Trulieve Reports Record Q4 Revenue, Reaffirms 2020 Guidance Despite COVID-19 Pandemic

Top U.S. MSO Trulieve Posted 2019 Total Revenue of $252.8 Million, Up 145% Year-Over-Year

Despite the Coronavirus Crisis, Trulieve Reaffirmed its Financial Guidance for 2020

Trulieve (CSE: TRUL) (OTCQX: TCNNF) announced earnings today for the fourth quarter and full fiscal year 2019.

The leading U.S. multi-state operator (MSO) reported record Q4 revenue of $79.7 million, up 13% over the previous quarter. For the full-year 2019, Trulieve generated total revenue of $252.8 million, up 145.91% compared to the $102.8 million reported last year.

Trulieve posted Q4 adjusted EBITDA of $45 million, an increase of 21.95% compared to the $36.9 million recorded in Q3 2019. Adjusted EBITDA for the full-year 2019 came in at $132.5 million, up 158.79% from the $51.2 million posted in 2018. The company reported Q4 and FY 2019 net income of $45.5 million and $178 million, respectively.

“Our fourth-quarter results reflect our strong brand and customer loyalty, which were key factors in our success for the year. We continued to grow our footprint in Florida and made significant strides building out the infrastructure needed to maximize efficiencies and achieve economies of scale,” said Trulieve CEO Kim Rivers.

Trulieve recently announced it made multiple corporate changes in response to the COVID-19 pandemic. The company reported the rapid implementation of the following new guidelines:

Adding health and safety procedures for employees and facilities.
Increasing production rates to ensure adequate supply in stores.
Investments in vehicles in anticipation of increased delivery demand.

“Despite recent developments surrounding COVID-19 and the uncertainty in the global economy, we see strong medical cannabis demand in our target markets and expect to continue maintaining our over 50% market share in Florida. Our solid foundation and cash position enable us to monitor opportunities that meet our disciplined criteria, and we remain optimistic about expansion in 2020,” added Kim Rivers.

Read or Listen to the Full Trulieve Earnings Call Transcript Here

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2020 Earnings Guidance

Despite the current Coronavirus crisis sweeping North America, Trulieve reaffirmed its financial guidance for 2020. The company still expects to generate 2020 revenue of $380 million to $400 million and adjusted EBITDA of $140 million to $160 million.

Analyst Reacts to TRUL Earnings

Following Trulieve’s earnings this morning, Cantor Fitzgerald analyst Pablo Zuanic provided his clients with an update on the company.

While the company’s revenues were in line with the consensus analyst estimates, Trulieve’s sales failed to meet Zuanic’s expectation of $84.9 million for the fourth quarter. However, Trulieve’s Q4 adjusted EBITDA came in 40% above the consensus estimate.

In his Trulieve research update, the Cantor Fitzgerald analyst reiterated his ‘Overweight’ rating and maintained his price target of $32 per share. As of the closing price on April 8, 2020, TRUL stock has an implied upside of +134.6%.

“Trulieve reaffirmed its guidance during a time when other companies have been withdrawing their projections. We continue to think the valuation is attractive,” stated Pablo Zuanic.

TRUL Stock Price Action & Chart

Shares of Trulieve’s CSE listed TRUL stock closed trading today at $13.64, down 1.52% on the day. The company’s U.S. OTC Markets listed stock closed today’s trading session down 1.23% at $9.73 per share.

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