Planet 13 Announces Q4 2022 Financial Results
- Q4 2022 Revenue of $24.8 million, compared to $25.6 million in Q3 2022
- Q4 2022 Net loss of $38.6 million driven by $32.8 million impairment charge
- Q4 2022 Adjusted EBITDA¹ loss of $0.8 million
- Full year 2022 Revenue of $104.6 million, compared to $119.5 million for full year 2021
- Full year 2022 Operating Cash flow of $3.8 million
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, NV / ACCESSWIRE / March 23, 2023 / Planet 13 Holdings Inc. (CSE:PLTH)(OTCQX:PLNHF) (“Planet 13” or the “Company”), a leading vertically-integrated cannabis company,today announced its financial results for the three-month and twelve-month periods ended December 31, 2022. Planet 13’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
Over the course of the year we saw state-wide pricing trends and the overall economic environment impact our revenue. Despite this backdrop, we continued to meet our goal of 8 – 10% of Nevada retail sales. For the full year we had 9% of the sales in Nevada. Towards the end of Q4 we saw those pricing compression trends start to stabilize and we remain optimistic about the outlook for 2023.
Larry Scheffler, Co-CEO of Planet 13
Despite the pressures on retail, we grew wholesale revenue by 26% year over year and had a top five brand in every product category. Moreover, in California, we increased our share of shelf and wholesale revenue every quarter.
“Across our organization we are focused on three things: increasing profitability, preserving capital, and setting ourselves up for future growth,” commented Bob Groesbeck, Co-CEO of Planet 13. “At the end of 2022, we are in a solid position. We have no debt, positive operating cash flow, and over $50 million in cash. This is a strong foundation that alongside our numerous growth projects sets us up for future operating cash flow expansion.”
Financial Highlights – Q4 – 2022
1 Adjusted EBITDA is a non-GAAP financial measure
Operating Results
All comparisons below are to the quarter ended December 31, 2021, unless otherwise noted
- Revenues were $24.8 million as compared to $29.9 million, a decrease of 16.8%
- Gross profit was $10.7 million or 43.0% as compared to $16.2 million or 54.3%
- Operating expenses, excluding non-cash compensation expense, depreciation and amortization, and impairment loss, was $13.1 million as compared to $14.8 million, a decrease of 22.1%
- Net loss before taxes of $37.8 million driven by a $32.8 million impairment charge as compared to a net loss of $1.3 million
- Net loss of $38.6 million as compared to a net loss of $5.1 million
- Adjusted EBITDA loss of $0.8 million as compared to Adjusted EBITDA of $1.9 million
Financial Highlights – Full Year – 2022
Operating Results
All comparisons below are to the full year ended December 31, 2021, unless otherwise noted
- Revenues were $104.6 million as compared to $119.5 million, a decrease of 12.5%
- Gross profit was $48.0 million or 45.9% as compared to $66.0 million or 55.2%
- Operating expenses, excluding non-cash compensation expense, depreciation and amortization, and impairment loss, was $48.2 million as compared to $52.9 million, a decrease of 9.0%
- Net loss before taxes of $40.2 million driven by a $32.8 million impairment charge as compared to a net loss of $6.0 million
- Net loss of $49.0 million as compared to a net loss of $19.5 million
- Adjusted EBITDA of $3.5 million as compared to Adjusted EBITDA of $16.9 million
Balance Sheet
All comparisons below are to December 31, 2021, unless otherwise noted
- Cash of $52.4 million as compared to $61.6 million
- Total assets of $233.6 million as compared to $216.8 million
- Total liabilities of $42.7 million as compared to $43.1 million
Q4 Highlights and Recent Developments
For a more comprehensive overview of these highlights and recent developments, please refer to Planet 13’s Management’s Discussion and Analysis of the Financial Condition and Results of Operations for the Three and Twelve Months Ended December 31, 2022 (the “MD&A“).
- On November 11, 2022, Planet 13 announced the location of its new Illinois dispensary.
- On December 5, 2022, Planet 13 announced that it had received approval for a consumption lounge at its Las Vegas SuperStore.
- On January 19, 2023, Planet 13 announced the location of its Port Orange dispensary in the Daytona Beach area of Florida.
- On February 3, 2023, Planet 13 purchased land and a building for its planned Illinois dispensary.
- On February 7, 2023, Planet 13 announced it had exercised the option to buy the remaining 51% interest in Planet 13 Illinois, LLC.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-and twelve-month periods ending December 31, 2022, and December 31, 2021.
The Company’s Annual Report on Form 10-K for the year ended December 31, 2022, is available on the SEC’s website at www.sec.gov or at https://www.planet13holdings.com/investors/. The Company’s Management Discussion and Analysis for the year and the accompanying financial statements and notes are available under the Company’s profile on SEDAR and on its website at https://www.planet13holdings.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
Planet 13 will host a conference call on March 23, 2023 at 5:00 p.m. ET to discuss its fourth quarter and full year financial results and provide investors with key business highlights, strategy, and outlook. The call will be chaired by Bob Groesbeck, Co-CEO, Larry Scheffler, Co-CEO, and Dennis Logan, CFO.
CONFERENCE CALL DETAILS
Date: March 23, 2023 | Time: 5:00 p.m. EST
Participant Dial-in: Toll Free 888-506-0062 or International 973-528-0011
Replay Dial-in: Toll Free 877-481-4010 or International 919-882-2331
(Available for 2 weeks)
Reference Number: 836329
Listen to webcast: Link
Non-GAAP Financial Measures
There are financial measures included in this press release that are not in accordance with GAAP and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. These non-GAAP financial measures should be considered as supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. The Company includes EBITDA and Adjusted EBITDA because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA is calculated as net income (loss) before interest, taxes, depreciation and amortization and Adjusted EBITDA is calculated as EBITDA before share-based compensation, the change in fair value of warrants and one-time non-recurring expenses.
The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for each of the periods presented:
About Planet 13
Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations in Las Vegas and in Orange County, California. Planet 13 also holds a medical marijuana treatment center license in Florida and a dispensing license in the Chicago-region of Illinois. Planet 13’s mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products. Planet 13’s shares trade on the Canadian Securities Exchange (CSE) under the symbol PLTH and on the OTCQX under the symbol PLNHF.
