Trulieve Cannabis Corp (CSE: TRUL) reported their third quarter financial results this morning, reporting revenues of $136.3 million for the period ended September 30, 2020. Net income meanwhile came in at $4.7 million for the three month period. Revenues were up 13% on a quarter over quarter basis.
Gross profits for the period amounted to $102.2 million before fair value adjustments, with production expenses and cost of goods sold amounting to just $34.1 million. Operating expenses meanwhile amounted to $42.0 million, an increase from the $36.8 million seen in the previous quarter.
Operating expenses largely consisted of sales and marketing at $29.4 million, while general and administrative expenses amounted to $8.5 million. Depreciation and amortization meanwhile came in at $4.0 million.
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Following interest expenses of $6.4 million, along with other expenses of $10.7 million on a net basis, the company managed to post an income before provision for income taxes of $26.3 million. Income tax provisions however amounted to $21.6 million, resulting in an overall net income of $4.7 million for the three month period, as compared to $6.6 million in the second quarter.
It should be noted here as well that the company is in the process of converting from IFRS accounting standards to that of GAAP standards. The impact, is that under GAAP the company would have reported a net income of $17.4 million.
Looking to the balance sheet, Trulieve saw its cash position climb from $150.3 million to $193.4 million over the course of the quarter, a function of the company conducting a financing during the quarter that brought in $83.2 million of proceeds on a net basis. Inventories meanwhile fell from $219.0 million to $205.3 million, while prepaids climbed from $11.2 million to $13.3 million. Total current assets overall climbed from $413.7 million to $446.7 million.
Accounts payable and accrued liabilities also climbed over the period, increasing from $21.6 million to $32.8 million. Income tax payable however fell dramatically, from $55.1 million to $14.0 million. Notes payable to related parties offset this somewhat, climbing from $0.2 million to $12.0 million, while the warrant liability increased to $22.7 million from $10.9 million. Deferred revenue also climbed slightly from $3.8 million to $4.6 million. Overall, total current liabilities fell from $100.1 million to $95.1 million.
Trulieve Cannabis last traded at $35.30 on the CSE.
Information for this briefing was found via Sedar, Canaccord Genuity and Trulieve Cannabis Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
