Trulieve Q1 Results Were Behind Analyst Estimates

Trulieve Reports First Quarter 2023 Results Marking Progress on Cash Objectives

• Record 4/20 results with traffic, customers served, and units sold up 10%, 11%, and 9%, respectively, year over year
• Cost reduction initiatives deliver $24 million decrease in SG&A expenses
• Industry leading U.S. retail network of 184 dispensaries, up 14% year over year, supported by over 4 million square feet of cultivation and processing capacity as of March 31, 2023

TALLAHASSEE, Fla., May 10, 2023 /PRNewswire/ — Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company in the U.S., today announced its results for the quarter ended March 31, 2023. Results are reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles unless otherwise indicated. Numbers may not sum perfectly due to rounding.

Q1 2023 Financial and Operational Highlights*

• Revenue of $289 million, with 95% of revenue from retail sales.
• Achieved GAAP gross margin of 52%, with gross profit of $150 million.
• SG&A expenses lowered by $24 million sequentially to $102 million.
• Reported net loss of $64 million. Adjusted net loss of $21 million* excludes non-recurring charges, asset impairments, disposals and discontinued operations.
• Generated adjusted EBITDA of $78 million*, or 27% of revenue.
• Cash at quarter end of $195 million.
• Opened three new dispensaries in Palatka and Winter Haven, Florida and Beckley, West Virginia.
• Launched adult-use sales in Bristol, Connecticut.
• First U.S. cannabis company to launch advertising campaigns on Twitter.
• Exited the quarter with operations in 11 states, with 32% of retail locations outside of the state of Florida.

_{*See “Non-GAAP Financial Measures” below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.}

Recent Developments

• First to launch medical sales in Georgia with two new dispensaries in Macon and Marietta.
• Achieved record traffic, customers served, and units sold on 4/20 holiday, up 10%, 11%, and 9%, respectively, year over year.
• Currently operate 186 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States.

Management Commentary

Our team is laser focused on cash preservation and generation as we set the stage for the next phase of accelerated growth. Trulieve’s scale and service, operational flexibility, and strong balance sheet are essential for success in the current environment.

Kim Rivers, Trulieve CEO

With increasing adoption and expanding state level access to cannabis, the industry is well beyond the tipping point. Tremendous opportunities lie ahead for companies that can successfully adapt within evolving landscapes.

Financial Highlights*

Conference Call

The Company will host a conference call and live audio webcast on May 10, 2023, at 8:30 A.M. Eastern time, to discuss its first quarter 2023 financial results. Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

North American toll free: 1-888-317-6003 / Passcode: 2035918

International: 1-412-317-6061 / Passcode: 2035918

A live audio webcast of the conference call will be available at: https://app.webinar.net/bR5Wgq9gJLx

A powerpoint presentation and archived replay of the webcast will be available at: https://investors.trulieve.com/events

The Company’s Form 10-Q for the quarter ended March 31, 2023, will be available on the SEC’s website or at https://investors.trulieve.com/quarterly-results. The Company’s Management Discussion and Analysis for the period and the accompanying financial statements and notes will be available under the Company’s profile on SEDAR and on its website at https://investors.trulieve.com/quarterly-results. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted EBITDA, adjusted net income (loss), and adjusted net income (loss) per diluted share. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to evaluate our operating results and financial performance. We believe these measures are useful to investors as they are widely used measures of performance and can facilitate comparison to other companies. These non-GAAP financial measures are not, and should not be considered as, measures of liquidity. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP.

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