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

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").

Cannabis Entertainment Complex (the "SuperStore") monthly performance since opening November 1 ^st, 2018.

"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

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").  

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