Trulieve Beats on Revenue, Earnings Estimates For First Quarter

Trulieve Cannabis Corp. (OTCQX: TCNNF) reported that its revenue increased 21% sequentially to $96 million in its first quarter of 2020 ending  March 31, 2020, versus $79 million in the fourth quarter. This beat the Yahoo! Finance average estimate for revenue of $90 million for the quarter.

Revenue increased 116% over last year’s first-quarter revenue of $44 million. Trulieve also delivered a net income of $14 million in the first quarter.  The company has a strong cash position of $100.8 million at March 31, 2020.

The company delivered adjusted EBITDA of $49.4 million, or 51%, for the first quarter of 2020 and reported earnings per share (EPS) of $0.12. This beat the Yahoo! Finance average estimate of $0.11 but was down from last year’s earnings of $0.13 for the first quarter of 2019. The achieved GAAP adjusted margin was 77%.

“Trulieve posted exceptional operational results for the quarter, continuing to grow our market share in Florida as we saw our dedicated team along with our scale and supply chain efficiencies successfully meet the increased demand for our products,” said Kim Rivers, Trulieve CEO.  “Trulieve’s execution of key fundamentals and financial discipline coupled with market share growth this quarter contributed to positive free cash flow, further strengthening our balance sheet and validating our financial stewardship. Our financial position continues to differentiate us in the market by providing flexibility to support both organic and external growth initiatives which is increasingly important during these times.”

Trulieve stock has risen 122% over the past 60 days as investors are flocking to one of the few cannabis companies that isn’t reporting massive net losses.

Strong Outlook

Trulieve was also flexing when it came to jobs. The company has hired more than 500 employees since mid-March, and currently has nearly 300 positions that need filling. Trulieve expanded its delivery fleet by 200 vehicles during March in order to address COVID demands.

Trulieve also reiterated its guidance for revenue between $380 million and $400 million for the year. The adjusted EBITDA guidance is for $140-$160 million.

Canaccord Genuity analyst Derek Dley said, “While we do not anticipate Trulieve experiencing any material slowdowns in servicing it patient base due to CVID-19, we believe the strong balance sheet does afford the company the luxury of patience and could potentially allow it to capitalize on acquisition opportunities in the near term.”

Quarter Highlights

The company noted that it launched new products including TruPowder, TruTincture drops, and our ground flower product offering during the quarter. Plus, it opened three new stores in Florida, ending the first quarter with 47 stores nationwide.

Debra Borchardt

Debra BorchardtDebra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


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