Trulieve Reports 14th Consecutive Quarter Of Profitability, Q2 2021 Revenue Up 78% YoY, Poised To Enter Georgia's Medical Cannabis Market

Trulieve Cannabis Corp. TRUL TCNNF announced its financial results Thursday for the second quarter ended June 30, 2021, revealing a roughly $21 million sequential improvement in revenue, reaching $215.1 million. Shares traded 2.82% lower at $32 per share in Wednesday's after-hours session.

The Tallahassee, Florida-based company said it has achieved its 14th consecutive quarter of profitability with over 500,000 customers served over the period, amid negotiations to merge with Harvest Health and Recreation Inc HRVSF.

Harvest shareholders approved the transaction at their special shareholder meeting held on Wednesday, August 11.

Q2 2021 Financial Highlights

• Revenue increased by 78% year-over-year.
• Net income totaled $40.9 million, up 36% sequentially and 116% year-over-year.
• Adjusted EBITDA came in positive at $94.9 million, a sequential and year-over-year improvement of 4% and 55%, respectively.
• Gross profit amounted to $144.5 million and gross margin was 67%, compared to gross profit of $90.5 million and gross margin of 75% in the corresponding quarter of 2020.
• Operating expenses totaled $61.5 million versus $57.3 million in the previous quarter and $34.9 million in the prior-year period.

"Our performance in the second quarter was strong across all financial and operating metrics," Kim Rivers, Trulieve's CEO commented on the financial results. "We have become operational in Massachusetts and West Virginia and recently won an application for one of two class 1 production licenses in Georgia."

Recent Moves

The company received a notice of intent to award a Class 1 production license in Georgia, as it prepares to enter its seventh state and further solidify its southeast hub.

In addition, it finalized the acquisition of Keystone Shops in Philadelphia, entering the Greater Philadelphia area and bringing the number of stores in Pennsylvania to six.

In June, the company opened a store in Winter Park, Florida, reaching 91 stores nationwide and 85 in the Sunshine State shortly after launching dispensaries in Tampa and Tavernier.

Trulieve also began operations in West Virginia as the first medical cannabis company to begin cultivating in the state. Currently, it operates 96 stores nationwide with a new store opening in Worcester, Massachusetts on Saturday, August 14.

Photo: Courtesy of Esteban Lopez on Unsplash