Planet 13 Announces Record Second Quarter 2019 Financial Results – Responsible for ~10% of Nevada’s Cannabis Dispensary Sales
- Q2 Revenue of $16.5 million, 19.5% sequential growth over Q1 2019
- SuperStore accounted for 9.5% of all Nevada cannabis dispensary revenue in Q2 2019
- Q2 EBITDA of $2.7 million, 105% sequential growth over Q1 2019
- Well capitalized with $20 million in cash to complete all growth initiatives
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, Aug. 29, 2019 /CNW/ – Planet 13 Holdings Inc. (CSE: PLTH) (OTCQB: PLNHF) (“Planet 13” or the “Company”), a leading vertically-integrated Nevada cannabis company, today announced financial results for the three-month period ended June 30, 2019. Planet 13’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).
Cannabis Entertainment Complex (the “SuperStore”) monthly performance since opening November 1st, 2018.
Larry Scheffler, Co-CEO of Planet 13 commented, “Q2 was another great quarter for Planet 13 as SuperStore sales grew 19.4% sequentially over Q1. Most of this revenue growth dropped to the bottom line with $2.7 million in EBITDA, a 105% sequential growth over Q1. Planet 13’s market share grew in Q2 accounting for 9.5% of all Nevada dispensary sales, compared to 7.9% in Q1.1 We are growing sales on both an absolute basis and as a percentage of the total market. Our Phase II expansion is progressing at full speed with the goal of opening at the end of Q3. Phase II which includes a 15,000 sq. ft. customer facing production facility, a restaurant, a coffee shop, and event space will build on Planet 13’s leading position in Las Vegas by creating an experience no other dispensary can offer.”
We’ve had almost 800,000 visitors since we opened with approximately 80% coming from outside Nevada proving that if you want to build a national cannabis brand, you need to be in the SuperStore. As a part of Phase II, we will be launching new brands and significantly increasing the production of our existing successful brands for sale both in the SuperStore and wholesale across Nevada.
Bob Groesbeck, Co-CEO
Our 15,000 sq. ft. customer facing production facility will be unique in the industry as it has been designed to build a personal connection between our customers and our products. Nowhere else will customers be able to see the high-quality ingredients that go into their products, learn about the effects, and purchase all in one place.
Financial Highlights – Q2 – 2019
Operating Results
All comparisons below are to the quarter ended June 30, 2018, unless otherwise noted
- Revenues were $16.5 million as compared to $4.4 million, an increase of 275%
- Gross profit before biological adjustments was $9.7 million or 58.7% as compared $2.2 million or 50.8%, an increase of 333%
- Operating expenses, excluding non-cash compensation expense, were $7.1 million as compared to $1.9 million, an increase of 280%
- Net income before taxes of $1.1 million as compared to a net loss of $6.1 million
- Net loss of $1.0 million as compared to a net loss of $6.9 million
- Adjusted EBITDA of $2.7 million as compared to Adjusted EBITDA of $504,851
Balance Sheet
All comparisons below are to December 31, 2018, unless otherwise noted
- Cash of $20.0 million as compared to $19.4 million
- Total assets of $62.9 million as compared to $44.9 million, an increase of 40%
- Total liabilities of $22.3 million as compared to $7.0 million, an increase of 216%
¹https://tax.nv.gov/Publications/Marijuana_Statistics_and_Reports/ [Note: Department of Taxation numbers are subject to revisions]
Q2 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 Six Months Ended June 30, 2019 (the “MD&A”).
- On May 24, 2019, Planet 13 announced upgrading to the OTCQX Best Market.
- On May 29, 2019, Planet 13 announced national launch of Planet M CBD brand.
- On June 6, 2019, Planet 13 announced California entry with marquee cannabis dispensary complex
- On June 17, 2019, Planet 13 announced new flagship experience center with PAX
- On July 29, 2019, Planet 13 announced new edible brands: HaHa Gummies™ and Dreamland Chocolates™
Marc Lustig Steps Down From Board of Directors
Effective August 28th, Marc Lustig has stepped down from the Planet 13 Board of Directors. In combination with the pending acquisition of CannaRoyalty Corp. dba Origin House by Cresco Labs Inc., Mr. Lustig will be focusing on his responsibilities as both a member of the senior management team of Cresco Labs, as well as its Board of Directors.
Larry, Co-Chairman and Co-CEO commented, “We would like to express our gratitude to Marc, who has been an exemplary member of Planet 13’s Board of Directors and was instrumental in the Company’s pre-public and early public debut. I know I speak on behalf of the entire board in wishing Marc well in his new role at Cresco.”
“It has been an honour to serve on the Planet 13 board and to contribute to the early growth of a Company that has plenty of runway to expand,” said Marc Lustig. “Larry, Bob and the team have executed on the vision they articulated to the investment community and now have the highest grossing dispensary in the world, based on revenue. The SuperStore is rapidly becoming a must-visit destination in the entertainment capital of the world. It is with regret that I tender my resignation, but will continue to watch with anticipation as a significant shareholder, to see what is next for Planet 13.”
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-month and six-month period ending June 30, 2019 and June 30, 2018. 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 June 30, 2019 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 81,220,432 common shares and 55,232,940 class A convertible, restricted voting shares issued and outstanding for a total of 136,453,372 shares outstanding. There were 653,507 options issued and outstanding of which 176,842 have fully vested. There were 16,103,615 warrants outstanding and 4,738,769 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 Friday, August 30, 2019 at 8:30 a.m. EST 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 30, 2019 | Time: 8:30 a.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: 896749
Listen to webcast: https://bit.ly/2KslYdw
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.
Original press release