Planet 13 Announces Record Revenue and Adjusted EBITDA for Q2 2018: Revenue +203% vs. Q2 2017 and +23% from Q1 2018; Adjusted EBITDA +521.3% and +81.7%
- Highly rated1 Medizin dispensary generated $4.4 million in revenue in Q2 2018 and $8.0 million YTD; monthly revenue is growing at a 7.8% compound rate2
- Adjusted EBITDA of $789,909 in Q2 2018 and $1.2 million YTD;
- Planet 13 Superstore (the “Superstore”) – 40,000 square foot cannabis entertainment complex – set to open November 1st 2018. All required licensing in place and construction ahead of schedule
- 413 online deliveries in July 2018; monthly online revenue growing at a compound rate of 13.5%2 sequentially
All figures are reported in United States dollars ($), unless otherwise indicated
LAS VEGAS, Aug. 29, 2018 /CNW/ – Planet 13 Holdings Inc. (CSE: PLTH) (“Planet 13” or the “Company”), a leading vertically-integrated Nevada cannabis company, today announced record financial results for the three and six-month periods ended June 30, 2018. Planet 13’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).
With two months until the Grand Opening of Phase 1 of the 40,000 square foot Planet 13 Superstore, our team is ahead of schedule. Construction is progressing rapidly, and we are in the market every day buying product from the top cultivators and brands in Nevada, with the expectation that we will be fully stocked by October 1st.
Bob Groesbeck, Co-CEO of Planet 13
“Q2 2018 was the eighth consecutive quarter of revenue growth from our Medizin location. Given sustained growth in customer traffic, a team that has consistently made Medizin one of the top-rated dispensaries in Las Vegas1, and the building excitement about a world class cannabis and entertainment destination opening adjacent to the Las Vegas Strip, we are confident that we will hit our financial targets quickly and drive strong returns for shareholders.”
We are well capitalized to execute our business plans and given the performance we are seeing in the market, anticipate rapid revenue and cash flow growth from the Superstore location when it opens. Based on our discussions with regulators, we estimate 1.1 million square feet of cultivation capacity coming onstream over the next 12 to 18 months in a market that was fully supplied by 250,000 square feet in 2017.
Larry Scheffler, Co-CEO of Planet 13
“This anticipated oversupply will further bolster margins at the Superstore and has enabled our team to both invest now to prepare for the anticipated approval of a lounge concept on-site early next year and to evaluate accretive retail opportunities in other tier-one U.S. destinations. We have locked-down the closest possible location to the Las Vegas Strip, just steps from some of the most valuable entertainment properties in the world, with significant expansion opportunities on-site. We expect the Superstore to rapidly become a global destination for cannabis aficionados and to drive the brand awareness and loyalty required to enable a rapid and profitable expansion across the U.S.”
Financial Highlights – Q2 – 2018
All comparisons below are to the quarter ended June 30, 2017, unless otherwise noted
- Revenues were $4.4 million as compared to $1.5 million, an increase of 203%
- Gross margin was $2.4 million as compared $1.4 million, an increase of 69%
- Operating expenses were $1.9 million as compared to $622,152, an increase of 201%
- Net loss of $3.4 million as compared to a net income of $22,209
- Adjusted EBITDA of $798,909 as compared to $128,584
All comparisons below are to December 31, 2017, unless otherwise noted
- Cash and cash equivalents of $17.1 million as compared to $0.5 million, an increase of 3,686%
- Total assets of $26.9 million as compared to $8.6 million, an increase of 214%
- Total liabilities of $6.0 million as compared to $11.0 million, a decrease of 46%
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, 2018 (the “MD&A”).
- On May 23, 2018, the Company completed its funding round for combined gross proceeds of approximately $20,205,000.
- On June 21, 2018, the Company’s common shares commenced trading on the Canadian Securities Exchange.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three and six-month periods ending June 30, 2018 and June 30, 2017. 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, 2018 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.
Summary of Quarterly Results
Daily Traffic and Average Customer Spend
As at the date of this report, the Company had 62,008,400 common shares and 55,232,940 class A convertible, restricted voting shares issued and outstanding for a total of 117,241,340 shares outstanding. There were 820,000 options issued and outstanding of which 258,750 have fully vested. There were 17,214,795 warrants outstanding and 5,638,358 RSU’s outstanding of which 1,879,453 RSUs had fully vested as at June 30, 2018 and at the date of this report.
Planet 13 will host a conference call on Wednesday, August 29, 2018 at 8:00 a.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 29, 2018 | Time: 8:00am 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: 689023
Listen to webcast: https://bit.ly/2n9BSgc
For more information, please visit https://www.planet13holdings.com/ and follow on Instagram planet13dispensary, Facebook Planet 13 Las Vegas and Twitter @Planet13lv.
(1)Based on customer feedback scores of 4.7-4.9 on a 5-pt scale from Leafly, Weedmaps, and Google
(2)Monthly growth rates are sequential compound annual growth rates from January 1, 2018 to July 31, 2018
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.
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