Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company in the U.S., today announced its results for the quarter and full year ended December 31, 2021. Results are reported in U.S. dollars unless otherwise indicated. 2021 Full Year Financial and Operational Highlights*
- Revenue increased 80% year-over-year to $938.4 million in 2021.
- Gross profit of $566.1 million and gross margin of 60.3% in 2021 compared to gross profit of $386.4 million and gross margin of 74.1% in 2020.
- Adjusted gross profit of $621.4 million and adjusted gross margin of 66.2% in 2021 compared to adjusted gross profit of $389.9 million and adjusted gross margin of 74.8% in 2020.* The decline in adjusted gross margin is primarily attributable to strategic diversification into new lower margin markets and channels.
- Net income of $18.0 million and adjusted net income of $123.4 million*, which excludes $105.4 million of non-recurring compensation, fair value of inventory step up, and transaction, acquisition and integration charges primarily associated with the Harvest Health & Recreation Inc. (“Harvest”) acquisition.
- Adjusted EBITDA of $384.6 million, or 41.0% of revenue in 2021 compared to adjusted EBITDA of $260.1 million, or 49.9% of revenue in 2020.*
- Cash at year end of $234 million.
- Raised $227 million in equity and $350 million in five year senior secured notes at 8% interest, representing industry leading terms for U.S. plant touching cannabis operators.
- Welcomed two new members to the Board of Directors, which now includes four women representing half of the Board.
- Closed seven total acquisitions valued at ~$1.5 billion in 2021 including Harvest and Keystone Shops. The Harvest acquisition closed in less than five months from the announcement, accelerating integration and optimization activities.
- Added 84 dispensaries in 2021, increasing retail footprint by 112% to 159 retail locations nationwide at year end.
- Added ~1.6 million square feet of cultivation and processing capacity through organic growth and acquisitions in 2021, increasing capacity by 89% to over 3.5 million square feet at year end.
- Commenced cultivation and retail operations in Massachusetts and West Virginia and received a notice of intent to award a Class 1 production license in Georgia.
- Exited 2021 with operations in 11 states, with 30% of our retail locations outside of the state of Florida.
*See “Non-GAAP Financial Measures” below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.Q4 2021 Financial and Operational Highlights*
- Revenue increased 81% in the fourth quarter compared to the fourth quarter of 2020 and 36% sequentially to $305.3 million.
- Gross profit of $132.4 million and gross margin of 43.4% in the fourth quarter of 2021 compared to gross profit of $119.9 million and gross margin of 71.2% in the fourth quarter of 2020.
- Adjusted gross profit of $180.6 million and adjusted gross margin of 59.1% in the fourth quarter of 2021 compared to adjusted gross profit of $121.7 million and adjusted gross margin of 72.2% in the fourth quarter of 2020.*
- Net loss of $71.5 million and adjusted net income of $1.8 million*, which excludes $73.3 million of non-recurring fair value of inventory step up, and transaction, acquisition and integration charges primarily associated with the Harvest acquisition.
- Adjusted EBITDA of $100.9 million, or 33.0% of revenue in the fourth quarter of 2021 compared to adjusted EBITDA of $81.4 million or 48.3% of revenue in the same period of the prior year.
- Added 58 dispensaries in the fourth quarter including 49 acquired through Harvest and Purplemed, 9 opened in Florida, Pennsylvania, and West Virginia, and completed the relocation of two dispensaries in Florida.
- Rebranded and reopened fourteen legacy Harvest dispensaries in Florida during October as required following the Harvest acquisition.
- Released our inaugural ESG report, building upon the work done in our Sustainability Report in 2020.
*See “Non-GAAP Financial Measures” below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.
Recent Events
- Closed second tranche of private placement of 8% senior secured notes due October 2026 totaling $75 million.
- Opened 3 new dispensaries in Boca Ratonand Riverview, Florida and Philadelphia, Pennsylvania.
- Completed the rebranding to Trulieve of 22 affiliated and acquired retail locations in Maryland and Pennsylvania.
- Currently operate 162 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States.
- Acquired 64K square feet of operational indoor cultivation capacity in Arizona.
- Expanded or entered into new branded partnerships with Connected, El Blunto, Khalifa Kush, and Miami Mango.
- Announced a partnership with Survivor’s Ethan Zohn as a brand ambassador for Momenta branded products.
- Launched nationwide Supplier Diversity Initiative.
Management Commentary
“2021 was a phenomenal year for Trulieve, full of monumental achievements, punctuated by the completion of the Harvest acquisition,” said Kim Rivers, Trulieve CEO. “We delivered another record year while making substantive progress toward achieving our long-term goals.”
Rivers continued, “Our team built upon our established track record of success, further expanding our distribution network through our hub strategy while setting the stage for continued growth. In 2022 we expect to deliver improved performance as our efforts to optimize assets and teams across our platform provide meaningful contributions to our results.” Financial Guidance
Trulieve is introducing 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 our current forecasts, we expect to realize improved performance in the second half of 2022 relative to the first half of 2022.
Financial Highlights
| Results of Operations | For the Three Months Ended | For the Full Year Ended | ||||||||||
| (Figures in millions and % change based on these figures) | December 31, 2021 | December 31, 2020 | change | December 31, 2021 | December 31, 2020 | change | ||||||
| Revenue | $ | 305.3 | $ | 168.4 | 81% | $ | 938.4 | $ | 521.5 | 80% | ||
| Gross Profit | $ | 132.4 | $ | 119.9 | 10% | $ | 566.1 | $ | 386.4 | 47% | ||
| Gross Margin % | 43% | 71% | 60% | 74% | ||||||||
| Adjusted Gross Profit | $ | 180.6 | $ | 121.7 | 48% | $ | 621.4 | $ | 389.9 | 59% | ||
| Adjusted Gross Margin % | 59% | 72% | 66% | 75% | ||||||||
| Operating Expenses | $ | 150.6 | $ | 56.0 | 169% | $ | 369.2 | $ | 168.1 | 120% | ||
| Operating Expenses % | 49% | 33% | 39% | 32% | ||||||||
| Net Income (Loss) | $ | (71.5) | $ | 3.0 | — | $ | 18.0 | $ | 63.0 | -71% | ||
| Adjusted Net Income | $ | 1.8 | $ | 41.8 | -96% | $ | 123.4 | $ | 120.5 | 2% | ||
| Diluted Shares Outstanding | 145.1 | 119.4 | 146.8 | 118.3 | ||||||||
| EPS | $ | (0.49) | $ | 0.03 | — | $ | 0.12 | $ | 0.53 | -77% | ||
| Adjusted EPS | $ | 0.01 | $ | 0.35 | -97% | $ | 0.84 | $ | 1.02 | -18% | ||
| Adjusted EBITDA | $ | 100.9 | $ | 81.4 | 24% | $ | 384.6 | $ | 260.1 | 48% | ||
| Adjusted EBITDA Margin % | 33% | 48% | 41% | 50% |
Analyst Event 2022
Trulieve will host an analyst event in Tallahassee, Florida on Tuesday June 7, 2022. The event will include a guided facility tour and a public webcast presentation by management. In person attendance will be limited. Analysts interested in attending the event in person should contact investor relations for additional details. Conference Call
The Company will host a conference call and live audio webcast on March 30, 2022, at 8:30 A.M. Eastern time, to discuss its fourth quarter and full year 2021 financial results.
Interested parties can join the conference call by dialing in as directed below. Participants are asked to request the Trulieve Cannabis Corp. call. Please dial in 15 minutes prior to the call.
U.S. toll free: 1-844-824-3830
Canada toll free: 1-855-669-9657
International dial in: 1-412-542-4136
A live audio webcast of the conference call will be available at:
https://app.webinar.net/m21krRWnGKb
A powerpoint presentation is available at
https://investors.trulieve.com/events-presentations
An archived replay of the webcast will be available at:
https://investors.trulieve.com/events-presentations
The Company’s Form 10-K for the year ended December 31, 2021, is available on the SEC’s website or at https://investors.trulieve.com/financial-filings/annual-reports. The Company’s Management Discussion and Analysis for the period and the accompanying financial statements and notes are available under the Company’s profile on SEDAR and on its website at https://investors.trulieve.com/financial-information/quarterly-results. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
