Trulieve Cannabis Trades Down After Q3 Print

Shares of Trulieve Cannabis Corp TCNNF were down Monday after the Florida company reported third-quarter results. 

The company, which started trading on the Canadian Securities Exchange and U.S. OTC market in September, saw higher revenue and EBITDA during the quarter.

What Happened

Trulieve's Q3 revenue of $28.3 million is higher by almost 43 percent on the year compared to the $19.8 million posted for the same period of 2017.

The company's net income under IFRS surged from $7.9 million in Q2 to $17.5 million. Trulieve's earnings before interest, taxes, depreciation, and amortization increased from $800,000 a year earlier and $11.7 million in Q2 to $12.6 million.

At the same time, the company's gross margin declined by 4.9 percentage points to 70.5 percent quarter-over-quarter, but increased from 43.9 percent a year earlier. 

Why It's Important

Trulieve is one of the largest cannabis companies in Florida and is the first fully licensed medical marijuana producer and retailer that cultivates cannabis, processes and distributes it through its own branded chain of dispensaries and home deliveries in the state. The company operates 21 dispensaries.

What's Next

Trulieve recently announced plans to expand its operations outside of Florida and into other states. The company has acquired Life Essence and Leef Industries, giving it exposure to the Massachusetts and California markets.

"We believe we are well-positioned in continuing to be the dominant leader in the Florida market while firmly establishing our footprint in the Massachusetts and California markets moving forward," CEO Kim Rivers said in a statement.

Trulieve's OTC-traded shares were down 9.92 percent at $11.17 at the time of publication Monday. 

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