Trulieve Reports Fourth Quarter and Full Year 2023 Results Highlighting Year End Momentum and Cash Generation
- 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
TALLAHASSEE, Fla., Feb. 29, 2024 /PRNewswire/ — 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.
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. Fourth quarter momentum was underpinned by improved consumer trends.
Kim Rivers, Trulieve CEO
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.
