Trulieve Cannabis Corp. · OTC:TCNNF
Trulieve Cannabis — Q3 2023 Earnings Presentation
19 slides from Trulieve Cannabis's earnings presentation, Nov 9, 2023
Slide 1: Third Quarter 2023 Investor Presentation
Third Quarter 2023 Investor Presentation / November 2023 CSE: TRUL OTCQX: TCNNF
Slide 2: Forward Looking Statements and Industry Data
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 within the meaning
Slide 3: Management's Use of Non-GAAP Financial Measures
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 management uses these non-GA
Slide 4: Agenda
Agenda • Third Quarter 2023 Financial and Operational Highlights • Retail Highlights • Recent Developments • Tax Position • 2023 Objectives • Financial Targets • Financial Highlights www.trulieve.com 4
Slide 5: Third Quarter 2023 Financial and Operational Highlights
Third Quarter 2023 Financial and Operational Highlights* • Revenue $275 million, with 96% revenue from retail sales • GAAP gross profit of $143 million and 52% gross margin, improved by 2% sequentially • SG&A expenses of $94 million, lowered by $2 million sequentially • Net loss of $25 million • Adj
Slide 6: Retail Highlights
Retail Highlights • Revenue $275 million • Retail revenue of $263 million o Customer retention 65% companywide o Customer retention 74% medical only • Sold over 11 million branded products • Maryland recreational sales launched July 1, 2023 o 235% increase in traffic o 175% increase in sales per sto
Slide 7: Recent Developments
Recent Developments • Announced full redemption of $130 million of senior secured notes due June 18, 2024 with redemption date of December 1, 2023 • Filed amended federal tax returns for 2019, 2020, and 2021 claiming a $143 million refund from taxes paid • On November 8, 2023, the Florida Supreme Co
Slide 8: Tax Position
Tax Position • In October, Trulieve filed amended federal tax returns for 2019, 2020, and 2021 claiming a $143 million refund from taxes paid • Trulieve intends to make tax payments as a customary U.S. taxpayer without tax liabilities associated with 280E of the tax code • Trulieve has already made
Slide 9: 2023 Objectives
2023 Objectives Cash Preservation • Successfully reduced operating expenses through business optimization initiatives • Balanced promotional activity and inventory reduction measures to preserve margin • Exited underperforming assets and markets Cash Generation • Streamlined operations to focus on c
Slide 10: Financials
Financials
Slide 11: Financial Targets
Financial Targets Financial Targets: • Anticipate fourth quarter revenue will be down low single digits compared to the third quarter o Contribution from Ohio VIE may be excluded o Q4 revenue influenced by promotional activity and consumer behavior • Operating cash flow in 2023 will exceed target of
Slide 12: Financial Highlights
Financial Highlights* INCOME STATEMENT HIGHLIGHTS (USD millions, except per share data) Q3:23 Q2:23 Q1:23 Q4:22 Q3:22 Q2:22 Q1:22 2022 Revenue 275.2 281.8 285.2 298.5 295.4 313.8 310.6 1218.2 Gross Profit 142.9 141.6 150.2 157.1 168.7 183.4 179.9 689.0 Gross Margin 51.9% 50.3% 52.6% 52.6% 57.1% 58.4
Slide 13: Financial Highlights: Share Count Estimate
Financial Highlights SHARE COUNT ESTIMATE (millions as of September 30, 2023 on as if converted basis) Subordinate Voting Shares 159.8 Multiple Voting Shares* 0.3 Total Shares Outstanding 186.0 *converted at 100 subordinate shares per 1 multiple voting share Employee Stock Options/RSUs 5.3 excludes
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, June 30, 2023 (Amounts expressed in millions of United States dollars) 2023 2022 2023 2022 Net Loss GAAP $ (25.4) $ (114.6) $ (403.8) $ (493.4) $
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, June 30, 2023 (Amounts expressed in millions of United States dollars) 2023 2022 2023 2022 Net Loss GAAP $ (25.4) $ (114.6) $ (403.8) $ (493.4) $
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the Three Months Ended For the Nine Months Ended September 30, September 30, September 30, September 30, June 30, 2023 (Amounts expressed in millions of United States dollars) 2023 2022 2023 2022 Cash Flow From Operating Activities $ 93.4 $ (21.6) $
Slide 17: Regional Hubs: Cultivation, Processing, Retail Capacity
Regional Hubs: Cultivation, Processing, Retail Capacity 190 Stores As of November 9, 2023 All stores owned, operated, or affiliated >4 M ft2 Cultivation & Processing As of September 30, 2023 NORTHEAST 35 stores >0.45M ft2 cultivation & processing CT PA OH WV MD CO AZ SOUTHEAST GA 134 stores SOUTHWES
Slide 18: House of Brands
House of Brands PREMIUM MID VALUE Trulieve Brands Partner Brands www.trulieve.com 18
Slide 19: Thank You
Thank You CSE: TRUL OTCQX: TCNNF @Trulieve/@Trulieve_IR ir@trulieve.com