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TCNNF Trulieve Cannabis

Participants
Lynn Ricci Director, Investor Relations
Kim Rivers Chief Executive Officer
Alex D'Amico Chief Financial Officer
Derek Dley Canaccord Genuity
Matt McGinley Needham & Co.
Russell Stanley Beacon Securities
Vivien Azer Cowen
Andrew Partheniou Stifel GMP
Camilo Lyon BTIG
Kenric Tyghe ATB Capital Markets
Eric DesLauriers Craig-Hallum Capital
Graeme Kreindler Eight Capital
Scott Fortune ROTH Capital Partners
Aaron Grey Alliance Global Partners
Andrew Semple Echelon Capital Markets
Call transcript
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Operator

Good morning, ladies and gentlemen. And welcome to the Trulieve Cannabis Corporation First Quarter 2021 Financial Results Conference Call. My name is Chris, 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. Investor Trulieve. of Director Ricci, Relations for Lynn

You may begin.

Lynn Ricci

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

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

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

get to media risks, forecast, to Exchange that statements periodic with the uncertainties Before we historical parties. related actual and that remember, of and is other described started, today’s the and investors, from or reports of make would constitute the forward-looking differ these that subject files our those of transaction fact call results uncertainties historical statements could company’s including cause not for results interested of recorded benefit I our other Harvest. that Commission during individual call to like we the and and note being materially shareholders, are our are Securities the this risks the factors our Please statements, completion from and to in statements

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

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

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

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

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

Kim Rivers

Lynn, highlight I sure year. top is Thanks, acquire good our announced first Harvest our the and agreement start want am at to to solid but I mind, everyone’s morning, to the everyone. recently of

For the quarter we achieved million, year-over-year. revenues XX% a sequential and XXX% of of $XXX.X increase quarter-over-quarter

bottomline profitability. we EBITDA of entered represents revenues $XXX.X million million, Harvest Monday, of $XX.X and XXXX record of of be EBITDA EBITDA most announced year $XXX.X $XX.X had EBITDA or On quarter, With would us in approximately entering and tripling the both that create we acquire revenue adjusted anticipate basis XX performance any margin approximately our company. would and million of by top and consensus we XX%, adjusted On adjusted strongest quarters are operation combined and their margin have fourth whereby which Our the agreement the EBITDA results into would profitable an company cannabis of QX. million fantastic our Harvest $XX.X announced an a straight consecutive revenue adjusted Trulieve a world. adjusted of wide which we a will Trulieve Harvest, with XX%. EBITDA, of beating with of cannabis million from of

and for transformative the a by cannabis reported whole. acquisition would the performance both Trulieve with along as Harvest Our strong the how be just industry results demonstrates

the big platform by combined across plus cultivation. the Harvest a XX our means. about Pennsylvania and approximately square deal plus XXX,XXX Northeast to market, square We Harv and and a Maryland, has a dispensaries, in markets that Northeast, and is a square would little footprint. some operates were Southwest if production. nearly square the X.X companies a we the across would share feet new consist million on first production. Trulieve’s locations of of On Southeast, to brand that with Harvest states, strong cultivation operational XXX markets. -- continued core in Harvest moment. The add feet in would nation. be the more dispensaries close hub feet across Harvest would XXX,XXX three dispensaries of built combined focus add today, would acquisition Trulieve advantage would of basis, XX Trulieve of and of it Harvest states platform the Together me active what Florida a mover nine provide also with would in enter presence In and on attractive diversified in growing more bring established transaction in with a our and to Let the operational way, with which Harvest cultivation will diversification retail operations production. company compliment indoor supported most Arizona, XXX,XXX And our feet

create checks to is while identifying market similar over facilities. deal foot square well accretive investing grow, Harvest by operations this and capitalize customer local two would Harvest acquisition deep core on include deliver management on indoor stores, a as strong where is of production to going Our advantage. the pending well last efficiency leading XXX,XXX capitalize establish focus as boxes markets discipline established and their shareholder Trulieve and in Harvest a markets chain leader. philosophy increased years of Harvest The of and line Arizona approach market continue its of XXX,XXX maximizing as true well-positioned that hub. with strong expertise, would to executed profitability. the exciting loyalty, awareness customer-centric mover a Arizona The state in expansion resulting financial with with value. to brand in opportunity. measured on in values operations to the and for an approach, supply with brand addition us core team Harvest first and position footprint outdoor entering and We as a XX Harvest has a significant as presence an is a Southwest cultivation foot square be operating The Arizona

dispensary with Our Harvest expanded be -- Colorado, Maryland operations. recent with Nevada, The Pennsylvania further and and Southwest presence operations in addition additions hub would Pennsylvania, California of Harvest our coupled the initial acquisitions of Utah our in and This firmly performance in our operations of first entering quarter outperforming initiation in our solidify of our operations and would the been West robust. full Virginia Northeast market tub. has Pennsylvania Connecticut in is Massachusetts, our

for cultivation the constrained and is processing and expanded environment. quality high state-of-the-art Our harvesting start to supply facility ready flower

On the base area has customer been dispensary Pittsburgh continue strong. store grow we and the of performance to the in side, the dispensaries our three

announced a strategy. look our closing of critical with previously Northeast dispensary we state to for Shops addition, In three the forward hub Pennsylvania in acquisition operations Keystone area. is Philadelphia

Massachusetts Our operations are finally underway. in

time We first in the ground team at Holyoke dispensary to exciting become worked plants who opening operational. a have this is have our an hard for our quarter it’s our facility this for and state

wins the state This as integrated combination by dispensary enter vertically hub establishing application Holdings expanding operations have us first the of Mountaineer successful cultivation, operator. processing closing in allows to Through recent permits. are a also the we We and West mover our Virginia. Northeast and

to XXXX continue X.X revenue to added Turning provide More in week. store opening patient to the and State this patients day Patients access outperformance we per are to-date our million week last store QX. growth home of over has keep $X our our patient X.X% ahead consistent our recently of in X/XX month Florida. demand with into These XXth million week we maintain patients grow. approximately With XXst program largest our phenomenal hub, and X/XX at per of we state onboarding week base. Southeast last over a our opening the approximately during were to our striving leadership XXXX topping producing growth a to and increased the or growing that we in X/XX. the Florida, rate Florida On had on and penetration rates XXXX XXnd

of country cultivation keep and end with many demand. our for for to up The XXXX development in to targeted Our with Florida dispensary of fast of the production stores patient those exciting the plan keep rapid XXX the calls year, the requires paced by facilities stocked. growth store store

we To the our where XXX,XXX County, to We and add of new We We ever feed Madison our build have warehousing feet cultivation. X.X foot plan are our footprint. production plan square square distribution to in for commenced growth of facilities. overwhelming XX,XXX demand edibles. continue cultivation approximately feet square help have operations monthly in million cultivation to handle to cultivation Tampa growing location newest Florida launching and and out and

in a X.X facility Midway building edibles. of lot will foot is which Trulieve times current square XX,XXX are kitchen We our kitchen, partner and about brand our produce that a

strategy, Southeast on our We national are executing our hub and and hub. firmly Northeast growing Southwest our establishing expansion

with over the rate fourth for locations. quarter share XXXX, platform first customer retail XX%, briefly to key me had growing of first across of let quarter. customer Alex, quarter we loyalty call the and I our the turn quarterly the retention of comparing metrics our exemplifying retention Before a update strength We retail rate a

$XXX. our metric is at month sales average In their $XXX. size level. QX number of per times visited with X.X active Another traditional an month store with visits We loyalty with full a track X.X these is of This stores QX of basket metric customers of a use the the loyal basket increase that year Trulieve basket customers reveals average per on an same-store customer of a average to and size size. consistent visits average

QX in QX same-store quarter, XX locations were by sales the XXXX that entire For increased the XX%. and the open XXXX for

the turn Alex our to results. call quarter more on me let first Now details for over

Alex D'Amico

and everyone. Kim, good you, morning, Thank

and combined combined XXXX, of the performance industry. will EBITDA. business continued in on the for Trulieve of Based a XXXX noted, for apparent has details revenue have revenue approximately their approximately as million, numbers. the $XXX to for approximately I adjusted numbers. outline XX% into revenue EBITDA our billion profile. adjusted This we $XXX.X financial like basis, million. they has We combination to guidance consensus $XXX create EBITDA. becomes updated on right sizing profitable easily based at in focused most included which the their and their margin be look are EBITDA U.S. MSL results. would yet on Kim a with the executing would on Harvest fully would jump XXXX million, $X.XX QX As an been Monday to on of adjusted and for were and forward would On consensus, fundamentals of before to reported their strengthen in few million Harvest XXXX QX $XXX adjusted our the be I acquisition Harvest transaction transformational

For necessary year including was to toward was transaction work necessary we continue the additional start our Trulieve, U.S. plan, our the will May as the proud strategic as evolution. company transaction. and to and transactions all regional points, infrastructure year, be our opportunities, execution half the see converted back are expansion we as enter look a XX, we reporting M&A into to well additional a to the we phase vision. organization year are hub details be partners all specific for and we organic that issued the organization regulatory fantastic and the pivotal to rolling the will of as The markets of as XXXX the XXXX. year, in support a Throughout please company’s Stepping QX strategic our established we executional have last approvals at to release XXXX back announced new what functions. capabilities of to of strategic testament broader our achieved. since a will across press complete well new as Harvest a

Pennsylvania reflective the at Kim revenue of quarter. XX% XXXX. revenue quarter over As is the midway first that the had the acquisitions achieved of call, an record of with our of our QX of This Solevo top fourth $XXX.X and through closed we in sequentially million, PurePenn full increase of $XXX.X covered million

million was impressive QX than revenue $XX.X higher an quarterly growth year-over-year. Our XXX% XXXX,

not acquired have The As the any in in XX% of $XXX.X or trends. reported our metrics achieved line the Similar report million $XXX.X of goods in XXXX. we to to cost on the what Pennsylvania core value of inventory do we compared to plan fair I operations quarter, a of of past, report QX in fourth we million margins segment QX, quarter In a in on remain continue have the our margin our with the to we is nor basis. Trulieve financial through in historical XX% sold. flow managed consolidated company gross gross of do noted profit or basis first and

deal As mentioned is impact includes cost. inventory, assets cost. value at This last sold to downward sold through capitalized acquisitions fair liabilities of fair margin opposed quarter, at new of inventory are and is flows close. valued and all This has until cost goods which this that inventory dynamic as

our All goods flowing capitalized will sold and been has in Pennsylvania of cost inventory have acquisitions the and inventory of initial from at subsequent periods. we through cost exhausted

shared all fluctuate will expenses As Massachusetts. a there before or basis in inventory we the the a is and product excluding as $XX XXXX a markets few have in and is new first enter integration we XX% in in as our quarter through of from reminder, as operations million or we gross in the were general, XXXX. vertical have million quarter-to-quarter gross of have SG&A turn on to and in on revenue period as Pennsylvania XX% margin downward in mix. fourth revenue, I amortization like without points the earned, today to $XX.X margin can compared In depending pressure quarter, markets direction full flow new in earn we we expenses. ramp past, through markets out either now depreciation

a We did revenue. material increases our new percentage we expenses as to expect infrastructure markets a and change operating go-forward Still, throughout compliance. of growth to our we and as XXXX, anticipate add support continue enter initiatives not dispensaries, in ramp

fourth Our a XXXX. for basis. We in $X to was a share on quarter, increase million the quarter diluted earnings earned $XX.X $XX.X million, of the operating fully million QX generate $XX.X the XXXX. over XX% Net quarter income was $X.XX income the per for million of compared for

adjusted acquisition step performance. investors net measure EBITDA Turning adjusted believe compensation, assess our help and report non-cash valuable and share operating non insight inventory COVID-related as expenses, of business. Adjusted of GAAP provides fair acquisitions depreciation, excludes expenses, EBITDA. from based our up EBITDA We to We now value reported transaction tax to other income. adjusted the costs, into from EBITDA income a interest, performance

and flows to our company ended cash $XX.X adjusted EBITDA margin continued was for ramp reflective as first in or This delivered Pennsylvania and from compared million balance Massachusetts of of XXXX, quarter for For in record the expectations of revenue. operations operations. fourth quarter $XX.X with or million the the The the and of impact quarter-over-quarter million. $XX.X XXXX. to quarter, the XX%, cash is the million XX% profitability due in from a We quarter $XXX.X with line

expansion end cash organic Subsequent taxes us capitalize the foundation it where paid federal operate. in strong the to allows as goes we approximately we to have deeper quickly in first we position the to in Our on opportunities, of leverage million April. quarter, the $XX built states growth,

a our $XXX million, ending capitalize arise. cash on quickly of us to ability million approximately At with we April QX accelerate the we addition, they of growth underwritten of had completed and million, providing $XXX.X balance inventory the equity total In adding offering successfully QX, at an end $XXX to opportunities strategic of This XXXX. the of inventory. of end as $XX.X million compares a approximately

plan. end quarter earlier, QX and with CapEx As $XX month, of fair markets per exhausted averaged was inventory the for as Company-wide acquisitions our line spend of at Pennsylvania has inclusive value the for over that been of XXXX captured discussed million in quarter. was all the the just

and stores as We the center new well in a continue to processing out Southeast. facilities, cultivation and as build distribution

our will operation West the we Virginia throughout build year. out addition, In

our XXXX as the to support to heavily add in and hub efforts capitalize trends expansion Southeast depth We CapEx in positive throughout patient we the experiencing. invest on we continue will are

QX we to reiterate Lastly, our guidance want close, before call. the I on issued earnings

$XXX $XXX For million. expect the million the million we full to of million, the to EBITDA revenues of $XXX adjusted range XXXX, in $XXX with year range in

Our expansion markets XXXX such revenue streams wholesale. as new EBITDA into views reflect adjusted new and on

off not We await the Harvest to XXXX call have catalyst and a over We With changes we an until ahead. look exciting the a year will deal great outlook. is guidance on our update the us. that to forward that that, will back I to we our close Kim. or turn have start opportunities

Kim Rivers

our a we would the here are business take your and Thanks, say our each to in and thank you commitment like thankful which today. of Alex. with other, I to partners to am heartfelt you moment made be so to company to a this each proud appreciate Trulieve employees. I and customers has Trulieve to

leading be world. by importantly, we of not cannabis more the the world’s and pending about by companies will create largest transaction cannabis would two footprints, joining about With future. the one this cultivation the operational of companies bringing is company and together today, closing, Harvest acquisition In cannabis in most public who forces our profitable retail just but

our company, say, catalysts resources would combined sheet growth of platform full our to Coupled change, the that short, profitability, with a you be well increase. result expertise future. within and these federal our would a those the occur for as have teams operational as onward. could as position markets, depth balance take As as strong have we combined to and Thank us on for exponentially for today, combined more our of our of advantage excited catalysts. the and not joining In about I would I execute always

Lynn Ricci

now questions. you can Operator, open up to

Operator

Canaccord comes Instructions] first Dley [Operator question The from Genuity. Thank of you. Derek

is open. line Your

Derek Dley

then, throughout state? just do just the cultivation, a talk performed recent congrats Yeah. is how I Pennsylvania in extend expectations? wanted can to to guess, just days, it’s leverage relative I more for And the on you Pennsylvania and specifically, increase Can I morning Hi. that about you and -- you guess Good results. just how on to the second. but talk initial strong your early

Kim Rivers

Yeah. thanks Good morning, Derek, and us. joining for

an Pennsylvania as so us for addition the quality the additional has so, QX. And have the performing got feet. side are flower we been XX,XXX additional to square in And certainly, expected market. has square and and portfolio, or excited on planted online to been and get just cultivation got footage into incredible our That’s we we

make facility as flower, with premium we be indoor premium of to and have to flower, indoor specifically additional rich biomass able terpene previously, growing was course, with stated produce that to great products also As you well. designed

So I operations come year. contribute online the am excited have to and add throughout to that

Derek Dley

have the, think there’s within we others, wholesale that hear about continuing guess, what I that when is market any you -- And are to any from supply it or supply -- sort see some we the relief of the given foreseeable you for to remain Do capacity future? Pennsylvania you from you coming that capacity? or constrained you constraints, there cultivation see see added do and are incremental going big

Kim Rivers

supply currently in think it’s do right, and seeing, I an lot interesting, you of are -- It’s evolution because mix. product definitely certainly like, constrained a it’s markets, you of

started are similar how of very oil-based we time Pennsylvania only trends that those very played Florida, well as least very say, Florida an be aware think have the in program and at to will and Pennsylvania So similar. we market out over

have we again, that with still mean, of front, flower seen see as with numbers, if that similar that market the supply. increasing, to comparison right, and have the up now is a has Florida, rapid trying So any ramp the week-over-week. onboarding a and which flower exponential in in very demand Florida catch I in we been product, has we to

down. to and surges doesn’t flower We in slowing demand have look had be that

customers [ph], that’s retail flower, Solevo to think very again, across for locations, be So it’s in or Pennsylvania, important through whether value different wholesale quality platform channel. multiple our going Binske available propositions at the in whether very, we Keystone, do the like flour distribution it’s our to have and

Derek Dley

month witnessed you from heard And was one more softer could, quarter, others cadence of was more I COVID terms acceleration, part have a think, if Okay. predominantly throughout in and then January particularly conserve a similar then within, just I decent with some of terms again, guess, we of what payments, in something saw it just did related I we of in sales Florida? March, you to the bit a guys saw restrictions in

Kim Rivers

Yeah.

-- of in have didn’t as the that maybe big who the heavier operations So, of as an north. impact peers we concentrated more have have our heavily some

snow So, in may don’t Florida, the and impacts then have experienced. others we quite have

fairly checks in I was pace a steady there with stimulus in say, on growth saw Certainly coming we steady but a in relatively a spike So side February. positive and March, bit January the March, line growth. of in would

Derek Dley

Appreciate very the much. Thank you Okay. color. Great.

Operator

Needham McGinley comes Your Co. of next & question Matt from

line Your open. is

Matt McGinley

product Thank the new is and not looks would you look the if you how a in like you. Can changed well? $X When than to premium rather am given little How compared the basis, Specifically, share bit between quarter, you it extracted edibles? product? flower and LM on as the necessarily mix mix shifts data the the seeing the to Florida look volume discuss of but the speak in I you that the are products that volume overall you Florida? dollar rollout at [ph], lost an share in convinced share that case could a little that’s have value

Kim Rivers

Absolutely, Matt. Yeah.

are certainly, seeing we categories. So, across

barbell move outpacing QX, about folks. QX, impact are have value with mentioned, from In still say, a of we QX -- from product mix last actually QX a actually saw and I A saw QX effect have that available mid-tier, As a an continuation our that, to a premium -- but, move lot bit honestly, what value, to we in a increase of X-to-X. value. in of do quarter, premium QX greater seeing to a internally with will around we I we to to to

are will, demand. evaluating And mix so consumer on resizing, our if you based product and constantly we

stimulus and of think I are again, where in you spending kind coming dollars. about, think folks it makes sense, the when

seeing oil continued the are increases we side, in edibles, On demand edibles.

lower in by larger so been amount milligrams Florida package of edibles And percent And going those per of so that our limited and be to reminder, statute and are a to demand. is a are as taking milligram. a has the oil

So to Hence appear. when this But terms that on building unit that you basis then, will basis, that some see it may and us. love -- of in a oil it’s report, may we per a on a facility you out see and margin flow-through of larger we coming the be sell edibles for later year. strong Tampa online are more reason that category in course,

Matt McGinley

never on the I I’d doing spend, love excited higher what topline. but for And Great. about be your CapEx, thought that’s CapEx I

-- this the am the assume you about projects sure of the talk talking not with big this are think right the about to trend cash CapEx. should You to pending this you spend year? how rates we the Is -- out the have, $XX of have spend of I the underway, million any the year model think I you right but projects that reconcile you course should kind level over may of for or to is but about remainder additional

Alex D'Amico

you. thank Matt, Yeah.

the heavily CapEx last the over going market year going the call kind to build So, of exactly And new the to shift we of ramp as kind are and of in that, to on the are invest at today, over the of rate run those out right? wouldn’t end throughout and we time. markets So with going said we I year. demands and will timing that could -- it’s time shift throughout to year.

spill Year, New into the could hit QX. it So in

the of be it saw year. say, would So QX run I But for in the least I you at wouldn’t what remainder that. would rate

Matt McGinley

much. very you Thank Okay.

Kim Rivers

Thanks, Matt.

Operator

of Russell from question Securities. comes Your Beacon Stanley next

Your open. line is

Russell Stanley

I that Good Florida market there? I new first just product characteristics earlier ago. additional But point point this patients into of am about morning. edibles you guess the demographic, role, coming perhaps can follow-up say a any this a Thanks to a at playing thinking a relative Kim. obviously, but one with at to onboarding for question. or an bit patients color what on the year respect were question, my new preferences, are you

Kim Rivers

Yeah.

that’s As in and we I XXXX, mean, think X/XX, Florida. regular the a market. exploding mark week. see as we have said, you call, look numbers a we exited patient frankly X,XXX I on basis, where mean we week-over-week enter Russ, patients the was seeing don’t in had it week when been overstatement X,XXX X,XXX I at quite growth approximately an are unusual mean, And mentioned to for of the a the -- not on in it’s we basis. us I patients

to be continued very, have rates those very strong. certainly, So,

and Our of have instances. I form that huge factor any the personally, from haven’t result I other changes think, actually a relatively that or remained demographics think a stable fact new seen is perspective we necessarily

So, bit and in a onboarding not it’s male-female. split the age the specifically about years we But, old, of a shifted with had hovering XX down market would age happen. Florida little XX average in again, old evenly flower just around it’s years

national of averages. product also of edibles for mentioned, continued come to line mix kind barbell we for It’s Flower, in as before, a strong our with again, course, are very respect us. preferences. And product we is as so, really with is And category action strong us mentioned a now. category right increasing price very, to seeing been I with steadily

accelerated So, real But growth categories. just all surprises. across no additional

Russell Stanley

and the Maybe there. of Virginia. elaborate to closing could in market are on I in am I if doors Congrats development on West of terms growth the gears for opening additional Thanks color if change wondering acquisition timelines what plan there. licenses for the just retail Great. you there. your this can the plans

Kim Rivers

Sure.

Virginia We we like are Trulieve. to at approach do everything going here else West

we in to we that there to the commitment people we in as really so we big we We many true and do we that doing to can get a going made are in as what provide are patients and said that. believer to we locations going do open for go to access a meaningful be that a going can are plan and are Virginia market we are going in to way have West fast and we that

So the for news we from Virginia year to get expect as as certainly can. as more Russ, on soon there us look on, West operational goes you us can but

Russell Stanley

the again. for congrats color Thanks great. That’s and

Kim Rivers

Thanks.

Operator

from Your next Azer comes Cowen. question Vivien of

Your line open. is

Vivien Azer

morning. Good Hi.

Kim Rivers

morning. Good

Vivien Azer

first adjusted for for My from period morning. that please. XQ your December please? offer It restated XX is color you press to question press good million -- some just question housekeeping release. like XQ $XX.X XXXX release, looks your guys Can the XXXX first $XX.X million EBITDA on in My one, a up you

Alex D'Amico

decided expenses QX we do adjusted and as of added in that in year COVID-related Yeah. period that reflected -- we the to then we well. We EBITDA, this comparative back

Vivien Azer

about are Understood. to form you you. the Okay. follow-up commentary you please, any increase orienting versus and what edible are you high dose edibles. think as market consumers a versus color granular Can low chocolate, And well, seeing on any from think Are gummies and with Xx perspective, own you from edibles? Thank more capacity, a about Kim, seeing dose on Thanks. how offer your factor more than in just as dosing? on category the in are on you the bias you

Kim Rivers

Yeah. Thanks, Vivien.

again, high are in dose, by statute here So, the dose/low Florida. constrained we on

And XXX up so edibles each no to milligrams over can and be package piece is XX.

gels or in surprising, form anyone, specific call have to Florida I X.X say that that certainly, category, leader in certainly, some X the XX XX terms respect flexibility them to-date I With folks to formula. in milligram would milligram, going factors certainly to if as are leaning front. milligram, towards So, piece is not we that, within per And edible mean, here of the go category. milligram to on clear you XXX gummies there milligram, I that are think,

also or of, results onset. formulation course, variety gummy have but a CBN/CBD with a positive pretty something and of ratios. actually looking little our flavor nano we profiles bit are predictable We launched our of faster gummies in those a folks We have in gotten for that’s also offered more just a for who then

So, gummies. And think anyone, leader. portfolio on not would that’s after don’t growth I certainly again, followed, say again, strong is surprising the and I chocolates for across but, really edibles. the

Vivien Azer

very That’s you. helpful. Thank

Kim Rivers

Thanks.

Operator

next Your Andrew from comes of Stifel question GMP. Partheniou

Your line is open.

Andrew Partheniou

Thanks my maybe Hi. quarter. seasonality. on congrats morning. for I about taking questions just talk Good good to wanted and a

year the fully Any Florida, bit platform you expect provide obviously of seasonality the year, any useful? expect hoop in You terms do excluding be am planting. could given wondering less that a color your year little you to in this what seasonality strong I production? last of of expanding have context could especially inventories? of Do houses, your on see edible house seasonality hoop this to just because how you see Harvest? obviously, Do you plant a introduced

Kim Rivers

Yeah.

footprint, So, contribute. of year certainly, would and expect to we greenhouse we be this that our planting will out

extent. However, I and believe on bit think, will continued at I we terms this might the point, a large investment customers of takes expanding with a -- that think of seasonality in we our it that quote-unquote, experience it the indoor our neutralize what -- to footprint,

to online include that got facility the Certainly, the And remainder given activity will before, and meet the demand that to program, be needed. again, with the biomass onboarding so, second along year. our as going just patient Tampa and additional be having our that’s of to kitchen, and that a noted plan -- should production I location. of facility again, in not production Tampa internal count, mentioned additional a demand we good clearly, also our forecast coming robust be that’s for have this with And increasing material with able in store Florida it across patient into

Andrew Partheniou

just inorganic on useful? if be could Any that. for basis, segment And a color you Thanks that color this providing be might of wondering not a little give bit on extra organic Great. you growth but can I realize quarter. versus

Kim Rivers

Alex as clear. I Andrew, pretty Yeah. think was

are which are We growth. break by with, segment. course, organic going Clearly, have being Florida not to markets that of out organic we XXX%

be But a be and quarter to it’s for to high a say, we Pennsylvania I would for continues performer going also expansion I of original in us. then invested basis. contributed but organic right, as Florida there the on this M&A quarter course, more we the the a have, clearly, hybrid because So, full platform, cultivation there, a of of bit have, mentioned, a

in So that it’s on as is going market. anyway blend our and and believe we footprint be side demand try to out we a the significant expand cultivation production going what to there unmet and to continue forward meet

Andrew Partheniou

that. will get for queue. back I Thanks in Okay.

Kim Rivers

Thanks.

Operator

Your next question Lyon of Camilo BTIG. from comes

Your is open. line

Camilo Lyon

Thank a questions. you. couple I Good morning, everyone. have

the like what lower it buy prior you inventory pricing available. bit mix on the had cultivation to Florida consumers premium a given a only First of question, and that that little they response on, ran Kim, in skewed flower sounds out

shifting as towards pricing we you about are we or coming experienced to kind As pickup of the way I more premium or is you say? think on going pricing expect And a line, that result should that a co-production, future QX? harvest production of should fill in

Kim Rivers

Yeah.

So we which plants. remind and is often are are remember evaluating demand, -- these constantly have folks I I thing mean, the that, remember, to to

does flower monitoring SKUs result. our one are thing -- certainly, an I became adjustments been to for make that, demand. very that in the it our we and adjustment, that through as We that time take canna-connoisseur mean, system. our -- clear. think can’t launched it those met demand strains to customer you come in which was a have incredible ultra-premium But order I collection, so, with always and category making is that -- Cultivar And

said, meet It have are particular to in looking order strain in in qualify category. to extremely And inclusion has so That the that that we standards number increase do for profiles we criteria to a available being line. certainly that five-step for especially category. quality a high

time also bit and in your does of set And we for deliver question be consumer particular it the we of that we little category, take certainly, that flower broadly, say, the But would -- are are a out catch on constantly I those proposition up. But that so sure monitoring preferences we of making that answer we have have to very adjustments. kind making value to adjustments then worry. to for particularly, mindful

yes. short I answer answer but the is, guess So, the --

Camilo Lyon

can Harvest? composition Okay. step-up what say margin And the and the a impact us you would to forthcoming inventory similar more Florida Pennsylvania from of the you it. question, the Alex, then, of Kind question Thanks. tell in was a pricing of was that’s keep kind Got impact more a inventory product that with more mid-tier-type would it of profile of in consistent elevate kind the with even or it as product a probably is of premium where -- where kind margin the that QX?

Alex D'Amico

Yeah.

will the not I are on value fully exhausted that are fair the inventory that by we to we breaking up are But you not step like is going -- of won’t say on see by or and So QX. we out reporting that margin again state. again that state in --

Kim Rivers

in terms relates mix of as products. then philosophy in think of a it to We kind And the do it’s of planting Pennsylvania. our Yeah. important have value to

However, that the to that we way. we be the introduction, to strong into to products are have we will, kind the are to market presenting flower to make sure that are first meaningful we in when the going Pennsylvania for we flower a market got want you presenting time make our of -- category if

that, so, we I side the on would say premium. leaning And of are

we Although, various consumer be again, and have our need make cognizant very to spectrum points advantage to sure enjoy across that do price of being that can the able products. to take

Camilo Lyon

Got to good it. Thanks rest so the and year. luck much the

Kim Rivers

Thanks so much.

Operator

comes Capital Your Kenric Markets. next from Tyghe of question ATB

Your line is open.

Kenric Tyghe

of rates you profitability see other the course the to that, over good to data both could the to sort can edibles being you similar think loyalty Kim, to in and basket morning. your that we build to how date as sort look of how just of driving Thank and the over evolve evolution average of the of track markets? perhaps that speak penetration And should in share on is use and just about edibles year? effective of we how

Kim Rivers

Sure.

was terms really volume seeing from basket, What of we we to that again on the mean, into QX program. the it in in I patients of average relatively QX average onboarding line, is are again, an right, our So, basis. thought

perspective. are So, I of more would say what we from that, that’s trend a seeing

I edibles see the growth In category line national terms did as and mentioned, with the approaching in mix, category. in of product edibles we quarter-over-quarter are averages on

that bit but a loyalty now, it’s catching our program in still -- -- rapidly on have are loyalty little strong years frankly. as behind strongly broad a the up very far for And a then, we that’s front. program and as quite participation adopted goes, are program been We been

onboarding to changes Magento platform. our that can ERP going enhancements you and changes, We as have are look coupled platform SAP the our some we coming loyalty be soon program mentioned and to of with making with for some some

look to I think will we be and our are visibility additional some features they loyalty additional QX I XXs. in at loyalty got and have ability is low offer which to the kind to a maybe our of program But have when think our that, some our customers, customer I thing contributes excited that, going about. look you the You the QX going will, from We really, from at which that is subset, very for retention in to rate, think, one if XXs you right?

of on and and customers are good mix to answering listening are the right keeping right? where we the it’s market. our the and are we see requests a job their think of making adjustments that product having indicative patients, I we doing them And making shelves we happy, that our sure in folks

Kenric Tyghe

on potential the and Thanks. Florida the to And about in onto license recent insight any color rulings on touch provide just and and also just you use could could on ballot outlook, and recreational two that considerations quick secondly, how mechanics around you any rolling stores regulatory that? your And hurdles of or then acquired then initiative? the on think the parts a

Kim Rivers

Sure.

ability initiative is to Supreme ballot the as initiatives know, strike Court one ballot onto the still for is for so the get we ruling. pending that and XXXX. initiative the down ballot of proposed And another a did There

we inclusion them and lessons taking a to made ballot are that there the in the Court be consider So around And in that. crafting to language it is very given clear things would their for on a in hear waiting to on ruling new Supreme included in need for addition, conversation an were initiative. appropriate from and the that the they

the say, still it’s would I in So, works.

on second right, we the other will hopeful that I make goes, are ruling that take you think depending and of very one And a a to in how the pending transfer several terms way on will, company to or Supreme well-documented in transferred it that the has stores Florida, specific Court program, Florida assets then, then and asset will and from from we a successfully if initiative companies one have another. have there.

on regulator the other. from transfer utilizing protocol to company working to one the be with will we assets that So

one Of course, as have than need and absolutely is is we know, in prohibited. to Florida license no there that more

the would asset plan and here be regulator actual a licensing we divestiture. both effectively again, to and transfer the then of are with license. touch with hand to the actual license effectuate So divestiture work in necessarily And hand there the the in them

Kenric Tyghe

Thanks congrats. and back queue. I on the will get

Kim Rivers

Thanks. Yeah.

Operator

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

is line Your open.

Eric DesLauriers

on then what strong quarter. Great. shed can wholesale wondering Thanks strategy Should in of mix could light retail can you in product both. expect your we plan markets including some or the first-party you questions stores? we mix virtually difference significant on taking your third-party congrats how for if expect retail I retail and the more where Thanks. here? my And in your wholesale you versus was do brands from product on retail do should versus in stores XXX% we think your

Kim Rivers

that and been Sure. around are -- a strategy of as we poised having And Massachusetts it’s a timely very of question, course, conversation have launch and to internally. sessions lot

way a right? capacity we from rate. shown that a Certainly, on brand can in the perspective on is the you more So, the but the very to customer about loyalty platform, something very, control able would on and important it’s way certainly, to business, dependent stickiness. chain are market the the When not going you I to have supply lead shelves say of is only patients and be s and vertical customers. completely think footprint also know to much is and I tell to that’s store and quality margin customer it’s how it’s maybe or awareness explained which that side we that talked retention on that, So on not going stronger to as be but product our a it’s our and the believe extent that some dependent presented

provide we operate ability the will shelves not for sure motivated constraints canopy whether that cultivation going In necessarily right? believe to full. to of able are square to us are to some we Florida, replicate That on SKUs good due branded again we other ability or to feet in quality have of to that markets We markets. that platform, in to the constraints instances just be we have produce ensure it’s XXX a X regulatory there we we platform exact be So said, products due that other not do in. with a constraints in million all over our that being have

that we And we will have staple so, on will we are we have be folks make platform in shelves we making to our only be Trulieve providing our that course, right, sure market. very sure very going very robust find in we identified some that instances, of our special able along of to -- those that what be be products got available customers consider to with stores, we will will items wholesale specifically to products a but then, the

and good depth at a Trulieve need want yes a say here couple to us to and and wholesaling also have customer that, good just that, they make to inbound be will on course, at needs experience of then a the day, a sure shelves you of our the stop there is we of the the no. product, wholesaling always mix, end of of you things So, want externally

So, want have to good variety, we depths. good

-- creating saying into that deliver don’t we to great a that for And we just store, environment to by make run sure the-customer or So give a of yes always they not customer our is a reason us. exceptional mentality are we visit no want in then them experience. once right, a them to have customer

Eric DesLauriers

could long here? as slow of do the time, Massachusetts we the It ramp Okay. the appreciate pace running you a works a in that. should I sort of been ramp Massachusetts? hitting sales for the Great. in sort with has And anticipate That’s here think on of understand us here, that normal help still ground you wholesale or of Thanks. just then helpful.

Kim Rivers

and see of Have to Massachusetts long coming. We in think We I us all you operator It this say T-shirts you are joke that, that Yeah. would and a from been I activity year. any Survived going I -- made so has tell should in Massachusetts. time a flurry

gun of want want little shy sales. really or So are to timelines there. because get we a want operational. get making specific any We to ramp projections We start to we giving

have We branded a also to which secure are working -- whatnot certainly have retail lot have and and we working biomass can support both Trulieve for various to there. and a been our had again, of to we and SKUs, operations products that lay solid time processing across additional on our wholesale then so foundation, products begin we

will certainly, come that in I you that, expect should on say Massachusetts you but more So -- contribution from XXXX. to would

Eric DesLauriers

to will The Thank you. that. residents Massachusetts look forward

Kim Rivers

Awesome.

Operator

question Capital. from Graeme Kreindler comes Eight next of Your

Your line open. is

Graeme Kreindler

markets, comments, patient appreciate go demographic and Florida might you wondering, penetration to more medical potentially X.X% in on rate some see sort for and is there made you then a of is trends to thoughts. closer is I with -- in that’s and mature penetration the thank Thank Oklahoma like where independent population. an to rate that line the your just you those in go the mature those adult regarding some much. outlier maybe My patient my the prior patient of any close some of would call states were seen X%. upside or for used some Florida. think in to And up you the be about targeting that Do in it there? falling coming of we to that mature case and of taking to question. previous you the was morning very of Good understanding that or wanted to way think internal has do markets have more comments strong Florida? I to of sort seen penetration rate about follow closer to I X% expand any the to potential

Kim Rivers

I rate of year, you an so down. tell what can this is said, we that, been growth mean, incredible as absolutely with it’s far have slowing is -- I Yeah. signs there no

very way, the will popular call state bounds. Florida population, I is post-COVID well million a a third given most Florida XX think it from by destination growing, perspective. populous that’s I the over again, residency the as and as is leaps with residents,

continue then So to grow. our at population from a demographics again, older of And again, to -- that expect look perspective a financial as would if the I from you capabilities slightly turning population, well. trending

certainly new would we we onslaught call, would is things penetration and of statute. it will Florida to strong it already direction, to a are headed other for course, see to it’s a are would of products, So a waiting end are really I relates case in there’s rules which time high as that think -- are surpass, still here if in which market that I The interesting medical concentrate the numbers allow for when be now, it that indicating hydrocarbon in Florida, we for consider, right? average do expecting any to and that that which certainly whole

demographics the will are a previously. you see we some see One end So those when if what we to where are we that to really interesting the may product perspective. expect category, kind of would connoisseur a concentrate in down or from shift. up of to similar see just waiting on how that able higher shift category rules were kind with edibles age open It demographic be that

that of see affects ratios I then, also so -- and course, And and as am well. curious to the female male how

as end. well see don’t very may that see any on the the and I patient given we our there Florida relates as outlier to it indication in state, are -- well a down growth think do that been an I So, slowing hasn’t higher we particulars

Graeme Kreindler

you appreciate Understood. Thank very thoughts. I the much.

Kim Rivers

Yeah.

Operator

Your Capital next Partners. ROTH question comes from Scott Fortune of

open. is line Your

Scott Fortune

kind have of different have strategy done national morning level Southwest here But out how regions. new on in on things should A the kind region branding. at different Good wholesale you the questions. that look local level out local side the and follow-up you as brand of the Obviously, you branding the well the very building you high of and these kind of build we regions? from thanks of each for and from a and look at a as of

Kim Rivers

Sure.

in of brand that the is consumers certainly, for we Certainly, years. Trulieve mind been connectivity something has across constrained and always to are top So, markets.

have work across of said, be across recently that That and We national architecture we we make compliant. have will first as we foremost, and think positioned brand are, kind will like what completed about regions. sure being markets actually portfolio and how to under, that a always look brand it

always launch so with And development our excited a way Massachusetts we we to then about so ability the showcase Florida, respect may to as have have on limited to an in example, naming, doing of in that and market-to-market. somewhat in be continued really Pennsylvania et keep again we are our on exist mind cetera, that requirements that constraints packaging and because in to and brands

we regionality Another plan is are market been local I consistent we on brand embracing to partners the of we thing entering. have think that very finding continue really highlight the and to that and

more our we have River, brand as portfolio Sunshine been brand which course Blue And very excited with are Cannabis, build well. out our cetera. also so, be enter to partner to certainly, very, local as successful going in our continue Florida, partners to And et Black we partners Massachusetts as of national Tuna, a with them such with that

are cognizant cognizant the of in mix positioned brands And of so marketplace. our the how always portfolio and

will portfolio to very some internal as launch Northeast. You as coming we and in near-term, integrate across brands the Trulieve Massachusetts the brands that see those again, we shelves then in

that So tuned, on things exciting front. we stay got to some have come

Scott Fortune

going a it real just legislation federal getting seems in just side comprehensive be with federal And side. out color. on is to quick, things, the the like lumped it of side, Any seems thoughts and appreciate pushed I be the Banking to Great. on more the follow-up updates here? SAFE

Kim Rivers

Sure.

Schumer today -- sure has but, think there Senator if tweeted soon. I quote So, it’s not am or its not I right?

So -- I the -- it’s we monitoring same are am it.

resources and the contact is it’s are in what consistent I through D.C. in there that. in through -- everyone think We seeing with

Scott Fortune

Yeah.

Kim Rivers

in we a were we different year than ago. Certainly, a are place

folks wanting, the cannabis right, motivated at how think are -- happen I the significant have federal and cannabis policy positive and very into level. are to where whereby policy

hoping degree two and to whereas of it’s right ago we or just Now, matter included ago a just what’s something. for what were years a year all

of terms close to agencies it interesting. will their other opposite other coin, talks are with vest you if continues of to So hearing. get to holding very, Schumer similar on Senator side be included. the But agencies been what have his he’s He’s input There and it’s of what will. to the bill. consulting you comprehensive work all very time, will certainly ahead the be sort which in of

as that, well bit have and level items, of of it’s as and official do be see. word terms of included. a necessarily he’s reform and believe we course, other However, wait justice thinking, some will equity But little a of criminal in

was Of some and introduced believe course, saw including other right, a which I in Republicans, House, we yesterday was measure SAFE items it the reduction and the included Banking. interesting, a in scheduling

out. all think all I kind to of, coming signs So are pointing something

would we we to of be going too that’s hope are and be think that all is the heavy, our it watching hope I would which while. really be short it’s that going out right, next introduced, after what just -- something doesn’t and we to get actually are able to move within

Scott Fortune

update. Thanks. Appreciate the

Kim Rivers

Yeah.

Operator

Grey question next Global of Your from Partners. Alliance comes Aaron

is Your open. line

Aaron Grey

Hi.

one question and Just me. the quarter. congrats from on Thanks the for

ask to basket. want about just average So

have the overall for kind trend next look of basket. to now So a and seen been quarter bit the sequentially, little I it on if was you stimulus still a from little down you like Thank wondering it saw up out of couple quarters? How boost the then the for the what year-over-year. bit of am edibles rolled looks at that have you any that from the end you. impact over

Kim Rivers

the as are course, -- Sure. a have seeing of said pretty from we are consistent we Yeah. basket But rapid we relates on patients. fairly consistent basket, -- seeing, I side. to as previously, in increase mean, I it think, again,

$X,XXX of the significant think you increase $X,XXX, very in to that’s when end short year So, a a period time. about of

And we basket patients are come new again in that that, that so, and size seeing with are folks but is fairly -- flat.

those stimulus, stimulus. was relates identifiable it days hit. some pretty It checks As to saw stimulus when around certainly, increases we

and I where therefore stimulus period will a wasn’t And say affecting or baskets. wasn’t was a skewing so protracted it protracted it

not should part decrease was creating that’s question well, because baskets okay, maybe stimulus case. to then bump assume in the the in think we is, going of I or maybe a QX, that are QX increasing

that, to as I line in consistent. national think said, edibles and averages beginning product again, as fairly So, coming has it’s we I in can QX, in QX tell that now, you things mix. right increased Again, come or line are to with those see

Aaron Grey

for Okay. Great. the color. Thanks

Operator

Your Echelon Semple Markets. next Capital of from comes question Andrew

open. is line Your

Andrew Semple

anticipation built the and build you could medical wanted pace Hi. in and expansion might that’s of future supply demand, in congrats on or of of your constrained feel capacity cannabis potential the to for Good those that’s whether a any on potential whether you plans perhaps, buffer use? morning Based be clarify and outs production just Florida, additional today I currently quarter. whether just adult comment being

Kim Rivers

Yeah.

So we certainly and to say say from X,XXX candid growth I cultivation anticipated. I the was try pace, across our and will necessarily with and our increase not will that to X,XXX that patients platform. be -- in production entire patients nationally right, markets do we will

have. from bit and a patient is which around specifically problem Florida and having depth take we is of But one hallmarks. perspective, So very, category -- we our again -- in to seriously it in depth in playing a very we our a that’s product great catch-up so are -- of cultivation and

we surge were for for we right us surprise. that that a little mix running So, took -- is of demand by folks make it got little the QX, very have us in to in because bit thin a sure that and just important the patient

latter of say, to year, course, It accelerated we should of towards our really would or that for until plans. again, and make half that it’s that the noted had up. I goes the we specifically we forward XXXX of either will do continue are mix, we we need plans a we in approach end to further. we year last be XXXX So, back We some of keeping need bit building, brought place are have in And -- that -- right, market sure a those right? -- expect the we the throttle we and to have signals that, as that little of the then accelerate the even

So, has built and to to harvested, to has be specifically cultivation cetera. planted has and it then again, it et be be

revenue not immediate, from through a you it’s perspective. So an immediately and online it, plant you it when doesn’t have it when come

So, we one got a ahead and QX little ahead, step us. try always of in demand stay Florida

which cultivation catching right, mentioned, comments, go-forward bringing at back a in up, the I So basis. we we and he going be are rate online Alex’s to think are on

So, ahead. and growth and lots exciting lots of times

Andrew Semple

to Understood have. a problem very and nice agreed

that updated question fair capital? on But I on of of today. here, amount Just would to your the to cost there’s for on potential like balance cash debt opportunities maybe whether next monitor moving business’s capital the thoughts the I get continue you overall to lower a to understand sheet potential

Kim Rivers

Yeah.

certainly, into continue make to business, I to and mentioned, to on is certainly, are established, continue so, through opportunities in coming we And already we they mean, themselves. an I as addition, are to thing participate really are to sure in One being And we in the opportunities are we so from over to the about to obviously, that call be of right, markets do able going want going present we those year. deeper today perspective certainly, markets Florida. be are and new take there that are just talked in hope advantage prepared coming reinvest about, applications, we as as haven’t organic we going we the we to online fruition go talked to that that clearly that plenty of that and

in Pennsylvania. of the that are in process We doing

same You other have, said, build markets, of I platforms. build CapEx of And in again those to we just, coming spending then particularly will plenty course, hope Massachusetts, so the can us online. to new do see Virginia, West that problem that of the off like Southeast the in we

the couldn’t just be again of that growth and more us in of cash excited prospect have of for uses XXXX. XXXX lots we of and ahead So, of terms

Andrew Semple

Appreciate for the questions. taking color. Thanks my

Kim Rivers

much. so Thanks

Operator

call the I remarks. There Ricci for now are no further questions at return Ms. this closing to time. will

Lynn Ricci

again to Thank Have you quarter. We look all day. for joining great forward a us today. next you updating

Operator

participation. call. conference Thank you for today’s concludes This your

You disconnect. may now