Planet 13 Announces First Quarter 2019 Financial Results

CNW Group - finance.yahoo.com Posted 4 years ago
  • Q1 Revenue of $13.8 million with the SuperStore now generating over $5 million per month in revenue.
  • SuperStore accounted for ~8.2% of all cannabis dispensary revenue for Nevada in January and February.
  • Q1 EBITDA of $1.3 million and Cash Flow from Operating Activities of $2.6 million .
  • Well capitalized with $20 million to complete all growth initiatives.


All figures are reported in United States dollars ($) unless otherwise indicated

LAS VEGAS , May 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-month period ended March 31, 2019 . 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.



30-Nov-18


31-Dec-18


31-Jan-19


28-Feb-19


31-Mar-19


30-Apr-19

Revenue

$

3,364,891

$

3,438,723

$

4,075,052

$

4,304,122

$

5,456,889


5,276,095

MoM Growth




2.2%


18.5%


5.6%


26.8%


-3.3%

Total Tickets


42,157


44,296


48,119


48,052


61,602


58,869

# of Days


30


31


31


28


31


30

Average Customers/Day


1,405


1,429


1,552


1,716


1,987


1,962

Avg Ticket

$

79.82

$

77.63

$

84.69

$

89.57

$

88.58

$

89.62

Total Visitors


55,433


68,422


70,133


67,900


98,659


96,659

Avg Visitors/Day


1,848


2,207


2,262


2,425


3,183


3,222

Visitor Conversion Rate


76%


65%


69%


71%


62%


61%














 

Larry Scheffler , Co-CEO of Planet 13 commented, "The SuperStore is now drawing over 3,000 visitors per day and generating over $5 million a month in revenue. For the first two months of 2019, the SuperStore accounted for ~8.2% of all cannabis dispensary sales in Nevada .1 We fully expect to generate additional growth at the SuperStore as we continue to execute awareness initiatives and complete Phase II of our expansion plan, which is designed to generate strong traffic and incremental, high-margin revenue. Other companies are starting to recognize the value of being in our store. In Q1 we made a focused effort to start leveraging the Planet 13 Las Vegas SuperStore's unique sales platform, highlighted by our exclusive launch of the Tyson Ranch brand. In our view, the SuperStore will rapidly become the only place to launch a national brand synonymous with the entertainment and excitement that Las Vegas is known for. With roughly 70% of the customers coming through the SuperStore each month originating from out of state, we expect the value of the platform to increase as it becomes a proven launchpad for national brands and by building awareness of our brands across the U.S. in advance of out-of-state expansion."

Bob Groesbeck , Co-CEO added, "We expect our new production facility to be completed in Q3, which will enable us to expand sales of our current in-house brands – Medizin, TRENDI, and Leaf & Vine – and add more valuable brands to the portfolio. Our goal over time is to maintain a broad selection of third-party brands in the SuperStore, while incrementally growing the percentage of sales generated from wholly owned brands, to drive continual improvements in margin. With the launch of our fourth wholly-owned brand, Planet M, we are also actively exploring opportunities to take these highly successful brands into other dispensaries in Nevada as well as across the U.S. on a wholesale basis, as part of our long-term objective to be a premium retailer and cannabis brands company not only in Nevada , but in other key cannabis markets nationally."

Financial Highlights – Q1 – 2019

Operating Results

All comparisons below are to the quarter ended March 31, 2018 , unless otherwise noted

  • Revenues were $13.8 million as compared to $3.6 million , an increase of 286%
  • Gross profit before biological adjustments was $7.4 million or 53.8% as compared $1.6 million or 45.7%, an increase of 354%
  • Operating expenses, excluding non-cash compensation expense, were $5.9 million as compared to $1.2 million , an increase of 388%
  • Net loss of $1.2 million as compared to a net profit of $12,741
  • Adjusted EBITDA of $1.3 million as compared to Adjusted EBITDA of $667,563


Balance Sheet

All comparisons below are to December 31, 2018 , unless otherwise noted

  • Cash and cash equivalents of $20.2 million as compared to $19.4 million
  • Total assets of $55.5 million as compared to $44.9 million , an increase of 24%
  • Total liabilities of $17.7 million as compared to $7.0 million , an increase of 151%


_____________________

1https://tax.nv.gov/Publications/Marijuana_Statistics_and_Reports/

 

Q1 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 March 31, 2019 (the "MD&A").  

  • Between February 28 and March 11, 2019 , the Company started construction on Phase II of the Superstore consisting of a restaurant, a consumer facing production facility, a CBD store 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 launched Leaf & Vine, a line of high CBD:THC vapes and concentrates.
  • On May 24, 2019 , Planet 13 announced upgrading to the OTCQX Best Market.
  • On May 29, 2019 , Planet 13 announced national launch of Planet M CBD Brand.


Results of Operations (Summary)

The following tables set forth consolidated statements of financial information for the three-month period ending March 31, 2019 and March 31, 2018 . 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 March 31, 2019 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




Three Months




Ended


Ended


Percentage


Ended


Percentage


Mar-31-2019


Mar-31-2018


Change


Dec-31-2018


Change

Revenue










Revenues, net of discounts

13,836,063


3,587,542


285.7%


8,279,698


67.1%

Cost of Goods Sold

(6,393,446)


(1,948,174)


228.2%


(4,110,064)


55.6%

Gross Profit, Before Biological Asset Adjustment

7,442,617


1,639,368


354.0%


4,169,634


78.5%

Gross Profit Margin %

53.8%


45.7%




50.4%



Realized fair value amounts included in COGS

(346,062)


(587,834)


(41.1%)


(675,419)


(48.8%)

Unrealized fair value gain on growth of biological assets

358,771


656,208


(45.3%)


750,879


(52.2%)

Gross profit

7,455,327


1,707,742


336.6%


4,245,094


75.6%

Gross Profit Margin %

53.9%


47.6%




51.3%













Expenses










General and Administrative

4,540,220


1,110,973


308.7%


4,788,076


(5.2%)

Sales and Marketing

1,402,129


105,546


1228.5%


1,151,010


21.8%

Depreciation and Amortization

597,089


32,363


1745.0%


332,925


79.3%

Share based payments

572,352


-


na


367,497


55.7%

Total Expenses

7,111,790


1,248,882


469.5%


6,639,508


7.1%











Income (Loss) From Operations 

343,537


458,860


(25.1%)


(2,394,414)


(114.3%)











Other (Income) Expense:










Interest Expense, net

215,699


118,452


82.1%


5,674


3701.5%

Realized Foreign Exchange gain (loss)

2,725


-


na


330


725.8%

Other income

(17,163)


(12,968)


na


(80,285)


(78.6%)

Loss on settlement of accounts payable

-


-


na


96,341


na

Total Other (Income) Expense

201,261


105,484


90.8%


22,060


812.3%











Income (loss) for the period before tax

142,276


353,376


(59.7%)


(2,416,474)


(105.9%)

Provision for tax - current

1,565,619


340,635


359.6%


889,066


76.1%

Income (Loss) for the period

(1,423,343)


12,741


(11271.0%)


(3,305,540)


(56.9%)











Other Comprehensive (loss)










Items that may be reclassified subsequently to profit/loss 










Foreign exchange translation adjustment

273,205


-




(666,970)



Net Comprehensive Income (Loss) for the period

(1,150,138)


12,741




(3,972,510)



Loss per share for the period










Basic and fully diluted loss per share

($0.01)


$0.00




($0.03)













Weighted Average Number of Shares Outstanding










Basic and fully diluted

129,467,108


75,000,000




128,166,081













 

Adjusted EBITDA












Three Months 


Three Months 




Three Months 




Ended


Ended


Percentage


Ended


Percentage


Mar-31-2019


Mar-31-2018


Change


Dec-31-2018


Change

EBITDA










Profit (loss) before taxes

142,276


353,376


(59.7%)


(2,416,474)


(105.9%)

Add back:










Net change in Inventory Bio Asset valuation

38,623


353,843


(89.

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