants

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Adjusted EBITDA Non-GAAP

$

111.0

$

94.9

$

105.5

$

216.5

$

185.7



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 expected revenue and adjusted EBITDA for fiscal 2022, its plans for streamlining operations and navigating short term headwinds to emerge stronger, and potential expansion of the Company's operations.  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, 2021 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. operating in 11 states, 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 _
Twitter: @Trulieve

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

Media Contact
Rob Kremer , Executive Director of Corporate Communications
+1 (404) 218-3077
Robert.Kremer@Trulieve.com

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-delivers-record-second-quarter-2022-results-driven-by-organic-retail-sales-301603021.html

SOURCE Trulieve Cannabis Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2022/10/c8218.html

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Trulieve Delivers Record Second Quarter 2022 Results Driven by Organic Retail Sales

  • Revenue of $320.3 million , up 49% year over year and 1% sequentially
  • Retail revenue grew 3% sequentially across industry leading U.S. network of 168 dispensaries as of June 30, 2022
  • GAAP gross margin of 57% and Adjusted EBITDA* margin of 35%

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 June 30, 2022 . Results are reported in U.S. dollars unless otherwise indicated.

Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

Q2 2022 Financial Highlights*

  • Revenue increased 49% year over year to $320.3 million from $215.1 million and 1% sequentially.
  • Retail revenue increased 3% to $298.6 million and wholesale, licensing and other revenue declined by 22% sequentially to $21.7 million .
  • Gross profit of $182.2 million and GAAP gross margin of 57% in the second quarter compared to gross profit of $178.2 million and GAAP gross margin of 56% in the first quarter of 2022.
  • Net loss of $22.5 million , a sequential improvement of 30%. Adjusted net loss of $1.1 million * excludes $11.8 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, a $5.2 million earnout payment for acquired cultivation in Arizona , $4.3 million in asset impairments associated with the closing of redundant cultivation facilities in Florida and a loss of $0.7 million due to the repurposing of a development stage production site in Arizona .
  • Adjusted EBITDA grew 17% year over year to $111.0 million *, or 35% of revenue in the second quarter compared to Adjusted EBITDA of $105.5 million *, or 33% of revenue in the first quarter of 2022.
  • Cash at quarter end of $181.4 million .

*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.

Q2 2022 Operational Highlights

  • Opened 6 new dispensaries in Fort Myers and Zephyrhills, Florida ; Framingham, Massachusetts ; Coatesville, Pennsylvania ; and Parkersburg and South Charleston, West Virginia . Relocated one dispensary in New Port Richey, Florida .
  • Exited the second quarter with operations in 11 states, with 32% of our retail locations outside of the state of Florida .
  • Produced over 10 million finished goods units in the second quarter, up 79% year over year.
  • Received Notice of Award of Provisional Dispensary License for District Southeast-3 in Columbus, Ohio .
  • Successfully launched Modern Flower TM , Muse TM , Roll One TM , and Sweet Talk TM branded products across markets including Arizona , Florida , Maryland , Pennsylvania and West Virginia .
  • Hosted inaugural Analyst Day event featuring production facility tours including a new 750 thousand square foot automated cultivation facility and corporate presentation showcasing production, retail, branding and marketing, and data analytics capabilities.
  • Expanded roll out and applications of Customer Data Platform for targeted marketing campaigns.

Recent Events

  • Celebrated six year anniversary of first retail sale in Florida .
  • Opened 7 new dispensaries in Phoenix, Arizona ; Apopka , Coral Springs , Hollywood , and Kissimmee, Florida ; and Hurricane and Morgantown, West Virginia .
  • New Phoenix dispensary represented first branded Trulieve store in Arizona , kicking off statewide rebranding efforts to continue over the next year.
  • Currently operate 175 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States .
  • Elected to discontinue wholesale operations in Nevada and are currently evaluating options to exit the market.
  • Made an initial contribution to the Smart and Safe Florida campaign, which aims to legalize adult use marijuana in Florida through a ballot initiative in November 2024 .

Management Commentary
"Our team delivered strong second quarter results with topline growth and margin improvement by staying focused on our plan," said Kim Rivers , Trulieve CEO. "During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape."

Rivers continued, "We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company. We strongly believe that taking firm and decisive action now will better position the organization to capitalize on numerous catalysts in the years ahead. Trulieve has the capital, discipline, and experience to navigate short term headwinds and emerge as a stronger company."

Financial Guidance
Factoring in strategic changes across our business, the impact of inflation on consumer spending, softness in wholesale markets, and the lack of visibility in the current macroeconomic environment, we are adjusting 2022 revenue guidance by 5% from the low end of our prior outlook to $1.25 billion to $1.3 billion . Accordingly, we anticipate Adjusted EBITDA will be in the range of $415 million to $450 million .

Financial Highlights

Results of Operations

For the Three Months Ended

For the Six Months Ended





(Figures in millions and
% change based on these
figures)

June 30,
2022

June 30,
2021

change

March 31,
2022

change

June 30,
2022

June 30,
2021

change





Revenue

$

320.3

$

215.1

49 %

$

318.3

1 %

$

638.6

$

408.9

56 %



Gross Profit

$

182.2

$

144.5

26 %

$

178.2

2 %

$

360.3

$

279.7

29 %



Gross Margin %


57 %


67 %



56 %



56 %


68 %




Adjusted Gross Profit

$

183.4

$

146.7

25 %

$

185.4

-1 %

$

368.8

$

285.7

29 %



Adjusted Gross Margin %


57 %


68 %



58 %



58 %


70 %




Operating Expenses

$

144.2

$

68.2

111 %

$

149.5

-4 %

$

293.7

$

130.9

124 %



Operating Expenses %


45 %


32 %



47 %



46 %


32 %




Net Income (Loss)

$

(22.5)

$

40.9

---

$

(32.0)

---

$

(54.5)

$

71.0

---



Adjusted Net Income (Loss)

$

(1.1)

$

47.0

---

$

1.7

---

$

0.6

$

85.5

---



Diluted Shares Outstanding


187.2


133.0



187.1



187.1


127.9




EPS

$

(0.12)

$

0.31

---

$

(0.17)

---

$

(0.29)

$

0.55

---



Adjusted EPS

$

(0.01)

$

0.35

---

$

0.01

---

$

0.00

$

0.67

---



Adjusted EBITDA

$

111.0

$

94.9

17 %

$

105.5

5 %

$

216.5

$

185.7

17 %



Adjusted EBITDA Margin %


35 %


44 %



33 %



34 %


45 %




Conference Call
The Company will host a conference call and live audio webcast on August 10 , 2022, at 8:30 A.M. Eastern time , to discuss its second quarter 2022 financial results.

Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

North American toll free: 1-888-317-6003             passcode: 6100603
International: 1-412-317-6061                               passcode: 6100603

A live audio webcast of the conference call will be available at:
https://app.webinar.net/eNPDleGz6oj

A powerpoint presentation is available at
https://investors.trulieve.com/events-presentations

An archived replay of the webcast will be available at:
https://investors.trulieve.com/events-presentations

The Company's Form 10-Q for the quarter ended June 30, 2022 , will be available on the SEC's website or at https://investors.trulieve.com/financial-information/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/financial-information/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted gross profit, adjusted net income, adjusted net income per diluted share, and adjusted cash flow from operations. 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 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 Gross Profit
The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Gross Profit GAAP

$

182.2

$

144.5

$

178.2

$

360.3

$

279.7



Gross Margin % GAAP


57 %


67 %


56 %


56 %


68 %



Add (Deduct) Impact of:













Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

0.6

$

2.2

$

6.8

$

7.4

$

3.5



Adjusted Gross Profit Non-GAAP

$

183.4

$

146.7

$

185.4

$

368.8

$

285.7



Adjusted Gross Margin % Non-GAAP


57 %


68 %


58 %


58 %


70 %



Reconciliation of Non-GAAP Adjusted Net Income
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Transaction, Acquisition, and Integration Costs

$

17.0

$

4.5

$

17.2

$

34.2

$

6.5



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Divestment Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Adjusted Net Income (Loss) Non-GAAP

$

(1.1)

$

47.0

$

1.7

$

0.6

$

85.5



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Earnings (Loss) Per Share GAAP

$

(0.12)

$

0.31

$

(0.17)

$

(0.29)

$

0.55



Add (Deduct) Impact of:













Warrant Liability Adjustment

$

(0.01)

$

0.00

$

0.00

$

(0.01)

$

0.00



Inventory Step Up Fair Value

$

0.00

$

0.00

$

0.00

$

0.01

$

0.02



Transaction, Acquisition, and Integration Costs

$

0.09

$

0.03

$

0.09

$

0.18

$

0.05



Covid Related Expenses

$

0.00

$

0.01

$

0.00

$

0.00

$

0.04



Divestment Non-Operating Assets

$

0.00

$

0.00

$

0.01

$

0.02

$

0.00



Impairment and Disposal of Long-lived Assets

$

0.02

$

0.00

$

0.07

$

0.10

$

0.00



Adjusted Earnings Per Share Non-GAAP

$

(0.01)

$

0.35

$

0.01

$

0.00

$

0.67



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

(Amounts expressed in millions
of United States dollars)

For the Three Months Ended

For the Six Months Ended





June 30, 2022

June 30,
2021

March 31,
2022

June 30,
2022

June 30,
2021





Net Income (Loss) GAAP

$

(22.5)

$

40.9

$

(32.0)

$

(54.5)

$

71.0



Add (Deduct) Impact of:













Interest Expense, net

$

19.7

$

6.6

$

17.9

$

37.6

$

14.5



Provision For Income Taxes

$

44.8

$

29.1

$

42.3

$

87.1

$

63.7



Depreciation and Amortization

$

30.9

$

6.7

$

29.3

$

60.2

$

12.1



Depreciation in COGS

$

13.8

$

5.0

$

10.7

$

24.5

$

8.7



EBITDA

$

86.7

$

88.3

$

68.2

$

154.9

$

169.9
















Inventory Step Up Fair Value

$

0.6

$

0.0

$

0.4

$

1.0

$

2.5



Integration and Transition Costs

$

5.1

$

1.5

$

5.3

$

10.4

$

1.9



Acquisition and Transaction Costs

$

7.0

$

1.6

$

3.3

$

10.3

$

3.2



Share-Based Compensation

$

5.7

$

0.7

$

4.6

$

10.3

$

1.5



Other Non-Recurring Expenses

$

4.9

$

1.4

$

8.6

$

13.5

$

1.4



Covid Related Expenses

$

0.2

$

1.7

$

0.4

$

0.6

$

5.5



Impairment and Disposal of Long-lived Assets

$

4.3

$

0.0

$

13.8

$

18.1

$

0.0



Divestment and Sale of Non-Operating Assets

$

0.7

$

0.0

$

2.7

$

3.4

$

0.0



Non-Controlling Interest

$

(1.1)

$

0.0

$

0.0

$

(1.1)

$

0.0



Other Expense (Income), net

$

(1.7)

$

(0.3)

$

(0.9)

$

(2.6)

$

(0.3)



Fair Value of Derivative Liabilities - Warrants

$

(1.4)

$

0.0

$

(0.8)

$

(2.3)

$

0.0



Adjusted EBITDA Non-GAAP

$

111.0

$

94.9

$

105.5

$

216.5

$

185.7



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 expected revenue and adjusted EBITDA for fiscal 2022, its plans for streamlining operations and navigating short term headwinds to emerge stronger, and potential expansion of the Company's operations.  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, 2021 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. operating in 11 states, 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 _
Twitter: @Trulieve

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

Media Contact
Rob Kremer , Executive Director of Corporate Communications
+1 (404) 218-3077
Robert.Kremer@Trulieve.com

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-delivers-record-second-quarter-2022-results-driven-by-organic-retail-sales-301603021.html

SOURCE Trulieve Cannabis Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2022/10/c8218.html

News Provided by Canada Newswire via QuoteMedia

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