First quarter performance of $298 million in revenue, up 4% sequentially, and 58% gross margin Strong cash flow from operations of $139 million and free cash flow of $124 million* in Q1 2024 Definitive progress made on Smart and Safe Florida adult use initiative and federal rescheduling of cannabis to Schedule III TALLAHASSEE, Fla., May 9, 2024 /CNW/ -- Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced its results for the quarter ended March 31, 2024. Results are reported in U.S. dollars and in accordance with U.S. Generally Accepted Accounting Principles unless otherwise indicated. Numbers may not sum perfectly due to rounding. Q1 2024 Financial and Operational Highlights* Revenue of $298 million increased 4% sequentially and year over year, with 96% of revenue from retail sales. Strong first quarter sales were driven by higher retail traffic and average basket size. Achieved GAAP gross margin of 58%, with gross profit of $174 million. Reported net loss of $23 million, an improvement of 31% sequentially and 64% year over year. Adjusted net loss of $10 million* excludes non-recurring charges, asset impairments, disposals and discontinued operations. Achieved EBITDA of $85 million*, or 29% of revenue and adjusted EBITDA of $106 million*, or 36% of revenue, up 21% sequentially and 35% year over year. Generated cash flow from operations of $139 million and free cash flow of $124 million*. Cash at quarter end was $327 million, inclusive of $50 million in tax refunds, from amended returns, related to our tax challenge of 280E received during the first quarter. Opened three new dispensaries in Cocoa Beach, Palm Bay, and Pinellas Park, Florida. Ended the quarter with 31% of retail locations outside of the state of Florida. *See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics. Recent Developments Smart & Safe Florida initiative for adult use will be included on the ballot for the November 2024 election. If passed by voters, sales are anticipated to begin in May 2025. Department of Justice confirmed progress on federal rescheduling of cannabis to Schedule III, which would allow research and remove 280E tax burden. Opened one retail location in North Palm Beach, FL. Currently operate 196 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States. Management Commentary "With strong performance in our core business and several meaningful catalysts on the horizon, the outlook has never been brighter," said Kim Rivers, Trulieve CEO. "The team has done a phenomenal job carrying forward the momentum from last year, driving further improvements in production and retail. Given our financial performance and significant scale in key markets, Trulieve is best positioned for the coming wave of growth catalysts." Financial Highlights* Results of Operations For the Three Months Ended (Figures in millions except per share data and %change based on these figures) March 31,2024 March 31,2023 change December 31,2023 change Revenue $ 298 $ 285 4 % $ 287 4 % Gross Profit $ 174 $ 150 16 % $ 154 13 % Gross Margin % 58 % 53 % 54 % Operating Expenses $ 128 $ 133 (4 %) $ 125 2 % Operating Expenses % 43 % 47 % 43 % Net loss** $ (23) $ (64) 64 % $ (33) 31 % Net loss continuing operations $ (23) $ (34) 32 % $ (37) 36 % Adjusted net loss $ (10) $ (18) 43 % $ (23) 55 % Basic and diluted shares outstanding 189 189 189 EPS continuing operations $ (0.16) $ (0.18) 9 % $ (0.19) 17 % Adjusted EPS $ (0.05) $ (0.09) 44 % $ (0.12) 58 % Adjusted EBITDA $ 106 $ 78 35 % $ 88 21 % Adjusted EBITDA Margin % 36 % 27 % 31 % *See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics. **Net loss includes discontinued operations and non-controlling interest.   Conference Call The Company will host a conference call and live audio webcast on May 9, 2024, at 8:30 A.M. Eastern time, to discuss its first quarter 2024 financial results. Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call. North American toll free: 1-844-824-3830 Passcode: 3368806 International: 1-412-542-4136 Passcode: 3368806   A live audio webcast of the conference call will be available at:Trulieve Cannabis Corp Q1 2024 Earnings A powerpoint presentation and archived replay of the webcast will be available at:https://investors.trulieve.com/events The Company's Form 10-Q for the quarter ended March 31, 2024, will be available on the SEC's website or at https://investors.trulieve.com/quarterly-results. The Company's Management Discussion and Analysis for the period and the accompanying financial statements and notes will be available under the Company's profile on SEDAR and on its website at https://investors.trulieve.com/quarterly-results. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements. Trulieve Cannabis Corp. Condensed Consolidated Balance Sheets (Unaudited) (in millions, except for share data)  March 31,2024 December 31,2023 ASSETS Current Assets: Cash and cash equivalents $                320.3 $                201.4 Restricted cash 6.6 6.6 Accounts receivable, net 5.9 6.7 Inventories 209.4 213.1 Prepaid expenses 17.4 17.6 Other current assets 20.3 23.7 Notes receivable - current portion, net 4.4 6.2 Assets associated with discontinued operations 0.9 2.0 Total current assets 585.3 477.3 Property and equipment, net 672.1 676.4 Right of use assets - operating, net 97.2 95.9 Right of use assets - finance, net 58.0 58.5 Intangible assets, net 901.7 917.2 Goodwill 483.9 483.9 Notes receivable, net 6.3 7.4 Other assets 12.8 10.4 Long-term assets associated with discontinued operations 2.0 2.0 TOTAL ASSETS $            2,819.3 $            2,729.1 LIABILITIES Current Liabilities: Accounts payable and accrued liabilities $                  82.8 $                  83.2 Income tax payable 1.2 — Deferred revenue 2.1 1.3 Notes payable - current portion 3.8 3.8 Operating lease liabilities - current portion 10.5 10.1 Finance lease liabilities - current portion 7.8 7.6 Construction finance liabilities - current portion 1.6 1.5 Contingencies 4.4 4.4 Liabilities associated with discontinued operations 3.1 3.0 Total current liabilities 117.2 114.8 Long-Term Liabilities: Private placement notes, net 363.6 363.2 Notes payable, net 115.0 115.9 Operating lease liabilities 93.6