Trulieve Reports Fourth Quarter and Record Full Year 2022 Results Exceeding $1.2 Billion in Revenue
Trulieve Cannabis Corp. (TCNNF) reported record revenue of $1.24 billion in 2022, a 32% increase year-over-year. Q4 revenue was $302 million, with a 2% sequential retail growth. The company operates 181 dispensaries across 11 states, expanding its footprint by 14%. Fourth quarter results included a GAAP gross margin of 50% and an adjusted EBITDA of $85 million. Despite these successes, Trulieve faced a net loss of $77 million and an adjusted net loss of $35 million. The company aims for cash generation while pursuing growth opportunities within the U.S. cannabis market.
- Record 2022 revenue of $1.24 billion, up 32% YoY.
- Fourth quarter revenue of $302 million, with 2% retail growth.
- Operating cash flow of $55 million and free cash flow of $21 million.
- GAAP gross margin of 50% and adjusted EBITDA of $85 million.
- Net loss of $77 million in Q4 and total net loss of $246 million in 2022.
- Increased operating expenses of $650 million in 2022, up 77% from 2021.
- Adjusted net loss of $30 million after excluding non-recurring charges.
- Record revenue of
$1.24 billion 32% year over year, and quarterly revenue of$302 million 2% retail revenue growth sequentially - Industry leading
U.S. retail network of 181 dispensaries, up14% from 2021, supported by over 4 million square feet of cultivation and processing capacity as ofDecember 31, 2022 - Achieved fourth quarter operating cash flow of
$55 million $21 million
Q4 2022 Financial and Operational Highlights*
- Revenue of
$302 million 2% retail revenue growth and96% of revenue from retail sales. - Achieved GAAP gross margin of
50% , with gross profit of$150 million - Reported net loss of
$77 million $35 million - Generated adjusted EBITDA of
$85 million 28% of revenue. Adjusted EBITDA reflects one time charges, idle capacity, and inventory reduction tied to cash generation efforts. - Reduced inventory by
$4 million $32 million - Achieved operating cash flow of
$55 million $21 million - Closed
$90 million 7.5% interest. - Opened five new dispensaries in
Sierra Vista, Arizona ;Hobe Sound ,Lake Worth , andLand O' Lakes, Florida ; andHuntington, West Virginia and rebrandedTrulieve dispensary inGlendale, Arizona .
*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
2022 Full Year Financial and Operational Highlights*
- Revenue of
$1.2 billion 32% year-over-year. - Gross profit of
$682 million 55% in 2022. - GAAP net loss of
$246 million $30 million - Adjusted EBITDA of
$400 million 32% of revenue.* - Cash at year end of
$219 million - Closed
$75 million 8% interest dueOctober 2026 . - Commenced cultivation operations in
Georgia to support retail launch in 2023. - Opened 25 dispensaries in 2022, increasing retail footprint by
14% to 181 retail locations nationwide at year end. - Exited 2022 with operations in 11 states, with
32% of our retail locations outside of the state ofFlorida
*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
Recent Developments
- Opened three new dispensaries in
Palatka andWinter Haven, Florida andBeckley, West Virginia . - Launched adult-use sales in
Bristol, Connecticut . - First
U.S. cannabis company to launch advertising campaigns onTwitter . - Launched proprietary brands Roll One and Modern Flower in
West Virginia andMassachusetts . - Currently operate 184 retail dispensaries and over 4 million square feet of cultivation and processing capacity in
the United States .
Management Commentary
"
Rivers continued, "With increasing mainstream support and meaningful regulatory reform on the horizon, tremendous growth opportunities lie ahead for
Financial Highlights*
Results of Operations | For the Three Months Ended | For the Full Year Ended | ||||||||||||
(Figures in millions and % change | December | December | change | September | change | December | December | change | ||||||
Revenue | $ | 302 | $ | 305 | -1 % | $ | 301 | 0 % | $ | 1,240 | $ | 938 | 32 % | |
Gross Profit | $ | 150 | $ | 134 | 12 % | $ | 168 | -11 % | $ | 682 | $ | 568 | 20 % | |
Gross Margin % | 50 % | 44 % | 56 % | 55 % | 61 % | |||||||||
Adjusted Gross Profit | $ | 162 | $ | 181 | -10 % | $ | 172 | -6 % | $ | 703 | $ | 621 | 13 % | |
Adjusted Gross Margin % | 54 % | 59 % | 57 % | 57 % | 66 % | |||||||||
Operating Expenses | $ | 156 | $ | 150 | 4 % | $ | 198 | -21 % | $ | 650 | $ | 368 | 77 % | |
Operating Expenses % | 52 % | 49 % | 65 % | 52 % | 39 % | |||||||||
Net Income (Loss)** | $ | (77) | $ | (72) | --- | $ | (115) | --- | $ | (246) | $ | 18 | --- | |
Net Income (Loss) Continuing Ops | $ | (76) | $ | (70) | --- | $ | (77) | --- | $ | (205) | $ | 19 | --- | |
Adjusted Net Income (Loss) | $ | (35) | $ | 2 | --- | $ | 4 | --- | $ | (30) | $ | 123 | --- | |
Diluted Shares Outstanding | 189 | 145 | 189 | 188 | 147 | |||||||||
EPS Continuing Ops | $ | (0.40) | $ | (0.48) | --- | $ | (0.41) | --- | $ | (1.06) | $ | 0.14 | --- | |
Adjusted EPS | $ | (0.18) | $ | 0.01 | --- | $ | 0.02 | --- | $ | (0.16) | $ | 0.84 | --- | |
Adjusted EBITDA | $ | 85 | $ | 101 | -16 % | $ | 99 | -14 % | $ | 400 | $ | 385 | 4 % | |
Adjusted EBITDA Margin % | 28 % | 33 % | 33 % | 32 % | 41 % | |||||||||
*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics. |
**Includes discontinued operations. |
Conference Call
The Company will host a conference call and live audio webcast on
North American toll free: 1-888-317-6003 | Passcode: 0344386 |
International: 1-412-317-6061 | Passcode: 0344386 |
A live audio webcast of the conference call will be available at:
https://app.webinar.net/ablVoLE61N3
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
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2022 | 2021 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 212.3 | $ | 230.1 | |||
Restricted cash | 6.6 | 3.0 | |||||
Accounts receivable, net | 9.4 | 8.6 | |||||
Inventories, net | 297.8 | 209.9 | |||||
Prepaid expenses and other current assets | 63.6 | 68.1 | |||||
Notes receivable - current portion | 0.7 | 1.5 | |||||
Assets associated with discontinued operations | 2.5 | 3.6 | |||||
Total current assets | 593.0 | 524.9 | |||||
Property and equipment, net | 796.9 | 779.4 | |||||
Right of use assets - operating, net | 101.4 | 111.7 | |||||
Right of use assets - finance, net | 76.2 | 66.8 | |||||
Intangible assets, net | 1,012.6 | 1,081.2 | |||||
791.5 | 765.4 | ||||||
Notes receivable, net | 12.0 | 12.1 | |||||
Other assets | 14.7 | 17.6 | |||||
Long-term assets associated with discontinued operations | 0.7 | 52.2 | |||||
TOTAL ASSETS | $ | 3,399.0 | $ | 3,411.4 | |||
LIABILITIES | |||||||
Current Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 83.2 | $ | 93.8 | |||
Income tax payable | 49.0 | 28.1 | |||||
Deferred revenue | 9.5 | 7.2 | |||||
Notes payable - current portion, net | 12.5 | 10.1 | |||||
Operating lease liabilities - current portion | 10.4 | 10.0 | |||||
Finance lease liabilities - current portion | 8.7 | 6.2 | |||||
Construction finance liabilities - current portion | 1.2 | 0.9 | |||||
Contingencies | 34.7 | 13.0 | |||||
Liabilities associated with discontinued operations | 0.5 | 0.1 | |||||
Total current liabilities | 209.7 | 169.4 | |||||
Long-Term Liabilities: | |||||||
Notes payable, net | 94.2 | 6.5 | |||||
Private placement notes, net | 541.7 | 462.9 | |||||
Warrant liabilities | 0.3 | 2.9 | |||||
Operating lease liabilities | 102.4 | 107.6 | |||||
Finance lease liabilities | 75.8 | 65.2 | |||||
Construction finance liabilities | 182.4 | 175.2 | |||||
Deferred tax liabilities | 224.1 | 241.9 | |||||
Other long-term liabilities | 26.2 | 8.4 | |||||
Long-term liabilities associated with discontinued operations | 14.6 | 24.0 | |||||
TOTAL LIABILITIES | 1,471.3 | 1,264.0 | |||||
Commitments and contingencies | |||||||
SHAREHOLDERS' EQUITY | |||||||
Common Stock, no par value; unlimited shares authorized. 185,987,512 and 180,504,172 issued and outstanding as of | — | — | |||||
Additional paid-in-capital | 2,045.0 | 2,008.1 | |||||
Accumulated (deficit) earnings | (113.8) | 137.7 | |||||
Non-controlling interest | (3.5) | 1.6 | |||||
TOTAL SHAREHOLDERS' EQUITY | 1,927.7 | 2,147.4 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 3,399.0 | $ | 3,411.4 | |||
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Three Months Ended | Full Year Ended | ||||||||||||||||
|
|
|
| ||||||||||||||
Revenues, net of discounts | $ | 302.2 | $ | 304.9 | $ | 1,239.8 | $ | 938.0 | |||||||||
Cost of goods sold | 152.5 | 170.8 | 557.8 | 370.2 | |||||||||||||
Gross profit | 149.7 | 134.1 | 682.0 | 567.8 | |||||||||||||
Expenses: | |||||||||||||||||
Sales and marketing | 60.9 | 72.3 | 284.9 | 215.1 | |||||||||||||
General and administrative | 64.9 | 44.6 | 169.7 | 100.5 | |||||||||||||
Depreciation and amortization | 30.7 | 27.4 | 119.4 | 47.2 | |||||||||||||
Impairment and disposal of long-lived assets, net | (0.6) | 5.4 | 75.5 | 5.4 | |||||||||||||
Total expenses | 155.9 | 149.7 | 649.6 | 368.3 | |||||||||||||
(Loss) Income from operations | (6.3) | (15.6) | 32.4 | 199.6 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (23.0) | (14.1) | (79.8) | (34.8) | |||||||||||||
Change in fair value of derivative liabilities - warrants | 0.0 | 0.2 | 2.6 | 0.2 | |||||||||||||
Other income (expense), net | (1.6) | 0.7 | 1.4 | 1.1 | |||||||||||||
Total other expense, net | (24.6) | (13.2) | (75.8) | (33.5) | |||||||||||||
(Loss) Income before provision for income taxes | (30.8) | (28.7) | (43.3) | 166.1 | |||||||||||||
Provision for income taxes | 45.1 | 41.4 | 161.8 | 146.7 | |||||||||||||
Net (loss) income from continuing operations and comprehensive (loss) income | (75.9) | (70.2) | (205.2) | 19.4 | |||||||||||||
Net loss from discontinued operations, net of tax benefit of ( | (5.2) | (1.9) | (47.6) | (1.9) | |||||||||||||
Net (loss) income | (81.2) | (72.1) | (252.7) | 17.4 | |||||||||||||
Less: Net loss and comprehensive loss attributable to non-controlling interest from continuing operations | (4.1) | (0.6) | (6.7) | (0.6) | |||||||||||||
Net (loss) income and comprehensive (loss) income attributable to common shareholders | $ | (77.0) | $ | (71.5) | $ | (246.1) | $ | 18.0 | |||||||||
Net (loss) income per share - Continuing operations: | |||||||||||||||||
Basic and diluted | $ | (0.40) | $ | (0.48) | $ | (1.06) | $ | 0.14 | |||||||||
Net loss per share - Discontinued operations: | |||||||||||||||||
Basic and diluted | $ | (0.03) | $ | (0.01) | $ | (0.25) | $ | (0.01) | |||||||||
Weighted average number of common shares used in computing net (loss) income per share: | |||||||||||||||||
Basic | 188.8 | 145.1 | 188.0 | 139.4 | |||||||||||||
Diluted | 188.8 | 145.1 | 188.0 | 146.8 | |||||||||||||
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 EBITDA, adjusted gross profit, adjusted net income (loss), adjusted net income (loss) per diluted share. 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
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 | For the Three Months Ended | For the Full Year Ended | ||||||||||
December | December | September | December | December | ||||||||
Net Income (Loss) GAAP | $ | (77.0) | $ | (71.5) | $ | (114.6) | $ | (246.1) | $ | 18.0 | ||
Add (Deduct) Impact of: | ||||||||||||
Interest Expense, net | $ | 23.0 | $ | 14.1 | $ | 19.3 | $ | 79.8 | $ | 34.8 | ||
Provision For Income Taxes | $ | 45.1 | $ | 41.4 | $ | 28.2 | $ | 161.8 | $ | 146.7 | ||
Depreciation and Amortization | $ | 30.7 | $ | 27.4 | $ | 30.2 | $ | 119.4 | $ | 47.2 | ||
Depreciation in COGS | $ | 13.4 | $ | 9.7 | $ | 14.6 | $ | 52.5 | $ | 24.1 | ||
EBITDA | $ | 35.2 | $ | 21.1 | $ | (22.3) | $ | 167.4 | $ | 270.8 | ||
Impairment and Disposal of Long-lived Assets, net | $ | (0.6) | $ | 5.4 | $ | 54.6 | $ | 75.5 | $ | 5.4 | ||
Results of Discontinued Operations | $ | 5.2 | $ | 1.9 | $ | 38.1 | $ | 47.6 | $ | 1.9 | ||
Acquisition and Transaction Costs | $ | 7.5 | $ | 1.5 | $ | 7.0 | $ | 24.8 | $ | 15.8 | ||
Integration and Transition Costs | $ | 4.0 | $ | 22.9 | $ | 6.7 | $ | 21.1 | $ | 25.6 | ||
Other Non-Recurring Costs | $ | 16.3 | $ | 3.4 | $ | 1.9 | $ | 27.8 | $ | 5.1 | ||
Share-Based Compensation and Related Premiums | $ | 3.6 | $ | 7.0 | $ | 4.3 | $ | 18.1 | $ | 13.4 | ||
Legislative Campaign Contributions | $ | 10.0 | $ | 0.0 | $ | 10.0 | $ | 20.0 | $ | 0.0 | ||
Inventory Step Up Fair Value | $ | 0.0 | $ | 38.0 | $ | 0.0 | $ | 1.0 | $ | 41.2 | ||
Covid Related Expenses | $ | 0.0 | $ | 0.2 | $ | 0.2 | $ | 0.8 | $ | 6.2 | ||
Other Expense (Income), net | $ | 1.6 | $ | (0.7) | $ | (0.4) | $ | (1.4) | $ | (1.1) | ||
Fair Value of Derivative Liabilities - Warrants | $ | (0.0) | $ | (0.2) | $ | (0.4) | $ | (2.6) | $ | (0.2) | ||
Results of Entities Not Legally Controlled | $ | 1.9 | $ | 0.5 | $ | (0.9) | $ | (0.0) | $ | 0.5 | ||
Adjusted EBITDA Non-GAAP | $ | 84.7 | $ | 100.9 | $ | 98.8 | $ | 400.1 | $ | 384.6 | ||
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 | For the Three Months Ended | For the Full Year Ended | ||||||||||
December | December | September | December | December | ||||||||
Gross Profit GAAP | $ | 149.7 | $ | 134.1 | $ | 168.0 | $ | 682.0 | $ | 567.8 | ||
Gross Margin % GAAP | 50 % | 44 % | 56 % | 55 % | 61 % | |||||||
Add (Deduct) Impact of: | ||||||||||||
Inventory Step Up Fair Value | $ | 0.0 | $ | 38.0 | $ | 0.0 | $ | 1.0 | $ | 41.2 | ||
Transaction, Acquisition, and Integration Costs | $ | 12.4 | $ | 8.5 | $ | 3.8 | $ | 19.8 | $ | 12.4 | ||
Adjusted Gross Profit Non-GAAP | $ | 162.1 | $ | 180.6 | $ | 171.9 | $ | 702.9 | $ | 621.4 | ||
Adjusted Gross Margin % Non-GAAP | 54 % | 59 % | 57 % | 57 % | 66 % | |||||||
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 | For the Three Months Ended | For the Full Year Ended | ||||||||||
December 31, 2022 | December | September | December | December | ||||||||
Net Income (Loss) GAAP | $ | (77.0) | $ | (71.5) | $ | (114.6) | $ | (246.1) | $ | 18.0 | ||
Add (Deduct) Impact of: | ||||||||||||
Share-Based Compensation Related Premiums | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 4.2 | ||
Fair Value of Derivative Liabilities - Warrants | $ | (0.0) | $ | (0.2) | $ | (0.4) | $ | (2.6) | $ | (0.2) | ||
Inventory Step Up Fair Value | $ | 0.0 | $ | 38.0 | $ | 0.0 | $ | 1.0 | $ | 41.2 | ||
Transaction, Acquisition, and Integration Costs | $ | 37.8 | $ | 27.9 | $ | 25.5 | $ | 93.7 | $ | 46.5 | ||
Covid Related Expenses | $ | 0.0 | $ | 0.2 | $ | 0.2 | $ | 0.8 | $ | 6.2 | ||
Impairment and Disposal of Long-lived Assets, Net | $ | (0.6) | $ | 5.4 | $ | 54.6 | $ | 75.5 | $ | 5.4 | ||
Results of Discontinued Operations | 5.2 | $ | 1.9 | $ | 38.1 | $ | 47.6 | $ | 1.9 | |||
Adjusted Net Income (Loss) Non-GAAP | $ | (34.7) | $ | 1.5 | $ | 3.5 | $ | (30.1) | $ | 123.2 | ||
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 | For the Three Months Ended | For the Full Year Ended | ||||||||||
December | December | September | December | December | ||||||||
Earnings (Loss) Per Share GAAP | $ | (0.41) | $ | (0.49) | $ | (0.61) | $ | (1.31) | $ | 0.12 | ||
Add (Deduct) Impact of: | ||||||||||||
Share-Based Compensation Related Premiums | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.03 | ||
Fair Value of Derivative Liabilities - Warrants | $ | (0.00) | $ | (0.00) | $ | (0.00) | $ | (0.01) | $ | (0.00) | ||
Inventory Step Up Fair Value | $ | 0.00 | $ | 0.26 | $ | 0.00 | $ | 0.01 | $ | 0.28 | ||
Transaction, Acquisition, and Integration Costs | $ | 0.20 | $ | 0.19 | $ | 0.14 | $ | 0.50 | $ | 0.32 | ||
Covid Related Expenses | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.04 | ||
Impairment and Disposal of Long-lived Assets, Net | $ | (0.00) | $ | 0.04 | $ | 0.29 | $ | 0.40 | $ | 0.04 | ||
Results of Discontinued Operations | $ | 0.03 | $ | 0.01 | $ | 0.20 | $ | 0.25 | $ | 0.01 | ||
Adjusted Earnings Per Share Non-GAAP | $ | (0.18) | $ | 0.01 | $ | 0.02 | $ | (0.16) | $ | 0.84 | ||
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 cannabis regulatory reform, the Company's growth opportunities and the Company's investment plans for sustainable growth. 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
About
Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with established hubs in the Northeast, Southeast, and Southwest, anchored by 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,
Facebook: @Trulieve
Instagram: @Trulieve_
Investor Contact
+1 (424) 202-0210
Christine.Hersey@Trulieve.com
Media Contact
+1 (404) 218-3077
Robert.Kremer@Trulieve.com
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