Trulieve Cannabis Corp. (CSE: TRUL) reported its fourth quarter and 2018 full-year results with revenue rising 172% to $35.9 million from last year’s $28.3 million for the same time period. The company’s net income grew a whopping 3,467% in the fourth quarter to $10.7 million from last year’s $0.3 million for the same time period.
“In 2018, we focused on building a foundation to scale the business over the long-term and made significant progress on Trulieve’s core mission to create the preferred customer-centric brand in cannabis,” said Kim Rivers, CEO of Trulieve. “In the fourth quarter, we demonstrated our growth through brand expansion and scale by increasing our dispensary footprint in Florida by five stores, adding cultivation and state of the art processing facilities, onboarding strategic brand relationships and making significant progress on our plans for growth beyond Florida with acquisitions in Massachusetts and California.”
Gross margins increased from 46% to 58% in the fourth quarter and the adjusted EBITDA was $45.6 million, or 44.4%.
Full-Year 2018 Results
Revenue for the full-year 2018 increased 419% to $102.8 million over last year’s $19.8 million. The net income for 2018 was $43 million, an increase of 1,094% over last year’s $3.6 million. This was an adjusted EBITDA of $45.6 million, or 44.4%.
In 2018, the company entered into agreements to acquire 100% of Life Essence, Inc. in Massachusetts and 100% of Leef Industries, LLC in California. It also expanded Trulieve-branded products, partnerships, and the number of Florida dispensaries to 22 and opened a 55,000 square foot, best-in-class, GMP certified processing facility, bringing efficiencies and state-of-the-art innovation to our Florida production.
The company received a favorable Florida settlement that increased the potential number of Trulieve dispensaries to 14 above the state cap. The state of Florida also approved of smokable flower for medical marijuana patients.
The company forecast that revenue is expected to grow 108% to approximately $214M. As previously disclosed, full-year 2019 revenue growth guidance includes an expected increase in the number of dispensaries in Florida and execution on our multi-state expansion. The anticipated gross profit of approximately $145M for 2019, or 68% of revenue before net changes in the fair value of biological assets. Trulieve is also projecting that it will have an adjusted EBITDA of approximately $92M, or 43% of revenue, reflecting our continued leverage of scale and financial discipline.
Rivers added, “2019 will be a year of execution for us as we leverage our strong revenue growth and positive adjusted EBITDA. We will focus on innovating and delivering new products for our customers, such as smokable flower, edibles, and nano-emulsions. We will cultivate new strategic partnerships, as we have recently demonstrated with Slang and Blue River. Finally, we will execute on our plans for multi-state operational expansion.”