Trulieve Cannabis Corp. · OTC:TCNNF
Trulieve Cannabis — FY2022 Earnings Presentation
20 slides from Trulieve Cannabis's earnings presentation, Mar 8, 2023
Slide 1: Fourth Quarter and Full Year 2022 Investor Presentation
Fourth Quarter and Full Year 2022 Investor Presentation / March 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 gross profit, adjusted net income, adjusted earnings per share, and adjusted EBITDA. Our management uses these
Slide 4: Agenda
Agenda • Full Year and Fourth Quarter 2022 Financial Highlights • Full Year and Fourth Quarter 2022 Operational Highlights • Retail Highlights • Recent Developments • 2023 Objectives • Financial Targets • Financial Highlights www.trulieve.com 4
Slide 5: Full Year 2022 Financial Highlights
Full Year 2022 Financial Highlights* • Revenue increased 32% year-over-year to $1.24 billion • GAAP gross profit of $682 million and gross margin of 55% in 2022 • Adjusted gross profit of $703 million and adjusted gross margin of 57% in 2022 • Net loss of $246 million • Adjusted net loss of $30 mill
Slide 6: Fourth Quarter 2022 Financial Highlights
Fourth Quarter 2022 Financial Highlights* • Revenue increased slightly sequentially with 2% increase in retail revenue • GAAP gross profit of $150 million and 50% gross margin • Adjusted gross profit of $162 million and 54% adjusted gross margin • Net loss of $77 million • Adjusted net loss of $35 m
Slide 7: Full Year and Fourth Quarter 2022 Operational Highlights
Full Year and Fourth Quarter 2022 Operational Highlights • Substantially completed integration of Harvest acquisition • Launched optimization efforts to streamline operations and reposition assets to generate and preserve cash • Discontinued wholesale operations in Nevada • Exited select California
Slide 8: Retail Highlights
Retail Highlights • Retail revenue $1.16 billion in 2022 • Customer visits 2.5x per month • Average basket $86 • Average basket $99 medical only • Retail revenue increased 2% sequentially to $289 million, 96% of revenue in q4:22 • Traffic increased 5% • Basket decreased 3% • Customer retention 66% c
Slide 9: Recent Developments
Recent Developments • Opened three dispensaries in Palatka and Winter Haven, Florida and Beckley, West Virginia • Launched adult-use sales in Bristol, Connecticut • First U.S. cannabis company to launch advertising campaigns on Twitter • Launched proprietary brands Roll One and Modern Flower in West
Slide 10: 2023 Objectives
2023 Objectives Cash Generation and Preservation Plans: • Shuttering of margin and cash dilutive assets • Adjust production mix and capacity utilization • Optimize assortment to match customer preferences • Pullback of legacy FL production sites – banked capacity • Reduce inventory throughout 2023 •
Slide 11: Financials
Financials
Slide 12: Financial Targets
Financial Targets Financial Targets: • Anticipate first quarter revenue will be down slightly sequentially • Target operating cash flow of $100 million in 2023, inclusive of five tax payments • Capital expenditures expected to be at least 50% lower in 2023 • Expect positive free cash flow in 2023 •
Slide 13: Financial Highlights: Income Statement
Financial Highlights* INCOME STATEMENT HIGHLIGHTS (USD millions) Q4:22 Q3:22 Q2:22 Q1:22 Q4:21 2022 2021 Revenue 302.2 300.8 319.1 317.7 304.9 1239.8 938.0 Gross Profit 149.7 168.0 183.8 180.5 134.1 682.0 567.8 Gross Margin 49.5% 55.9% 57.6% 56.8% 44.0% 55.0% 60.5% Adjusted Gross Profit 162.1 171.9
Slide 14: Financial Highlights: Balance Sheet and Share Count
Financial Highlights BALANCE SHEET HIGHLIGHTS (USD millions) Q4:22 Q3:22 Q2:22 Q1:22 Q4:21 Cash 219 114 181 267 234 Debt 648 553 552 553 479 SHARE COUNT ESTIMATE (millions as of December 31, 2022 on as if converted basis) Subordinate Voting Shares 159.8 Multiple Voting Shares* 0.3 Total Shares Outst
Slide 15: 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, 2022 December 31, 2021 dollars) 2022 2021 2022 Net Income (Loss) GAAP $ (77.0) $ (71.5) $ (114.6) $ (2
Slide 16: 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, 2022 December 31, 2021 dollars) 2022 2021 2022 Gross Profit GAAP $ 149.7 $ 134.1 $ 168.0 $ 682.0 $ 567
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, dollars) 2022 2021 2022 December 31, 2022 December 31, 2021 Net Income (Loss) GAAP $ (77.0) $ (71.5) $ (114.6) $ (2
Slide 18: Regional Hubs: Cultivation, Processing, Retail Capacity
Regional Hubs: Cultivation, Processing, Retail Capacity 184 Stores As of March 8, 2023 All stores owned, operated, or affiliated Operational >4 M ft2 Cultivation & Processing Arizona As of December 31, 2022 NORTHEAST 36 stores California >0.5M ft2 Colorado MA cultivation & Connecticut processing CT
Slide 19: House of Brands
House of Brands Trulieve Brands Partner Brands PREMIUM MID VALUE www.trulieve.com 19
Slide 20: Thank You
Thank You CSE: TRUL OTCQX: TCNNF @Trulieve/@Trulieve_IR ir@trulieve.com