- Q3 2022 revenue of $25.6 million
- Q3 2022 net loss of $6.3 million
- Q3 2022 Adjusted EBITDA[1] of $0.4 million
All results are reported in United States dollars ($) unless otherwise indicated.
LAS VEGAS, NV / ACCESSWIRE / November 10, 2022 / Planet 13 Holdings Inc. (CSE:PLTH)(OTCQX:PLNHF) (“Planet 13” or the “Company“), a leading vertically-integrated cannabis company, today announced its financial results for the three-month and nine-month period ended September 30, 2022. Planet 13’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
“High inflation and interest rates have impacted all areas of the economy, driving down consumer spending, including here in Las Vegas. We have been able to maintain 9% retail market share, despite this economic downturn and an 18% increase in Nevada dispensaries year over year. We anticipated this downturn and undertook proactive steps last quarter as well as exercised financial discipline to maintain positive operating cash flow and protect our cash position,” said Larry Scheffler, Co-CEO of Planet 13. “From a competitive standpoint, we continue to perform well, maintaining retail market share in our historical 8-10% range in addition to holding or gaining share for each of our brands in Nevada, according to research firm Headset. In California we are seeing growth from our Orange County location as it continues to win more customers and convert locals into regular and loyal shoppers.”
“Through the third quarter, we have focused on effectively balancing capital preservation, profitability, and continuing to execute our future growth initiatives. We’ve signed a conditional location in Illinois, adding a fourth state to our portfolio. In Nevada, we’ve begun harvesting at our premium, indoor cultivation expansion and in Florida continue to progress cultivation forward while exploring ways to reduce CAPEX needs and shorten timelines,” commented Bob Groesbeck, Co-CEO of Planet 13. “While current retail trends are weak, our focus continues to be on building a stronger, more resilient company that is well positioned to take advantage of future legislative changes.”
Financial Highlights – Q3 – 2022
Operating Results
All comparisons below are to the quarter ended September 30, 2021, unless otherwise noted
- Revenues were $25.6 million as compared to $33.0 million, a decrease of 22.2%
- Gross profit was $10.6 million or 41.2% as compared to $17.7 million or 53.8%
- Net loss before taxes of $4.0 million as compared to a net income of $0.7 million
- Net loss of $6.3 million as compared to a net loss of $2.7 million
- Adjusted EBITDA of $0.4 million as compared to Adjusted EBITDA of $2.6 million
Balance Sheet
All comparisons below are to December 31, 2021, unless otherwise noted
- Cash of $50.9 million as compared to $61.6 million
- Total assets of $263.4 million as compared to $216.8 million
- Total liabilities of $35.9 million as compared to $43.1 million
Q3 Highlights and Recent Developments
- On July 5, 2022, Planet 13 announced it had closed on a Florida property for its cultivation and production campus.
- On July 12, 2022, Planet 13 announced it had begun drafting an application to add a cannabis consumption lounge to its Las Vegas SuperStore.
- On August 5, 2022, Planet 13 announced it had agreed to an option to purchase the remaining 51% ownership of Planet 13 Illinois.
- On September 26, 2022, Planet 13 announced it has commenced its first harvest from Nevada cultivation expansion.
- On November 2, 2022, Planet 13 announced it has submitted a conditional location for its Illinois dispensary to regulators.
[1] Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” below for a reconciliation to GAAP.
Results of Operations (Summary)
The following table sets forth a summary of the Company’s unaudited interim results of operations for the three-month and nine-month periods ended September 30, 2022 and 2021.
Financial Highlights
| Results of Operations | For the Three Months Ended | |||||||
| (Figures in millions and % change based on these figures) | September | September | ||||||
| 30, 2022 | 30, 2021 | change | ||||||
| Total Revenue | $ | 25.6 | $ | 33.0 | -22.2 | % | ||
| Gross Profit | $ | 10.6 | $ | 17.7 | -40.5 | % | ||
| Gross Profit % | 41.2 | % | 53.8 | % | -23.5 | % | ||
| Income (Loss) Before Provision for Income Taxes | $ | -4.0 | $ | 0.7 | -714.7 | % | ||
| Net Loss | $ | -6.3 | $ | -2.7 | 128.2 | % | ||
| Adjusted EBITDA | $ | 0.4 | $ | 2.6 | -85.9 | % | ||
| Adjusted EBITDA Margin % | 1.4 | % | 7.9 | % |
The Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, 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.
Conference Call
Planet 13 will host a conference call on Thursday, November 10, 2022 at 5:00 p.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: November 10, 2022 | Time: 5:00 p.m. EST
Participant Dial-in: Toll Free 888-506-0062 or International 973-528-0011 Access Code 838220
Replay Dial-in: Toll Free 877-481-4010 or International 919-882-2331 Reference Number 46896
(Available for 2 weeks)
Listen to webcast: Link
Non-GAAP Financial Measures
There are financial measures included in this press release that are not in accordance with GAAP and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. These non-GAAP financial measures should be considered as supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. The Company includes EBITDA and Adjusted EBITDA because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA is calculated as net income (loss) before interest, taxes, depreciation and amortization and Adjusted EBITDA is calculated as EBITDA before share-based compensation, the change in fair value of warrants and one-time non-recurring expenses.
The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for each of the periods presented:
| Reconciliation of Non-GAAP Adjusted EBITDA | For the Three Months Ended | ||||||||
| (Figures in millions and % change based on these figures) | September | September | |||||||
| 30, 2022 | 30, 2021 | change | |||||||
| Net Income (Loss) | $ | -6.3 | $ | -2.7 | 128.2 | % | |||
| Add impact of: | |||||||||
| Interest expense | $ | 0.0 | $ | 0.0 | 83.6 | % | |||
| Provision for income taxes | $ | 2.2 | $ | 3.4 | -34.6 | % | |||
| Depreciation and amortization | $ | 2.0 | $ | 1.4 | 43.7 | % | |||
| Depreciation included in cost of goods sold | $ | 0.5 | $ | 0.5 | 0.0 | % | |||
| EBITDA | $ | -1.6 | $ | 2.5 | -161.4 | % | |||
| Change in fair value of warrants | $ | -0.2 | $ | -6.5 | -97.0 | % | |||
| Share-based compensation and related premiums | $ | 2.1 | $ | 6.6 | -67.9 | % | |||
| Adjusted EBITDA | $ | 0.4 | $ | 2.6 | -85.9 | % |
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