Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) delivered its results for the quarter ending June 30, 2022, with revenue increasing 49% year over year to $320.3 million from $215.1 million and 1% sequentially. This was in line with the Yahoo Finance average analyst estimates for revenues of $320 million.
Trulieve also reported a net loss of $22.5 million, a sequential improvement of 30%. The company said that the adjusted net loss of $1.1 million excludes $11.8 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, a $5.2 million earnout payment for acquired cultivation in Arizona, $4.3 million in asset impairments associated with the closing of redundant cultivation facilities in Florida and a loss of $0.7 million due to the repurposing of a development stage production site in Arizona.
Disappointing investors, Trulieve decided to err on the cautious side when it came to its forecast. The company decided to cut its revenue guidance by 5% citing strategic changes across its businesses, the impact of inflation on consumer spending, softness in wholesale markets, and the lack of visibility in the current macroeconomic environment. The revenue is now expected to come in at the low end of its prior outlook from $1.25 billion to $1.3 billion. Trulieve also said it expects adjusted EBITDA will be in the range of $415 million to $450 million.
“Our team delivered strong second-quarter results with topline growth and margin improvement by staying focused on our plan,” said Kim Rivers, Trulieve CEO. “During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape.”
Rivers continued, “We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company. We strongly believe that taking firm and decisive action now will better position the organization to capitalize on numerous catalysts in the years ahead. Trulieve has the capital, discipline, and experience to navigate short-term headwinds and emerge as a stronger company.”
Part of the moves that Trulieve is making within its huge portfolio of stores, is the exit from Nevada. The company is leaving the wholesale market there and said it is exploring a total escape from the state. The company said it has opened seven new dispensaries in Phoenix, Arizona; Apopka, Coral Springs, Hollywood, and Kissimmee, Florida; and Hurricane and Morgantown, West Virginia. The new Phoenix dispensary is the first branded Trulieve store in Arizona, kicking off statewide rebranding efforts to continue over the next year.
While the company did open one location during the quarter in Massachusetts and Pennsylvania, it has mostly been absent from the emerging Northeast market.