Planet 13 Announces Q1 2023 Financial Results
- Q1 2023 Revenue of $24.9 million, compared to $24.8 million in Q4 2022
- Q1 2023 Net loss of $6.3 million
- Q1 2023 Adjusted EBITDA of $0.68 million
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, NV / ACCESSWIRE / May 15, 2023 / Planet 13 Holdings Inc. (CSE:PLTH)(OTCQB:PLNHF) (“Planet 13” or the “Company”), a leading vertically-integrated multi-state cannabis company, today announced its financial results for the three-month ended March 31, 2023. Planet 13’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
Planet 13 started the year with consistent results notwithstanding overall economic conditions. In Q1 we saw a stabilization in cannabis prices resulting in an improvement in our retail revenue from the SuperStore. In Nevada, we maintained our share of sales above 8%, consistent with our long-term goals.
Larry Scheffler, Co-CEO of Planet 13
We also saw strong sequential growth in wholesale as we continued to add more accounts and increase sales and productivity with our existing buyers. In California, growth in our wholesale business offset some of the seasonal decline in retail sales.
“In 2023, our corporate strategy has three key goals: strengthen our core business, increase scale, and improve cashflow and preserve capital,” commented Bob Groesbeck, Co-CEO of Planet 13.
We are leveraging our strong core business, taking strategic steps to reduce costs across our organization, and aggressively pursuing accretive M&A to add scale, operating leverage and improve our ability to generate free cash flow.
Bob Groesbeck, Co-CEO of Planet 13
Financial Highlights – Q1 – 2023
Operating Results
All comparisons below are to the quarter ended March 31, 2022, unless otherwise noted
- Revenue was $24.9 million as compared to $25.7 million, a decrease of 3.0%. The decline in revenue was driven by a large decline in the average price of cannabis in Nevada, partially offset by an increase in revenue from Planet 13 OC and additional wholesale revenue in California and Nevada.
- Gross profit was $10.9 million or 43.7% as compared to $12.9 million or 50.2%. The decline in gross profit was driven by a decrease in the average price of cannabis in Nevada and a greater percentage of revenue coming from lower-margin wholesale revenue.
- Total expenses were $15.3 million as compared to $16.6 million, a decrease of 7.8%. The decline in total expenses was driven by strong cost control across the organization combined with lower share-based compensation.
- Net loss of $6.3 million as compared to a net loss of $2.1 million. The increase in net loss was driven by lower gross profit dollars as well as high one-time costs associated with potential M&A.
- Adjusted EBITDA of $0.68 million as compared to Adjusted EBITDA of $2.61 million. The lower Adjusted EBITDA margin was primarily due to lower gross profit dollars and lower operating leverage.
Balance Sheet
All comparisons below are to December 31, 2022, unless otherwise noted
- Cash of $42.7 million as compared to $52.4 million
- Total assets of $227.2 million as compared to $233.6 million
- Total liabilities of $41.0 million as compared to $42.7 million
Q1 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 Months Ended March 31, 2023 (the “MD&A”).
- 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.
- On April 10, 2023, Planet 13 announced that its Board Member and Chair of the Audit Committee, Mike Harman, had passed away.
- On May 10, 2023, Planet 13 announced the appointment of Lee Fraser as Board Member and Chair of the Audit Committee.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-month periods ending March 31, 2023, and March 31, 2022.
Financial Highlights
Results of Operations
The Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, 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 period 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 May 15, 2023 at 5:00 p.m. ET to discuss its first quarter financial results and provide investors with key business highlights, strategy, and outlook. The call will be chaired by Larry Scheffler, Co-CEO, and Dennis Logan, CFO.
CONFERENCE CALL DETAILS
Date: May 15, 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: 660024
Listen to webcast: https://www.webcaster4.com/Webcast/Page/2477/48361
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:
Adjusted EBITDA
For more information on Planet 13, visit the investor website (www.planet13holdings.com/investors).
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 conditional Social-Equity Justice Involved 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 are quoted on the OTCQX under the symbol PLNHF.
