Trulieve Cannabis (CSE: TRUL) reported its fourth quarter and full fiscal year 2019 financial results this morning, posting revenues of US$79.7 million for the quarter, an increase of 13% on a quarter over quarter basis, while posting a net income of $45.5 million.
Notably, the company changed certin terminology on its income statement from “cost of goods sold” to “production expenses and cost of goods from third party suppliers,” which for the fourth quarter came to $28.1 million, resulting in what would typically be referred to as a gross margin of $51.5 million. Total revenues for the year came in at $252.8 million, on a gross margin of $163.0 million.
With respect to expenses, the company seems to operate at a much more respectable level than most of its competitors, recognizing administrative expenses of $14.0 million for the full fiscal year. Sales and marketing was significantly higher at $53.9 million, while depreciation and amortization came in at $8.3 million. Total expenses for the year came in at $76.4 million, resulting in a net income of $178.0 million for the year once fair value adjustments are taken into consideration.
In terms of the balance sheet, most of the firms current assets are made up of inventories, which currently sits at $204.4 million, compared to cash of $91.8 million. Comparatively, last quarter those figure were $144.3 million and $31.0 million respectively. Biological assets was relatively unchanged comparatively, growing to $66.7 million from $62.4 million in the third quarter. Total current assets amounted to $369.9 million.
Total current liabilities also grew during the quarter, albeit at a much slower pace. Accounts payable grew to $24.3 million, while income tax payable grew to $12.2 million. Previously, those figures were reported as $16.9 million and $8.4 million in the third quarter respectively. The largest decrease in terms of payables was current portions of related party notes payable, which shrunk from $13.2 million to $0.9 million, due to the extension of an unsecured promissory note. Total current liabilities currently sits at $56.7 million, versus $49.0 million in the third quarter. This leaves Trulieve with a working capital of approximately $313.1 million.
Other notable items included in today’s release, include the announcement that the company understated the value of compensation warrants issued in 2018 by approximately $15.0 million, as well as a note that Kim Rivers husband, J.T. Burnette, whom is a minority shareholder, was the supplier for over $46.3 million in property plant and equipment purchases. Those purchase are said to have been reviewed by independent members of the company’s board of directors.
Trulieve Cannabis last traded at $13.85 on the CSE.
Information for this briefing was found via Sedar and Trulieve Inc. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.