Please ensure Javascript is enabled for purposes of website accessibility

Marijuana Stock Trulieve Cannabis Expects Revenue to More Than Double in 2019

By Joe Tenebruso – Aug 16, 2019 at 9:50AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The dispensary operator is expanding at a rapid clip.

Trulieve Cannabis (TCNNF -6.38%) reported second-quarter results on Aug. 14. The Florida-based dispensary operator saw revenue rise 30% sequentially to $57.9 million. The gains were fueled in part by a 19% increase in Trulieve's patient count in Florida, to 181,000 people.

The company said that sales of smokable flower accounted for approximately half of its total product sales in Florida during the quarter, up from less than 30% in the first quarter.

To meet the rising demand for medical marijuana in the U.S., Trulieve is opening more dispensaries. The company opened three new locations in Florida, bringing its total dispensary count to 29 locations at the end of the second quarter.

A marijuana dispensary

Image source: Getty Images.

To fund its expansion initiatives, Trulieve recently raised $70 million via a public debt offering. It also sold a 150,000-square-foot property in Holyoke, Massachusetts to cannabis-focused real estate investment trust (REIT) Innovative Industrial Properties (IIPR -2.26%) in a sale lease back transaction. Innovative Industrial Properties purchased the real estate for $3.5 million and will reimburse Trulieve for up to $40 million in tenant improvements to help upgrade the property's cannabis production capabilities.

All told, Trulieve's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 66% to $31.6 million in the second quarter.

Looking ahead, Trulieve expects its full-year revenue to soar 114% to 133% to between $220 million and $240 million. The company also expects to generate adjusted EBITDA of $95 million to $105 million.

"By continuing to focus on operational efficiencies, maintaining sound financial discipline, and leveraging our strong brand awareness and patient loyalty within current markets and in future expansion initiatives, we expect our efforts to translate to new strong results throughout the remainder of 2019," Kim Rivers said in a press release.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Trulieve Cannabis Stock Quote
Trulieve Cannabis
$9.24 (-6.38%) $0.63
Innovative Industrial Properties Stock Quote
Innovative Industrial Properties
$92.07 (-2.26%) $-2.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.