Trulieve Cannabis Corp. (OTCQX: TCNNF) announced its results for the quarter ended March 31, 2021, as revenues increased 102% year over year to $193.8 million and increased sequentially by 15% from the fourth quarter’s $168.4 million. This beat the Yahoo Finance average analyst estimate for revenues of $189 million.
Net income grew 27% year over year to $30.1 million from $23.6 million. The net income really spiked sequentially from the fourth quarter by 889% from just $3 million. While Trulieve released a press release for its first quarter, the actual filing wasn’t available at this writing. The company said it was hosting a conference call at 8:30am est to discuss the earnings.
“During Q1 we continued to execute on growth in Florida as well as our national hub expansions. Our record revenue and industry-leading EBITDA margins demonstrate our continued focus on execution,” stated Kim Rivers, Trulieve CEO. “The pending acquisition of Harvest will be transformative and will build on our profitability, expanding our runway for growth.”
Operating expenses grew 97% year over year to $57.3 million, but this was only a 10% increase sequentially. The company said it had $60.4 million in cash flows from operations for the quarter.
Rivers added, “Our continued strength in our home state of Florida, as well as the build-out of our northeast hub, with progress in Pennsylvania, Massachusetts, and West Virginia, has generated momentum for an exciting remainder of the year. We expect many positive catalysts in the months ahead, which align well with the current political environment and heightened focus on cannabis in this country.”
The company became a U.S. reporting company effective February 4, 2021. Trulieve also highlighted its recent acquisition of Harvest Health & Recreation, noting that Harvest reported its first quarter revenue of $88.8 million and Adjusted EBITDA of $26.9 million. Trulieve said it was buying Harvest for $1.2 billion. The combined businesses will have operations in 11 states, comprised of 22 cultivation and processing facilities with a total capacity of 3.1 million square feet, and 126 dispensaries serving both the medical and adult-use recreational cannabis markets.