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TALLAHASSEE, Fla., Aug. 9, 2023 – PRESS RELEASE – Trulieve Cannabis Corp., a leading and top-performing cannabis company in the U.S., announced its results for the quarter ended June 30, 2023. Results are reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles (GAAP) unless otherwise indicated.
Q2 2023 Financial and Operational Highlights
- Revenue of $282 million, with 96% of revenue from retail sales. Excluding deferred revenue, retail revenue increased by $3 million sequentially driven by increased traffic and volume partly offset by price compression.
- Achieved GAAP gross margin of 50%, with gross profit of $142 million. Reclassification of idle capacity expense to COGS resulted in $2 million of tax savings.
- SG&A expenses lowered by $4 million sequentially to $96 million.
- Reported net loss of $404 million. Adjusted net loss of $15 million excludes non-recurring charges, asset and goodwill impairments, disposals and discontinued operations. Goodwill impairment was triggered by the recent stock price performance and is not connected to management's forecasts.
- Achieved adjusted EBITDA of $79 million, or 28% of revenue.
- Generated cash flow from operations excluding tax payments of $98 million year to date.
- Inventory reduction initiatives drive $24 million in cash generation year to date.
- Cash at quarter end of $160 million.
- Realized record traffic, customers served, and units sold on 4/20 holiday, up 10%, 11%, and 9%, respectively, year over year.
- Sold 11.6 million units of branded product through branded retail, up 9% sequentially.
- Opened five new dispensaries in Macon, Marietta, and Newnan, Ga.; Apache Junction, Ariz.; and Limerick, Pa.
- Relocated one dispensary in Phoenix and one dispensary in Fort Myers, Fla.
- Exited California retail assets and commenced wind down of operations in Massachusetts as part of cash preservation and generation plan to bolster business resilience.
- Ended the quarter with 32% of retail locations outside of the state of Florida.
Recent Developments
- Realized 200% increase in Maryland traffic in July compared to June following the launch of adult-use sales at our three dispensaries.
- Opened first medical marijuana dispensary in Columbus, Ohio.
- Added retail locations in Sanford, Fla., and Pooler, Ga., and relocated one dispensary in Kissimmee, Fla.
- Currently operate 186 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States.
Management Commentary
"Demand for legal cannabis remains strong and Trulieve sells the highest volume of branded product through branded retail in the U.S.," CEO Kim Rivers said. "Our focused strategy, scaled operations and leading retail position provide distinct competitive advantages."
Rivers added, "We are on track to exit this year as a leaner, stronger organization, ready to meet the opportunities ahead."
View the full press release with line-item financial highlights here.
