Planet 13 Announces Record Third Quarter 2020 Financial Results
- Q3 2020 Revenue of $22.8 million; Adjusted EBITDA of $6.2 million
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, NV / ACCESSWIRE / November 24, 2020 / 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 and nine-month period ended September 30, 2020. Planet 13’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).
Larry Scheffler, Co-CEO of Planet 13 said, “Our performance in the third quarter exceeded expectations – leading to our highest quarter of sales ever. Despite being impacted by the ongoing global pandemic and our Las Vegas SuperStore only at 50% capacity, we achieved 36% higher revenue compared to pre-COVID quarters.”
This is a testament to the strength of Planet 13’s business model and the success of the operational improvements we put in place to ensure our ability to serve local customers. As Las Vegas returns to normal and the economy recovers, we will undertake further strategic initiatives to grow revenue at the SuperStore and increase our sales to local customers in Las Vegas.
Larry Scheffler, Co-CEO of Planet 13
“In the third quarter, our in-house brands contributed 25% to SuperStore revenue – continuing to be one of the most recognized and fastest-growing segments within the Planet 13 portfolio. In the wholesale market we saw increasing sales month over month throughout the quarter and continuing into October. Building on this momentum, we continue to invest in cultivation with our recently announced acquisition of a 45,000 square foot facility in Las Vegas, better positioning us to supply wholesale and retail sales within the state,” commented Bob Groesbeck, Co-CEO.
We are excited to leverage our knowledge and experience from Nevada to California, with the opening of our new dispensary in Santa Ana in 2021 – the world’s second largest dispensary. Planet 13 is well capitalized, and we look forward to executing on future expansion into other major growth markets.
Bob Groesbeck, Co-CEO
Financial Highlights – Q3 – 2020
All comparisons below are to the quarter ended September 30, 2019, unless otherwise noted
- Revenues were $22.8 million as compared to $16.7 million, an increase of 36.5%
- Gross profit before biological adjustments was $13.0 million or 56.9% as compared to $9.9 million or 59.1%, an increase of 31.4%
- Operating expenses, excluding non-cash compensation expense and depreciation and amortization, was $7.2 million as compared to $6.7 million, an increase of 7.9%
- Net income before taxes of $3.4 million as compared to a net income of $0.3 million
- Net income of $0.2 million as compared to a net loss of $1.7 million
- Adjusted EBITDA of $6.2 million as compared to Adjusted EBITDA of $3.4 million
All comparisons below are to December 31, 2019, unless otherwise noted
- Cash of $56.8 million as compared to $12.8 million
- Total assets of $125.5 million as compared to $62.9 million
- Total liabilities of $39.3 million as compared to $21.6 million
Q3 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 and Nine Months Ended September 30, 2020 (the “MD&A”).
- On July 3, 2020, Planet 13 announced closing of a CDN$11.5 million bought deal public offering.
- On July 17, 2020, Planet 13 announced an acquisition of 45,000 square feet of indoor cultivation.
- On August 10, 2020, Planet 13 was awarded a Nevada dispensary license.
- On August 20, 2020, Planet 13 announced a CDN$15 million bought deal public offering.
- On August 21, 2020, Planet 13 announced an upsize to bought deal public offering to CDN$20 million.
- On September 10, 2020, Planet 13 announced closing of a CDN$23 million bought deal public offering.
- On October 13, 2020, Planet 13 announced the addition of non-cannabis retail space to the Las Vegas SuperStore.
- On October 19, 2020, Planet 13 announced expanding the dispensary floor of the Las Vegas SuperStore.
- On October 19, 2020, Planet 13 announced a CDN$20 million bought deal public offering.
- On October 20, 2020, Planet 13 announced an upsize to bought deal public offering to CDN$25 million.
- On November 5, 2020, Planet 13 announced the closing of a CDN$28.8 million bought deal public offering.
- On November 20, 2020, Planet 13 announced opening the Medizin dispensary.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-month and nine-month periods ending September 30, 2020 and September 30, 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 September 30, 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.
As of November 24, 2020, the Company had 121,987,683 common shares and 55,232,940 class A convertible, restricted voting shares issued and outstanding for a total of 177,220,623 shares outstanding. There were 333,840 options issued and outstanding of which all have fully vested. There were 11,743,904 warrants outstanding and 1,764,250 RSU’s outstanding of which nil RSUs had fully vested as at the date of this MD&A.
Planet 13 will host a conference call on Tuesday, November 24, 2020 at 5:00 p.m. EST to discuss its third 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: November 24, 2020 | Time: 5:00 p.m. EST
Participant Dial-in: Toll Free 877-407-8035 or International 201-689-8035
Replay Dial-in: Toll Free 877-481-4010 or International 919-882-2331
(Available for 2 weeks)
Reference Number: 38726
Listen to webcast: https://bit.ly/358WpIA
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.
For further inquiries, please contact:
LodeRock Advisors Inc., Planet 13 Investor Relations
(416) 519-2156 ext. 2230
Bob Groesbeck and Larry Scheffler
Co-Chief Executive Officers
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
Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.