- Q1 2024 Revenue of
$22 .9 million - Q1 2024 Net loss of $5.9 million
- Q1 2024 Adjusted EBITDA loss of $0.0 million
All figures are reported in
“With the recent news around rescheduling from schedule I to schedule III, it is an exciting time to be in the cannabis industry. The removal of the punishing 280e tax treatment fundamentally alters our cash flow and net income potential. We are preparing to capitalize on this change by instituting a new growth plan aimed at offsetting the continued pricing pressure in the
“The beginning of 2024 has seen significant strides in advancing our growth objectives. We opened our DAZED! cannabis lounge in April, and we are on the verge of closing the VidaCann acquisition, giving us a top-10 position in the
Financial Highlights – Q1 – 2024
Operating Results
All comparisons below are to the quarter ended
- Revenue was
$22 .9 million as compared to $24.9 million, a decrease of 8.2%. Lower sales at the SuperStore and in wholesale offset growth from the Planet 13 Neighborhood store network. - Gross profit was $10.5 million or 45.8% as compared to $10.9 million or 43.7%. The improvement in gross margin was driven by a decrease in product discounting at retail.
- Total expenses were $14.1 million as compared to $15.3 million, a decrease of 7.6%.
- Net loss of $5.9 million as compared to a net loss of $8.5 million.
- Adjusted EBITDA loss of $0.0 million as compared to Adjusted EBITDA loss of $1.3 million. Adjusted EBITDA margin was higher due to better gross margin performance and strong cost control.
Balance Sheet
All comparisons below are to
- Cash of $20.8 million as compared to $11.8 million
- Total assets of $157.4 million as compared to $151.7 million
- Total liabilities of $45.6 million as compared to $44.1 million
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 Months Ended
- On
January 22, 2024 ,Planet 13 entered into a definitive agreement to sell Planet 13Florida Inc. which holds its redundantMedical Marijuana Treatment Center license inFlorida . - On
February 8, 2024 ,Planet 13 announced an expansion of the leadership team and board. - On
March 4, 2024 ,Planet 13 announced the commencement of an underwritten public offering of units. - On
March 7, 2024 ,Planet 13 closed the previously announced public offering of units. - On
April 5, 2024 ,Planet 13 announced the opening of DAZED! lounge. - On
April 29, 2024 ,Planet 13 announced it had received approval from the OMMU for the VidaCann acquisition. - On
April 30, 2024 ,Planet 13 announced the launch of new Medizin Branded Topicals powered byPlanet 13 . - On
May 6, 2024 ,Planet 13 announced the closing of the sale of Planet 13Florida Inc. which holds itsMedical Marijuana Treatment Center license inFlorida .
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-month periods ending
Financial Highlights
Results of Operations
(Figures in millions | For the Three Months Ended | |||||||||||
and % change based | ||||||||||||
on these figures) | 2024 | 2023 | change | |||||||||
Total Revenue | $ | 22.9 | $ | 24.9 | -8.2 | % | ||||||
Gross Profit | $ | 10.5 | $ | 10.9 | -3.7 | % | ||||||
Gross Profit % | 45.8 | % | 43.7 | % | 4.9 | % | ||||||
Operating Expenses | $ | 12.0 | $ | 12.4 | -3.0 | % | ||||||
Operating Expenses % | 52.4 | % | 49.6 | % | 5.7 | % | ||||||
Net Loss Before Provision for Income Taxes | $ | (3.5 | ) | $ | (6.1 | ) | -42.6 | % | ||||
Net Loss | $ | (5.9 | ) | $ | (8.5 | ) | -30.7 | % | ||||
Adjusted EBITDA | $ | (0.0 | ) | $ | (1.3 | ) | -97.0 | % | ||||
Adjusted EBITDA Margin % | -0.2 | % | -5.3 | % | ||||||||
The Company’s Quarterly Report on Form 10-Q for the quarter ended
This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Conference Call
CONFERENCE CALL DETAILS
Date: May 9, 2024 | Time:
(Available for 2 weeks)
Reference Number: 50504
Listen to webcast: https://www.webcaster4.com/Webcast/Page/2477/50504
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 | ||||||||||||
on these figures) | 2024 | 2023 | change | |||||||||
Net Income (Loss) | $ | (5.9 | ) | $ | (8.5 | ) | -30.7 | % | ||||
Add impact of: | ||||||||||||
Interest income, net | $ | (0.0 | ) | $ | (0.1 | ) | -78.9 | % | ||||
Provision for income taxes | $ | 2.3 | $ | 2.3 | 0.5 | % | ||||||
Depreciation and amortization | $ | 2.1 | $ | 2.2 | -7.9 | % | ||||||
Depreciation included in cost of goods sold | $ | 1.0 | $ | 1.0 | -6.0 | % | ||||||
EBITDA | $ | (0.5 | ) | $ | (3.0 | ) | -82.2 | % | ||||
Change in fair value of warrants | $ | - | $ | (0.0 | ) | -100.0 | % | |||||
Share-based compensation and related premiums | $ | 0.1 | $ | 0.7 | -85.5 | % | ||||||
Professional fees expensed related to M&A activities | $ | 0.0 | $ | 1.0 | -95.2 | % | ||||||
Professional fees expensed related to | $ | 0.3 | $ | - | 0.0 | % | ||||||
Adjusted EBITDA | $ | (0.0 | ) | $ | (1.3 | ) | -97.0 | % | ||||
For more information on
About
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements and are often, but not always, identified by phrases such as “plans”, “expects”, “proposed”, “may”, “could”, “would”, “intends”, “anticipates”, or “believes”, or variations of such words and phrases. In this news release, forward-looking statements relate to our strategic goals or future performance. Such forward-looking statements reflect what management of the Company believes, or believed at the time, to be reasonable assumptions and accordingly readers are cautioned not to place undue reliance upon such forward-looking statements and that actual results may vary from such forward-looking statements. These assumptions, risks and uncertainties which may cause actual results to differ include, among others: final regulatory and other approvals or consents needed to operate our business; fluctuations in general macroeconomic conditions; inflationary pressures; fluctuations in securities markets; expectations regarding the size of the cannabis market in the states in which we currently operate in or contemplate future operations and changing consumer habits in such states; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties including international conflict; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in the states in which we currently operate in or contemplate future operations; employee relations and other risks and uncertainties discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the
For further inquiries, please contact:
mark.kuindersma@loderockadvisors.com
Co-Chief Executive Officers
ir@planet13lasvegas.com
Interim Condensed Consolidated Balance Sheets (Unaudited, In |
2024 | 2023 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 20,771,317 | $ | 11,831,008 | ||||
Restricted Cash | 2,050,584 | 5,450,584 | ||||||
Accounts Receivable | 1,035,465 | 1,195,927 | ||||||
Inventory | 16,998,825 | 15,760,648 | ||||||
Assets held for sale | 9,000,000 | 9,000,000 | ||||||
Prepaid Expenses and Other Current Assets | 2,893,277 | 4,072,820 | ||||||
Total Current Assets | 52,749,468 | 47,310,987 | ||||||
Property and Equipment | 67,342,325 | 67,551,697 | ||||||
Intangible Assets | 15,253,797 | 15,253,797 | ||||||
Right of Use Assets - Operating | 20,516,518 | 20,054,369 | ||||||
Long-term Deposits and Other Assets | 800,757 | 869,853 | ||||||
Deferred Tax Asset | 725,196 | 706,038 | ||||||
TOTAL ASSETS | $ | 157,388,061 | $ | 151,746,741 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
LIABILITIES | ||||||||
Current: | ||||||||
Accounts Payable | $ | 1,953,157 | $ | 2,850,922 | ||||
Accrued Expenses | 5,187,413 | 6,097,641 | ||||||
Income Taxes Payable | 7,499,412 | 4,782,538 | ||||||
Notes Payable - Current Portion | 884,000 | 884,000 | ||||||
Operating Lease Liabilities | 779,389 | 674,594 | ||||||
Total Current Liabilities | 16,303,371 | 15,289,695 | ||||||
Long-Term Liabilities: | ||||||||
Operating Lease Liabilities | 25,801,491 | 25,271,706 | ||||||
Other Long-term Liabilities | 33,000 | 33,000 | ||||||
Deferred Tax Liability | 3,510,826 | 3,511,559 | ||||||
Total Liabilities | 45,648,688 | 44,105,960 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Common Stock, no par value, 1,500,000,000 shares authorized, 243,291,548 issued and outstanding at | - | - | ||||||
Preferred Stock, no par value, 50,000,000 shares authorized, 0 issued and outstanding at | - | - | ||||||
325,923,704 | 315,951,343 | |||||||
Deficit | (214,184,331 | ) | (208,310,562 | ) | ||||
Total Shareholders' Equity | 111,739,373 | 107,640,781 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 157,388,061 | $ | 151,746,741 | ||||
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited, In |
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenues, net of discounts | $ | 22,877,471 | $ | 24,915,396 | ||||
Cost of Goods Sold | (12,392,992 | ) | (14,032,585 | ) | ||||
Gross Profit | 10,484,479 | 10,882,811 | ||||||
Expenses: | ||||||||
General and Administrative | 10,024,787 | 10,955,007 | ||||||
Sales and Marketing | 1,290,737 | 1,335,740 | ||||||
Lease Expense | 774,946 | 784,636 | ||||||
Depreciation | 2,059,023 | 2,235,464 | ||||||
Total Expenses | 14,149,493 | 15,310,847 | ||||||
Loss From Operations | (3,665,014 | ) | (4,428,036 | ) | ||||
Other Income (Expense): | ||||||||
Interest income, net | 24,562 | 116,351 | ||||||
Foreign exchange gain (loss) | (3,097 | ) | 1,887 | |||||
Change in fair value of warrant liability | - | 18,127 | ||||||
Provision for misappropriated funds | - | (2,000,000 | ) | |||||
Other Income, net | 113,749 | 144,609 | ||||||
Total Other Income | 135,214 | (1,719,026 | ) | |||||
Loss Before Provision for Income Taxes | (3,529,800 | ) | (6,147,062 | ) | ||||
Provision For Income Taxes | ||||||||
Current Tax Expense | (2,363,860 | ) | (2,265,088 | ) | ||||
Deferred Tax Recovery | 19,891 | (67,999 | ) | |||||
(2,343,969 | ) | (2,333,087 | ) | |||||
Net Loss and Comprehensive Loss | $ | (5,873,769 | ) | $ | (8,480,149 | ) | ||
Loss per Share | ||||||||
Basic and diluted loss per share | $ | (0.03 | ) | $ | (0.04 | ) | ||
Weighted Average Number of Shares of Common Stock | ||||||||
Basic and diluted | 228,437,545 | 221,084,457 | ||||||
Interim Condensed Consolidated Statements of Cash Flows (Unaudited, In |
Three Months Ended | ||||||||
2024 | 2023 | |||||||
CASH USED IN OPERATING ACTIVITIES | ||||||||
Net loss | $ | (5,873,769 | ) | $ | (8,480,149 | ) | ||
Adjustments for items not involving cash: | ||||||||
Shared based compensation | 104,338 | 720,991 | ||||||
Non-cash lease expense | 235,980 | 1,279,369 | ||||||
Depreciation | 3,017,720 | 3,259,999 | ||||||
Change in fair value of warrant liability | - | (18,127 | ) | |||||
Loss on disposal of fixed assets | 66,178 | - | ||||||
Lease incentive amortization | 27,277 | (26,115 | ) | |||||
(2,422,276 | ) | (3,264,032 | ) | |||||
Net Changes in Non-cash Working Capital Items | 1,082,151 | (3,099,853 | ) | |||||
Repayment of lease liabilities | (90,826 | ) | (982,255 | ) | ||||
Total Operating | (1,430,951 | ) | (7,346,140 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Proceeds from public share issuance | 9,913,856 | - | ||||||
Total Financing | 9,913,856 | - | ||||||
INVESTING ACTIVITIES | ||||||||
Purchase of property and equipment | (2,947,190 | ) | (3,653,373 | ) | ||||
Proceeds from sales of fixed assets | 4,594 | - | ||||||
Purchase of 51% interest in Planet 13 Illinois | - | (866,250 | ) | |||||
Total Investing | (2,942,596 | ) | (4,519,623 | ) | ||||
NET CHANGE IN CASH DURING THE PERIOD | 5,540,309 | (11,865,763 | ) | |||||
CASH | ||||||||
Beginning of Period | 17,281,592 | 38,789,604 | ||||||
End of Period | $ | 22,821,901 | $ | 26,923,841 | ||||
Source:
2024 GlobeNewswire, Inc., source