Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced its results for the first quarter ending March 31, 2022, with revenue increasing 64% year over year to $318.3 million from $193.8 million and 4% sequentially. This beat the Yahoo Finance average analyst estimates for revenues of $307 million. It was also a nice increase sequentially from the fourth quarter’s revenue of $305 million, especially at a time when many cannabis companies have seen sales in the first quarter of 2022 struggle to top the fourth.
Trulieve also delivered a net loss of $32 million, a sequential improvement of 55%, however, it was a big change from last year’s net income of $30 million for the same time period. The earnings per share were ($0.17) versus last year’s $0.24. This missed the average analyst estimates for earnings of $0.03.
The company also noted that it had an adjusted net income of $1.7 million, which excludes $17.2 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, $13.8 million in asset impairments associated with the closing of redundant cultivation facilities and a loss of $2.7 million due to the divestiture of a duplicative, non-operating location.
“Thanks to the efforts of all of our Trulieve employees, we’re off to a great start in 2022, with strong first-quarter results underpinned by topline growth and cash flow,” said Kim Rivers, Trulieve CEO. “We delivered another record quarter while making substantive progress on our plan to optimize assets while preparing for future growth and catalysts. In 2022 we expect our strong balance sheet, access to capital and financial discipline will uniquely position us to capitalize on market opportunities created by the macroeconomic factors impacting our industry.”
Operating expenses did shoot up 138% to $149 million
Trulieve is reiterating its 2022 guidance with expected revenue in the range of $1.3 billion to $1.4 billion and adjusted EBITDA in the range of $450 million to $500 million. Based on the company’s current forecasts, it expects to realize improved performance in the second half of 2022 relative to the first half of 2022.
The company is also sitting comfortably on a mountain of cash at the quarter end of $267 million, bolstered by $45.1 million in cash flow from operations and the closing of $75 million senior secured notes at 8% due October 2026.
Trulieve currently operates 165 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States.