Planet 13 Q1 Revenue Grows 286% to $13.8 Million
May 30, 2019 at 9:10 pm
Published by NCV Newswire
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Planet 13 Announces First Quarter 2019 Financial Results
Q1 Revenue of $13.8 million with the SuperStore now generating over $5 million per month in revenue.
SuperStore accounted for ~8.2% of all cannabis dispensary revenue for Nevada in January and February.
Q1 EBITDA of $1.3 million and Cash Flow from Operating Activities of $2.6 million.
Well capitalized with $20 million to complete all growth initiatives.
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, May 30, 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 March 31, 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, “The SuperStore is now drawing over 3,000 visitors per day and generating over $5 million a month in revenue. For the first two months of 2019, the SuperStore accounted for ~8.2% of all cannabis dispensary sales in Nevada.1 We fully expect to generate additional growth at the SuperStore as we continue to execute awareness initiatives and complete Phase II of our expansion plan, which is designed to generate strong traffic and incremental, high-margin revenue. Other companies are starting to recognize the value of being in our store. In Q1 we made a focused effort to start leveraging the Planet 13 Las Vegas SuperStore’s unique sales platform, highlighted by our exclusive launch of the Tyson Ranch brand. In our view, the SuperStore will rapidly become the only place to launch a national brand synonymous with the entertainment and excitement that Las Vegas is known for. With roughly 70% of the customers coming through the SuperStore each month originating from out of state, we expect the value of the platform to increase as it becomes a proven launchpad for national brands and by building awareness of our brands across the U.S. in advance of out-of-state expansion.”
We expect our new production facility to be completed in Q3, which will enable us to expand sales of our current in-house brands – Medizin, TRENDI, and Leaf & Vine – and add more valuable brands to the portfolio. Our goal over time is to maintain a broad selection of third-party brands in the SuperStore, while incrementally growing the percentage of sales generated from wholly owned brands, to drive continual improvements in margin.
Bob Groesbeck, Co-CEO
With the launch of our fourth wholly-owned brand, Planet M, we are also actively exploring opportunities to take these highly successful brands into other dispensaries in Nevada as well as across the U.S. on a wholesale basis, as part of our long-term objective to be a premium retailer and cannabis brands company not only in Nevada, but in other key cannabis markets nationally.
Financial Highlights – Q1 – 2019
Operating Results
All comparisons below are to the quarter ended March 31, 2018, unless otherwise noted
Revenues were $13.8 million as compared to $3.6 million, an increase of 286%
Gross profit before biological adjustments was $7.4 million or 53.8% as compared $1.6 million or 45.7%, an increase of 354%
Operating expenses, excluding non-cash compensation expense, were $5.9 million as compared to $1.2 million, an increase of 388%
Net loss of $1.2 million as compared to a net profit of $12,741
Adjusted EBITDA of $1.3 million as compared to Adjusted EBITDA of $667,563
Balance Sheet
All comparisons below are to December 31, 2018, unless otherwise noted
Cash and cash equivalents of $20.2 million as compared to $19.4 million
Total assets of $55.5 million as compared to $44.9 million, an increase of 24%
Total liabilities of $17.7 million as compared to $7.0 million, an increase of 151%
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¹https://tax.nv.gov/Publications/Marijuana_Statistics_and_Reports/
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 and Twelve Months Ended March 31, 2019 (the “MD&A”).
Between February 28 and March 11, 2019, the Company started construction on Phase II of the Superstore consisting of a restaurant, a consumer facing production facility, a CBD store and an event center.
On March 14, 2019, Planet 13 teamed-up with boxing legend Mike Tyson to launch Tyson Ranch exclusively at Planet 13 SuperStore.
On April 3, 2019, Planet 13 launched Leaf & Vine, a line of high CBD:THC vapes and concentrates.
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.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-month period ending March 31, 2019 and March 31, 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 March 31, 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.
Adjusted EBITDA
Summary of Quarterly Results
Outstanding Shares
As at the date of this report, the Company had 79,086,246 common shares and 55,232,940 class A convertible, restricted voting shares issued and outstanding for a total of 134,319,186 shares outstanding. There were 875,000 options issued and outstanding of which 354,883 have fully vested. There were 18,086,742 warrants outstanding and 3,444,905 RSU’s outstanding of which nil RSUs had fully vested as at December 31, 2018 and at the date of this report.
Conference Call
Planet 13 will host a conference call on Friday, May 31, 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: May 31, 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: 611654
Listen to webcast: https://bit.ly/2EmDEUh
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.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Original press release
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Published by NCV Newswire
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IN THIS ARTICLE:
NEVADA, PLANET 13, PLANET 13 HOLDINGS, PLNHF, PLTH
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