Trulieve Reports Record Revenue for the Third Quarter of 2018

Release of strong earnings and growth follows recent announcement of first operational expansion outside of Florida

CSE: TRUL

TALLAHASSEE, FL, Nov. 19, 2018 /CNW/ - Trulieve Cannabis Corp. (CSE: TRUL) ("Trulieve" or the "Company") today announced its financial results for the third quarter ended September 30, 2018.

Unless otherwise stated, all currency is expressed in U.S. dollars.

Q3 2018 Highlights

• Revenue grew from $23.3 million in Q2 2018 to $28.3 million in Q3 2018
• Adjusted EBITDA^1,2 increased from $11.7 million in Q2 2018 to $12.6 million in Q3 2018
• Began trading on the Canadian Securities Exchange

Highlight Subsequent to Q3 2018

• Entered into agreements to acquire 100% of Life Essence, Inc. and 100% of Leef Industries, LLC.

"These outstanding results in Q3 demonstrate the meaningful progress we've made on our strategic plan since becoming a publicly-traded company in September," said Kim Rivers, CEO of Trulieve. "Looking ahead, we remain focused on scalable growth, including multi-state operational expansion."

Earlier this month, Trulieve announced the acquisition of Life Essence, Inc. and Leef Industries, LLC., based in Massachusetts and California respectively. These acquisitions mark the first operational initiatives beyond Florida for Trulieve.

"Trulieve's market-leading brand experience continues to result in high patient retention as we deliver consistent, high-quality products, supported by predictive analytics and industry-leading outreach while advocating for patients and physicians," Rivers continued. "We believe we are well-positioned in continuing to be the dominant leader in the Florida market while firmly establishing our footprint in the Massachusetts and California markets moving forward."

Results of Operations (Figures in Millions)

	2018 Q3	2018 Q2	% change	2017
Total Revenue	28.3	23.3	21.5	19.8
Gross Margin^2	20.0	17.3	15.6	8.7
Gross Margin %	70.5	74.1	(4.9)	43.9
Operating Expenses	8.0	6.0	33.3	8.3
Operating Expenses %	28.4	25.8	10.1	42.0
Adjusted EBITDA^1,2	12.6	11.7	7.7	0.8

Reconciliation of Non-IFRS Adjusted EBITDA (Figures in Millions) 

	2018 Q3	2018 Q2	2017
Net Income (IFRS)	17.5	7.9	3.6
Add (Deduct) Impact of:
Net Effect of Change in Fair Value of Biologicals	(15.8)	(3.0)	(9.7)
Interest Expense, Net	0.4	0.8	0.9
Depreciation and Amortization	0.3	0.2	0.2
Depreciation included in Cost of Goods Sold	0.6	0.4	0.3
Provision for Income Taxes	8.2	5.4	4.7
RTO Expense	1.4	-	-
Loss on Debt Settled with Equity	-	-	0.8
Other Income, Net	-	-	-
Total Adjustments	(4.9)	3.8	(2.8)
Adjusted EBITDA^1,2	12.6	11.7	0.8

1.	EBITDA and Adjusted EBITDA are non-IFRS financial measures. While Trulieve believes that these measures are useful for the evaluation and assessment of its performance, they do not have any standard meaning prescribed by IFRS, are unlikely to be comparable to similar measures presented by other issuers and should not be considered as an alternative to comparable measures determined in accordance with IFRS.
2.	Adjusted EBITDA and Gross margin do not include net effect of change in fair value of biological assets (i.e. gain on biological assets).

The Management Discussion and Analysis for the period and the accompanying financial statements and notes are available under the Company's profile on SEDAR at www.sedar.com  and on its website at https://www.trulieve.com/investors.

This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements. 

Conference Call

The Company will host a conference call and live audio webcast on Monday, November 19, 2018 at 10:00 a.m. Eastern time, to discuss its third quarter 2018 results.

All interested parties can join the conference call by dialing 1-888-231-8191 or 647-427-7450, conference ID: 3737588. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until Monday, November 26, 2018 at midnight, ET. To access the archived conference call, please dial 1-855-859-2056 and enter the encore code 3737588.

A live audio webcast of the conference call will be available at:  https://event.on24.com/wcc/r/1874806/BE70DB8D218BCC2BCA414D04A7C8EC2A.

Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days by clicking the link above.

About Trulieve Cannabis Corp.

Trulieve is a vertically integrated "seed-to-sale" company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.

This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

Forward-Looking Statements

This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Such statements include statements regarding the completion of the proposed acquisitions and the plans for the assets of the entities being acquired.  Words such as "expects", "continue", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.

SOURCE Trulieve Cannabis Corp.

Kevin Darmody, Director, Investor Relations, [phone], [email protected]