Cannabis business players Trulieve out with earnings,Q4 Revenue Increases 36% Sequentially to $305 Million After Harvest Acquisition
Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S. operating in 11 states, with leading market positions in Arizona, Florida, and Pennsylvania. Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits.
On a reported basis, Trulieve Cannabis posted a loss of $71.5 million for the quarter ended Dec. 31, compared to a year-ago profit of $3 million.
The company took $73.3 million of non-recurring fair value of inventory step up, and acquisition charges primarily associated with the Harvest buy.
Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com.
Delivering an 81% sales increase for the fourth quarter. The company is looking for more than a billion dollars in sales this year, as it expands the number of dispensaries. Joining us now is Trulieve
CEO Kim Rivers reveals to the rally strategy and states it is driven on increasing fundamentals and staying true to their strategy announced in 2020, which is expansion through a regional hub strategy. They increased both via organic growth and via acquisition. They completed the largest acquisition in cannabis history in October. And so really proud of their team and our ability to execute on the fundamentals. Increasing both on the dispensary count and on our supply chain, up around 100%.
Positive in EBITDA, with net losses, Trulieve is working to improve those levers on growing the margins, with first quarter post of a net loss 100% attributable to the acquisition. If not for the acquisition, Trulieve would have had another strong quarter of net income. So look for us, again, as those one-time or nonrecurring charges flow through the financials, which should be cleaned up in Q1. Rightsizing as they absorb and digest of their very large transaction that was completed at the end of the third quarter.
If you adjust out for the acquisition, they end with about 59% adjusted gross margin. A 10% swing when we look at it on a quarter over quarter basis, again, with that big acquisition coming in. And so the acquisition diversified our platform into additional markets, some of which are not optimized from an efficiency perspective. Adding supply chain in those markets throughout the rest of the year. Trulieve expects those margins to increase throughout the year. Keep in mind cannabis still has-- is illegal federally. Their ability to have a safe distribution continuity across the US is nonexistent.