With its half share of Florida’s pot market,
doubled its sales in the December quarter and expects to grow them at least 60% this year. That could vault Trulieve ahead of
Green Thumb Industries
as the world’s second-largest weed merchant, behind
Florida doesn’t even permit pot sales without prescriptions, but Trulieve’s 70 dispensaries there (and its five in other states) brought in $168 million in December-quarter revenue, the company said in a Tuesday morning release. That’s up 24% in just the three months since September and up 111% from the year-ago quarter.
At Monday’s close, Trulieve stock (ticker: TCNNF) was up more than 50% for the year on the tide of excitement for cannabis reform at state and national levels. Tuesday’s financial news didn’t sustain the rise, and Trulieve stock slipped 3.8% in early trading, to $47.90.
Sales for the 2020 year were $522 million, representing a 106% increase over 2019. Trulieve guided analysts to sales of between $815 and $850 million for 2021, which would mean 63% growth at the top of the range. Such sales would exceed the $800 million consensus sales forecast this year for Green Thumb (GTBIF), which doesn’t itself give guidance. The world’s leading seller, Curaleaf (CURLF), has said its 2021 sales could reach $1.3 billion.
But Trulieve has led the industry in profitability, and that performance continued in December—when it reported cash-flow margins of 46%, to produce earnings before interest, taxes, depreciation, and amortization of $78 million. Net income was $33 million, or 28 cents a share, excluding some stock warrant accruals. For the 2020 year, Trulieve’s Ebitda was $251 million, with net income of $106 million, or 89 cents a share, excluding the noncash charges for the warrants. In 2021, Trulieve expects its Ebitda to reach the range of $355 million to $375 million.
On the Tuesday morning conference call, Trulieve CEO
said that same-store sales rose 21% in 2020, but that newer stores saw gains of nearly 50%. The average customer visits about three times a month and spends $115 per visit.
Rivers said she expects continued growth in Florida this year, as well as the other states where Trulieve is expanding, including Pennsylvania, Massachusetts, Connecticut, and California.
Tuesday morning also saw results reported by
(TRSSF), the fast-growing operator chaired by cannabis industry investor Jason Wild. With a leading share of sales in Pennsylvania, TerrAscend grew its December-quarter revenues 152%, to $65 million. It earned Ebitda of $26 million on those sales, and net income of $20 million, excluding some warrant-related charges.
For the 2020 year, TerrAscend had sales of $198 million, $60 million in Ebitda, and net income of $17 million. Expecting to benefit from New Jersey’s first year of recreational sales, the company boosted sales guidance for 2021 and now aims to exceed sales of $290 million and Ebitda of $122 million.
As it announced its earnings, TerrAscend also awkwardly disclosed that its CEO,
will step down. For now, the CEO job will be filled by board chairman Wild, whose funds at JW Asset Management are the biggest backers of the company. On a Tuesday conference call, Wild declined to talk about Ackerman’s departure in detail, other than blaming “differences in management style or culture” between Ackerman and the board. In searching for a permanent CEO, Wild said, “We’d like to find somebody that has experience guiding large consumer companies through extremely high periods of growth.”
In recent trading, TerrAscend stock was down 6.5%, at $10.31.
Write to Bill Alpert at email@example.com