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Planet 13 Announces Third Quarter 2019 Financial ResultsPress Release | 11/25/2019

Planet 13 Announces Third Quarter 2019 Financial Results

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  • Q3 Revenue of$16.7 million,$47.1 millionfor the nine months endedSeptember 30, 2019
  • SuperStore accounted for 9.1% of allNevadacannabis dispensary revenue in Q3 20191
  • Q3 EBITDA of$3.4 million, 24% sequential growth over Q2 2019
  • Well capitalized with$18.1 millionin cash to complete all growth initiatives

All figures are reported inUnited Statesdollars ($) unless otherwise indicated

LAS VEGAS,Nov. 25, 2019/CNW/ – Planet 13 Holdings Inc. (CSE: PLTH) (OTCQB: PLNHF)(“Planet 13” or the “Company“), a leading vertically-integratedNevadacannabis company, today announced financial results for the three-month period endedSeptember 30, 2019. Planet 13’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

Cannabis Entertainment Complex (the “SuperStore”) monthly performance for first 12 months of operations.

30-Nov-18

31-Dec-18

31-Jan-19

28-Feb-19

31-Mar-19

30-Apr-19

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%

State of Nevada Sales

$    52,538,426

$    51,839,503

$

52,749,856

$

49,479,204

$

59,748,815

$

54,674,578

% of State’s Sales

6.4%

6.6%

7.7%

8.7%

9.1%

9.6%

31-May-19

30-Jun-19

31-Jul-19

31-Aug-19

30-Sep-19

31-Oct-19

Total Tickets

64,930

60,323

60,044

62,833

59,091

59,605

# of Days

31

30

31

31

30

31

Average Customers/Day

2,095

2,011

1,937

2,027

1,970

1,923

Avg Ticket

$

90.63

$

88.87

$

90.41

$

90.25

$

94.73

$

94.48

Total Visitors

108,174

102,145

110,813

115,246

101,228

102,304

Avg Visitors/Day

3,489

3,405

3,575

3,718

3,374

3,300

Visitor Conversion Rate

60%

59%

54%

55%

58%

58%

State of Nevada Sales

$

62,019,961

$

57,948,330

$

59,933,851

$

62,303,103

 Data not released yet 

% of State’s Sales

9.5%

9.3%

9.1%

9.1%

________________

1

Includes data for July and August. Nevada sales for September are unavailable.

 

Larry Scheffler, Co-CEO of Planet 13 commented, “The SuperStore celebrated its one-year anniversary at the start of this month and 12 months on, even with this location generating$59.5 millionin revenue2 and accounting for 9% of the State’s cannabis sales3, we are just at the beginning of the growth potential for this site and for Planet 13. With Phase II and wholesale operations just getting underway, we expect to continue generating profitable growth as we expand the sales of our well-regarded in-house, in-store produced brands both on-site and in 3rdparty dispensaries state-wide commencing in the New Year.”

Bob Groesbeck, Co-CEO added, “In Q3, the highly profitable four-wall economics at the SuperStore drove our third consecutive quarter of positive EBITDA and positive operating cash flow. In addition to having recently opened Phase II inLas Vegas, we have been moving forward with our license acquisition in Santa Ana. Backed by a tier-one location close to tourist traffic and Planet 13’s world-class customer service, this location is poised to continue to build Planet 13’s reputation for creating world-class cannabis entertainment destinations while generating additional value for shareholders.”

Financial Highlights – Q3 – 2019

Operating Results

All comparisons below are to the quarter endedSeptember 30, 2018, unless otherwise noted

  • Revenues were$16.7 millionas compared to$4.9 million, an increase of 241%
  • Gross profit before biological adjustments was$9.9 millionor 59.1% as compared$2.6 millionor 53.2%, an increase of 280%
  • Operating expenses, excluding non-cash compensation expense, were$6.7 millionas compared to$2.4 million, an increase of 182%
  • Net income before taxes of$0.3 millionas compared to a net loss of$0.5 million
  • Net loss of$1.7 millionas compared to a net loss of$0.9 million
  • Adjusted EBITDA of$3.4 millionas compared to Adjusted EBITDA of$376,611

Balance Sheet

All comparisons below are toDecember 31, 2018, unless otherwise noted

  • Cash of$18.1 millionas compared to$19.4 million
  • Total assets of$67.1 millionas compared to$44.9 million, an increase of 49%
  • Total liabilities of$26.0 millionas compared to$7.0 million, an increase of 269%

_________________________

2

$59.5 million revenue generated from November 1, 2018 to October 31, 2019

3

https://tax.nv.gov/uploadedFiles/taxnvgov/Content/TaxLibrary/NV-Marijuana-Revenue-FY20%20(003)(1).pdf from January 1, 2019 to August 31, 2019.  Nevada sales for September are unavailable.

 

Q3 Highlights and Recent Developments

For a more comprehensive overview of these highlights and recent developments, please refer to Planet 13’sManagement’s Discussion and Analysis of the Financial Condition and Results of Operations for the Three and Nine Months EndedSeptember 30, 2019(the “MD&A“).

  • OnJuly 29, 2019, Planet 13 announced new edible brands: HaHa Gummies™ and Dreamland Chocolates™
  • OnSeptember 6, 2019, Planet 13 announced Cannabition Joining the Planet 13 SuperStore
  • OnOctober 18, 2019, Planet 13 announced the opening of Rickety Cricket Pizzeria and Purc Coffee
  • OnOctober 22, 2019, Planet 13 announced new beverage brand Elysium
  • OnNovember 1, 2019, Planet 13 announced the opening of customer-facing production facility

Results of Operations (Summary)

The following tables set forth consolidated statements of financial information for the three-month and nine-month period endingSeptember 30, 2019andSeptember 30, 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 endedSeptember 30, 2019together with the MD&A, available on Planet 13’s issuer profile on SEDAR at www.sedar.comand the Company’s websitehttps://www.planet13holdings.com.

Full statement at  https://www.otcmarkets.com/stock/PLNHF/news/Planet-13-Announces-Third-Quarter-2019-Financial-Results?id=247498