Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) reported mixed financial results for the third quarter ending Sept. 30, as robust revenue growth was offset by a net loss.
The company, based in Tallahassee, Florida, posted a revenue of $275 million for the quarter. The figure represents a continued reliance on retail sales, which accounted for 96% of the total revenue. It also beat analysts’ average expectations by $5.5 million.
Despite a solid top-line performance, Trulieve faced a net loss of $25 million. When adjusted for one-time items, the loss narrowed to $15 million. The adjustments reflect the company’s efforts to discount non-recurring expenses to give a clearer view of ongoing operations.
Trulieve also reported an EBITDA of $74 million, a measure of profitability that amounted to 27% of their revenue. Adjusted EBITDA was slightly higher at $78 million, but still down 22% over the year.
In September, the company strategically repurchased $57 million of its own debt for $47.6 million, a move that capitalized on a 16.5% discount and reflected management’s confidence in the company’s financial position.
The company ended the quarter with a strong cash position of approximately $200 million, generating $93 million in operational cash flow and $87 million in free cash flow. The company anticipates 2023 cash flow from operations “of at least $100 million and free cash flow generation of at least $70 million.”
A significant development in Trulieve’s operations was the 235% increase in customer traffic at its Maryland dispensaries, following the launch of adult-use cannabis sales.
Trulieve has also expanded its physical presence, opening five new dispensaries across multiple states and relocating another within Florida. The expansion brings the company’s retail operations to 190 dispensaries nationwide and increases its cultivation and processing capacity to over 4 million square feet.
The company highlighted other recent strategic moves, including the announced redemption of $130 million in senior secured notes and the filing of amended federal tax returns seeking a $143 million refund for taxes paid in prior years.
The Florida Supreme Court is also currently reviewing a ballot initiative, which is primarily propped by Trulieve, that could legalize adult cannabis use in the state, a decision that is expected by April 2024 and could significantly impact the company’s operations.
“This year our team has done a phenomenal job executing on our plan to generate cash while making investments to support future growth,” CEO Kim Rivers said in a statement.
“As demonstrated this quarter, Trulieve remains aligned with our shareholders, and is committed to strengthening our balance sheet with non-dilutive measures. With significant scale and service, strong cash generation, and a clearly defined strategy, Trulieve is best positioned for the coming wave of meaningful growth catalysts.”
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