Numinus Wellness Inc. Reports Q1 2022 Results

Numinus Wellness Inc. Reports Q1 2022 Results

  • Ended quarter with strong cash position of $53.9 million
  • Revenues grew 245% year-over-year to $0.8 million for the quarter
  • Generated gross profit of $50,965 during the quarter, representing a 6.5% gross margin
  • Well-positioned to offer psychedelic-assisted psychotherapy services through Canada's newly expanded Special Access Program
  • Clinical trial application made to Health Canada to begin Phase 1 study for proprietary psilocybe extract
  • MAPS-sponsored MDMA-Assisted Therapy for PTSD study to begin shortly; approvals received from Health Canada and the Institutional Review Board

All financial results are reported in Canadian dollars unless otherwise stated.

Numinus Wellness Inc. ("Numinus" or the "Company") (TSX: NUMI) (OTC: NUMIF), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, today announced its fiscal first quarter results for the three months ended November 30, 2021 .

"We have made significant advancements in all areas of our business over the last several months, with many exciting opportunities on the horizon," said Payton Nyquvest , Founder and CEO. "Of note, the partnership across our lab and clinical teams has been instrumental in passing key milestones on two major clinical trials: one for a proprietary Psilocybe formulation and the other a MAPS-sponsored MDMA study. In addition, we're continuing to make discoveries in our Bioscience lab and recently begun genetic testing on several newly-acquired psychedelic mushroom species."

Mr. Nyquvest continued, "The recent amendments by Health Canada to the Special Access Programme further underscore the importance and growth potential of Numinus' wellness clinic network. With facilities purpose-designed for a wide range of psychedelic-assisted psychotherapies, therapists already trained on providing Psilocybin-assisted and MDMA-assisted therapies, and a Health Canada distribution license that allows us to import, possess, produce, and distribute psychedelic compounds – Numinus is well positioned as a national leader to provide these important treatments to those who qualify. I'm encouraged by the recent changes by Health Canada and proud of everyone at Numinus for the ongoing leadership, drive and commitment to our mission over the past quarter."

First Quarter Financial Highlights:

  • Cash balance of $53.9 million as of November 30, 2021
  • Revenues grew 244.5% year-over-year to $0.8 million in Q1 2021, due primarily to the acquisition of Mindspace. Sequentially, revenues grew 60.9% compared to Q4 2021.
  • Gross profit of $50,965 in Q1 2022, compared to gross loss of $38,135 in Q1 2021
  • Gross margin was 6.5%, compared to -16.6% in Q1 2021
  • Loss was $5.4 million for Q1 2022, compared to a loss of $1.9 million in Q1 2021

Operational Highlights During and Subsequent to Fiscal First Quarter 2022:

Numinus Bioscience – Laboratory Operations

  • Q1 2022 revenue of $141,702 , a 56.4% sequential increase from Q4 2021, but a 27.7% decrease from $196,090 in Q1 2021. This year-over-year decline is primarily due to the Company ceasing cannabis related activities during 2021 to dedicate resources towards advancing psychedelic-centered service offerings – including psychedelic analytical testing and contract laboratory services, to align with the Company's strategy and overall objectives.
  • On November 29, 2021 , the Company announced that Numinus Bioscience developed proprietary psychedelic drug tests with new toxicity and potency scans. These new analytical tests will accelerate Numinus' research and development capabilities and generate new revenue streams through third-party client product testing.

Phase 1 clinical trial on NBIO-01:

  • On October 24, 2021 , Numinus announced it finalized the study design and protocol for a Phase 1 clinical trial on a naturally derived psilocybin extract ("NBIO-01"), advancing Numinus' investigation of its first proprietary psychedelic product, which was developed using a patent-pending technology.
  • On January 14, 2022 , the Company submitted its clinical trial application to Health Canada for its Phase 1 trial of NBIO-01. The clinical trial, named HOPE, is a two-phase study that will take place at a Vancouver based clinic. Upon approval, Numinus will begin testing the extract for bioavailability and tolerability on 20 healthy volunteers, followed by testing against a psilocybin comparator on a further 28 healthy volunteers.

MAPS-sponsored MDMA-assisted therapy for PTSD clinical trial study ("MAPPUSX"):

  • On November 10, 2021 , the Company announced it will host the Montreal and Vancouver sites of the MAPPUSX study, which will continue to evaluate the safety of MDMA in treating severe PTSD, titled "A multi-site open-label extension study of MDMA-assisted psychotherapy for PTSD."
  • On January 19, 2022 , Numinus announced that it had received approvals from Health Canada and the Institutional Review Board to proceed with its clinical trial study for MAPPUSX. Enrollment for the trial is expected to begin shortly and will be open to eligible participants who were previously enrolled in the placebo arm of the parent study ("MAPP1") or who were not able to receive treatment due to COVID-19 restrictions.

Subsequent to the quarter:

  • Numinus Bioscience secured several additional strains of psychedelic mushroom species and has already begun genomic analysis of these spore prints for research purposes.

Numinus Health – Numinus Wellness Clinic Network

  • Q1 2022 revenue of $647,915 , a 61.9% sequential increase from Q4 2021, and a 1,857.6% increase compared to $33,098 during the same period last year when Numinus had only one clinic, which was impacted by COVID-19 during the quarter.
  • On September 23, 2021 , Numinus completed the acquisition of the Neurology Centre of Toronto ("NCT") for less than $1.0 million , allowing for the planned expansion of NCT into a comprehensive neurologic care center specialized in psychedelic neurology.
  • During Q1 2022, clients received a total of 6,217 appointments through Numinus clinics (including one-on-one and group therapy sessions, neurology-related appointments and Ketamine-assisted psychotherapy), representing a 91.9% increase in clinic appointments compared to the prior quarter (Q4 2021), due in part to the acquisition of NCT. On a same-store basis, excluding NCT, client appointments increased 42.0% compared to the prior quarter.
  • On November 10, 2021 , the Company announced that it had secured two additional clinic locations in Vancouver and Montreal that will primarily be used for clinical research studies in the near-term.

Subsequent to the quarter:

  • Numinus has finalized a formal Ketamine-Assisted Psychotherapy ("KAP") training program for therapists, with virtual training sessions occurring over the next two months. This training program will expand the number of Numinus therapists qualified to provide KAP sessions to clients.
  • As of January 20, 2022 , Numinus has five wellness clinics offering services to clients (one in Vancouver , one in Toronto , and three in Montreal ) that have a total of 21 treatment rooms. In addition, the Company has two dedicated research clinics where psychedelic studies are being conducted (one in Vancouver and one in Montreal ).

Corporate Updates

  • On November 22, 2021 , the Company changed its OTC ticker symbol to "NUMIF" (from "LKYSF") to better align with its Canadian ticker symbol.
  • Subsequent to the quarter:
  • On December 16, 2021 , Numinus graduated to the TSX (from the TSX-Venture), trading under the symbol "NUMI".

Industry Updates

  • On January 5, 2022 , Health Canada implemented amendments to the Special Access Programme ("SAP"). These amendments now enable:
    • Doctors and practitioners to apply for psychedelic medicines that have shown promise through Phase 2 or Phase 3 trials, on behalf of their patients, when other traditional medicines and therapies have not proven effective.
    • Doctors and patients to hear, within 48 hours of the application being submitted, if access to psychedelic medicines are approved for their case. If approved, doctors can refer patients to clinics – such as Numinus' wellness clinics, to receive psychedelic-assisted psychotherapy.
    • Companies holding a Health Canada dealers license, including Numinus Bioscience, to act as a licensed distributor of certain psychedelic medicines for SAP approved cases.

Q1 2022 Key Performance Metrics:



For the quarter ended November 30:



2022

2021

% change

Numinus Bioscience¹ revenue

141,702

196,090

-27.7%

Numinus Health 2 revenue

647,915

33,098

1,857.6%

Total Revenue

$789,617

$229,188

244.5%

Cost of revenue

(738,652)

(267,323)

176.3%

Gross Profit (Loss)

$50,965

$(38,135)

n.m.

Gross profit margin

6.5%

-16.6%

n.m.

General and administrative expenses

(3,736,890)

(1,285,448)

190.7%

Share-based compensation

(400,568)

(174,250)

129.9%

Sales and marketing expenses

(760,519)

(269,243)

182.5%

Depreciation

(51,829)

(91,261)

-43.2%

Research and development expenses

(330,626)

(89,727)

268.5%

Transaction costs

(45,092)

--

100.0%

Loss before other items

$(5,274,559)

$(1,948,064)

170.8%

Other items

(79,530)

19,327

n.m.

Loss and comprehensive loss

$(5,354,089)

$(1,928,737)

177.6%

Loss per share, basic and diluted

$(0.03)

$(0.02)

50.0%

Average number of shares outstanding, basic and diluted

203,409,202

112,364,998

81.0%


1 Numinus Bioscience consists of revenues generated through Numinus' Laboratory Operations.

2 Numinus Health consists of revenues generated through Numinus' clinic network.

Numinus' condensed consolidated financial statements for the three months ended November 30, 2021 and related management's discussion and analysis are available on Numinus' Investor Relations website at www.investors.numinus.com and under the Company's profile on SEDAR at www.sedar.com .  These documents were prepared in accordance with IFRS and with TSX-Venture disclosure timeline requirements, as the company was listed on the TSX-Venture at quarter end.

Conference Call and Webcast Details

Interested parties are invited to participate in the Company's Q1 2022 results conference call and webcast. On the call Numinus executives will review the Company's performance and recent initiatives, and answer questions from analysts.

Date:

Thursday, January 20, 2022

Time:

5:30 p.m. (EST)

Dial-In:

1 (833) 989-2968 (Toll-free North America), 1 (236) 714-4028 (International)

Code:

2670376

Webcast:

https://event.on24.com/wcc/r/3574506/6105A28282486D6F95F7834E9C5632E2

The webcast will also be archived on the Events and Presentations page of Numinus' Investor Relations website: https://www.investors.numinus.com/events-and-presentations

About Numinus
Numinus Wellness (TSX: NUMI) helps people to heal and be well through the development and delivery of innovative mental health care and access to safe, evidence-based psychedelic-assisted therapies. The Numinus model - including psychedelic production, research and clinic care - is at the forefront of a transformation aimed at healing rather than managing symptoms for depression, anxiety, trauma, pain and substance use. At Numinus, we are leading the integration of psychedelic-assisted therapies into mainstream clinical practice and building the foundation for a healthier society.

Learn more at www.numinus.com and follow us on LinkedIn , Facebook , Twitter , and Instagram .

Forward-looking statements
This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are "forward-looking statements". Forward-looking statements can be identified by the use of words such as "expects", "does not expect", "is expected", "believes", "intends", "anticipates", "does not anticipate", "believes" or variations of these words, expressions or statements, that certain actions, events or results "may", "could", "would", "might" or "will be" taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company's facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company's limited operating and profitability track record; dependence on management; the Company's need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company's efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws.

Cision View original content: https://www.prnewswire.com/news-releases/numinus-wellness-inc-reports-q1-2022-results-301465231.html

SOURCE Numinus Wellness Inc.

Cision View original content: https://www.newswire.ca/en/releases/archive/January2022/20/c6657.html

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  • Fourth quarter performance delivered highest revenue and gross margin for the year
  • Record cash flow from operations of $202 million and free cash flow of $161 million * in 2023
  • Expect 2024 cash flow from operations of at least $225 million

Trulieve Cannabis Corp . (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced its results for the fourth quarter and full year ended December 31, 2023 . Results are reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles unless otherwise indicated. Numbers may not sum perfectly due to rounding.

Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

Q4 2023 Financial and Operational Highlights*

  • Revenue of $287 million increased 4% sequentially, with 95% of revenue from retail sales.
  • Achieved GAAP gross margin of 54%, with gross profit of $154 million .
  • Reported net loss of $33 million . Adjusted net loss of $23 million * excludes non-recurring charges, asset impairments, disposals and discontinued operations.
  • Generated cash flow from operations of $131 million and free cash flow of $122 million *.
  • Achieved EBITDA of $73 million *, or 25% of revenue and adjusted EBITDA of $88 million *, or 31% of revenue.
  • Outperformed the third quarter as a result of consumer strength and holiday sales, driven by higher traffic, basket size, and units sold.
  • Redeemed $130 million of senior secured notes due June 18, 2024 on December 1, 2023 .
  • Closed $25 million five-year mortgage financing at 8.31% interest.
  • Filed amended federal tax returns for 2019, 2020, and 2021 claiming $143 million of refunds, also filed corresponding amended state returns claiming $31 million of refunds. Received $62 million in refunds in the fourth quarter and a total of $113 million in refunds to date alongside one rejection notice in the amount of $1.2 million .
  • Relocated one and opened four new dispensaries in Florida .
  • Ended the quarter with 32% of retail locations outside of the state of Florida .

*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
**Fourth quarter results were the highest of the year on an absolute and percentage basis.

2023 Full Year Financial and Operational Highlights*

  • Revenue of $1.13 billion , with 96% of revenue from retail sales.
  • Achieved GAAP gross margin of 52%, with gross profit of $589 million .
  • SG&A expenses lowered by $61 million from prior year to $386 million .
  • Reported net loss of $527 million . Adjusted net loss of $70 million * excludes non-recurring charges, asset and goodwill impairments, disposals and discontinued operations.
  • Generated cash flow from operations of $202 million and free cash flow of $161 million *.
  • Achieved adjusted EBITDA of $322 million *, or 29% of revenue.
  • Purchased $57 million face value senior secured 2026 notes for USD $47.6 million in September, which represents a 16.5% discount to par, plus accrued interest.
  • Cash as of December 31, 2023 of approximately $208 million .
  • Launched adult-use sales in Connecticut and Maryland and opened new markets with medical dispensaries in Georgia and Ohio .
  • Exited California retail assets and operations in Massachusetts as part of cash preservation and generation plan to bolster business resilience.
  • Opened 17 dispensaries in 2023, increasing retail footprint to 192 retail locations nationwide at year end.

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

Recent Developments

  • The Smart and Safe Florida campaign for adult use presented oral arguments to the Florida Supreme Court in November. The deadline for a ruling is April 1, 2024 .
  • Added two executives to the leadership team in January, Wes Getman , Chief Financial Officer, and Marie Zhang , Chief Operating Officer.
  • Opened one retail location in Pinellas Park, Florida .
  • Currently operate 193 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States .

Management Commentary

"Last year we successfully executed on our plan to bolster our business resilience with a focus on cash generation and preservation while making investments to support future growth," said Kim Rivers , Trulieve CEO. "Fourth quarter momentum was underpinned by improved consumer trends. We entered 2024 in a position of significant strength just as the outlook for industry growth and reform brightened. With strong cash generation and a clearly defined strategy, Trulieve is best positioned for the coming wave of meaningful growth catalysts."

Financial Highlights*

Results of Operations

For the Three Months Ended

For the Full Year Ended

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

December 31,
2023

December 31,
2022

change

September 30,
2023

change

December 31,
2023

December 31,
2022

change

Revenue

$

287

$

298

(4 %)

$

275

4 %

$

1,129

$

1,218

(7 %)

Gross Profit

$

154

$

157

(2 %)

$

143

8 %

$

589

$

689

(15 %)

Gross Margin %


54 %


53 %



52 %



52 %


57 %


Operating Expenses

$

125

$

152

(18 %)

$

120

4 %

$

810

$

639

27 %

Operating Expenses %


43 %


51 %



43 %



72 %


52 %


Net Loss**

$

(33)

$

(77)

(57 %)

$

(25)

32 %

$

(527)

$

(246)

114 %

Net Loss Continuing Ops

$

(37)

$

(64)

(43 %)

$

(23)

60 %

$

(436)

$

(183)

139 %

Adjusted Net Income (Loss)

$

(23)

$

(34)

(33 %)

$

(15)

55 %

$

(70)

$

(19)

272 %

Diluted Shares Outstanding


189


189



189



189


188


EPS Continuing Ops

$

(0.19)

$

(0.33)

(44 %)

$

(0.12)

57 %

$

(2.28)

$

(0.95)

140 %

Adjusted EPS

$

(0.12)

$

(0.18)

(33 %)

$

(0.08)

50 %

$

(0.37)

$

(0.10)

270 %

Adjusted EBITDA

$

88

$

83

6 %

$

78

13 %

$

322

$

398

(19 %)

Adjusted EBITDA Margin %


31 %


28 %



28 %



29 %


33 %


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

**Net loss includes discontinued operations and non-controlling interest.

Conference Call

The Company will host a conference call and live audio webcast on February 29, 2024, at 8:30 A.M. Eastern time , to discuss its fourth quarter and full year 2023 financial results. Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

North American toll free: 1-844-824-3830


Passcode: 1674609




International: 1-412-542-4136


Passcode: 1674609

A live audio webcast of the conference call will be available at:
https://app.webinar.net/rGl0B9nPzjZ

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

The Company's Form 10-K for the year ended December 31, 2023 , will be available on the SEC's website or at https://investors.trulieve.com/quarterly-results . The Company's Management Discussion and Analysis for the period and the accompanying financial statements and notes will be available under the Company's profile on SEDAR and on its website at https://investors.trulieve.com/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Trulieve Cannabis Corp.

Consolidated Balance Sheets (Unaudited)

(in millions, except share data)



December 31,
2023


December 31,
2022

ASSETS




Current Assets:




Cash and cash equivalents

$                 201.4


$              207.2

Restricted cash

6.6


6.6

Accounts receivable, net

6.7


6.5

Inventories

213.1


276.5

Prepaid expenses

17.6


11.0

Other current assets

23.7


51.2

Notes receivable - current portion

6.2


0.7

Assets associated with discontinued operations

2.0


33.7

Total current assets

477.3


593.5

Property and equipment, net

676.4


743.3

Right of use assets - operating, net

95.9


98.9

Right of use assets - finance, net

58.5


70.5

Intangible assets, net

917.2


984.8

Goodwill

483.9


791.5

Notes receivable, net

7.4


12.0

Other assets

10.4


12.8

Long-term assets associated with discontinued operations

2.0


93.1

TOTAL ASSETS

$              2,729.1


$           3,400.4

LIABILITIES




Current Liabilities:




Accounts payable and accrued liabilities

$                   83.2


$                82.0

Income tax payable


49.6

Deferred revenue

1.3


9.5

Notes payable - current portion

3.8


12.5

Operating lease liabilities - current portion

10.1


10.3

Finance lease liabilities - current portion

7.6


8.3

Construction finance liabilities - current portion

1.5


1.2

Contingencies

4.4


34.7

Liabilities associated with discontinued operations

3.0


2.3

Total current liabilities

114.8


210.3

Long-Term Liabilities:




Notes payable, net

115.9


94.2

Private placement notes, net

363.2


541.7

Operating lease liabilities

92.2


99.9

Finance lease liabilities

61.7


69.9

Construction finance liabilities

136.7


137.1

Deferred tax liabilities

207.0


224.9

Uncertain tax position liabilities

180.4


19.5

Other long-term liabilities

7.1


6.8

Long-term liabilities associated with discontinued operations

41.6


68.4

TOTAL LIABILITIES

$              1,320.4


$           1,472.7





SHAREHOLDERS' EQUITY




Common stock, no par value; unlimited shares authorized. 186,235,818 and
185,987,512 shares issued and outstanding as of December 31, 2023 and
December 31, 2022, respectively.

$                       —


$                    —

Additional paid-in-capital

2,055.1


2,045.0

Accumulated deficit

(640.6)


(113.8)

Non-controlling interest

(5.9)


(3.5)

TOTAL SHAREHOLDERS' EQUITY

1,408.6


1,927.7

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$              2,729.1


$           3,400.4

Trulieve Cannabis Corp.

Consolidated Statements of Operations (Unaudited)

(in millions, except for share data)



Three Months Ended


Full Year Ended


December
31, 2023


December
31, 2022


December
31, 2023


December
31, 2022

Revenue

$            287.0


$            298.5


$        1,129.2


$        1,218.2

Cost of goods sold

133.1


141.4


540.6


529.1

Gross profit

153.9


157.1


588.6


689.1

Expenses:








Sales and marketing

59.0


57.9


240.2


277.6

General and administrative

37.3


64.9


146.0


169.5

Depreciation and amortization

27.2


29.8


109.8


116.4

Impairment and disposal of long-lived assets, net

1.2


(0.6)


6.7


75.5

Impairment of goodwill



307.6


Total expenses

124.7


151.9


810.2


639.0

Income (loss) from operations

29.2


5.2


(221.6)


50.2

Other income (expense):








Interest expense, net

(20.6)


(21.2)


(81.6)


(73.4)

Interest income

1.8


0.5


6.2


1.6

Gain on debt extinguishment, net

(2.2)



5.9


Other income (expense), net

0.7


(2.1)


6.5


2.4

Total other (expense) income, net

(20.4)


(22.8)


(62.9)


(69.4)

Income (loss) before provision for income taxes

8.8


(17.6)


(284.5)


(19.2)

Provision for income taxes

45.4


46.6


151.4


163.4

Net loss from continuing operations

(36.6)


(64.2)


(435.9)


(182.6)

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

1.8


(16.9)


(97.2)


(70.1)

Net loss

(34.8)


(81.2)


(533.1)


(252.7)

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

(1.4)


(1.4)


(5.1)


(4.0)

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


(2.7)


(1.2)


(2.7)

Net loss attributable to common shareholders

$            (33.4)


$            (77.0)


$          (526.8)


$          (246.1)

Net loss per share - Continuing operations:








Basic and diluted

$            (0.19)


$            (0.33)


$            (2.28)


$            (0.95)

Net loss per share - Discontinued operations:








Basic and diluted

$              0.01


$            (0.08)


$            (0.51)


$            (0.36)

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








Basic and diluted

189.0


188.8


189.0


188.0

Trulieve Cannabis Corp.

Consolidated Statements of Cash Flows (Unaudited)

(in millions)



Three Months Ended


Full Year Ended


December
31, 2023


December
31, 2022


December
31, 2023


December
31, 2022

Cash flows from operating activities








Net loss

$            (34.8)


$            (81.2)


$          (533.1)


$          (252.7)

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








Depreciation and amortization

27.2


30.7


110.8


121.8

Depreciation included in cost of goods sold

14.4


13.4


59.8


52.5

Non-cash interest expense, net

1.2


1.3


5.4


4.9

Gain on extinguishment of debt, net

2.2



(5.9)


Impairment and disposal of long-lived assets, net

1.2


(0.6)


6.7


75.5

Impairment of goodwill



307.6


Amortization of operating lease right of use assets

2.5


2.8


10.3


11.3

Accretion of construction finance liabilities

0.2


0.4


1.3


1.5

Share-based compensation

3.2


3.6


10.6


18.1

Change in fair value of derivative liabilities - warrants



(0.3)


(2.6)

Non-cash change in contingencies

0.8


6.4


(0.5)


23.0

Allowance for credit losses

1.9


1.3


2.8


3.6

Deferred income tax expense

1.5


7.7


(17.2)


(27.2)

Loss from disposal of discontinued operations

(0.4)


0.1


69.5


49.1

Changes in assets and liabilities:








Decrease/(increase) in inventories

16.8


3.7


83.3


(83.4)

Decrease/(increase) in accounts receivable

0.1


0.9


(1.7)


(4.2)

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

(2.5)


(0.5)


6.8


5.3

Decrease/(increase) in other assets

0.9


6.8


3.0


2.4

(Decrease)/increase in accounts payable and accrued
liabilities

(2.9)


(2.7)


1.6


(0.8)

(Decrease)/increase in income tax payable

1.0


44.4


(48.8)


19.8

(Decrease)/increase in other current liabilities

(0.2)


2.7


(13.3)


(1.4)

(Decrease)/increase in operating lease liabilities

(2.2)


(2.8)


(9.2)


(10.0)

(Decrease)/increase in deferred revenue

(2.2)


3.2


(8.2)


2.4

(Decrease)/increase in uncertain tax position liabilities

99.1


12.5


160.9


12.8

(Decrease)/increase in other long-term liabilities

2.4


1.0


(0.2)


1.5

Net cash provided by operating activities

131.5


55.0


201.8


23.1

Cash flows from investing activities








Purchases of property and equipment

(9.4)


(34.3)


(40.4)


(164.7)

Purchases of property and equipment related to
construction finance liabilities




(13.2)

Capitalized interest


(0.7)


0.1


(4.7)

Acquisitions, net of cash


(1.6)



(27.8)

Divestments


2.0


1.0


2.0

Payments made for issuance of note receivable

(0.8)



(0.8)


Capitalized internal use software

(2.9)


(1.9)


(10.6)


(9.2)

Cash paid for licenses

(0.7)



(4.6)


(1.9)

Proceeds from sales of long-lived assets

0.1


0.2


5.0


0.7

Proceeds received from notes receivable

0.3


0.2


0.9


1.5

Proceeds from sale of held for sale assets

6.0


0.1


11.9


2.3

Net cash used in investing activities

(7.2)


(36.1)


(37.5)


(215.1)

Cash flows from financing activities








Proceeds from notes payable, net of discounts

24.7


89.5


24.7


90.5

Proceeds from private placement notes, net of discounts




75.6

Proceeds from equity exercises




19.4

Proceeds from construction finance liabilities




7.0

Payments on notes payable

(6.3)


(0.2)


(11.8)


(2.9)

Payments on private placement notes

(130.0)



(177.6)


(1.9)

Payments on finance lease obligations

(1.9)


(2.1)


(7.6)


(7.4)

Payments on construction finance liabilities

(0.8)


(0.3)


(2.1)


(1.2)

Payments for debt issuance costs

(0.3)


(0.6)


(0.8)


(0.8)

Payments for taxes related to net share settlement of
equity awards

(0.5)


(0.3)


(0.5)


(0.6)

Distributions



(0.1)


(0.1)

Net cash (used in) provided by financing activities

(115.0)


85.9


(175.6)


177.8

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

9.3


104.8


(11.2)


(14.2)

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

198.9


100.7


213.8


229.6

Cash and cash equivalents of discontinued operations,
beginning of period

0.1


14.0


5.7


4.0

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

(0.3)


(5.7)


(0.3)


(5.7)

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

$            208.0


$            213.8


$            208.0


$            213.8


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

Non-GAAP Financial Measures (Unaudited)

In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted EBITDA, adjusted net loss (income), adjusted net income (loss) per diluted share and free cash flow. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to evaluate our operating results and financial performance. We believe these measures are useful to investors as they are widely used measures of performance and can facilitate comparison to other companies. These non-GAAP financial measures are not, and should not be considered as, measures of liquidity. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP.

Reconciliation of Non-GAAP Adjusted EBITDA (Unaudited)

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

(Amounts expressed in millions of United States
dollars)

Three Months Ended

For the Full Year Ended

December 31,
2023

December 31,
2022

September 30,
2023

December 31,
2023

December 31,
2022

Net Loss GAAP

$

(33.4)

$

(77.0)

$

(25.4)

$

(526.8)

$

(246.1)

Add (Deduct) Impact of:











Interest Expense, Net

$

20.6

$

21.2

$

20.8

$

81.6

$

73.4

Interest Income (1)

$

(1.8)

$

(0.5)

$

(1.9)

$

(6.2)

$

(1.6)

Provision For Income Taxes

$

45.4

$

46.6

$

36.6

$

151.4

$

163.4

Depreciation and Amortization

$

27.2

$

29.8

$

27.0

$

109.8

$

116.4

Depreciation in COGS

$

14.5

$

12.1

$

14.6

$

57.2

$

46.9

EBITDA

$

72.5

$

32.2

$

71.7

$

(133.0)

$

152.4












Impairment of Goodwill

$

$

$

$

307.6

$

Impairments and Disposals of Long-lived
Assets, Net

$

1.2

$

(0.6)

$

(1.2)

$

6.7

$

75.5

Results of Discontinued Operations

$

(1.8)

$

14.3

$

2.9

$

96.0

$

67.4

Acquisition and Transaction Costs

$

$

7.5

$

$

$

24.8

Integration and Transition Costs

$

10.7

$

4.0

$

8.5

$

26.9

$

21.0

Other Non-Recurring Costs

$

$

7.9

$

$

$

19.5

Share-Based Compensation

$

3.2

$

3.6

$

4.5

$

10.6

$

18.1

Legislative Campaign Contributions

$

0.5

$

10.0

$

0.5

$

20.1

$

20.0

Inventory Step Up Fair Value

$

$

$

$

$

1.0

Covid Related Expenses

$

$

$

$

$

0.8

Loss (Gain) on Debt Extinguishment, Net

$

2.2

$

$

(8.2)

$

(5.9)

$

Other (Income) Expense, Net

$

(0.7)

$

2.1

$

(1.1)

$

(6.5)

$

(2.4)

Results of Entities Not Legally Controlled

$

$

1.9

$

$

$

Adjusted EBITDA Non-GAAP

$

87.8

$

82.9

$

77.6

$

322.3

$

398.2


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

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

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


For the Three Months Ended

For the Full Year Ended

(Amounts expressed in millions of United
States dollars)

December 31,
2023

December 31,
2022

September 30,
2023

December 31,
2023

December 31,
2022

Net Loss GAAP

$

(33.4)

$

(77.0)

$

(25.4)

$

(526.8)

$

(246.1)

Add (Deduct) Impact of:











Impairment of Goodwill

$

$

$

$

307.6

$

Fair Value of Derivative Liabilities - Warrants

$

$

(0.0)

$

$

(0.3)

$

(2.6)

Inventory Step Up Fair Value

$

$

$

$

$

1.0

Transaction, Acquisition, and Integration Costs

$

10.7

$

19.4

$

8.5

$

26.9

$

65.3

Legislative Campaign Contributions

$

0.5

$

10.0

$

0.5

$

20.1

$

20.0

Covid Related Expenses

$

$

$

$

$

0.8

Impairments and Disposals of Long-lived
Assets, Net

$

1.2

$

(0.6)

$

(1.2)

$

6.7

$

75.5

Results of Discontinued Operations

$

(1.8)

$

14.3

$

2.9

$

96.0

$

67.4

Adjusted Net (Loss) Income Non-GAAP

$

(22.8)

$

(34.0)

$

(14.7)

$

(69.8)

$

(18.7)

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

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


For the Three Months Ended

For the Full Year Ended

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

December 31,
2023

December 31,
2022

September 30,
2023

December 31,
2023

December 31,
2022

Loss Per Share GAAP

$

(0.18)

$

(0.41)

$

(0.13)

$

(2.79)

$

(1.31)

Add (Deduct) Impact of:











Impairment of Goodwill

$

$

$

$

1.63

$

Fair Value of Derivative Liabilities - Warrants

$

$

$

$

(0.00)

$

(0.01)

Inventory Step Up Fair Value

$

$

$

$

$

0.01

Transaction, Acquisition, and Integration Costs

$

0.06

$

0.10

$

0.04

$

0.14

$

0.35

Legislative Campaign Contributions

$

0.00

$

0.05

$

0.00

$

0.11

$

0.11

Covid Related Expenses

$

$

$

$

$

0.00

Impairments and Disposals of Long-lived
Assets, Net

$

0.01

$

(0.00)

$

(0.01)

$

0.04

$

0.40

Results of Discontinued Operations

$

(0.01)

$

0.08

$

0.02

$

0.51

$

0.36

Adjusted Earnings Per Share Non-GAAP

$

(0.12)

$

(0.18)

$

(0.08)

$

(0.37)

$

(0.10)

Basic and Diluted Shares


189.0


188.8


188.9


189.0


188.0

Reconciliation of Non-GAAP Free Cash Flow (Unaudited)

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


For the Three Months Ended

For the Full Year Ended

(Amounts expressed in millions of United
States dollars)

December 31,
2023

December 31,
2022

September 30,
2023

December 31,
2023

December 31,
2022

Cash Flow From Operating Activities

$

131.5

$

55.0

$

93.4

$

201.8

$

23.1

Payments for Property and Equipment

$

(9.4)

$

(34.3)

$

(6.3)

$

(40.4)

$

(164.7)

Free Cash Flow

$

122.1

$

20.7

$

87.2

$

161.5

$

(141.7)

Forward-Looking Statements

This news release includes forward-looking information and statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the Company's expectations or forecasts of business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs and include statements regarding the Company's growth opportunities and the Company's positioning for the future. Words such as "expects", "continue", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein, including, without limitation, the risks discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 and in our periodic reports subsequently filed with the United Sates Securities and Exchange Commission and in the Company's filings on SEDAR at www.sedar.com . Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof and, except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise.

About Trulieve

Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with leading market positions in Arizona , Florida , and Pennsylvania . Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com .

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

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

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

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

SOURCE Trulieve Cannabis Corp.

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

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