Planet 13 Announces First Quarter 2020 Financial Results
- Q1 2020 Revenue of $16.8 million; EBITDA of $2.5 million
- SuperStore accounted for 10.1% of all Nevada cannabis dispensary revenue in Q1 2020¹
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, June 1, 2020 /PRNewswire/ – Planet 13 Holdings Inc. (CSE: PLTH) (OTCQB: PLNHF) (“Planet 13” or the “Company”), a leading vertically-integrated Nevada cannabis company, today announced its financial results for the three-month period ended March 31, 2020. Planet 13’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).
Larry Scheffler, Co-CEO of Planet 13 commented, “I am very proud of the solid Q1 Revenue and EBITDA delivered by our team, despite a sharp COVID-19 related drop-off in traffic in the latter half of March. We continued to grow our market share in Nevada during the quarter, with the SuperStore accounting for 10.1% of all retail cannabis sales in the state in quarter – our best yet.”
While Q2 has been a challenging period for all Nevada businesses, Planet 13 pivoted quickly to a delivery-based model, which has significantly lessened the impact of lower tourist traffic, while broadening the SuperStore’s long-term customer base and opportunity set.
Larry Scheffler, Co-CEO of Planet 13
As Nevada has started reopening, allowing both curbside pickup and limited in-store sales, we have seen a corresponding pickup in sales. As expected, we have also seen continued traction within our delivery program, with over 40% of our customers continuing to choose Planet 13 delivery as their preferred method of shopping.
Bob Groesbeck, Co-CEO added, “Our objectives during this time have been to maintain a solid balance sheet, strengthen and grow our local customer base, expand alternative sales channels and set the Company up for growth on the other side of this pandemic. Prior to the impact of COVID-19 we were heading for another record month in March at the SuperStore and expect the momentum to resume as activity in the state continues to increase. Having renegotiated and closed the acquisition of the Santa Ana dispensary license and lease we’ve added meaningfully to our out-of-state growth profile. We look forward to bringing the Planet 13 experience to Californians. While COVID-19 continues to impact all businesses in Nevada, we see positive signs every day of a progressive return to normal activities. I want to thank our entire team for their efforts, as well as our customers for including us as a part of their daily lives.”
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1 https://tax.nv.gov/uploadedFiles/taxnvgov/Content/TaxLibrary/NV-Marijuana-Revenue-FY20(4).pdf
Financial Highlights – Q1 – 2020
Operating Results
All comparisons below are to the quarter ended March 31, 2019, unless otherwise noted
- Revenues were $16.8 million as compared to $13.8 million, an increase of 21.4%
- Gross profit before biological adjustments was $9.0 million or 53.9% as compared to $7.4 million or 53.8%, an increase of 21.5%
- Operating expenses, excluding non-cash compensation expense, were $7.0 million as compared to $5.9 million, an increase of 17.3%
- Net income before taxes of $0.3 million as compared to a net income of $0.1 million
- Net loss of $1.4 million as compared to a net loss of $1.4 million
- Adjusted EBITDA of $2.5 million as compared to Adjusted EBITDA of $1.7 million
Balance Sheet
All comparisons below are to December 31, 2019, unless otherwise noted
- Cash of $13.9 million as compared to $12.8 million
- Total assets of $66.5 million as compared to $62.9 million
- Total liabilities of $24.7 million as compared to $21.6 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, 2020 (the “MD&A”).
- On January 20, 2020, Planet 13 announced the opening of dosist™ shop-in-shop wellness experience.
- On March 19, 2020, Planet 13 announced offering expanded online ordering and delivery services.
- On March 23, 2020, Planet 13 announced 24-hour delivery service.
- On April 13, 2020, Planet 13 announced termination of the Santa Ana acquisition.
- On April 17, 2020, Planet 13 announced the renegotiation of the Santa Ana acquisition.
- On May 21, 2020, Planet 13 announced the acquisition of a dispensary license and the close of the Santa Ana acquisition.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-month periods ending March 31, 2020 and March 31, 2019. For further information regarding the Company’s financial results for these periods, please refer to the Company’s interim financial statements for the period ended March 31, 2020 together with the MD&A, available on Planet 13’s issuer profile on SEDAR at www.sedar.com and the Company’s website https://www.planet13holdings.com.
Outstanding Shares
As at the date of this report, the Company had 86,998,532 common shares and 59,173,872 class A convertible, restricted voting shares issued and outstanding for a total of 146,139,404 shares outstanding. There were 558,507 options issued and outstanding of which 250,834 have fully vested. There were 11,666,653 warrants outstanding and 3,388,589 RSU’s outstanding of which nil RSUs had fully vested as at the date of this report.
Conference Call
Planet 13 will host a conference call on Monday, June 1, 2020 at 5:00 p.m. EST to discuss its first quarter financial results and provide investors with key business highlights. The call will be chaired by Bob Groesbeck, Co-CEO, Larry Scheffler, Co-CEO, and Dennis Logan, CFO.
CONFERENCE CALL DETAILS
Date: June 1, 2020 | Time: 5:00 p.m. EST
Participant Dial-in: 416-764-8688 or 1-888-390-0546
Replay Dial-in: 416-764-8677 or 1-888-390-0541
(Available for 2 weeks)
Reference Number: 134387
Listen to webcast: https://bit.ly/2LYV5xD
Financial Measures
There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization) is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles and is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
About Planet 13
Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas – the entertainment capital of the world. 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 Stock Exchange (CSE) under the symbol PLTH and OTCQX under the symbol PLNHF.
