Headquartered in Quincy, Florida, Trulieve Cannabis (TCNNF) is primarily a vertically integrated “seed-to-sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida, explains Ryan Irvine, contributing editor to Internet Wealth Builder.
Trulieve cultivates and produces all its products in-house and distributes them to Trulieve-branded stores (dispensaries) throughout the state, as well as directly to patients via home delivery.
Trulieve also holds licenses to operate in California, Massachusetts, Pennsylvania, Connecticut, and West Virginia. Over the 12 months from June 30, 2020 to June 30, 2021, Trulieve opened or acquired forty dispensaries.
Second-quarter revenue jumped 78% to $215.1 million, from $120.8 million in the three months ended June 30, 2020. Revenue for the first six months of the current fiscal year was $408.9 million, an increase of $192.1 million from $216.8 million from 2020.
Second quarter net income jumped 116% to $40.9 million from $18.9 million last year. Net income for the six months to June 30 was $71 million, an increase of $28.4 million or 67% from $42.5 million the year before.
Adjusted EBITDA rose 55% to $94.9 million, an increase of $33.5 million from $61.4 million from last year. Adjusted EBITDA for the six months to June 30 was $185.7 million, an increase of $75.8 million or 69%, from $109.9 million for the first six months of 2020.
On Oct. 1, Trulieve announced the closing of the acquisition of Harvest Health & Recreation. The transaction represents the largest in US cannabis history with the swift five-month close coming a full quarter earlier than anticipated.
The closing solidifies Trulieve’s positioning as the largest cannabis company globally by operational scale and profitability. With the company retaining all of Harvest’s assets, the combined operation boasts 149 retail locations and 3.1 million sq. ft. of cultivation. This compares to its nearest competitor at 109 retail outlets and two million sq. ft. of cultivation.
Trulieves’s financial leadership is also extended; based on pro forma second quarter 2021 results, the company's sales and adjusted EBITDA were $312 million and $123 million as compared to $312 million and $84 million, respectively, for its nearest peers.
The US cannabis segment is generally experiencing weakness related to the lack of positive legislation that was expected following Biden’s election win. We see the sell-off as short sighted. For investors with above average risk tolerance, the growth should continue to be strong, looking 3-5 years, forward and Trulieve should continue to benefit long-term.
