Planet 13 Announces Second Quarter 2020 Financial Results

  • Q2 2020 Revenue of $10.8 million; EBITDA loss of $0.7 million

  • July 2020 & August revenue of $15.1 million1


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


LAS VEGAS, NV / ACCESSWIRE / August 31, 2020 / Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) ("Planet 13" or the "Company"), a leading vertically-integrated Nevada cannabis company, today announced its financial results for the three-month and six-month period ended June 30, 2020. Planet 13's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").


Larry Scheffler, Co-CEO of Planet 13 commented, "Q2 was a challenging environment for all Nevada businesses. I'm pleased with the way the team worked under these conditions to add new customers and preserve capital. As the State has reopened, we've seen an incredible pickup in our business, with July and August being our highest months of sales to date. The SuperStore is seeing increased customer conversion and higher tickets, while our delivery team is servicing local customers and providing approximately 15% of our sales compared to less than 1% pre-COVID."


Bob Groesbeck, Co-CEO added, "Our brands are performing well at the SuperStore, up from 14% in Q4 2019 to 28.5% of sales in Q2 2020. This number will continue to increase now that we have expanded cultivation to supply our popular Medizin line. We are also seeing initial success in the wholesale market, which we began supplying in June. Our products are now available in 33 dispensaries in Nevada, and we have multiple SKUs in the top 10 of their respective categories; edibles, concentrates, and beverages2. Planet 13 has resumed its growth trajectory. In July and August we've generated our highest revenue ever, over $7 million per month. We are set to build on this momentum reopening our Medizin dispensary shortly and Santa Ana in 2021. I'm incredibly excited about what the future holds for Planet 13."


1August revenue is for the first 30 days of the month


2https://www.headset.io/


Financial Highlights - Q2 - 2020


Operating Results


All comparisons below are to the quarter ended June 30, 2019, unless otherwise noted

  • Revenues were $10.8 million as compared to $16.5 million, a decrease of 34.9%

  • Gross profit before biological adjustments was $4.7 million or 43.8% as compared to $9.7 million or 58.7%, a decrease of 51.5%

  • Operating expenses, excluding non-cash compensation expense, were $5.8 million as compared to $7.1 million, a decrease of 18.5%

  • Net loss before taxes of $3.3 million as compared to a net income of $1.1 million

  • Net loss of $4.0 million as compared to a net loss of $0.9 million

  • Adjusted EBITDA loss of $0.7 million as compared to Adjusted EBITDA of $2.7 million


Balance Sheet


All comparisons below are to December 31, 2019, unless otherwise noted


  • Cash of $22.7 million as compared to $12.8 million

  • Total assets of $81.9 million as compared to $62.9 million

  • Total liabilities of $30.9 million as compared to $21.6 million


Q2 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 Months and Six Months Ended June 30, 2020 (the "MD&A").


  • On April 13, 2020, Planet 13 announced termination of the Santa Ana acquisition.

  • On April 17, 2020, Planet 13 announced the renegotiation of the Santa Ana acquisition.

  • On May 21, 2020, Planet 13 announced the acquisition of a dispensary license and the close of the Santa Ana acquisition.

  • On June 15, 2020, Planet 13 announced a CDN$10 million bought deal public offering.

  • On July 3, 2020, Planet 13 announced closing of a CDN$11.5 million bought deal public offering.

  • On July 17, 2020, Planet 13 announced an acquisition of 45,000 square feet of indoor cultivation.

  • On August 10, 2020, Planet 13 was awarded a Nevada dispensary license.

  • On August 20, 2020, Planet 13 announced a CDN$15 million bought deal public offering.

  • On August 21, 2020, Planet 13 announced an upsize to bought deal public offering to CDN$20 million.


Results of Operations (Summary)


The following tables set forth consolidated statements of financial information for the three-month and six-month periods ending June 30, 2020 and June 30, 2019. 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 June 30, 2020 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.


Adjusted EBITDA



Outstanding Shares


As of August 30, 2020, the Company had 104,104,733 common shares and 59,173,872 class A convertible, restricted voting shares issued and outstanding for a total of 163,278,605 shares outstanding. There were 433,840 options issued and outstanding of which all have fully vested. There were 5,430,332 warrants outstanding and 1,764,250 RSU's outstanding of which nil RSUs had fully vested as of August 30, 2020.


Conference Call


Planet 13 will host a conference call on Monday, August 31, 2020 at 5:00 p.m. EST 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: August 31, 2020 | Time: 5:00 p.m. EST

Participant Dial-in: Toll Free 877-407-8035 or International 201-689-8035

Replay Dial-in: Toll Free 877-481-4010 or International 919-882-2331

(Available for 2 weeks)

Reference Number: 36624

Listen to webcast: https://bit.ly/3h6DVfA

View the original press release here.

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