Trulieve Cannabis (TCNNF)

Lynn Ricci Director, Investor Relations
Kim Rivers Chief Executive Officer
Alex D'Amico Chief Financial Officer
Derek Dley Canaccord Genuity
Pablo Zuanic Cantor Fitzgerald
Matt McGinley Needham
Camilo Lyon BTIG
Russell Stanley Beacon Securities
Eric DesLauriers Craig-Hallum Capital
Aaron Grey Alliance Global Partners
Scott Fortune ROTH Capital Partners
Call transcript
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Good morning, ladies and gentlemen, and welcome to the Trulieve Cannabis Corp Fourth Quarter and Year End 2020 Financial Results Conference Call. My name is Jerome and I will be your conference operator today.

As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Ms. Lynn Ricci, Director of Investor Relations for Trulieve.

begin. may You

Lynn Ricci

morning, joining Good gentlemen, thank and Thanks, today. ladies for us you Jerome. and

On me Officer. call and the with Alex Executive Rivers, D'Amico, Officer; Chief Chief Financial today are Kim

the Following remarks, our questions. we open prepared call will to

fact this to statements parties. Before call other the forward-looking XXXX. or factors that are we Please constitute benefit form investors, remember, is cause from Securities ended including would media item and of the results the factors and during the actual today's individual for statements note results including materially shareholders, year uncertainties that we December call recorded forecast, and XX, and I in not these to get risks Exchange to the of on the subject started, Commission, differ that historical report could and risk that company's like are annual being other our uncertainties statements, XX-K XA make historical interested with statements from of the filings our for described our company's risks,

so or company required laws. forward-looking time a voluntarily of as statements, do future revise no from update as the Although undertakes whether to time, these information, new result otherwise commitment to except may events, it or by

our the on release GAAP and with is measures. certain call, XX-K GAAP. most Trulieve's A financial can or We report calculated filed discuss the measures SEC United During substitute of GAAP. reconciliation today website. comparable or Relations for Management on are available with be not on Accepted will as as should these measures in Accounting Principles isolation refer annual financial of measures financial not States accordance found section non-GAAP that Investor measures press These in to also results form non-GAAP be in the a our prepared these in Generally the accordance considered our directly with to

questions, be detail results. our not into A we release to in may our morning, quarterly we provide may we fourth comments XXXX. may offer Investor our that future. additional reported earnings and copy Fiscal of prepared to your quarter these Please greater our insight results be advised our of responses XXXX to metrics our dynamics Relations of [indiscernible] Lastly, continue or on found times in or and website, press provide for of may section trulieve.com. the This the business

available In addition, webcast on conference today. a call be website for today's later will our

over turn will our CEO, to Kim I the Now, call Rivers.

Kim Rivers

Thanks, Lynn, and good everyone. morning,

to well to just year Old Hippie line year one both brand outstanding the as and achieved of an full I experienced partner, we our $XXX.X as increase we Brothers fourth million their of launch Florida. we the of Stash quarter anniversary and for you financially a operationally. in a with thank started, of XXXX Before great get the year-end, Bellamy revenues basis, On or say guys. celebrate XXX%. strong Thanks, Trulieve music wanted partnership as million, Trulieve their over great $XXX.X

million or of increase $XXX.X We of fourth XX% EBITDA the million $XX.X million XX%. $XXX.X EBITDA third of sequentially adjusted XX% in represents quarter. million, from adjusted of year-over-year record XXXX Our delivered the $XXX an and growth of of revenues quarter

our performance foundational same profitability. a was of AX EBITDA our adjusted the Our XXXX full is nearly XXXX our was And revenue for twelfth Trulieve. as in and doubled quarter XXXX. consecutive year results revenue and EBITDA full year year XXXX

nationally. scale SX accelerate our world-class to the company basis flower. a distribution to U.S. established and affords infrastructure with Each to of We hub ability a region the needed major strategy the Trulieve landscape XX.X on national system a In as growth reporting continued provides ERP milligrams SAP active the Trulieve became and celebrate strong oil of focused we sold launch model. XXXX, and billion five a us is of executing milestone the activities MSO X a these as which of our implemented to which also continues have foundational tons change. correct to

a data retail call. organization, our As providing driven metrics we on began year-end XXXX

In share the several quarterly addition annual metrics, numbers. to we

locations. of retail growing as had Florida-driven Although the remains customer consistent and platform retention also of share Florida's year-over-year, these In of customer comparing California, rate a fourth XX% in numbers reporting, loyalty are include primarily our third robust with based OMME the Connecticut retention [ph] on these quarterly. results XXXX, We quarter we that showing strengths Pennsylvania quarter available.

Another is into lifetime metric spend. plays customer loyalty that the value customer and reveals average customer

across look customers on trends The value approximately an year-over-year, products. of increased saw of line with X.Xx year full the our the basket in $XXX. an we timing a average during product average, products per in visit. basket pattern consistent have basis, month, value broader our In $XXX as provided introduction access QX, these we a of shift new visited XXXX introductions for purchases of average not size As COVID. been of per QX better could were purchasing stores sizes customers On active Trulieve's year with with full needed our

XXXX results. active Our very XXXX average to was in approximately spend similar $X,XXX, our

during base However, pace grew at our customer the year. a rapid

program had XXXX. or XXX,XXX a patients Florida the example, an XX% As increase over over enter

metric with a that same-store traditional track grow to increase; customers level. we store to sales use loyal a these continue at We

for XXXX the If was XXXX XX%. the the same-store XX year were stores increased sales and XX%. that entire the growth open open by in before, for or XXXX remove in the sales year, we For locations same-store

metric leadership building retail U.S. are year model retail in of as across growth, the on profitable per our metric XXXX, end based our position dispensaries generated setting strategy. remarkable and U.S. shared footage square foot. southeast This of overall for up XX open our strategic a revenue full we protecting we is Overall, the and XXXX. our our track our XXXX, approximately had total of performance. for square to hub for In $X,XXX foot the plans days year square revenue per us the December of which out Lastly,

hub our we is are the focus in of piece still. southeast me, the continued on mentioned sitting not Believe first strategy Florida. The

not state the we business an the it be foundation in believe to home today, incredible will opportunity only of be but Our continued future. represents our

in billion, sales a $XX.X above sales to in and month intend by position so. are fully to to We community has ability billion, performance dynamics adult-use With tourists maintain is market XXXX's address Leafly, market of with the XX third virtue ranking XXX legal the Florida released loyalty, cannabis leading pivot U.S., million and to U.S. third unique catalysts quickly million medical do as XX% wholesale we in market $XX.X Florida Colorado, and surpassing is this residents, and footprint, opportunity largest to the adult-use data BDSA XXXX, our California state customer cannabis changing market support in XXXX Florida the in two behind markets. two just behind prospect beginning. gain of such with markets. major just According and annual a adult-use the dollar in ahead

XX,XXX in other When penetrated a the share double. patients that major basis patient ton magnitude can of penetration rate Although the of is today. that markets, with we a million market ounces just market only easily or the ounces selling of in in X% and to rate X% the of QX, of end mature medical more the Florida, of we've At end year ton trend to a Trulieve X,XXX flower one consumption the of number. In crossed of ending week. QX, we our compared December a the The a program milestone XX% on the flower growth X.X increased with of a of Florida, entering in XX% that was XX, the patients week; an a per mark XX,XXX Florida oil time. week of X,XXX flower, approximately patients XXXX, sales week, week. of week period had six The relatively approaching At doubling per closer regular sales of market market. each surpassed at amazing over line for end we short Trulieve February of

and with and XXX end million both continue barbell see milligrams new record we've dispensed the entrance late In performing we the oil in week high just effects had to products February in addition, a we well. past described value at that that

to as trends move we into further We XXXX. will market watch continue

With Pennsylvania acquisition, an production in Florida U.S. our stores stores for stores our stores XX new organically continued by for Our the call XXXX. XX We this the count stores goal increased XXXX and with XX support by and to customer increase or with XX% dispensary stores XX nationally, XXXX of construction which cultivation and a U.S. of plans footprint three our began opened in XX%. stores from for includes XXXX in year-end. XX We in Florida, XX growth. of

and stores at as new in eight We stores today. have since U.S. of opened stand XX now the

But of over building added also ending they patient customers not with release X for cultivation the square and it's feet we year XXXX products feet. cultivation the about demand, just almost growth stores getting it's support and production to During right the and to about our square XXX,XXX million need.

new variety the released production also fashion, patients to line to we of branded ramped pent August. positive Trulieve The in and the the so. has edible R&D first introduced we appreciate do team partners. state introduced brand Our of in product reception a products late products recipes of edibles edibles meet And products, product offerings. depth host known the overwhelmingly up and nationally Trulieve launched the swiftly with through and as the from demand our We been

will matter green key fact, line kiwi today that Puckers a lemon of be As and called a gel sour TruGel available in Florida launching a favorite, hibiscus, new lime. apple we are

fun expect have more this plans lineup and be the will add soon. to We to well-received flavors

coupled the in with Florida Georgia Our position. an in country, largest footprints part has the hour it of of one within scale, location situated and in northern our a of the prime Alabama,

are the be We undisputed is the leader market that to southeast. poised Trulieve confident in

patient our essential QX X% the with As will Pennsylvania, our to made penetration already great place. our northeast outside We with in of southeast. also we acquired the our earlier, expertise strides November. strategy the acquisitions be deep to are is model hub contributor during companies most growth growing The country in and we established with hitting and an plan. PurePenn hub rates completed have in revenue leaders and XXXX Solevo operational, the an state populated nominal addition fifth of incredible discussed

indoor grow with the new so in and Given quality a better is flower. dispensary straightforward: state, shortage terpenes flavonoids, general will capability. quality through strong additional relationships provide remember, overall. means plan go-to coming online products higher our high sell higher market to flower flower every leading more Pennsylvania has cultivation in And

proposed bill nearly the legalization ago, dispensary in yesterday XX,XXX growth. advocates expand. patients marijuana in the registered XXX,XXX M&A for we We Massachusetts, important a Commission. continue we'll Pennsylvania over for to strategy be opportunities and looks and weeks we planting approvals and patients the With calling few ended an hub On see a to poised year In bipartisan accelerated begin we database. side, to adult-use for announced Pennsylvania, both for that with as our politicians state from our additional Control northeast received to Cannabis state's Pennsylvania look

over and XX,XXX Massachusetts' XX,XXX have of square as feet feet regulations by square We of canopy defined production.

targeted be our half in location plus the launching locations second quarter, harvest second in will half, our Our we of in first first dispensary business time wholesale coming line more after with our the has second the XXXX. open

Moving only but perhaps not for long. is to Connecticut medical Connecticut;

medical with approximately adult-use. one state continues XX that in Connecticut XX% outperform is been patients. Our of another vocal has as to about dispensary stores Bristol the state the of recently open

holders West closely a and state are We signed dispensaries. we awarded believe fully market to we be in for it Virginia, our operations. definitive agreement In two permit forward with will with will Virginia cultivation watching we Holdings, cultivation, that a yesterday our and with and Coupled operations We West look another six Mountaineer announced adding will to Connecticut the have processing permits, previously vertical expand. dispensaries.

We gives Southwest; trends, a monitor Now, into brands strategic eventually which for strategy by look the that and apply we us our to to into forward product us Springs to on will California great U.S. a that XXXX our looking our products that east velocity great to We to Palm insight goals. serve and and in across head platform. purpose giving future our brands dispensary executing view the coast. location continues

Now, call let fourth details full over Alex performance more our on me for results, financial year quarter to for and the focus turn XXXX.

Alex D'Amico

morning, everyone. good you, Kim, and Thank

now statement. the As Kim S-X This is am -- across was was based filing on an just end with outlined, us. work the but and our registration the of also fourth that this organization. to undertaking financial outstanding only on year not the for I notably quarter performance, report a behind large to Most happy executing projects significant

platform, a would thank to their heavy our functions SAP In contributions all and initiative. lift which SX addition, we across like teams I the for the migration to operations to this completed corporate company. extensive of was our

covered at surpassing million. revenue of the increase mid-year guidance annual range in top record of we our had million, and XXXX the revenue Kim revised call, of top $XXX.X As an the of of the achieved of $XXX million XXX% end $XXX.X over

results We over also operations last of XX. on XXXX. QX closed line $XXX.X within had a earned managed over on $XXX.X year. consolidated represents performance our on segment record the report results in which the The These and financial quarter from earned of increase increase quarterly we statements. million of contained strong sequential top opening of in a million, basis XXX% are This are not do close the a balance do report revenue sheet Trulieve we in nor $XX.X and a acquisitions consolidated of to QX representing million XX% is the plan revenue Pennsylvania of the date November inclusive basis. same

gross at generated are the $XXX.X the of Absent We margins impact profit; of in XXXX. with previous fourth achieved the company operations year year in core to Moving quarter of profit for in-line of gross of quarter XX%. full one-time the a margin basis, million, on gross $XXX.X our XX% million. million, and to the were approximately gross events $XXX.X full XX% or or profit compared acquisitions,

It includes and goods which impact flows at and As at margin through as in sold, This until all fair capitalized quarter. Pennsylvania important assets is cost. value, new the to is are inventory mentioned, to note inventory, is acquisition acquisitions this closed of the fair valued middle of sold that deal our inventory has of opposed dynamic liabilities downward cost. cost close. at This

decrease for production had as result In a we X% of an efforts. addition, SAP implementation approximate pauses in

the to to in earn As such, from is third without impacted we fluctuate it In shared margin Pennsylvania, we in the expenses out revenue for we full quarter. is year compared and basis turn revenue expenses. as XX% in as margin new integration, points full have vertical will a markets $XXX.X in have as either through few we I important product basis, gross of now and flow our in in or $XX.X operations gross enter earned, year was as is we the have like will before is through as fourth XXXX. quarter XX% compared that the margin gross possible to XX% general, or of million, to Massachusetts. period quarter-to-quarter, ramp million, XXXX XX% a in depreciation past, mix. to our direction, On new depending on inventory full for excluding SG&A were amortization mention date negatively and markets It to

we and But offset in revenue. not material Although to and new a was XXXX new partially through in change quarter approximately as growth infrastructure relatively had and by SAP a our X% enter ramp percentage expenses we efficiencies. our markets. support add to as XXXX, costs costs impact expect markets, operating we enter dispensaries, and we initiatives for costs one-time the implementation, to flat compared anticipate integration operating In continue to forward go increases compliance. itself, This related acquisition our an do XXXX, to of other

XX% to of quarter of XX% third $XX in such, excluding amortization million, $XX.X of expenses, quarter million, fourth were compared the revenue and revenue, XXXX. As or SG&A depreciation or

to of the Net XX% million, of the million, quarter. million was Net third in quarter, income million $XXX.X compared a $X.XX diluted income, our in fourth for for operating QX. in ended net the earned million income $XX.X in was million increase year Operating compared $XX.X basis. fully Moving XXXX. EPS income the was a the for resulting income million for $XXX.X year $XX over the XXXX income to $X was $XX.X year, on to as

in longer dollars Canadian from to net the negatively to our last to the price the stock converted value and income resulting As and relation debt resulted diluted of transparent been EPS dynamic leading beyond, the our December eliminating in in more of full for the I that our debt Absence that price year of quarter, we've adjusted view line. This to U.S. million a liabilities denominated warrants the respectively bottom and were XXXX $XX.X fair dollars a for am originally warrants quarter, movement in the impacts we of reclassification discussed on XXXX. fourth a increases net warrants, in fully warrants our as have happy equity, no will exercise income $X.XX revaluation would of warrant. and basis. have to $X.XX $XXX.X note in of this million

full transaction given EBITDA; year measure and net which adjusted we approximately on EBITDA costs depreciation, XX%, EBITDA response interest, $XXX tax, of Absent acquisition We a based now investments and our is million, up performance. from of dispensaries, throughout an share other non-cash strong income Focusing been full EBITDA have at business. year. would or X% basis approximately year the safe, fees the the adjusted adjusted facilities keep particularly impact costs made On inclusive for employees to XX%. a was our reported: excludes COVID provides EBITDA reported adjusted into incurred and year expenses, throughout expenses, our patients insight income compensation, of as EBITDA believe our acquisitions, Adjusted fair performance valuable we assess operating of non-GAAP adjusted RTO from the inventory value to income. help costs, step investors

EBITDA one-time quarter. This an had cost QX. the and X% adjusted the across implementation in mentioned production incurred impact approximate on have in SAP We operations

was in-line of partially The quarter in this adjusted X% leases X% XXXX offset The by been to current million, revenue, quarter, an the comparative XX% GAAP adjusted approximately $XX.X implementation, is in to is cash have to quarter million the adjusted compared revenue, delivered with quarter-over-quarter We our of metrics. increases at reported our or in would XXXX. compares the revenue for for accounting of adjusted due the expenses quarter business IFRS primarily and continued XX%. SAP of The included such, QX impact compared the $XXX.X EBITDA EBITDA quarter in $XX.X cost flows to goods in to million fourth million, year, sold. ended improvement or Removing from impact by current previous in which EBITDA As in operating impacts balance and XXXX. company as increase XX% $XX.X of the of for previous in of EBITDA both approximate This the the operations $XX.X a cash profitability. year $XX.X million. due our to million the with for

Our go we to opportunities, position the expansion to cash allows growth, and on built leverage strong we deeper us operate. capitalize the quickly in states where organic foundation have to

you at spend in we and In This of XXXX inventory. $XX.X averaged as strong SAP operational for meet QX. were toward month, at $XX.X XXXX, Now, to CapEx the infrastructure At over inventory includes of our our $XX.X to fair the recorded our targets. raised half total This million million flow invest quarter we inventory. to markets, the inclusive position $XX of update end on leveraged inventory of our end year to just the implementation. revenue necessary all accelerated of of cash as a I'd pivot compares of the QX, Company-wide guidance per for back well like Pennsylvania from million the had that the million acquisitions value. of

of in patient but year, to We the XXXX the CapEx capitalize and believe XXXX. are a started. will demand in positive continue on anticipated heavily to XXXX support targets in trends and in throughout Florida we was those invest we only getting remarkable

With in accomplished how the the planned the to am I the place for our in infrastructure incredible that, can contemplate I we this has will foundation build As road ahead. we XXXX beyond, to in I that only out proud have the of call turn say strategic and set company over what for team XXXX back Kim. and vision

Kim Rivers

continue will Alex. was improvement. the to continuous scale our company now. leverage outstanding and as business will on important can and Thanks, improvement this reflect build continuous model and essential gaining efficiencies through well just I approach The our be focus results has we've run you covered where we on we with transformation This our us. core in gain shareholders our our guidance, as work for XXXX Contemplating to and served out as a business we which accomplished initiative Trulieve

$XXX For year adjusted the anticipate we in revenue. the range million revenues EBITDA approximately We full XX% a of $XXX of range million $XXX to of XXXX, to expect $XXX in or million. million,

margin conversion with of new and revenue into scale Our reflects margin believe GAAP. with streams continued combined XXXX EBITDA states this and leverage We reflects expansion impacts financial to our new expected margin substantial discipline.

patient For maintaining XXXX guidance, supply infrastructure share assuming to and growth strong anticipated support in expected we and the retail chain growth, we California demand. in commencing continue the and in build Massachusetts. continued Florida will support to Pennsylvania, Connecticut, are To sales and

XXXX, Trulieve and store Trulieve we we and a stores enthusiastic anticipate what about the the be XX XXX believe our this on cannot U.S. is For by transformational of for industry horizon in reaching year. the nationwide. accounts, be stores We will end opening more

the On turn to level. tide the the starting regarding cannabis policy front, political federal at is

encouraged can't meaningful how Although change when predict and we the ahead. we happen, by opportunities are will

and plans. in will strategic and week, developments, last House close introduced we reintroduced and see eye not but the on Senate being this year Act Banking our movement losing this keeping SAFE the to are sight being a With current operating we now the are of week framework believe

our strategic in expansion just customers introducing positioned between a markets want started. this ideally essential we financial and our from are of getting far that as new is belief will impressive stress XXXX to brand infrastructure that strategic strength future build for our initiatives, our footprint with new for our Building upon internal out XXXX. and bright accomplished results, are Trulieve continue and vision national and to our our is a future work brand the and the The expanding For ahead. believe foundational growing we we we shareholders, hubs, cannabis application It we has the finished vision.

to on a Trulieve thank Lastly, across want successes to all we moment of the team organization. take top the the covered today,

Our passionate and motto, the dedicated When a a to and worked yes'. we 'Just employees challenging throughout success. comes this it customer in tirelessly say achieve year stores, to experience have crazy

XXXX resonate brought to Those our improve employees that our company. strive greater so only mind. in for it keep joining I Our heartened you working today for embraced us during and success. consistently and values with always 'onwards'. to not every with job say, and I'm Thank customers the they function but that us as Trulievers for our did to and company, across know

Lynn Ricci

think I can now. for open questions it Operator, Thanks. we up


the [Operator with Genuity. Instructions] Your first question comes line Canaccord from Derek Dley

ask now question. may You your

Derek Dley

in comment given I some its again. could wondering we with start But exceptional in days, and from to the that congrats if of know expectations? about structure Pennsylvania? market is was I different namely rolling good of the learned your And I yet wholesale, you've results on relative morning, for how a what there were guess just early Pennsylvania. dynamics subsequent can and-a-half quarter, you quarter. month the within on the touching Pennsylvania, to Hi, out the guys market just you on

Kim Rivers

incredible Pennsylvania also partners Derek. our there and an is are Thanks, market Yes. fantastic.

as their the in PurePenn impress times strong wholesale they has metrics Pennsylvania well and with loyalty product of XXX% across we see passionate and customer similarly, base several very continue as and very mentioned, base. continue retention dispensaries for relationship to patient a with demand a dedicated has results Solevo and I've their current and to their offering their As

wholesale the looking as this again on We is that the offerings online coming know customers much as that well expanded capacity going XX,XXX market. that are said in to customers are past, flower very very which in soon. forward as we've increased our that We market PurePenn side the bringing forward Solevo be additional the products an bringing additional to square we're of particularly quarter, is the looking variety and the to very space having flower online, to to much visit that that feet

Derek Dley

great really helpful. Okay, that's and

new for You opened year, dispensary growth already year. believe mentioned to the the stores eight in XX this year. you've this plans start Florida I

Kim Rivers

right. That's

Derek Dley

My what capital month a do position, $XX you question you CapEx? a higher than to little imagine for expect this that just healthy I'd target a and in so intend quoted the million these where you of year? is given investments that do cash lot QX

Kim Rivers

that not do, going incredibly of growth lot reinvest as coming. we as course, to the into serve And in currently we're the guidance business specific we have would to we because all locations CapEx is which strong as well with markets do as to ahead going We're we've a and to, expect Yes. give of demand us that seeing, think mentioned, make of us the continue opportunities to to sure we're that course, are retail got catalysts of appropriate of everyone in XXXX. supply across I chain

as would look markets and of course, all we the additional we expand in in, the core as stay currently to I of course, say tuned are but we're Northeast. that our announcements which for markets, the So Southeast particularly

Derek Dley

Okay, great. sneak And just then, I more one one in. can if

testing related last Some COVID. any during on comment? you that that calls guys and your mentioned in QX just of on I issues you Did QX? to they're witnessed the related Can to, were they some guess, their commented quarter, you experience those wave second rectified edibles also competitors disruption quarterly of of

Kim Rivers

Thanks for that, too.

we the closely We On We bottlenecks out we with to worked smooth the very testing testing, and our we QX. were lab still to clear from had. in experiencing of able of were a we're beginning quickly those partners, implications to able particularly we're meet year. state the amazing to the we time demand, surge Florida because patient that time, ramp since very are lag, very, continuing the to experience seeing this in of that

nearly double that as in think count patient beginning increased that. some call, seen double from X,XXX-X,XXX to Actually we've Florida coming XXXX. in the cases I mentioned the Florida at over in about of I in week on online the a

the respect similarly go So, we're the additional make samples the hasn't impact experienced COVID, our that are an production a make that that a that relates that bit employees COVID think, of we continue sure dollars in course to as of shared demand, of that issue In and QX. quarter, increase the and within quarter, that for pacing ensure our to operate of year. foremost little for the patients are magnitude continue the which and lab. impact X% and testing CDC that course, to the to to so Alex results was in of With course, meeting those that terms had we we invest in happy maybe but far, to in-line it guidelines. line again, I been safe, the it in of to we're above year bottom and first our sure But to relatively we

Derek Dley

Okay, great. Thank you very much.

Kim Rivers

Derek. Thanks, Yes.


of with Your the next question comes Fitzgerald. Pablo Cantor Zuanic from line

may your You question. now ask

Pablo Zuanic

current to municipalities that? any have other on the on morning. of hear and the number the good potential you. Kim, there's what wanted for start incumbents? that you potential you companies for about risk hearing about Thank Florida to in Do or talking you stores. been I views are Thank caps counties imposing

Kim Rivers

two getting completely one dispensaries with have Yes. law statute, they're required They required in are same ban I'm that it's that disagree zone choices. the that to completely, they under Florida would I statement. not of pharmacies. or us either Currently really where can as counties sure from.

decide market. to change change. any would a a something municipality that county that So could to from or not That's require market legislative

in no see legislative that's change absent there. There's I'm aware of So that a current I don't the risk legislative to of pending. any change structure

Pablo Zuanic

the one. Okay, then questions, just on thank one made recreational last one could you. Conference, the Benzinga the At maybe a comment November November by And the you that ballot or XXXX, XXXX. of be

would a or the You pretty be if Thank me, comments seems an this going help an it. sounded And of also. Any about nonchalant you is that in that quite on much assuming more like ballot that? in to on you're changes you. it potential wholesaling, to have regulation update And issue Florida, XXXX.

Kim Rivers


So action. a both questions Supreme those of Court tied are to

just got and start we on have case a wholesale on the And its yet. making ruling that a court don't initiative through so way -- that's there I'll -- we've unfortunately,

for ruling However, little that bit that court legislature a more an we're down. I would assuming time perhaps could would come then that closely the for does expect would that watching implementation. that that's wholesaling to But down. After gray go of and rule-making, again, through area to ruling determine court to be a so very XXXX come it expect in avenue, the go I for to

addition, say well. certainly would as the around at is there In legislature conversation I that wholesaling

quite think could on the Trulieve, for again, could I legislature we particular go it and we that Court issue, movement opportunity amazing in the on or an which Supreme frankly. see some see based case, as

which oil state. of far to wholesale We in up or are plantings, branded the finished products largest by outdoor we down, would very would dial ability the that additional our feet the over X across square the capacity, with be good course of of we excited have million to inventory state be cultivation can which

we course, for an of at network, that product through or as distribution think by our I In also other to look opportunity small that offset certainly of very attractive a would partner cultivators. our and we craft some would CapEx be addition, manufacturers partnering

aspects, kind positive. that we would So I as of a think all see in

all that of it's the a way two question legalization question second related the On the adult-use to court. their timing. are market making through there in are pending ballot Really, Florida, of initiatives

XXXX tell how the validity of terms the get continue pending. rules, when just rule signatures the XXXX, there the with left and XX% versus to so over is adult-use overwhelming can adult-use that incredibly and in And the Supreme And to is a came -- because formulaic court for done placement. of on much I'll here on, state ballot very currently in language actually back for that's becomes then well impressive high. was to approval of on pulling medical poll That's I rating poll. cross Again, we so you Court which was touch legitimate waiting is just -- in pretty initiative an a just the participated a Florida, partisan, actually time it that XX%. support it

very pulling very, it's So well.

ballot, Supreme does through I think issue to course, getting the the that legal which require, the and just on make does Court. threshold have it some it is of steps

Pablo Zuanic

can very Thank you. squeeze I just one. It's helpful. If last

conditions, number? penetration, Thanks. continue prescribing has back stores you relaxed penetration has medical, that up What we key be Arizona system, X% go -- said medical? to X%. held Pennsylvania to more to in ratio to continue So, the looking more look are X%, it should went Florida a I that for happen for? know what but grow, to New what drivers

Kim Rivers

folks in those, could we now are I fall, is it's and for factor new increase is think contribute market. acceleration. though, of which additional what form who great for edibles, of all very Certainly couple who we're are a a the approachable an cannabis entering seeing do that right I introduced things. last think obviously to to folks course, of

patient foreseen of over a seen coming in which the we As have time. inbound It's program I doubling mentioned, we've of though also state into there. Florida, the

across I XXXX think at call look XXXX up see times which XXXX, and you'll the the analysts most I'm track if you program. you of XXXX step sure growth, to closely, look pretty, to these on the the you pretty back

experienced well which into in coming And so up with now patients step XXXX. we again just much trend the per increases pretty standard weekly program into a a patient the that week, X,XXX-X,XXX is

new from old that so folks you've that telling market coming be when of well. new mentioning the factors And say today. a market organic to going then, effect course, viral some market I that certain we're good also fact is of to and just friends, and of products who bringing got certainly mass happens and fashioned, Some just telling in as form growth they're definitely it's that would this are friends, the

hydrocarbons and to to would approved line, go be to rule-making product hydrocarbon point a products higher at launch course, us methods. We state rule this which have the allow a in full year. in extraction end, also some concentrate That's be believe that so of that development in ready of using we been will we have

accelerated a in to patient penetration So would growth those would be Florida. contribute and and all of to considered continue win

Pablo Zuanic

Thank you. Great.

Kim Rivers



of Needham. with Your line McGinley the next question Matt comes from

ask now question. may your You

Matt McGinley

you. the first in is rate Thank guidance. My margin question the implied on EBITDA

in would prepared the change from states. of much terms I rates, come gross think remarks you in so the decline the the G&A that from new said doesn't margin, presumably

states just for of up term, do longer function in rate rate of that that the forward of on change rates the new year from in guidance get by margin more the the operations and Florida? ramping also, any end? assume you'll Over should this look different those higher a you the And your is materially margin And material XXXX? of

Alex D'Amico

Hey Matt. you. Exactly Thank right. Yes. there,

the ramping As enter margin entering and the the mind you margin markets different different of those regulations, impact. in markets as considers markets, there's in said, we rules with keep new and

So PA throughout in the year, next non-vertical we'll our be operations.

will We revenue have in ramping Massachusetts we coming be online. until

to those impact. to and we So it XXXX. that's ramp ramp your assess markets. basis, swing point, creep of things expect new the up of and full all On it as continue beyond to get the But part go-forward has into in margin fully we'll a yes,

Matt McGinley

in tangible upgrades the the or on completed made some upgrades, XXXX? that for or set the platform last can growth, talk Alex, from the that margin SAP this implementing to that you working what in you cost this And you would XXXX? of margin what in this year? up infrastructure drag can repeat that with And does capital Does you capabilities see you And benefit year? efficiency about that provide you was related we give on you the just could

Kim Rivers

implications can back you on maybe the and benefits. don't why Alex, Sure. about get the I then talk margin

Alex D'Amico

a across Sure. X% EBITDA, X% X%, implemented. about X% It Oregon impact in stoppages, the we our as about and SAP through on the different to was almost X% margin margin itself SG&A. production X%, has to

Kim Rivers

And single terms of it a have give in of able Yes. our that certainly, across launch us, will to then we're us it allows that to markets. benefits the all platform

as our single business scale, we're national with we a to system. able think manage from along that, platform a the conglomerate So about course of

at right that inventory right thinking just our store the products, compliance some to we're to as to which go-forward financials then the that regions company, we're very well and able U.S. of our other is I'll of stocks coupled the at other for course, technology market, In again with our course, we mention differences addition and well. a about, And time consolidate will and of and individual reporting right benefit the on and level, is making SOX And basis. being we insights our for that we platforms, allow and predictive assists with deeper market also much us Magento management [ph] a can upgrades, from our as analytics data rely folks. as some sure a reporting, our this data the it in have compliant customers, course well about a important SOX finally, think and certainly well have [ph] as us our including requirements as as of on financial as provides into which stores, as system then,

Matt McGinley

much. Thank very you Okay.

Kim Rivers



question Lyon next BTIG. with the Camilo line comes from Your of

now may ask You question. your

Camilo Lyon

everyone. morning, Good Thanks.

maybe could with following questioning to on dynamics with same up Just just how on share this for pricing year? fluctuate the to gross detail the expect margin. line the pricing respect you Florida and you those in flower of or greater Alex, remain

Kim Rivers

I'm know, Alex, I but Actually, going I'm not to...

Camilo Lyon

Sure, Kim.

Kim Rivers

realize I certainly, do but not know, I Alex. I'm

growth pricing call the growth flower, respect the on we we think over to via to what continuing effect. So, dynamics last strong with call. and see went barbell I this we're Strong

as lower We've terpene as products, as continued strong side, well. which seeing last our through requires levels about That both specific also quarter, our pre-roll as Cultivar as the the launched added that as of and our flower for both to that very genetics, same products, and specific we're premium count Collection, our also customer we our flavonoids, growth THC then lineup. both demand of of offer in we've genetics well the type very is [ph]. strong. our well on flower extremely demand products, tier our would eights which value include addition, certainly But be mini ground course, in products, So

price we and brand have have spectrum. that higher a have partners again sell we on we that also addition, to In continue launched through that rate, end high

the then and Sunshine Bellamy Tuna line so have are Binske Black flower, which just and well. of I And well as Brothers as Cannabis, as a mentioned, partners,

of all from So at now patient I vast demand expect wouldn't really categories. the those we're trends well those in for seeing and so of with what differences, least products do us either

And pricing will that of flower stable. fairly remain so Florida I would think likely

Camilo Lyon

defending? pressures any that from seeing participants competitive you are that some trying market garner So share you're to not of

Kim Rivers

you from say with and second Last have highest years us our we would perspective state look, over three our a ounces week did -- times in at being competitive that this sold sold January I judge our basis, flower of we're week the in last I more. question selling We're week. the that results. XXXX. think selling from when XX,XXX answering we look significant three always of said, on it flower I've that amount been And for a

the of than competitor. flower amount our times I think X.X it's closest

with same in online, we, about rising cultivation other and -- be only good in are along that's our meet that country. and so Florida, cultivation not demand, Pennsylvania, online, to bringing the the that's, the access. by more also is they rise really is are certainly bringing demand, way, our particularly, markets. And folks to folks it be demand we're So the in have that bringing we in to meet cultivation Massachusetts more that going because feel posture, on more across need looking and to that the And folks, important online,

Camilo Lyon

tremendous just recreational. I that your a especially started goes you market then And in opportunity Pennsylvania, up, and Great. there, just there's when to know follow operations

with see down this the advance in Or opportunity, market? do next to or could beginning is a medium biggest potentially, year? you're as legislation -- advance though, How plans around something unfolding unfold opportunity more to And there. we some the recreation York. -- soon this of longer circling obviously, in this coming term respect And or favorable more of actually legislation as that strategic the sales positivity there's of you entry contemplating? expectations New You're into view in is

Kim Rivers

way. the executing business the we under our while certainly and that I -- think potential -- also we've appreciate market, to under market that we're right, fullest current to -- laws, operated the and current we look current a future that that Yes, potential regulations, in make we're sure in always changes

also around So, The reminder, we certain was that and and have the entering us not wanted Pennsylvania, operations that market. it the we us what's partner business no and there identify But law on important the to processing can In the the amount to is are of you specific to for future like the that or there requirement just need Pennsylvania, to market very build to parcel. regulations, that ability have the foundational to one team. only there with, one we and because scale you specific as market, that site under and considered nuances and And that, right operation that and a follow. were cultivation for build make that around enter or of partners in any the etcetera, sure the limitation we have. is that on

certainly we And currently we'll first our production pretty cultivation So come the had standpoint, and opportunities are a did that ability to we with sure we've looking And, our Pennsylvania. where about the that's seeing, to fruition gain for we additional been ongoing and as course, expansion there. and you're QX and to during for I've were underway. time think take entering in I from scale mentioned, had be make to begin transparent interested which of ability expansion,

Camilo Lyon

best. you. All Fantastic. the Thank


from Securities. Stanley with line Beacon Russell question comes the Next

the ask may question. You

Russell Stanley

the quarter. Good morning, and congrats on

to addition at or of what wondering and Just coming if cannibalization Florida of edibles, color now and you this share lines seeing to products the of back contribute revenue you're as share whether they other any any point? can product

Kim Rivers

thanks Russ. Hey,

mix. product We be there it's a course, you I outline increased in basis and of that, continuing ramping So number for of additional introducing and we're certainly, products But for demand be to product a can tell products. to break position percentage a on what reasons. line percentage is out of and specific the segments wasn't an wouldn't not product those if the

category certainly said is before, we I And product is going market. that well-received we'll don't continue by has to ramp other have as think national it what been to different it that see be in to I I market. that So a to edibles to of a relates share as line. any than the Florida think as averages markets distributor

Russell Stanley

and just West Virginia one more, congrats that. Great, yesterday's thanks. on on Thanks And on announcement. maybe

are being you if be you your what when can of revenue on you. generating thoughts position wondering there? and might share there Thank a timelines in Just construction development

Kim Rivers

and process have through, of announced transfer. the to well, license we approval just the go we course, do yesterday, of Yes, of deal course, regulatory

although we're one to the them process very think first the to there, be through we to I regulators cooperative. going expect be that go with

So more license on to Russ, completed. the that say I after get transfer come would we

process. first and on all as that, will and course, give that, with on when we'll production would going. that we'd of aspects I color get up met, construction hope harvest Just through very guidance to that regulators we quickly down of the in unknown, this isn't that certainly on cultivation of that to dependent and you inspections, year, that, be and hate very, give course, that the come you is of additional the business will and and moving and very on of so move terms happen road work we’ll in.

Russell Stanley

again. again Thanks, congrats, Great. and for color, the


Capital. next line DesLauriers the of with Your from comes question Eric Craig-Hallum

You question. may your ask

Eric DesLauriers

and results. on questions, Great. for Thanks strong congrats my taking

Massachusetts, potential run potential in you you how transactions? Could Where of they just So or those first, locations And status in looks those? Massachusetts. selecting retail locations, about current couple underway adult have are did additional through like a those use? transactions you go for it are the medical

Kim Rivers

not in the moved certain a the terms as process. Massachusetts, when be approval on through and regulatory gun of excited yet. jump just delays, providing in additional we how fronts Yes, the folks are they about on of just number of we have regulators happened the for we'll etc. to And things getting information haven't because those question. cautious And thanks move very

we're news future position good we'll the with have some, a very, about of very, some in quite that excited Virginia, but comment West on comment my on additional to very not Massachusetts, hopeful similar yet. very you to to that are this later share So, year, are

Eric DesLauriers

there. fair, I process understand certainly that's Okay, or thought reasoning the

potentially Pennsylvania, here, environment valuations theme you're really switching M&A lie, overall, about for seeing be Pennsylvania, pressures your Pennsylvania, on guys.? in for And suppose new but currently maybe licenses the us if on there's help whether can it's what markets other the could on focusing to anything? that then is you talk priorities deeper sticking any where you expanding I M&A just within or M&A table or on understand gears going or So retail just Massachusetts, into if the any

Kim Rivers

as how our and what we When against execution. record up has look, of looking think is certainly think there, M&A all so active our solid position and an said, we stacks specific Sure, well given and our again, the about dependent target And also shareholders, we in return to very as incredible overtime. set, I on Pennsylvania, And track particular our in very, team, we're Trulieve Pennsylvania currency really story and M&A. very particular and performance our value peer like for, currently. it's they're the that and operations as

those Pennsylvania, So, the strategy in course, strategically complexities. see to the advancing we that again, with on executing the was as in have their our Virginia And we and from us and team synergies organic clear continue been, that we aside about, northeast an dynamics against I think to we've don't growth, I lose a of of And pretty application, of own I hub team. said, experiencing we're each from very that focused applications and And example anything But West sight an that continues that and unusual should and very we've regions regions focusing strategy, success certainly transparent find those also been very have that say think on. own we're their of hub wouldn't apply in US. that partners. -- and involves five markets that and which the states it's a facts of to is on market attractive That got region with executing fact being active, we've today.

continue an us, organic M&A strategy, it's for not an only it as be So growth certainly, well. will to strategy

Eric DesLauriers

And both Yes, for in sure. thanks, Well, far. congrats again. so on growth


question now [Operator Aaron Alliance from may comes ask Global question. line next with the Grey Your Instructions] of the .You

Aaron Grey

thanks the year. for nice and Good on another quarter morning, finish congrats the questions and to

eight So within guys for first question today you year, expect for store me, you so Florida. XX so openings the far

So there making model some the might sales wholesale per as seem level some lower look a current that it assumptions, of dispensary, be just imply compared a does rate. to to

a So, wanted to additional know, whether maybe saturated populated there color be if be or conservatism be on forward in might stores or new XXXX stores offer markets might that there maybe of some some sales some per in, the some could be retail or will into the be less that's you. expectations some going and per Thank where openings are store maybe to markets in you communities, assumed of helpful. Florida that lower going but store, built what assumptions thoughts level behind might

Kim Rivers


stores open tomorrow. we're those not So going be to unfortunately, to of all able

So differentials certainly platform, it, to the there in an anticipated built not decline into respect is timing has performance. with model certainly, store the store

hold that's store million So and store, on And case. million per which $XX basis would the $XX per certainly true. we're averaging between a not

those year. the -- long for not be most the I we're of and that open coming timing think will in again, how when they likely, stores are So, online, it's

Aaron Grey

seem, competition believe other been right, Trulieve terms All the you some competition the has to does One the and have looking you heating also own are acquisitions of offer couple in Thanks. And question, that number to past a who from years, asked there's how availability, is diversification. operators been add people capacity within state. for able I Within up. product thing it about great. Florida, and mentioned their often second within of the Florida,

adjustments? your You your own that? protect comfortable many Thanks. product talked loyalty do your their any about So, would it going there that stands to Are make hear about to it's with have as Yes, the to you to availability, something have capacity Are program. how there. love moat you look defend I Where increase and I as competitors forward? looking to you still past, continue moat look where stand you in your you know, today?

Kim Rivers

Yes, thanks for question. the

important, best coming folks keeps itself on is to quality, for looking continuously experience, we're also that report and and best but of not which sure regularly. which product lends customer product And improve the ways that selection have So course, incredible we to only, really then, that -- back. of make loyalty we the metric course,

and continuing the say on So, we that expand on our to loyalty what capabilities on not us that program. continue I evolve. still just and wonderful that as is certainly, to additional I technology it we're to sitting can does program that What's about give implemented drill is, mentioned, down

excited repeat And, the the cultivated for I key would years, look features are, markets most and again, So we it competitive because And, I say revamp that think perform folks, at really best. actually about. in that markets be say to very our in additional open and coming driver yes, certainly, be course, I in our would going will we've stay new important addition, again, reputation that a the program are folks the think tuned, to soon that of business. which over a state, the customers are that markets with stores across of that those the is we

be markets five robust you they three top to happen state most in when the across Florida, in the the our at stores state, across the look So, located competitively state. of to

innovate again, hold of very, So hold about to And and well, our be as factors to different own offerings market ability our it's our and segments that continue products course, our competitors. new continuing first to to add to continue as continuing product against oftentimes, to important note own market, confident and we're very with to I to form feel and are of across well. the

that performance in So, we're looking today, our very about and and continuing continue Florida, feel trajectory. be good to to very bullish be in we'll position our

Aaron Grey

program. Great, some luck. thanks. loyalty to changes the Best And of look seeing forward of those to


Partners. line Scott Capital ROTH Fortune Next the question comes with from of

You ask may your now question.

Scott Fortune

And as Thanks kind the guidance board? timing and on color for the Real see licenses there. you XXXX? taking does questions. What's on the a regulatory or the more I know on of start little Massachusetts that? if quick, received Massachusetts, growing wait your is in possible. for just the much come Or include licenses

Kim Rivers


So we have plants very was the and to over in weekend. the in of the first ground. which And in images Massachusetts, got get we've exciting building, it those green

exciting. very very, was that So

quarter supply Of the platform of the our on course, now and those way quarter. second in wholesale the Again, and and to towards flower online store cultivation, actually chain. in back the make well plants be our And stores backside first half coming and be the XXXX. additional will processed as call, grow hopefully, have launch through as second their the mentioned of as up

we're So definitely to huge color say yesterday step I guidance. that. contributive any weekend that forward to segment being would And, reality. XXXX mentioned, reporting and becoming additional this looking were to a giving certainly on But our or to be Massachusetts as going we're not

Scott Fortune

consumers. seen quick how real, in that basket edibles seeing that. your And those base the have And size adding standpoint the Florida step and accepting sell shifting onto loyal patient your is on baskets? to the edibles consumers on what rates through for increased appreciate with from through then, back Okay, you you're just of

Kim Rivers

ramping our coming production we're us QX. about demand, in QX for to which for strong Yes, testing that meet was that had certainly as we mentioned that And, products. up edibles bottleneck out course, before, seeing we did issue QX, of all demand in successfully of

that a or So those very, it a shelves strong of demand now. adult and to with processes and we was doing in certainly can a was the is market to a important seller, it seller basis, really has go-forward products our important, edibles customers match recreational that continue course, and about and any so user medical ensuring and our which process But flow strong it's appropriate, product our we be was of on believe to we expect segment. patients, very on and we our how were there getting that we're

for be factors, continue first demand. to, edible of and only to and innovate launch and number also market line, of compete to, segment form a not course, customer develop product a to it again, very robust but be key to able edibles, and meet to was So, across us to with and the different have

Scott Fortune

Thank color. you, I appreciate the


at questions are no continue. further There this you time, Instructions] may [Operator

Kim Rivers

thank next Have to you for look a Well, you everyone. today. us forward joining great quarter. updating We day, again


Thank today's concludes all This you you. me. conference. Thank joining for

disconnect. now You may