Planet 13 Announces Q3 2018 Earnings
- Planet 13 Superstore opened on November 1st 2018. Already servicing an average of 1,300 customers a day, well on the way to meeting run-rate estimates
- Highly rated1 Medizin dispensary generated $4.9 million in revenue in Q3 2018 and $12.9 million in the first nine-months; monthly revenue is growing at a 6.0% compound rate2
- Adjusted EBITDA of $275,568 in Q3 2018 and $1.5 million in the first nine-months
- 437 online deliveries in October 2018; monthly online revenue growing at a compound rate of 8.3%2 sequentially
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, NV, Nov. 12, 2018 /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 and nine-month periods ended September 30, 2018. Planet 13’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).
We opened Phase 1 of the 40,000 square foot Planet 13 Superstore on November 1st, and over the first ten days are already well on our way to meeting our expectations for run-rate daily traffic and average ticket on minimal marketing. Our thesis that a unique entertainment destination, proximity to the Las Vegas Strip, and a wide selection of Nevada’s best products would drive strong tourist traffic and spending has proven to be correct.
Larry Scheffler, Co-CEO of Planet 13
We believe that we are just at the beginning of the growth curve at the Superstore and expect to continue to ramp both traffic and average ticket as we execute on our marketing program in the coming weeks. MJBizCon is this week, and our management team is ready to showcase the Superstore for the thousands of cannabis connoisseurs and investors who are in town.
Bob Groesbeck, Co-CEO of Planet 13 added, “In Q3, our Medizin dispensary posted another quarter of sequential revenue growth with a solid gain in average daily traffic. We temporarily closed the Medizin location on October 29th to transfer its licenses to the Superstore. We have a very loyal base of customers at this location and are well-positioned to receive an additional license for Medizin that would enable us to reopen this highly rated1 dispensary and quickly regain this revenue and EBITDA. It is an exciting time to be a Planet 13 shareholder, with several catalysts set to hit before the end of 2018, including additional growth from the Superstore; December’s licensing results; and clarity regarding onsite consumption lounges. The Superstore is open and already generating substantial revenue, which will enable us to rapidly execute on these opportunities and enter Phase two of our Superstore expansion plan in the next year.”
Financial Highlights – Q3 – 2018
All comparisons below are to the quarter ended September 30, 2017, unless otherwise noted
- Revenues were $4.9 million as compared to $3.0 million, an increase of 63%
- Gross margin was $2.7 million as compared $1.5 million, an increase of 78%
- Operating expenses, excluding non-cash compensation expense, were $2.3 million as compared to $0.9 million, an increase of 143%
- Net loss of $0.7 million as compared to a net loss of $0.2 million
- Adjusted EBITDA of $275,568 as compared to Adjusted EBITDA loss of $1.4 million
All comparisons below are to December 31, 2017, unless otherwise noted
- Cash and cash equivalents of $8.6 million as compared to $0.5 million
- Total assets of $26.9 million as compared to $8.6 million, an increase of 214%
- Total liabilities of $4.9 million as compared to $11.0 million, a decrease of 56%
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 Six Months Ended September 30, 2018 (the “MD&A”).
- On September 17, 2018, Planet 13 began trading on the OTCQB under the ticker symbol PLNHF
- On October 29, 2018, the Company’s medical and recreational cannabis license was transferred from the Medizin location to the Superstore location.
- On November 1, 2018, the Planet 13 Superstore opened.
- On November 8, 2018, Planet 13 announced a $25 million bought deal public offering
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three and nine-month periods ending September 30, 2018 and September 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 September 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 64,245,460 common shares and 55,232,940 class A convertible, restricted voting shares issued and outstanding for a total of 119,478,400 shares outstanding. There were 845,000 options issued and outstanding of which 267,083 have fully vested. There were 14,977,735 warrants outstanding and 5,663,358 RSU’s outstanding of which 1,887,786 RSUs had fully vested as at September 30, 2018 and at the date of this report.
Planet 13 will host a conference call on Monday, November 12, 2018 at 8:00 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: November 12, 2018 | Time: 8:00 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: 918394
Listen to webcast: https://bit.ly/2zydvyE
(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 September 30, 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 and on the OTCQB under the symbol PLNHF.
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