Planet 13 Announces Q2 2022 Financial Results
- Q2 2022 revenue of $28.4 million, up 10.6% compared to Q1 2022
- Q2 2022 net loss of $2.0 million, compared to net loss of $2.1 million in Q1 2022
- Q2 2022 Adjusted EBITDA[1] of $3.0 million
All results are reported in United States dollars ($) unless otherwise indicated.
LAS VEGAS, NV / ACCESSWIRE / August 15, 2022 / 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 six-month period ended June 30, 2022. Planet 13’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
Since we reported Q1 we’ve seen a material weakening of the consumer, which has impacted tourist spending in Nevada. Despite this, we have been able to maintain above 9% retail market share. We are taking steps as a Company to improve resiliency in the face of this new macro dynamic.
Larry Scheffler, Co-CEO of Planet 13
During the quarter all of our brands held or gained share in Nevada according to research firm Headset. We also launched our owned brands in California for the first time, starting with the widely popular TRENDI products.
“Q2 was a big quarter for advancing our growth initiatives. We secured our cultivation property in Florida. We entered into an option agreement to purchase the remaining ownership in our subsidiary which holds an Illinois dispensary license. In Nevada, consumption lounge legislation was finally passed and we’ve completed our premium, indoor cultivation expansion and are just waiting on final approvals,” commented Bob Groesbeck, Co-CEO of Planet 13. “Our expansions are progressing according to plan and it is likely that a year from now we will have doubled our retail and state footprint.”
Financial Highlights – Q2 – 2022
Operating Results
All comparisons below are to the quarter ended June 30, 2021, unless otherwise noted
- Revenues were $28.4 million as compared to $32.8 million, a decrease of 13.5%
- Gross profit was $13.8 million or 48.7% as compared to $19.0 million or 57.9%
- Net income before taxes of $0.9 million as compared to a net loss of $2.6 million
- Net loss of $2.0 million as compared to a net loss of $5.6 million
- Adjusted EBITDA of $3.0 million as compared to Adjusted EBITDA of $7.2 million
Balance Sheet
All comparisons below are to December 31, 2021, unless otherwise noted
- Cash of $52.6 million as compared to $61.6 million
- Total assets of $268.4 million as compared to $216.8 million
- Total liabilities of $35.5 million as compared to $43.1 million
Q2 Highlights and Recent Developments
- On April 14, 2022, Planet 13 announced expansion of its Nevada cultivation to fuel in-house product growth.
- On May 2, 2022, Planet 13 announced the launch of the TRENDI brand into California.
- On May 4, 2022, Planet 13 announced the expansion of STIIIZY partnership with a new shop-in-shop at the Las Vegas SuperStore.
- On May 10, 2022, Planet 13 announced it has entered into a lease for its second Florida dispensary location.
- On June 9, 2022, Planet 13 announced it has entered into a lease for its third Florida dispensary location.
- On July 5, 2022, Planet 13 announced it had closed on a Florida property for its cultivation and production campus.
- On July 12, 2022, Planet 13 announced it had begun drafting an application to add a cannabis consumption lounge to its Las Vegas SuperStore.
- On August 5, 2022, Planet 13 announced it had agreed to an option to purchase the remaining 51% ownership of Planet 13 Illinois.
Results of Operations (Summary)
The following table sets forth a summary of the Company’s unaudited interim results of operations for the three-month and six-month periods ended June 30, 2022 and 2021.
The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 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 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 Monday, August 15, 2022 at 5:00 p.m. ET to discuss its second 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: August 15, 2022 | Time: 5:00 p.m. EST
Participant Dial-in: Toll Free 877-545-0523 or International 973-528-0016 Access Code 515721
Replay Dial-in: Toll Free 877-481-4010 or International 919-882-2331 Reference Number 46284
(Available for 2 weeks)
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 49% interest in Planet 13 Illinois which won a lottery for a 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 OTCQX under the symbol PLNHF.
