Trulieve Cannabis Reports Strong Q3 2020 Numbers As Growth Remains Steady

Before the bell, Trulieve Cannabis Corp (CNSX:TRUL) (OTCMKTS:TCNNF) announced fiscal third quarter 2020 financial results, for the period ending September 30. Trulieve becomes the second of the “Big 5” multi-state operators (MSOs) to report, following excellent results by Green Thumb Industries last week and pre-announced top line results by TerrAscend Corp. on November 2. TDR provides a breakdown of the numbers.

For the quarter, Trulieve produced top line results that exceeded average and high-end street expectations. The company reported revenue of $136.3 million—rising 13% sequentially on a quarterly basis. This beat the highest 11-analyst estimate of 135.1 million (see chart below). Cash was also flowing at record amounts, with Adjusted EBITDA ringing-in at $67.5 million—rising 38.60% sequentially quarter-over-quarter (from $48.7 million in Q2 2020).

Revenue EstimateCurrent Quarter (Sep 2020)Next Quarter (Dec 2020)Current Year (2020)Next Year (2020)
No. of Analyst11101111
Avg. Estimate131.89M145.37M492.78M709.67M
Low Estimate127.65M140.7M478.8M599.35M
High Estimate135.1M152.34M504.07M894.05M
Year Ago Sales70.73M79.69M252.82M492.78M

On a converted Generally Accepted Accounting Principles (GAAP) basis, Trulieve attained positive net income of $17.4 million, or $0.15 per diluted share, and adjusted EBITDA of $65.8 million.

Facilitating growth this quarter appears to be a combination of rising dispensary count (+8 locations) and steady-hand growth. As we can see from a snapshot of recent quarterly dispensed cannabis metrics in Florida, growth is in a steady climb upwards.

Snapshot of Cannabis Dispensed in Florida, End of Calendar Quarter

Trulieve CannabisDispensing LocationsMedical Marijuana (mgs THC)Low-THC Cannabis (mgs CBD)MJ In Smokable Form (oz)
Sep 27 – Oct 3, 20193737,318,166680,4755,695.71
Dec 27/19 – Jan 3/204227,998,999404,8437,200.58
Mar 27 – Apr 2, 20204545,464,2871,262,07018,277.95
June 26 – July 1, 20205157,092,2711,463,19315,713.50
Sep 25 – Oct 1, 20206079,914,4111,326,97722,375.56
Numbers courtesy of The Florida Department of Health
Office of Medical Marijuana Use (OMMU)

While some variability in the week-to-week results are present due to supply availability and seasonality, dispensed cannabis products keeps rising across all product categories. The biggest growth vertical appears to be dispensed marijuana in smokable form (oz), which surged to record highs in the July 2-9 reporting period and continues to break new records in Q4 2020—registering three highwater marks so far.

Although growth wasn’t as explosive as the numbers Green Thumb Industries presented last week, it’s important to note that Florida never shut down medical cannabis pathways due to COVID-19. According to Florida statute, state cannabis dispensaries are considered an essential service and are to be treated like retail pharmacies. In other words: they remained open for business.

We await for the conference call for additional sales and operational details to fill in the gaps. But from TDR’s perspective, it was yet another fine quarter for the most consistent and profitable MSO in the sector.


Update: Trulieve receives multiple upgrades and a CNBC appearance.

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