Trulieve Cannabis Corp. · OTC:TCNNF
Trulieve Cannabis — FY2023 Earnings Presentation
21 slides from Trulieve Cannabis's earnings presentation, Feb 29, 2024
Slide 1: Fourth Quarter and Full Year 2023 Investor Presentation
Fourth Quarter and Full Year 2023 Investor Presentation February 2024 CSE: TRUL OTCQX: TCNNF
Slide 2: Forward Looking Statements and Industry Data
www.trulieve.com 2 Forward Looking Statements and Industry Data Unless the context otherwise requires, the terms “Trulieve,” “we,” “us” and “our” in this presentation refer to Trulieve Cannabis Corp. and its subsidiaries. Certain statements in this presentation constitute forward-looking statements
Slide 3: Management's Use of Non-GAAP Financial Measures
www.trulieve.com 3 Management’s Use of Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted net income, adjusted earnings per share, adjusted EBITDA, and free cash flow. Our managemen
Slide 4: Agenda
www.trulieve.com 4 Agenda • Full Year and Fourth Quarter 2023 Financial Highlights • Full Year and Fourth Quarter 2023 Operational Highlights • Retail Highlights • Recent Developments • Tax Position • 2024 Objectives • Financial Targets • Financial Highlights
Slide 5: Full Year 2023 Financial Highlights
www.trulieve.com 5 Full Year 2023 Financial Highlights* • Revenue $1.13 billion, with 96% revenue from retail sales • GAAP gross profit of $589 million and 52% gross margin • SG&A expenses of $386 million, a decrease of $61 million in 2023 • Net loss of $527 million • Adjusted net loss of $70 millio
Slide 6: Fourth Quarter 2023 Financial Highlights
www.trulieve.com 6 Fourth Quarter 2023 Financial Highlights* • Revenue $287 million, up 4% sequentially with 95% revenue from retail sales • GAAP gross profit of $154 million and 54% gross margin, improved by 2% sequentially • SG&A expenses of $96 million or 34% of revenue • Net loss of $33 million
Slide 7: Full Year and Fourth Quarter 2023 Operational Highlights
www.trulieve.com 7 Full Year and Fourth Quarter 2023 Operational Highlights • Launched adult-use sales in Connecticut and Maryland and opened new markets with medical dispensaries in Georgia and Ohio • Exited California retail assets and operations in Massachusetts as part of cash preservation and g
Slide 8: Retail Highlights
www.trulieve.com 8 Retail Highlights • 2023 Retail revenue $1.1 billion • Sold 45 million branded products in 2023 • Fourth quarter retail revenue increased 4% sequentially to $274 million • Customer retention 66% companywide • Customer retention 74% medical only • December traffic exceeded third qu
Slide 9: Recent Developments
www.trulieve.com 9 Recent Developments • Smart and Safe Florida campaign for adult use presented oral arguments to the Florida Supreme Court in November; the deadline for a ruling is April 1, 2024 • Added two executives to the leadership team in January, Wes Getman, Chief Financial Officer, and Mari
Slide 10: Tax Position
www.trulieve.com 10 Tax Position • In Q4, Trulieve filed amended federal tax returns for 2019, 2020, and 2021 claiming $143 million of refunds and corresponding amended state returns claiming $31 million of refunds • Amended returns were supported by legal interpretations that challenge the tax liab
Slide 11: Tax Position
www.trulieve.com 11 Tax Position • Uncertain Tax Position • $180 million at December 31, 2023 • $28 million unrelated to the challenge of the applicability of 280E to Trulieve • $152 million related to the challenge of the applicability of 280E to Trulieve • $62 million cash refunds received in Q4:2
Slide 12: 2024 Objectives
www.trulieve.com 12 2024 Objectives Deliver Exceptional Customer Experiences and Build Brand Loyalty • Provide superb service, expedient transactions, and frictionless returns • Innovate across product and consumer categories Expand Distribution of Branded Products Through Branded Retail Locations •
Slide 13: Financials
Financials
Slide 14: Financial Targets
www.trulieve.com 14 Financial Targets Financial Targets: • Anticipate first quarter revenue will be similar to the fourth quarter • 2024 cash flow from operations of at least $225 million, inclusive of $50 million in cash tax refunds received in Q1:2024 • 2024 capital expenditures expected to be app
Slide 15: Financial Highlights
www.trulieve.com 15 Financial Highlights* *Adjusted net income, adjusted EPS, adjusted EBITDA and adjusted EBITDA Margin are Non-GAAP financial measures. See slides 17-19 for reconciliation to GAAP for all Non-GAAP financial measures. **Includes discontinued operations. INCOME STATEMENT HIGHLIGHTS (
Slide 16: Financial Highlights: Share Count Estimate
www.trulieve.com 16 Financial Highlights SHARE COUNT ESTIMATE Subordinate Voting Shares 160.0 Multiple Voting Shares* 0.3 Total Shares Outstanding 186.2 Employee Stock Options/RSUs 6.2 Pro Forma Estimated Shares 192.4 (millions as of December 31, 2023 on as if converted basis) *converted at 100 subo
Slide 17: Reconciliation of Non-GAAP Financial Measures
www.trulieve.com 17 Reconciliation of Non-GAAP Financial Measures (1) Interest income for the three months ended December 31, 2022 and September 30, 2023 and the year ended December 31, 2022, of $(0.5) million, $(1.9) million, and $(1.6) million, respectively, was reclassified from other (income) ex
Slide 18: Reconciliation of Non-GAAP Financial Measures
www.trulieve.com 18 Reconciliation of Non-GAAP Financial Measures Net Loss GAAP $ (33.4) $ (77.0) $ (25.4) $ (526.8) $ (246.1) Add (Deduct) Impact of: Impairment of Goodwill $ — $ — $ — $ 307.6 $ — Fair Value of Derivative Liabilities - Warrants $ — $ (0.0) $ — $ (0.3) $ (2.6) Inventory Step Up Fair
Slide 19: Reconciliation of Non-GAAP Financial Measures
www.trulieve.com 19 Reconciliation of Non-GAAP Financial Measures Cash Flow from Operating Activities $ 131.5 $ 55.0 $ 93.4 $ 201.8 $ 23.1 Payments for Property and Equipment $ (9.4) $ (34.3) $ (6.3) $ (40.4) $ (164.7) Free Cash Flow $ 122.1 $ 20.7 $ 87.2 $ 161.5 $ (141.7) For the Full Year EndedFor
Slide 20: House of Brands
www.trulieve.com 20 House of Brands Trulieve Brands VA LU E M ID P RE M IU M Partner Brands
Slide 21: Thank You
THANK YOU CSE: TRUL OTCQX: TCNNF @Trulieve/@Trulieve_IR ir@trulieve.com