Trulieve Records $120.8 Million In Revenue In Q2, Net Income of $6.6 Million, Raises Guidance

Trulieve Cannabis Corp (CSE: TRUL) reported its second quarter 2020 earnings this morning, reporting record revenue of US$120.8 million for the period ended June 30, 2020, along with a net income of $6.6 million. More significantly, the company achieved free cash flow of $39.6 million, while upping its guidance for the remainder of the fiscal year.

With revenues at $120.8 million, the company reported costs of goods sold amounting to $29.7 million, resulting in a gross profit of $91.1 million. Following adjustments for biological assets, that figure fell to $74.3 million.

Expenses during the quarter amounted to $36.8 million, which largely consisted of sales and marketing at $25.1 million, followed by general and administrative expenses at $7.9 million. Other expenses totaled out at $11.8 million, which along with a $19.2 million provision for income taxes resulted in the company posting a net income of $6.6 million for the quarter.

Looking to the balance sheet, cash and cash equivalents grew from $100.8 million to $150.3 million, while inventories fell to $219.0 million from $227.9 million. Biological assets also fell, from $41.3 million to $33.3 million. Total current assets grew during the course of the quarter from $384.5 million to $413.7 million.

The liabilities side of things grew significantly over the quarter as well however. While accounts payable decreased to $21.6 million from $25.9 million, income tax payable ballooned from $30.7 million to $55.1 million, and deferred revenue climbed to $3.8 million from $2.9 million. Total current liabilities overall grew to $100.1 million from $73.6 million. The result, is that working capital was essentially flat, growing to $313.7 million over the quarter, from $310.9 million in the previous quarter.

Guidance meanwhile was revised for the second half of the year by the company. While previous revenue guidance was placed at $380 to 400 million for the year, that figure has now increased substantially to $465 to $485 million for the remainder of the year, demonstrating the strength the company has seen within the Florida the market.

The company also alluded to expansion, with CEO Kim Rivers stating, “Looking ahead, we are excited about the second half of the year and will continue focusing on execution and expansion. We anticipate exceeding our goal of 68 stores and will continue our strong growth in Florida. Massachusetts is getting closer to completion and we are excited to enter that market in 2021. And, we believe the M&A pipeline and application processes underway will present new opportunities for expansion.

Trulieve Cannabis Corp last traded at $27.25 on the CSE.

Information for this briefing was found via Sedar and Trulieve Cannabis Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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