Full Press Release Details
Trulieve Reports Record Third Quarter 2021 Results and
15th Consecutive Profitable Quarter
Continues Execution of Hub Strategy with Harvest Acquisition
U.S. Leader with 155 Retail Dispensaries
3.5 Million Square Feet of Cultivation and Processing Capacity
Tallahassee, FL November 15, 2021 Trulieve Cannabis Corp. ( Trulieve or the Company ) (CSE:
TRUL) (OTCQX: TCNNF), a leading and top-performing cannabis company in the United States, today announced its results for the quarter ended September 30, 2021.
Q3 2021 Financial and Operational Highlights
Our third quarter results underscore our commitment to operational excellence and adherence to our
stated goals, said Kim Rivers, Trulieve CEO. We continue to deliver on our promise to pursue profitable growth while executing on our hub strategy.
Rivers continued, Our team closed the Harvest acquisition in under five months while simultaneously meeting expansion targets in several markets. We are
excited to keep the momentum going into 2022 as we fully integrate Harvest while further building scale and depth in our cornerstone markets.
Financial Highlights
| Results of Operations | For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| (Figures in millions and % change based on these figures) | September 30, 2021 | September 30, 2020 | change | September 30, 2021 | September 30, 2020 | change | ||||||||||||||||||
| Total Revenue | $ | 224.1 | $ | 136.3 | 64 | % | $ | 633.0 | $ | 353.1 | 79 | % | ||||||||||||
| Gross Profit | $ | 153.9 | $ | 102.2 | 51 | % | $ | 433.7 | $ | 266.5 | 63 | % | ||||||||||||
| Gross Profit % | 69 | % | 75 | % | -6 | % | 69 | % | 75 | % | -7 | % | ||||||||||||
| Operating Expenses | $ | 87.7 | $ | 42.7 | 105 | % | $ | 218.6 | $ | 112.1 | 95 | % | ||||||||||||
| Operating Expenses % | 39 | % | 31 | % | 8 | % | 35 | % | 32 | % | 3 | % | ||||||||||||
| Net income | $ | 18.6 | $ | 17.4 | 7 | % | $ | 89.6 | $ | 60.0 | 49 | % | ||||||||||||
| Adjusted EBITDA | $ | 98.0 | $ | 68.7 | 43 | % | $ | 283.7 | $ | 178.7 | 59 | % |
The Company s Form 10-Q for the quarter ended September 30, 2021, is
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
are 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.
The Company will host a conference call
and live audio webcast on November 15, 2021 at 8:30 A.M. Eastern time, to discuss its third quarter 2021 financial results.
All interested parties
can join the conference call by dialing 1-855-669-9657, conference ID: 10161240. Please dial in 15 minutes prior to the call to
secure a line. The conference call will be archived for replay until November 22, 2021. To access the archived conference call, please dial
1-855-669-9658 and enter the encore code 10161240.
A live audio webcast of the conference call will be available at: https://investors.trulieve.com/events-presentations
Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An
archived replay of the webcast will be available for 90 days by clicking the link above.
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 Canadian Securities Exchange under the symbol TRUL and
trades on the OTCQX market under the symbol TCNNF.
To learn more about Trulieve, visit https://www.trulieve.com/.
Non-GAAP Financial Measures
Our management uses financial measures that are not in accordance with generally accepted accounting principles in the United States, or GAAP, in addition to
financial measures in accordance with GAAP to evaluate our operating results. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results
prepared in accordance with GAAP. Our management uses adjusted EBITDA to evaluate our operating performance and trends and make planning decisions. Our management believes adjusted EBITDA helps identify underlying trends in our business that could
otherwise be masked by the effect of the items that we exclude. Accordingly, we believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall
understanding of our past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making.
Adjusted EBITDA reported by Trulieve excludes from net income as reported interest, share-based compensation, tax, depreciation, amortization, acquisition and
transaction costs, COVID-related expenses, fair value step-up of inventory from acquisitions, integration and transition costs, non-cash expenses and other income.
Preliminary Adjusted EBITDA calculated by Harvest Health & Recreation Inc. excludes from net loss as tabulated interest, share-based compensation, tax, depreciation, amortization, acquisition and transaction costs, COVID-related expenses,
fair value step-up of inventory from acquisitions, integration and transition costs, non-cash expenses and other expense. The financial measures noted above are metrics
that have been adjusted from the GAAP net income measure in an effort to provide readers with a normalized metric in making comparisons more meaningful across the cannabis industry, as well as to remove
non-recurring, irregular and one-time items that may otherwise distort the GAAP net income measure.
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 for Trulieve:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (dollars in millions) | ||||||||||||||||
| Net income and comprehensive income | $ | 18.6 | $ | 17.4 | $ | 89.6 | $ | 60.0 | ||||||||
| Add impact of: | ||||||||||||||||
| Interest expense, net | 6.1 | 5.4 | 20.7 | 16.6 | ||||||||||||
| Provision for income taxes | 41.6 | 25.9 | 105.3 | 67.1 | ||||||||||||
| Depreciation and amortization | 7.7 | 3.3 | 19.8 | 8.6 | ||||||||||||
| Depreciation included in cost of goods sold | 5.7 | 2.5 | 14.4 | 7.4 | ||||||||||||
| EBITDA | 79.8 | 54.6 | 249.7 | 159.7 | ||||||||||||
| Acquisition and transaction costs | 11.1 | 14.3 | ||||||||||||||
| COVID related expenses | 0.5 | 2.9 | 6.0 | 6.0 | ||||||||||||
| Share-based compensation and related premiums | 4.9 | 0.5 | 6.4 | 2.2 | ||||||||||||
| Inventory step up, fair value | 0.7 | 3.2 | ||||||||||||||
| Integration and transition costs | 0.8 | 2.7 | ||||||||||||||
| Other non-recurring costs | 0.2 | 1.6 | ||||||||||||||
| Other expense (income), net | (0.1 | ) | 10.8 | (0.4 | ) | 10.8 | ||||||||||
| Total adjustment | 18.2 | 14.2 | 34.0 | 19.0 | ||||||||||||
| Adjusted EBITDA | $ | 98.0 | $ | 68.7 | $ | 283.7 | $ | 178.7 |
The following table presents a reconciliation of GAAP net income (loss) to non-GAAP
Adjusted EBITDA, for each of the periods presented for Trulieve and Harvest:
| Three Months Ended September 30, 2021 | ||||||||||||||||
| Trulieve | Harvest 3 | Eliminations | Combined | |||||||||||||
| (dollars in millions) | ||||||||||||||||
| Net income and comprehensive income | $ | 18.6 | $ | (25.6 | ) | $ | (2.9 | ) | $ | (9.8 | ) | |||||
| Add impact of: | ||||||||||||||||
| Interest expense, net | 6.1 | 9.8 | 15.9 | |||||||||||||
| Provision for income taxes | 41.6 | 4.7 | 46.3 | |||||||||||||
| Depreciation and amortization | 7.7 | 3.0 | 10.7 | |||||||||||||
| Depreciation included in cost of goods sold | 5.7 | 1.0 | 6.7 | |||||||||||||
| EBITDA | 79.8 | (7.1 | ) | (2.9 | ) | 69.9 | ||||||||||
| Acquisition and transaction costs | 11.1 | 24.4 | 35.5 | |||||||||||||
| COVID related expenses | 0.5 | 0.1 | 0.6 | |||||||||||||
| Share-based compensation and related premiums | 4.9 | 1.9 | 6.8 | |||||||||||||
| Inventory step up, fair value | 0.7 | 0.7 | ||||||||||||||
| Integration and transition costs | 0.8 | 0.8 | ||||||||||||||
| Other non-recurring costs | 0.2 | 0.2 | ||||||||||||||
| Other expense (income), net | (0.1 | ) | 7.0 | 6.9 | ||||||||||||
| Total adjustment | 18.2 | 33.3 | 51.6 | |||||||||||||
| Adjusted EBITDA | $ | 98.0 | $ | 26.3 | $ | (2.9 | ) | $ | 121.4 |
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 financial performance for fiscal 2021, its plans for expansion, the scope and timing of adoption
of cannabis in the U.S. and potential acquisitions and 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, 2020 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
Director of Investor Relations