Trulieve Cannabis Corp. (TCNNF) announced its Q2 financial and operational results for the period ended June 30, 2020, today that revealed record revenue and the 10th quarter of consecutive growth and profitability.

Trulieve had nothing to hide in its latest (Q2) financial report providing a straight-forward comparison of its latest performance vs. the previous quarter and keeping any reference to the same quarter a year ago to a minimum. This transparency allowed the true picture of its ongoing operation and trends to be easily accessed compared to the more common "sleight-of-hand" deployed by under-performers (see the recent quarterly report by Canopy Growth here as an example), to mask weaknesses in their businesses. Indeed, those companies present their quarterly reports in such a convoluted way that they are too difficult and time-consuming to decipher and present here in a concise and understandable way. Thank you, Trulieve, for being so forthright in presenting your quarterly report in such a meaningful way.

Q2 2020 Financial Highlights  

(Unless otherwise stated, all currency is expressed in U.S. dollars and in comparison to the previous quarter.)

• Revenue: increased 26% to $120.8M
• Operating Expense: reduced to 27% of revenue from 29%
• Adjusted EBITDA: increased 23% to $60.5M
• Cash & Equiv. on hand: $150.3M
• Free Cash Flow: $39.6M

Q2 2020 Operational Highlight

• Opened five new stores in Florida, ending the second quarter with 52 stores nationwide

Management Commentary

Kim Rivers, Trulieve CEO, had the following comments regarding the company's Q2 results:

• "We are pleased to be able to demonstrate strong financial performance in revenue, adjusted EBITDA, and free cash flow while pivoting our business to meet the changing behaviors and needs due to COVID...
• We are excited about the second half of the year and will continue focusing on execution and expansion...
• We are moving quickly down the path toward registering with the SEC and SOX compliances. This is a great start on our next level of strategic growth."

Updated Financial Guidance

Given Trulieve's strong financial performance to date in 2020, the Company expects full-year 2020 financial results to exceed previously issued revenue and adjusted EBITDA guidance ranges as follows:

• Revenue: +20%
  • Previous Guidance: $380M - $400M
  • Updated Guidance: $465M - $485M
• Adj. EBITDA: +40% 
  • Previous Guidance: $140M - $160M
  • Updated Guidance: $205M - $225M

Stock Performance

munKNEE.com's pure-play Pot Stock Index of 25 pure-play cannabis companies that trade in excess of $US1/share is down 15% YTD but, while the American Multi-State Operators (MSOs) sector within the index is UP 11.9%, Trulieve, a MSO itself, is UP 96% YTD which demonstrates:

• how well managed,
• how well-financed and
• how well the company is executing its business plan.

In recognition of the company's outstanding Q2 performance and extremely positive forward guidance its stock price continues to do extremely well (see how well Trulieve is doing compared to its peers in this TalkMarkets exclusive) and was up over 10% by mid-day Wednesday as illustrated in the chart below.

(Click on image to enlarge)

About Trulieve

Trulieve is a vertically integrated "seed-to-sale" medical cannabis company operating primarily in Florida but also with operations in  California, Massachusetts and Connecticut. The company cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout Florida, as well as directly to patients via home delivery.