Planet 13 Announces 2018 Financial Results and First 5 Months of Cannabis Entertainment Complex Performance

CNW Group - finance.yahoo.com Posted 4 years ago
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All figures are reported in United States dollars ($) unless otherwise indicated

LAS VEGAS , April 30, 2019 /CNW/ - Planet 13 Holdings Inc. (PLTH.CN) (PLNHF) ("Planet 13" or the "Company"), a leading vertically-integrated Nevada cannabis company, today announced financial results for the three and twelve-month periods ended December 31, 2018 . Planet 13's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

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Planet 13 Holdings Inc. (CNW Group/Planet 13 Holdings Inc.)
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Cannabis Entertainment Complex (the "SuperStore") monthly performance since opening November 1 st, 2018.








30-Nov-18

31-Dec-18

31-Jan-19

28-Feb-19

31-Mar-19

Revenue

$

3,364,891

$

3,438,723

$

4,075,052

$

4,304,122

$

5,456,889

MoM Growth


2.2%

18.5%

5.6%

26.8%

Total Tickets

42,157

44,296

48,119

48,052

61,602

# of Days

30

31

31

28

31

Average Customers/Day

1,405

1,429

1,552

1,716

1,987

Avg Ticket

$

79.82

$

77.63

$

84.69

$

89.57

$

88.58

Total Visitors

55,433

68,422

70,133

67,900

98,659

Avg Visitors/Day

1,848

2,207

2,262

2,425

3,183

Visitor Conversion Rate

76%

65%

69%

71%

62%

 

"In the six months since we opened the doors at the SuperStore, our team has driven solid revenue performance by executing targeted initiatives to steadily grow traffic and average ticket at the site," said Larry Scheffler , Co-CEO of Planet 13. "The SuperStore is building a reputation as a must-visit destination in Las Vegas for anyone who is interested in cannabis. The Phase II expansion, which includes a café, a bistro/pizzeria, an event center, and a consumer-facing production facility is about taking that experience to the next level. It is about driving additional traffic, generating incremental high-margin revenue and ensuring that every visit to the SuperStore is an inimitable and memorable experience. Successful retail and entertainment brands build value and competitive advantage by creating memories and connection. While the tongue-in-cheek expression we are all familiar with is – What Happens in Vegas…Stays in Vegas – we are counting on the fact that the Planet 13 experience will not only be remembered but talked-about when people go back home to other cities, states and countries, both driving long-term advantage to the Superstore location and paving the way for additional expansion into other legal U.S. markets."

Bob Groesbeck , Co-CEO of Planet 13 added, "Planet 13 is in the best position in the country to help brands create a lasting connection with thousands of customers from all over the world. Our in-house brands are proof of this power.  We launched TRENDI in November and it is the top selling concentrate brand in Nevada 1. Our new Production Facility will enable us to keep pace with demand while expanding into gummies, chocolates, and beverages and offering our products in other dispensaries across Nevada as well as in other legal U.S. states. Other brands recognize the value of our shelves. This dominant presence in the entertainment capital of the world is the primary reason that Tyson Ranch chose Planet 13 as its exclusive Nevada launch partner and we expect further deals with other top brands on a similar basis."

Financial Highlights – Q4 – 2018

Operating Results

All comparisons below are to the quarter ended December 31, 2017 , unless otherwise noted

  • Revenues were $8.3 million as compared to $3.4 million , an increase of 145%
  • Gross margin was $4.2 million as compared $1.7 million , an increase of 143%
  • Operating expenses, excluding non-cash compensation expense, were $5.9 million as compared to $0.8 million , an increase of 609%
  • Net loss of $4.0 million as compared to a net profit of $259,493
  • Adjusted EBITDA loss of $1.9 million as compared to Adjusted EBITDA of $1.0 million


Balance Sheet

All comparisons below are to December 31, 2017 , unless otherwise noted

  • Cash and cash equivalents of $19.4 million as compared to $0.5 million
  • Total assets of $44.9 million as compared to $7.7 million , an increase of 487%
  • Total liabilities of $7.0 million as compared to $10.8 million , a decrease of 35%


Financial Highlights – Full Year – 2018

Operating Results

All comparisons below are to the year ended December 31, 2017 , unless otherwise noted

  • Revenues were $21.2 million as compared to $9.0 million , an increase of 136%
  • Gross margin was $10.9 million as compared $4.6 million , an increase of 134%
  • Operating expenses, excluding non-cash compensation expense, were $11.3 million as compared to $2.8 million , an increase of 298%
  • Net loss of $10.7 million as compared to a net loss of $0.6 million
  • Adjusted EBITDA loss of $0.5 million as compared to Adjusted EBITDA of $1.3 million














1https://www.headset.io/

 

Q4 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 Twelve Months Ended December 31, 2018 (the "MD&A").  

Story continues
  • On November 1, 2018 , the Company opened the Planet 13 Cannabis Entertainment Complex.
  • On November 8, 2018 , Planet 13 announced a $25 million bought deal public offering.
  • On November 12, 2018 , Planet 13 launched its second wholly-owned brand TRENDI.
  • On December 4, 2018 , Planet 13 closed their $25 million bought deal public offering.
  • Between February 28 and March 11, 2019 , the Company started construction on Phase II of the Superstore, a restaurant, a consumer facing production facility and an event center.
  • On March 14, 2019 , Planet 13 teamed-up with boxing legend Mike Tyson to launch Tyson Ranch exclusively at Planet 13 SuperStore.
  • On April 3, 2019 , Planet 13 launches Leaf & Vine, a line high CBD:THC vapes and concentrates.


Results of Operations (Summary)

The following tables set forth consolidated statements of financial information for the three and twelve-month periods ending December 31, 2018 and December 31, 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.













Expressed in USD$

Three  Months 


Three  Months 




Year 


Year





Ended


Ended


Percentage


Ended


Ended


Percentage



Dec-31-2018


Dec-31-2017


Change


Dec-31-2018


Dec-31-2017


Change

Revenue












Revenues, net of discounts

8,279,698


3,375,094


145.3%


21,166,755


8,975,471


135.8%

Cost of Goods Sold

(4,110,064)


(1,692,570)


142.8%


(10,507,200)


(5,176,733)


103.0%

Gross Profit, Before Biological Asset Adjustment


4,169,634


1,682,524


147.8%


10,659,555


3,798,738


180.6%

Gross Profit Margin %


50.4%


49.9%




50.4%


42.3%



Realized fair value amounts included in COGS

(675,419)


(921,346)


(26.7%)


(1,726,685)


(1,774,518)


(2.7%)

Unrealized fair value gain on growth of biological assets

750,878


984,890


(23.8%)


1,919,593


2,619,142


(26.7%)

Gross profit


4,245,094


1,746,068


143.1%


10,852,463


4,643,362


133.7%

Gross Profit Margin %


51.3%


51.7%




51.3%


51.7%
















Expenses












General and Administrative

4,788,076


754,676


534.5%


9,583,376


2,638,859


263.2%

Sales and Marketing

1,151,010


82,807


1290.0%


1,702,841


193,332


780.8%

Depreciation and Amortization

332,925


55,709


497.6%


400,116


121,364


229.7%

Share based payments

367,497


-


na


2,601,233


-


na

Total Expenses

6,639,508


893,192


643.3%


14,287,566


2,953,555


383.7%













Income (Loss) From Operations 

(2,394,414)


852,876


(380.7%)


(3,435,103)


1,689,807


(303.3%)














Other (Income) Expense:













Interest Expense, net


5,674


255,218


(97.8%)


241,860


976,674


(75.2%)

Realized Foreign Exchange gain (loss)


330


-


na


37,879


-



RTO acquisition costs


-


-


na


4,702,604


-


na

Other income


(80,285)


(28,509)


na


(80,285)


(28,509)



Loss on settlement of accounts payable


96,341


-


na


96,340


-


na

Total Other (Income) Expense


22,060


226,709


(90.3%)


4,998,398


948,165


427.2%














Income (loss) for the period before tax


(2,416,474)


626,167


(485.9%)


(8,433,501)


741,642


(1237.1%)

Provision for tax - current


889,066


366,674


142.5%


2,290,203


1,344,157


70.4%

Income (Loss) for the period


(3,305,540)


259,493


(1373.8%)


(10,723,704)


(602,515)


1679.8%














Other Comprehensive (loss)












Items that may be reclassified subsequently to profit/loss 












Foreign exchange translation adjustment

(666,970)


-




(802,920)


-



Net Comprehensive Income  (Loss) for the period

(3,972,510)


259,493




(11,526,624)


(602,515)



Loss per share for the period













Basic and fully diluted loss per share


($0.03)


na




($0.11)


na
















Weighted Average Number of Shares Outstanding













Basic and fully diluted


128,166,081


 nil 




95,997,827


 nil 
















 

Adjusted EBITDA
















Three  Months 


Three  Months




Year 


Year





Ended


Ended


Percentage


Ended


Ended


Percentage



Dec-31-2018


Dec-31-2017


Change


Dec-31-2018


Dec-31-2017


Change

EBITDA












Profit (loss) before taxes


(2,416,474)


626,167


(485.