Trulieve Reports Record $938.4M In 2021 Revenue, Ends Q4 With U.S. Retail Network Of 162 Dispensaries

Cannabis company Trulieve Cannabis Corp. TRUL TCNNF announced its results for the quarter and full year ended December 31, 2021.

Q4 2021 Financial & 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.

2021 Full Year Financial & 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.
• Net income of $18 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.

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 Raton and 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.

Kim Rivers, Trulieve’s CEO said that 2021 was “a phenomenal year” for the company.

"We delivered another record year while making substantive progress toward achieving our long-term goals," she said. “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."    

Photo: Courtesy of Giorgio Trovato on Unsplash