Trulieve Cannabis Corp (CSE: TRUL) announced its third quarter financial results after the bell today, reporting revenues of US$70.7 million for the period ended September 30, 2019. Revenues were up 22% on a quarter over quarter basis from $57.9 million.
Gross margin for the quarter came in at $44.0 million before biological adjustments, up 17% on a sequential basis, which translates to a 62% gross margin for the period. Total expenses came in at $20.6 million, with sales and marketing accounting for the largest portion at $14.7 million. General and administrative expenses totaled $3.2 million during the quarter.
Thanks in part to a $89.0 million bump from biological adjustments, Trulieve managed to post a net income of $60.2 million for the three month period ended September 30. However, even without this adjustment the firm would have posted a positive net income quarter, which is rare within the cannabis space.
In terms of cash flow, the quarter saw negative cash flow from its operating expenditures of $3.3 million. Capital expenditures also contributed to a negative cash flow quarter, with $18.4 million spent during the quarter cumulative on investing activities. Total cash decreased during the quarter, from $54.0 million to $31.0 million.
Trulieve’s inventories climbed significantly during the quarter, growing from $85.2 million to $144.3 million, while biological assets climbed from $49.4 million to $62.4 million. Total current assets grew during the quarter from $192.4 million to $242.3 million. Meanwhile, current liabilities decreased from $63.2 million to $49.0 million. Total working capital during the quarter grew to $193.2 million.
Trulieve reaffirmed its prior outlook for 2019, guiding towards $220 million to $240 million in revenues for 2019, and between $380 million and $400 million for 2020. Adjusted EBITDA for the current fiscal year is expected to be between $95 to $105 million.
Trulieve has revenued $173.1 million for the nine month period ending September 30, 2019.
Trulieve closed today’s session at $14.95 on the CSE.
Information for this briefing was found via Sedar and Trulieve. The author holds no securities of the organization discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.