Trulieve Cannabis Corp. · OTC:TCNNF
Trulieve Cannabis — Q4 2023 Earnings Presentation
21 slides from Trulieve Cannabis's earnings presentation, Feb 29, 2024
Slide 1: Fourth Quarter and Full Year 2023 Investor Presentation
CSE: TRUL OTCQX: TCNNF Fourth Quarter and Full Year 2023 Investor Presentation February 2024
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 • 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 www.trulieve.com 4
Slide 5: Full Year 2023 Financial Highlights
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 million excludes non-recu
Slide 6: Fourth Quarter 2023 Financial Highlights
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 • Adjusted net loss
Slide 7: Full Year and Fourth Quarter 2023 Operational Highlights
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 generation plan to b
Slide 8: Retail Highlights
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 quarter average by 10
Slide 9: Recent Developments
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 Marie Zhang, Chief Oper
Slide 10: Tax Position
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 liability under Section
Slide 11: Tax Position
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 Q4:2023 • $49 million ne
Slide 12: 2024 Objectives
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 • Invest in cornersto
Slide 13: Financials
Financials
Slide 14: Financial Targets
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 approximately $70 milli
Slide 15: Financial Highlights
Financial Highlights* INCOME STATEMENT HIGHLIGHTS (USD millions, except per share data) Q4:23 Q3:23 Q2:23 Q1:23 Q4:22 Q3:22 Q2:22 Q1:22 2023 2022 Revenue 287.0 275.2 281.8 285.2 298.5 295.4 313.8 310.6 1,129.2 1,218.2 Gross Profit 153.9 142.9 141.6 150.2 157.1 168.7 183.4 179.9 588.6 689.1 Gross Mar
Slide 16: Financial Highlights: Share Count Estimate
Financial Highlights SHARE COUNT ESTIMATE (millions as of December 31, 2023 on as if converted basis) Subordinate Voting Shares 160.0 Multiple Voting Shares* 0.3 Total Shares Outstanding 186.2 *converted a t 100 s ubordi na te s ha res per 1 mul ti pl e voti ng s ha re Employee Stock Options/RSUs 6.
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the Three Months Ended For the Full Year Ended (Amounts expressed in millions of United States December 31, December 31, September 30, December 31, December 31, dollars; unaudited) 2023 2022 2023 2023 2022 Net Loss GAAP $ (33.4) $ (77.0) $ (25.4) $ (
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the Three Months Ended For the Full Year Ended (Amounts expressed in millions of United States December 31, December 31, September 30, December 31, December 31, dollars; unaudited) 2023 2022 2023 2023 2022 Net Loss GAAP $ (33.4) $ (77.0) $ (25.4) $ (
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the Three Months Ended For the Full Year Ended (Amounts expressed in millions of United States December 31, December 31, September 30, December 31, December 31, dollars; unaudited) 2023 2022 2023 2023 2022 Cash Flow from Operating Activities $ 131.5
Slide 20: House of Brands
House of Brands PREMIUM MID VALUE Trulieve Brands Partner Brands www.trulieve.com 20
Slide 21: Thank You
THANK YOU CSE: TRUL OTCQX: TCNNF @Trulieve/@Trulieve_IR ir@trulieve.com