The cannabis firm sees revenue down sequentially while inventories are on an upward trend.
Trulieve Cannabis (CSE: TRUL) reported on Wednesday its Q3 2022 financials, toplined by quarterly revenue of $300.8 million. This is a decrease from Q2 2022’s $320.3 million but up from Q3 2021’s $224.1 million.
“Our team demonstrated tremendous flexibility and cross functional capabilities during the third quarter,” said CEO Kim Rivers. “We navigated macroeconomic pressure, changes to dosing limits in our core state of Florida, and the impact of Hurricane Ian while making further progress streamlining the organization.”
But with net impairment and disposal of long-lived assets surging to $52.0 million from last quarter’s $4.3 million, the firm ended with an operating loss of $27.8 million–far from operating incomes recorded in the previous quarter and the previous year at $38.0 million and $66.3 million, respectively.
Further down, the firm also recorded a net loss from discontinued operations of $38.1 million, driving further the net loss at the end of the quarter to $115.1 million–five times more than last quarter’s net loss of $22.5 million and far deeper than last year’s net income of $18.6 million. The bottomline translates to $0.41 loss per share.
Calibrating for these impairments and losses, adjusted EBITDA for the quarter came in at $98.8 million, down from $111.0 million in the previous quarter but marginally up from $98.0 million in the year-ago period.
The firm also ended the quarter with $114.5 million in cash and cash equivalents from last quarter’s ending balance of $181.4 million. However, inventories grew to $301.2 million from $270.2 million in the previous quarter and $209.9 million at the end of 2021.
Based on performance year-to-date and current trends, the company anticipates to notch the lower end of its previously announced guidances: $1.25 billion to $1.3 billion for revenue and $415 to $450 million for adjusted EBITDA. For the first nine months of the year, the firm has earned $938 million in revenue and $315 million in adjusted EBITDA.
Back in early October, a preliminary inspection report from the U.S. Department of Labor’s Occupational Safety and Health Administration revealed that Trulieve Cannabis (CSE: TRUL) contested the fines levied on it. The penalties are being imposed after one of the firm’s employees died from inhaling ground cannabis dust.
Trulieve Cannabis last traded at $15.69 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. 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.