Planet 13 Announces Q3 2024 Financial Results
Q3 2024 Revenue of $32.2 million
Q3 2024 Net loss of $7.4 million
Q3 2024 Adjusted EBITDA of $1.3 million
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Planet 13 Holdings Inc. (CSE:PLTH) (OTCQX:PLNH) ("Planet 13" or the "Company"), a leading vertically-integrated multi-state cannabis company, today announced its financial results for the three-month period ended September 30, 2024. Planet 13's financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP").
"Despite Florida not moving forward with adult-use, we see a significant growth runway by expanding our store footprint and enhancing cultivation assets in the state. In addition to our Florida operations, we're focused on driving growth by scaling our neighborhood store network and broadening the distribution of our HaHa edibles," said Larry Scheffler, co-CEO of Planet 13. "We're actively making progress on our growth initiatives while continuing to innovate and elevate the cannabis shopping experience."
"While we experienced headwinds in Q3 from traditional seasonality in Florida and continued pressure on consumer spending, we are taking strategic steps to set ourselves up for long-term success. Our focus remains on delivering a one-of-a-kind shopping experience for the consumer, making thoughtful investments and most importantly, prioritizing cash flow. With our diversified footprint, multiple growth opportunities, and a strong balance sheet, we are well positioned to drive further growth and profitability in 2025," said Bob Groesbeck, co-CEO of Planet 13.
Financial Highlights, Q3 – 2024
Operating Results
All comparisons below are to the quarter ended September 30, 2023, unless otherwise noted
Revenue was $32.2 million as compared to $24.8 million, an increase of 29.7%. The increase in sales was driven by the addition of Florida as well as strong sales at the Illinois neighborhood store.
Gross profit was $16.7 million or 51.9% as compared to $11.1 million or 44.7%. The improvement in gross margin was driven by a lower cost of cultivation through full utilization of cultivation facilities and better yields, along with the addition of high margin Florida revenue.
Total expenses were $20.0 million as compared to $55.1 million, a decrease of 63.6%. Lower total expenses were driven by lower impairment loss in the quarter.
Net loss of $7.4 million as compared to a net loss of $46.3 million.
Adjusted EBITDA of $1.3 million as compared to Adjusted EBITDA of $0.2 million. Adjusted EBITDA was higher due to the inclusion of Florida, better gross margin performance, and increased operating leverage.
Balance Sheet
All comparisons below are to December 31, 2023, unless otherwise noted
Cash of $27.4 million as compared to $11.8 million
Total assets of $243.0 million as compared to $151.7 million
Total liabilities of $92.3 million as compared to $44.1 million
Q3 Highlights and Recent Developments
For a more comprehensive overview of these highlights and recent developments, please refer to Planet 13's press releases.
On July 24, 2024, Planet 13 announced the launch of its new Lifestyles brand company.
On August 12, 2024, Planet 13 announced the opening of its 27th Florida dispensary, located in Ocala.
On August 15, 2024, Planet 13 announced the exclusive Nevada launch of Khalifa Kush 'Products Powered by Planet 13' at the Las Vegas SuperStore.
On September 11, 2024, Planet 13 announced the proposed acquisition of a Las Vegas dispensary.
On October 15, 2024, Planet 13 announced the opening of its 28th Florida dispensary, located in Port Orange near Daytona Beach.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-month periods ending September 30, 2024, and September 30, 2023.
Financial Highlights
Results of Operations
(Figures in millions
For the Three Months Ended
and % change based
September 30,
September 30,
on these figures)
2024
2023
change
Total Revenue
$
32.2
$
24.8
29.7
%
Gross Profit
$
16.7
$
11.1
50.8
%
Gross Profit %
51.9
%
44.7
%
16.2
%
Operating Expenses
$
17.6
$
52.5
-66.4
%
Operating Expenses %
54.9
%
211.8
%
-74.1
%
Net Loss Before Provision for Income Taxes
$
(2.9
)
$
(43.9
)
-93.3
%
Net Loss
$
(7.4
)
$
(46.3
)
-84.0
%
Adjusted EBITDA
$
1.3
$
0.2
509.0
%
Adjusted EBITDA Margin %
4.2
%
0.9
%
The Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, is available on the SEC's website at www.sec.gov or at https://planet13.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+ at https://www.sedarplus.ca/ and on its website at https://planet13.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 November 8, 2024 at 5:00 p.m. ET to discuss its third quarter financial results and provide investors with key business highlights, strategy, and outlook. The call will be chaired by Robert Groesbeck, Co-CEO, Larry Scheffler, Co-CEO, and Dennis Logan, CFO.
CONFERENCE CALL DETAILS
Date: November 8, 2024 | Time: 5:00 p.m. ESTCall registration link - available 15 minutes before call: https://eventmeet.conferencingcenter.com/ExpressAttend/control?u=1Webcast link: https://events.q4inc.com/attendee/307597500
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 and 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 Adjusted EBITDA is calculated as EBITDA before share-based compensation, the change in fair value of warrants and one-time non-recurring expenses.
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
(Figures in millions
For the Three Months Ended
and % change based
September 30,
September 30,
on these figures)
2024
2023
change
Net Income (Loss)
$
(7.4
)
$
(46.3
)
-84.0
%
Add impact of:
Interest income, net
$
(0.0
)
$
(0.0
)
179.3
%
Provision for income taxes
$
4.5
$
2.4
89.9
%
Depreciation and amortization
$
2.4
$
2.0
19.8
%
Depreciation included in cost of goods sold
$
1.2
$
1.0
23.9
%
EBITDA
$
0.6
$
(40.9
)
-101.5
%
Share-based compensation and related premiums
$
0.0
$
0.6
-95.8
%
Impairment losses
$
-
$
39.6
-100.0
%
Loss on Sale of Florida License
$
-
$
-
0.0
%
Professional fees expensed related to M&A activities
$
0.1
$
0.7
-81.6
%
Professional fees expensed related to SEC Domestic Issuer Form 10 filing and U.S Domestication from British Columbia to Nevada
$
-
$
0.19
-100.0
%
Expenses related to El Capitan Matter
$
0.6
$
-
