On August 6, 2024, Trulieve Cannabis Corp (TCNNF, Financial) released its 8-K filing for the second quarter of 2024. Trulieve Cannabis Corp is a vertically integrated seed to sale and fully licensed medical marijuana company, primarily engaged in the cultivation, possession, use, sale, and distribution of medical cannabis.
Performance Overview
Trulieve Cannabis Corp (TCNNF, Financial) reported a revenue of $303 million for Q2 2024, surpassing the analyst estimate of $293.63 million. This represents a 2% sequential increase and an 8% year-over-year growth. The company achieved a gross margin of 60%, with a GAAP gross profit of $182 million.
The net loss for the quarter was $12 million, a significant improvement of 48% sequentially. Adjusted net income stood at $0.2 million, excluding non-recurring charges, asset impairments, disposals, and discontinued operations. The company also reported an EBITDA of $88 million, or 29% of revenue, and an adjusted EBITDA of $107 million, or 35% of revenue, marking a 36% year-over-year increase.
Key Financial Achievements
Trulieve's financial achievements are noteworthy, especially in the competitive landscape of the cannabis industry. The company generated $71 million in cash flow from operations and $45 million in free cash flow. Cash at the quarter's end was $356 million, inclusive of an additional $2.0 million in tax refunds received during the second quarter.
Significant milestones include the opening of the 200th retail location and the 8-year anniversary of the first sale. The company also launched adult-use sales in Ohio at three locations and opened six new retail locations across Florida and Pennsylvania.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenue | $303 million | $282 million | 8% |
| Gross Profit | $182 million | $142 million | 28% |
| Net Loss | $(12) million | $(404) million | 97% |
| Adjusted EBITDA | $107 million | $79 million | 36% |
Balance Sheet and Cash Flow
As of June 30, 2024, Trulieve's total assets stood at $2.86 billion, up from $2.73 billion at the end of 2023. The company's current assets were $631.1 million, with cash and cash equivalents accounting for $355.2 million. Total liabilities were $1.49 billion, compared to $1.32 billion at the end of 2023.
Trulieve's cash flow from operating activities was $71.3 million for the quarter, a significant turnaround from a negative $23.5 million in the same period last year. The company used $33.0 million in investing activities and $1.5 million in financing activities.
Management Commentary
"Today marks another milestone, as Trulieve completed our first recreational sale in the state of Ohio with the successful conversion of our three locations to adult use. Second quarter results demonstrated strength in our core business with our third consecutive quarter of revenue growth and margin expansion," said Kim Rivers, Trulieve CEO. "All of the effort and investment over the past two years to set a solid foundation for long term success is paying dividends. Given our financial performance and significant scale in key markets, Trulieve is best positioned for the coming wave of growth catalysts."
Analysis
Trulieve Cannabis Corp (TCNNF, Financial) has shown resilience and growth in a challenging market. The company's ability to exceed revenue estimates and improve its net loss position highlights its operational efficiency and strategic market positioning. The strong cash flow and significant cash reserves provide a solid foundation for future growth and expansion.
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Explore the complete 8-K earnings release (here) from Trulieve Cannabis Corp for further details.
