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Trulieve Reports Third Quarter 2022 Results and Drives Forward Progress on Strategic Vision Revenue increased 34% year over year to $301 million with GAAP gross margin of 56% Industry leading U.S. retail network of 176 d

Key Takeaway: Trulieve Reports Third Quarter 2022 Results and Drives Forward Progress on Strategic Vision Tallahassee, FL November 9, 2022 Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) ( Trulieve or the Company ), a leading and top-performing cannabis company in the U.S., today announc

Full Press Release Details

Trulieve Reports Third Quarter 2022 Results and
Drives Forward Progress on Strategic Vision
Tallahassee, FL November 9, 2022 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 September 30, 2022. 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.
Q3 2022 Financial and Operational Highlights*
Management Commentary
Our team demonstrated tremendous flexibility and cross functional capabilities during the third quarter said Kim Rivers, Trulieve CEO. We
navigated macroeconomic pressure, changes to dosing limits in our core state of Florida, and the impact of Hurricane Ian while making further progress streamlining the organization.
Rivers continued, U.S. cannabis has significant white space ahead, with many states yet to implement medical or adult use programs and a growing
appetite for substantive federal reform. Trulieve has been preparing for this next phase of industry evolution for years, building our regional hub strategy, scaling cutting edge cultivation and manufacturing capacity, expanding our leading retail
platform, investing in data technology and perfecting the customer journey.
We anticipate fourth quarter results will be influenced by holiday retail performance and promotional activity across core markets during the latter half of
the quarter. Based on our performance year to date and current trends, we are targeting the low end of 2022 guidance of $1.25 billion to $1.3 billion in revenue and $415 million to $450 million in Adjusted EBITDA.
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, 2022 September 30, 2021 change June 30, 2022 change September 30, 2022 September 30, 2021 change
Revenue $ 301 $ 224 34 % $ 319 -6 % $ 938 $ 633 48 %
Gross Profit $ 168 $ 154 9 % $ 184 -9 % $ 532 $ 434 23 %
Gross Margin % 56 % 69 % 58 % 57 % 69 %
Adjusted Gross Profit $ 172 $ 155 11 % $ 184 -6 % $ 541 $ 441 23 %
Adjusted Gross Margin % 57 % 69 % 58 % 58 % 70 %
Operating Expenses $ 196 $ 88 123 % $ 143 37 % $ 488 $ 219 123 %
Operating Expenses % 65 % 39 % 45 % 52 % 35 %
Net Income (Loss)** $ (115 ) $ 19 $ (22 ) $ (169 ) $ 90
Net Income (Loss) Continuing Ops $ (77 ) $ 19 $ (22 ) $ (129 ) $ 90
Adjusted Net Income (Loss) $ 4 $ 36 -90 % $ (1 ) $ 5 $ 122
Diluted Shares Outstanding 189 137 187 188 131
EPS Continuing Ops $ (0.41 ) $ 0.14 $ (0.11 ) $ (0.68 ) $ 0.68
Adjusted EPS $ 0.02 $ 0.26 -92 % $ 0.00 $ 0.03 $ 0.91
Adjusted EBITDA $ 99 $ 98 1 % $ 111 -11 % $ 315 $ 284 11 %
Adjusted EBITDA Margin % 33 % 44 % 35 % 34 % 45 %
The Company will host a conference call
and live audio webcast on November 9, 2022, at 5:30 P.M. Eastern time, to discuss its third 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
North American toll free: 1-888-254-3590
International: 1-786-789-4797
A live audio webcast of the conference call will be
A powerpoint presentation and archived replay of the webcast will be available at
The Company s Form 10-Q for the quarter ended
September 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.
Trulieve Cannabis Corp.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data)
September 30, 2022 December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents $ 114,468 $ 230,085
Restricted cash 3,013
Accounts receivable, net 11,309 8,563
Inventories, net 301,239 209,943
Notes receivable - current portion 715 1,530
Prepaid expenses and other current assets 62,068 68,145
Assets associated with discontinued operations 2,838 3,615
Total current assets 492,637 524,894
Property and equipment, net 795,506 779,413
Right of use assets - operating, net 100,864 111,723
Right of use assets - finance, net 75,305 66,764
Intangible assets, net 1,027,058 1,081,240
Goodwill 791,495 765,358
Notes receivable, net 12,059 12,147
Other assets 21,531 17,640
Long-term assets associated with discontinued operations 4,503 52,167
TOTAL ASSETS $ 3,320,958 $ 3,411,346
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 87,773 93,801
Income tax payable 4,681 28,084
Deferred revenue 6,385 7,168
Notes payable - current portion, net 4,823 10,052
Operating lease liabilities - current portion 10,779 10,020
Finance lease liabilities - current portion 8,719 6,185
Construction finance liabilities - current portion 1,137 991
Contingencies 25,590 13,017
Liabilities associated with discontinued operations 390 92
Total current liabilities 150,277 169,410
Long-term liabilities:
Notes payable 7,942 6,456
Private placement notes, net 540,301 462,929
Warrant liabilities 268 2,895
Operating lease liabilities 110,625 107,570
Finance lease liabilities 75,011 65,244
Construction finance liabilities 182,257 175,198
Deferred tax liabilities 220,206 241,882
Other long-term liabilities 8,616 8,400
Long-term liabilities associated with discontinued operations 14,575 23,989
TOTAL LIABILITIES 1,310,078 1,263,973
Commitments and contingencies (see Note 22)
SHAREHOLDERS EQUITY
Common stock, no par value; unlimited shares authorized. 185,880,209 issued and outstanding as of September 30, 2022 and 180,504,172 issued and outstanding as of December 31, 2021.
Additional paid-in-capital 2,041,748 2,008,100
Accumulated (deficit) earnings (31,299 ) 137,721
Non-controlling interest 431 1,552
TOTAL SHAREHOLDERS EQUITY 2,010,880 2,147,373
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 3,320,958 $ 3,411,346
Trulieve Cannabis Corp.
Condensed Consolidated Statements of Operations and
Comprehensive (Loss) Income (Unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Revenues, net of discounts $ 300,793 $ 224,092 $ 937,612 $ 633,037
Cost of goods sold 132,760 70,147 405,278 199,345
Gross profit 168,033 153,945 532,334 433,692
Expenses:
Sales and marketing 75,915 51,724 224,026 142,858
General and administrative 37,646 28,223 104,840 55,874
Depreciation and amortization 30,190 7,728 88,645 19,829
Impairment and disposal of long-lived assets, net 52,035 (5 ) 70,151 (5 )
Total expenses 195,786 87,670 487,662 218,556
(Loss) Income from operations (27,753 ) 66,275 44,672 215,136
Other income (expense):
Interest expense, net (19,264 ) (6,145 ) (56,815 ) (20,693 )
Change in fair value of derivative liabilities - warrants 365 2,627
Impairment and disposal of non-operating assets, net (2,604 ) (6,004 )
Other income (expense), net 448 89 3,016 385
Total other expense (21,055 ) (6,056 ) (57,176 ) (20,308 )
(Loss) Income before provision for income taxes (48,808 ) 60,219 (12,504 ) 194,828
Provision for income taxes 28,199 41,603 116,742 105,254
Net (loss) income from continuing operations and comprehensive (loss) income (77,007 ) 18,616 (129,246 ) 89,574
Net loss from discontinued operations, net of tax benefit of $12,981, $-, $14,439, and $-, respectively (38,065 ) (42,329 )
Net (loss) income (115,072 ) 18,616 (171,575 ) 89,574
Less: Net loss and comprehensive loss attributable to non-controlling interest from continuing operations (518 ) (2,555 )
Net (loss) income and comprehensive (loss) income attributable to common shareholders $ (114,554 ) $ 18,616 $ (169,020 ) $ 89,574
Net (loss) income per share - Continuing operations:
Basic $ (0.41 ) $ 0.15 $ (0.68 ) $ 0.73
Diluted $ (0.41 ) $ 0.14 $ (0.68 ) $ 0.68
Net loss per share - Discontinued operations:
Basic and diluted $ (0.20 ) $ (0.23 )
Weighted average number of common shares used in computing net (loss) income per share:
Basic 188,597,094 128,146,298 187,549,359 122,983,729
Diluted 188,597,094 136,909,266 187,549,359 130,927,083
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 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
For the Three Months Ended For the Nine Months Ended
(Amounts expressed in millions of United States dollars) September 30, 2022 September 30, 2021 June 30, 2022 September 30, 2022 September 30, 2021
Net Income (Loss) GAAP $ (114.6 ) $ 18.6 $ (22.5 ) $ (169.0 ) $ 89.6
Add (Deduct) Impact of:
Interest Expense, net $ 19.3 $ 6.1 $ 19.7 $ 56.8 $ 20.7
Provision For Income Taxes $ 28.2 $ 41.6 $ 45.4 $ 116.7 $ 105.3
Depreciation and Amortization $ 30.2 $ 7.7 $ 30.0 $ 88.6 $ 19.8
Depreciation in COGS $ 14.6 $ 5.7 $ 13.8 $ 39.1 $ 14.4
EBITDA $ (22.3 ) $ 79.8 $ 86.4 $ 132.3 $ 249.7
Impairment and Disposal of Long-lived Assets, net $ 52.0 $ 0.0 $ 4.3 $ 70.2 $ 0.0
Results of Discontinued Operations $ 38.1 $ 0.0 $ 1.9 $ 42.3 $ 0.0
Acquisition and Transaction Costs $ 7.0 $ 11.1 $ 7.0 $ 17.2 $ 14.3
Integration and Transition Costs $ 6.7 $ 0.8 $ 5.1 $ 17.1 $ 2.7
Other Non-Recurring Costs $ 1.9 $ 0.2 $ 3.5 $ 11.6 $ 1.6
Share-Based Compensation and Related Premiums $ 4.3 $ 4.9 $ 5.7 $ 14.6 $ 6.4
Legislative Campaign Contributions $ 10.0 $ 0.0 $ 0.0 $ 10.0 $ 0.0
Impairment and Disposal of Non-Operating Assets, net $ 2.6 $ 0.0 $ 0.7 $ 6.0 $ 0.0
Inventory Step Up Fair Value $ 0.0 $ 0.7 $ 0.6 $ 1.0 $ 3.2
Covid Related Expenses $ 0.2 $ 0.5 $ 0.2 $ 0.8 $ 6.0
Other Expense (Income), net $ (0.4 ) $ (0.1 ) $ (1.7 ) $ (3.0 ) $ (0.4 )
Fair Value of Derivative Liabilities - Warrants $ (0.4 ) $ 0.0 $ (1.4 ) $ (2.6 ) $ 0.0
Results of Entities Not Legally Controlled $ (0.9 ) $ 0.0 $ (1.1 ) $ (1.9 ) $ 0.0
Adjusted EBITDA Non-GAAP $ 98.8 $ 98.0 $ 111.3 $ 315.5 $ 283.7
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
For the Three Months Ended For the Nine Months Ended
(Amounts expressed in millions of United States dollars) September 30, 2022 September 30, 2021 June 30, 2022 September 30, 2022 September 30, 2021
Gross Profit GAAP $ 168.0 $ 153.9 $ 183.8 $ 532.3 $ 433.7
Gross Margin % GAAP 56 % 69 % 58 % 57 % 69 %
Add (Deduct) Impact of:
Inventory Step Up Fair Value $ 0.0 $ 0.7 $ 0.6 $ 1.0 $ 3.2
Transaction, Acquisition, and Integration Costs $ 3.8 $ 0.4 $ (0.8 ) $ 7.4 $ 3.9
Adjusted Gross Profit Non-GAAP $ 171.9 $ 155.0 $ 183.7 $ 540.8 $ 440.8
Adjusted Gross Margin % Non-GAAP 57 % 69 % 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:
For the Three Months Ended For the Nine Months Ended
(Amounts expressed in millions of United States dollars) September 30, 2022 September 30, 2021 June 30, 2022 September 30, 2022 September 30, 2021
Net Income (Loss) GAAP $ (114.6 ) $ 18.6 $ (22.5 ) $ (169.0 ) $ 89.6
Add (Deduct) Impact of:
Share-Based Compensation Related Premiums $ 0.0 $ 4.2 $ 0.0 $ 0.0 $ 4.2
Fair Value of Derivative Liabilities - Warrants $ (0.4 ) $ 0.0 $ (1.4 ) $ (2.6 ) $ 0.0
Inventory Step Up Fair Value $ 0.0 $ 0.7 $ 0.6 $ 1.0 $ 3.2
Transaction, Acquisition, and Integration Costs $ 25.5 $ 12.2 $ 15.6 $ 55.9 $ 18.7
Covid Related Expenses $ 0.2 $ 0.5 $ 0.2 $ 0.8 $ 6.0
Impairment and Disposal of Non-Operating Assets, net $ 2.6 $ 0.0 $ 0.7 $ 6.0 $ 0.0
Impairment and Disposal of Long-lived Assets, net $ 52.0 $ 0.0 $ 4.3 $ 70.2 $ 0.0
Results of Discontinued Operations 38.1 $ 0.0 $ 1.9 $ 42.3 $ 0.0
Adjusted Net Income (Loss) Non-GAAP $ 3.5 $ 36.2 $ (0.6 ) $ 4.6 $ 121.7
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:
For the Three Months Ended For the Nine Months Ended
(Amounts expressed in millions of United States dollars) September 30, 2022 September 30, 2021 June 30, 2022 September 30, 2022 September 30, 2021
Earnings (Loss) Per Share GAAP $ (0.61 ) $ 0.14 $ (0.12 ) $ (0.90 ) $ 0.68
Add (Deduct) Impact of:
Share-Based Compensation Related Premiums $ 0.00 $ 0.03 $ 0.00 $ 0.00 $ 0.03
Fair Value of Derivative Liabilities - Warrants $ (0.00 ) $ 0.00 $ (0.01 ) $ (0.01 ) $ 0.00
Inventory Step Up Fair Value $ 0.00 $ 0.01 $ 0.00 $ 0.01 $ 0.02
Transaction, Acquisition, and Integration Costs $ 0.14 $ 0.09 $ 0.08 $ 0.30 $ 0.14
Covid Related Expenses $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.05
Impairment and Disposal of Non-Operating Assets, net $ 0.01 $ 0.00 $ 0.00 $ 0.03 $ 0.00
Impairment and Disposal of Long-lived Assets, net $ 0.28 $ 0.00 $ 0.02 $ 0.37 $ 0.00
Results of Discontinued Operations $ 0.20 $ 0.00 $ 0.01 $ 0.23 $ 0.00
Adjusted Earnings Per Share Non-GAAP $ 0.02 $ 0.27 $ 0.00 $ 0.03 $ 0.93
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, and its beliefs as to its positioning for cannabis 2.0. 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.
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, 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.
Instagram: @Trulieve
Christine Hersey, Executive Director of Investor Relations
Rob Kremer, Executive Director of
Corporate Communications
Last updated: Nov 9, 2022