Trulieve Reports Q1 Revenues of $96.1 Million, Net Income of $14.0 Million
Trulieve Cannabis (CSE: TRUL) reported its first quarter 2020 financial results this morning, posting revenues of $96.1 million for the period ended March 31, 2020, while posting a net income of $14.0 million.
Revenues were a significant quarter over quarter improvement from the firms fourth quarter, rising 21% while gross margins were up 30%. Trulieve reported a gross margin of $67.1 million before fair value adjustments for the quarter. However, operating expenses grew by 21%, showing that they are relatively consistent when compared to that of revenues, with expenses coming in at $28.3 million, as compared to $23.4 million in the prior quarter.
Total expenses came in at $31.5 million, with the company pulling out depreciation and amortization from operating expenses. Sales and marketing was the largest expense at $22.0 million, followed by general and administrative at $6.3 million. After interest expenses of $6.9 million and other income of $4.9 million, the company reported a net income of $14.0 million after taxes.
Looking at the balance sheet, the firm saw an improvement in its cash position, reporting $100.8 million in the bank as compared to $91.8 million in the prior quarter. Inventories grew to $227.9 million from $204.45 million, while biological assets fell from $66.7 million to $41.3 million. Trulieve’s total current assets climbed to $384.5 million from $369.9 million over the three month period.
On the current liabilities side, the largest quarter over quarter increase was that of income tax payable, which grew from $12.2 million to $30.7 million. Accounts payable climbed to $25.9 million from $24.3 million. Total current liabilities overall grew from $56.7 million to $73.6 million.
Trulieve Cannabis last traded at $18.55 on the CSE.
Information for this briefing was found via Sedar, Canaccord Genuity 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.
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.
