LAS VEGAS, NV / ACCESSWIRE / November 8, 2023 / PRESS RELEASE / Planet 13 Holdings Inc. (CSE:PLTH)(OTCQX:PLNH), a vertically-integrated multi-state cannabis company, today announced its financial results for the three-month period ended Sept. 30, 2023. Planet 13's financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).
"I'm proud of our team's ability to compete and maintain market share in a very competitive market. Based on available data, our dispensaries were responsible for almost one in every ten dollars of cannabis bought in Nevada. Our brands continued to perform well, being among the top selling in their respective categories. We look forward to bringing our retail experience and brands to Illinois and Florida in the coming months," said Larry Scheffler, co-CEO of Planet 13.
"This quarter, we took major steps towards executing the strategic goals we laid out at the start of the year and becoming a major player in Florida. We are also getting very close to opening our Illinois dispensary and completing the next phase of exciting new additions to the SuperStore. I'm very excited for 2024 when all our hard work starts to pay dividends," commented Bob Groesbeck, co-CEO of Planet 13.
RELATED: Enter the Secret Phone Booth Door to Planet 13’s DAZED! Consumption Lounge
Financial Highlights - Q3 - 2023
Operating Results
All comparisons below are to the quarter ended Sept. 30, 2022, unless otherwise noted
- Revenue was $24.8 million as compared to $25.6 million, a decrease of 3.3%. The decline in revenue was driven by lower sales at the SuperStore and a slight decline in wholesale revenue in Nevada.
- Gross profit was $11.1 million or 44.7% as compared to $10.6 million or 41.2%. The improvement in gross margin was driven by a decrease in product discounting at retail.
- Total expenses were $55.1 million as compared to $15.0 million, an increase of 268.4%. This included a one-time, non-cash $39.6 million impairment. Excluding impairment, total expenses were $15.4 million.
- Net loss of $46.0 million as compared to a net loss of $6.3 million. The increase in net loss was driven by the one-time $39.6 million impairment charge.
- Adjusted EBITDA of $0.2 million as compared to Adjusted EBITDA of $0.5 million. Adjusted EBITDA margin was lower due to operating leverage, partially offset by better gross margin.
Balance Sheet
All comparisons below are to Dec. 31, 2022, unless otherwise noted
- Cash of $36.8 million as compared to $52.4 million
- Total assets of $178.4 million as compared to $233.6 million
- Total liabilities of $41.5 million as compared to $42.7 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 and Nine Months Ended September 30, 2023 (the MD&A).
- On Aug. 28, 2023, Planet 13 announced it had entered into a definitive agreement to acquire VidaCann.
- On Sept. 15, 2023, Planet 13 announced it had completed the change in domicile to Nevada and a change in its OTC trading symbol.
- On Nov. 1, 2023, Planet 13 announced plans for the Dazed! Consumption Lounge.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-month periods ending Sept. 30, 2023, and Sept. 30, 2022.
Financial Highlights
| (Figures in millions | For the Three Months Ended | |||||||||||
| and % change based | September 30, | September 30, | ||||||||||
| on these figures) | 2023 | 2022 | change | |||||||||
| Total Revenue | $ | 24.79 | $ | 25.62 | -3 | % | ||||||
| Gross Profit | $ | 11.07 | $ | 10.56 | 5 | % | ||||||
| Gross Profit % | 44.7 | % | 41.2 | % | 8 | % | ||||||
| Net Loss Before Provision for Income Taxes | $ | (43.62 | ) | $ | (4.03 | ) | 981 | % | ||||
| Net Loss | $ | (45.98 | ) | $ | (6.26 | ) | 635 | % | ||||
| Adjusted EBITDA | $ | 0.23 | $ | 0.51 | -56 | % | ||||||
| Adjusted EBITDA Margin % | 0.9 | % | 2.0 | % | ||||||||
The company's Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2023, 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.
