- Q4 2021 revenue of $29.9 million, up 48% compared to Q4 2020
- Q4 2021 net loss of $5.1 million, compared to net loss of $18.2 million in Q4 2020
- Q4 2021 Adjusted EBITDA [1] of $1.9 million
- Full year 2021 revenue of $119.5 million, up 70% compared to full year 2020
- Full year 2021 net loss of $19.5 million, compared to net loss of $25.0 million in full year 2020
- Full year 2021 Adjusted EBITDA of $16.9 million
All results are reported in United States dollars ($) unless otherwise indicated.
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 twelve-month period ended December 31, 2021. On February 11, 2022, Planet 13’s registration statement on Form 10 filed with the U.S. Securities and Exchange Commission became effective and Planet 13 became a U.S. reporting company on such date. As such, Planet 13’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
“During a quarter that is seasonally slower and marked by significantly less tourist traffic, Planet 13 was able to maintain a market share above 10% in the Las Vegas cannabis market. In addition to the competitive performance demonstrated by our SuperStore and neighborhood store, our brands grew 21% in a market that was down 5% in Q4[2],” said Larry Scheffler, Co-CEO of Planet 13. “Similarly, while the California market was down sequentially in Q4 [3] , our Orange County store grew 7.2% in the quarter on the back of increased brand awareness.”
“Over the last couple months, the Planet 13 team has been working hard to operationalize all of the exciting new assets we’ve acquired over the past year. We are making strong progress on our Florida roadmap working in dual tracks to bring cultivation and retail online,” commented Bob Groesbeck, Co-CEO of Planet 13 . “In California, we closed the acquisition of Next Green Wave in March allowing us to become vertically integrated in the state and bring our award-winning brands to Planet 13’s California fans.”
Financial Highlights – Q4 – 2021
Operating Results
All comparisons below are to the quarter ended December 31, 2020, unless otherwise noted
- Revenues were $29.9 million as compared to $20.1 million, an increase of 48%
- Gross profit was $16.2 million or 54.3% as compared to $8.6 million or 42.7%
- Net loss before taxes of $1.3 million as compared to a net loss of $18.7 million
- Net loss of $5.1 million as compared to a net loss of $18.2 million
- Adjusted EBITDA of $1.9 million as compared to Adjusted EBITDA of $0.4 million
Financial Highlights – Full Year 2021
Operating Results
All comparisons below are to the full year ended December 31, 2020, unless otherwise noted
- Revenues were $119.5 million as compared to $70.5 million, an increase of 70%
- Gross profit was $66.0 million or 55.2% as compared to $35.1 million or 49.8%
- Net loss before taxes of $6.0 million as compared to a net loss of $17.9 million
- Net loss of $19.5 million as compared to a net loss of $25.0 million
- Adjusted EBITDA of $16.9 million as compared to Adjusted EBITDA of $6.7 million
Balance Sheet
All comparisons below are to December 31, 2020, unless otherwise noted
- Cash of $61.6 million as compared to $79.0 million
- Total assets of $216.8 million as compared to $150.0 million
- Total liabilities of $43.1 million as compared to $43.1 million
Q4 Highlights and Recent Developments
- On October 1, 2021, Planet 13 announced the closing of its acquisition of a Florida cannabis license.
- On December 15, 2021, Planet 13 announced that CANN launched a shop-in-shop in its Planet 13 Las Vegas dispensary.
- On December 20, 2021, Planet 13 announced its proposed acquisition of Next Green Wave Holdings Inc. (“NGW “).
- On February 11, 2022, Planet 13’s registration statement on Form 10 filed with the U.S. Securities and Exchange Commission became effective and Planet 13 became a U.S. reporting company on such date.
- On March 2, 2022, Planet 13 announced the closing of its acquisition of NGW.
- On March 17, 2022, Planet 13 announced the initiation of its Florida dispensary roadmap with a lease for its first dispensary in Jacksonville.
Results of Operations (Summary)
The following table sets forth consolidated statements of financial information for the three-and twelve-month periods ended December 31, 2021 and December 31, 2020.
| Results of Operations (Figures in Millions and % change based on these figures) | For the Three Months Ended | For the Full Year Ended | ||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||
| Total Revenue | $ | 29.9 | $ | 20.1 | 48 | % | $ | 119.5 | $ | 70.5 | 70 | % | ||||||||||||
| Gross Profit | $ | 16.2 | $ | 8.6 | 89 | % | $ | 66.0 | $ | 35.1 | 88 | % | ||||||||||||
| Gross Profit % | 54.3 | % | 42.7 | % | 27 | % | 55.2 | % | 49.8 | % | 11 | % | ||||||||||||
| Net income (Loss) Before Provision for Income Taxes | $ | -1.3 | $ | -18.7 | -93 | % | $ | -6.0 | $ | -17.9 | -67 | % | ||||||||||||
| Net income (Loss) | $ | -5.1 | $ | -18.2 | -72 | % | $ | -19.5 | $ | -25.0 | -22 | % | ||||||||||||
| Adjusted EBITDA | $ | 1.9 | $ | 0.4 | 337 | % | $ | 16.9 | $ | 6.7 | 150 | % |
The Company’s Annual Report on Form 10-K for the year ended December 31, 2021, is available on the SEC’s website 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 Monday, March 28, 2022 at 5:00 p.m. ET to discuss its fourth quarter and full year 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: March 28, 2022 | Time: 5:00 p.m. EST
Participant Dial-in: Toll Free 888-506-0062 or International 973-528-0011 Access Code 130262
Replay Dial-in: Toll Free 877-481-4010 or International 919-882-2331 Reference Number 44955
(Available for 2 weeks)
Listen to webcast: https://bit.ly/36xnAjq
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, 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 the Company calculates Adjusted EBITDA as EBITDA before share-based compensation and the change in fair value of warrants.
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 | For the Full Year Ended | ||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | Change | December 31, 2021 | December 31, 2020 | Change | |||||||||||||||||||
| (Figures in Millions and % change based on these figures) | ||||||||||||||||||||||||
| Net Income (Loss) | $ | -5.1 | $ | -18.2 | -72 | % | $ | -19.5 | $ | -25.0 | -22 | % | ||||||||||||
| Add impact of: | ||||||||||||||||||||||||
| Interest expense, | $ | 0.0 | $ | 0.0 | 295 | % | $ | 0.0 | $ | 0.0 | -24 | % | ||||||||||||
| Provision for income taxes | $ | 3.8 | $ | -0.5 | -909 | % | $ | 13.5 | $ | 7.1 | 90 | % | ||||||||||||
| Depreciation and amortization | $ | 2.0 | $ | 0.9 | 118 | % | $ | 5.3 | $ | 3.7 | 45 | % | ||||||||||||
| Depreciation included in cost of goods sold | $ | 0.5 | $ | 0.5 | 18 | % | $ | 1.9 | $ | 1.6 | 18 | % | ||||||||||||
| EBITDA | 1.3 | $ | -17.3 | -107 | % | $ | 1.3 | $ | -12.6 | -110 | % | |||||||||||||
| Change in fair value of warrants | $ | -2.7 | $ | 17.2 | -116 | % | $ | 0.0 | $ | 16.8 | -100 | % | ||||||||||||
| Share-based compensation and related premiums | $ | 3.4 | $ | 0.5 | 564 | % | $ | 15.6 | $ | 2.5 | 520 | % | ||||||||||||
| Adjusted EBITDA | $ | 1.9 | $ | 0.4 | 337 | % | $ | 16.9 | $ | 6.7 | 150 | % |
