Florida-based Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) reported revenue of $136.3 million for the third-quarter ending September 30, 2020. This was a 13% sequential increase over the second quarter and topped the Yahoo Finance analyst estimate for revenue of $131 million. Trulieve also delivered a positive net income of $17.4 million, or $0.15 per diluted share, easily beating the Yahoo Finance analyst estimate of $0.22.
“Following an outstanding quarter, industry-leading profitability, and our recent entry into two additional states in the northeast, Trulieve has never been better positioned for the future. Our third quarter was especially memorable because we introduced the long-awaited edibles product lines to our offerings and announced our acquisitions in Pennsylvania, where we see tremendous growth potential. Just last week the Pennsylvania acquisitions closed, and we were awarded a processor license in West Virginia. We also recently achieved our 2020 goal of opening 68 stores nationwide and expect our strong growth to continue,” stated Kim Rivers, Trulieve CEO.
The company also reported GAAP adjusted EBITDA of $65.8 million and has a solid cash position with cash and cash equivalents of $193.4 million as of September 30, 2020. Operating expenses rose by 15% to $37.9 million.
Year-to-date the company has reported roughly $352 million in revenue. Trulieve said during its last earnings release that it was forecasting 2020 revenue to be in the range of $465 million to $485 million. This puts the fourth quarter on target to deliver roughly $150 million in revenue and it would only have to report approximately $113 million to meet the low end of that estimated range.
While Trulieve is known for its large footprint in the state of Florida, the company has been on a push to expand into other states. The recent acquisitions of PurePenn LLC and Solevo Wellness, which closed on November 12, 2020, have helped the company plant its flag in Pennsylvania. It was also awarded a processor permit in West Virginia. Trulieve opened nine stores in the third quarter and recently achieved its 2020 goal of 68 stores nationwide.
“We want to thank the Office of Medical Cannabis for their comprehensive and thoughtful approach during this process, and we look forward to building a positive relationship with the state of West Virginia,” said Kim Rivers, CEO of Trulieve. “We are truly excited to be entering a sixth state. As a processor, we look forward to bringing our Trulieve brand to West Virginia through wholesale opportunities, partnering with other companies to bring their products to market in the state, and executing on our strategic vision to be the leading customer-focused cannabis brand in the United States, with depth in the markets we choose to operate in. Our plan is to be operational as soon as possible to provide access to the patients in West Virginia.”
The stock was lately trading at $26.95, near the top end of its year high of $27.79.