Trulieve Earnings
TCNNF is a USA Long.
With better-than-expected revenue, Trulieve has more than doubled its quarterly net income for Q2 2021, recording its 14th consecutive quarter of profitability. The company also announced that Harvest Health and Recreation shareholders approved the Trulieve acquisition at a special shareholder meeting held on August 11. The company has also received a Class 1 production license in Georgia during the quarter, allowing its expansion in its seventh state of operations. Meanwhile, following the acquisition of Keystone Shops in Philadelphia, Trulieve (TCNNF) has increased its dispensary count in Pennsylvania to six. Total revenue was up 78% YoY to $215.1M, up 11% improvement in 1Q21. Despite a decline of gross profit margin to 67% from 75% last year, net income has jumped 116% YoY to $40.9M. We recently moved down the list of best ideas, as the company's stock is likely to go sideways as they integrate the Harvest deal and see growing pressure and market share losses in its core state of FL.
Columbia Care NJ Location/Earnings
CCHWF is a USA Long.
Columbia care announced its New Jersey location in Deptford, NJ. The location will open sometime this quarter, and another location in NJ will open in Q1 2022. These locations are strategically positioned in a very limited license market to begin within a medical-only market. On top of NJ's low supply right now, adult-use sales will begin shortly, causing demand to skyrocket with such limited supply. The locations which will be open before adult-use sales begin will be set to have record sales when they do begin.
Columbia Care reported record Q2 21' results in line with all other MSOs which have been reporting. Their quarterly revenue increased 232% YoY to $110 Million with an adjusted EBITDA of $16.4 Million. In addition, the company reaffirmed its 2021 revenue guidance of $500-$530 Million. “We are pleased to report another record quarter for Columbia Care as we continue to execute on our strategic initiatives and build scale in markets across the country,” said Nicholas Vita, CEO of Columbia Care. “Our results in the second quarter were driven by organic growth in new and mature markets, increasing wholesale activity, and contribution from our recently closed acquisition of Green Leaf Medical (gLeaf). We saw continued year over year and sequential improvement in both gross and Adjusted EBITDA margins as we leverage the scale of our national portfolio and ramp in newer markets.”
Illinois Tracker
Illinois had record adult-use sales with $128 Million in July, an 11% sequential and 110% YoY increase. Illinois is one of the most profitable states an MSO can operate in, with average sales of $17 Million per dispensary. These record numbers combined with a high-demand environment are a combination for strong profits for Cresco, Green Thumb, Curaleaf, Verano, and the several other dispensaries which operate in the state. The annual combined run rate of Medical and Adult-Use is $1.7 Billion.
