Trulieve Cannabis Corp: Another Quarter of Record Revenue

Trulieve Cannabis Corp Up 45% in 2019, Could Double Again

Trulieve Cannabis Corp (OTCMKTS:TCNNF, CNSX:TRUL) continues to be one of the best pot stocks in North America. Trulieve stock is up approximately 45% year-to-date for one simple reason: the company has been reporting great financial results since last year.

And the third quarter has been no exception. The company reported record revenue and record adjusted earnings before interest, tax, depreciation, and amortization (EBITDA).

Trulieve has been growing its business footprint, increasing its patient base, and launching new products. That has, in turn, resulted in its run of record financial results.

And by all accounts, that is expected to continue.

TCNNF Stock Overview

The Sunshine State is pure gold for Trulieve Cannabis Corp. The Quincy, Florida-based seed-to-scale pot company sells its more than 260 products throughout the state. (Source: “Overview,” Trulieve Cannabis Corp, last accessed November 19, 2019.)

To say that Trulieve dominates the Florida medical marijuana market is an understatement.

As the first and leading medical cannabis company in Florida Trulieve operates 40 dispensaries, earning 55% of the state’s market share. The company is hoping to expand its number of Florida locations to 44  by the end of 2019, with more dispensary openings slated for 2020 and beyond.

In Florida, during the week ended November 8, Trulieve was responsible for selling the most:

• medical marijuana (38.2 million mg of tetrahydrocannabinol (THC), 49% of the market)
• low-THC cannabis (606,669 mg of cannabidiol (CBD), 30% of the market)
• smokeable marijuana (6,856 oz, 40% of the market.

(Source: “Weekly Update,” Office of Medical Marijuana Use, November 8, 2019.

What’s remarkable is that Trulieve is responsible for approximately half of all medical marijuana sales in Florida but only operates 20% of the dispensaries in the state.

Although Trulieve is best known for its medical marijuana operations in Florida, it is hoping to replicate its success in other states.

The company already operates in California, Massachusetts and Connecticut, and is hoping to enter two additional states by the end of this year.

(Source: “Trulieve Cannabis Corp. (TCNNF),” Yahoo! Finance, last accessed November 20, 2019.)

In 2019, Trulieve stock enjoyed the benefits of the “January Effect.” Yet, despite reporting record financial results for fourth-quarter 2018, full-year 2018, first-quarter 2019, and second-quarter 2019, TCNNF stock trended downward during the summer.

That trajectory changed in October after the company announced the opening of a number of new dispensaries and it announced a realignment of its management team to prepare for its national expansion.

Trulieve stock got an additional boost recently after the company reported a strong outlook and another quarter of record results

TCNNF stock is currently trading up roughly 45% year-to-date and it has great momentum. The stock still has lots of room to run too; it needs to climb an additional 40% just to get back to its April highs.

Chart courtesy of StockCharts.com

Another Quarter of Record Results

On November 18, Trulieve announced its financial results for the third quarter ended September 30. Revenue came in at a record $70.7 million, up 22% from the second quarter and up 150% from the same period last year. (Source: “Trulieve Announces Another Record Quarter of Double-Digit Growth in Revenue and Adjusted EBITDA,” Trulieve Cannabis Corp, November 18, 2019.)

The company reported record third-quarter adjusted EBITDA of $36.9 million, a 17% increase from the second quarter of 2019 and a 122% increase from the third quarter of 2018.

During the third quarter, Trulieve’s patient count in Florida increased 19% year-over-year to 214,827. That was fueled in part by the introduction of smokable flower. Also during the quarter, the company opened six additional dispensaries.

Analyst Take

What’s not to like about Trulieve stock?

Trulieve Cannabis Corp is dominating the Florida medical marijuana market, it has a strong balance sheet, it has been opening more dispensaries in Florida, it has been launching new products, and it has been growing its patient base.

All of that has helped Trulieve become one of the top-performing legal cannabis companies, not just in Florida, but in all of North America.