LAS VEGAS — Planet 13 Holdings Inc., a leading vertically-integrated multi-state cannabis company, today announced its financial results for the three-month period ended June 30, 2024. Planet 13’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
“Q2 was an exciting period for Planet 13, marked by strong financial performance and execution of our growth initiatives. We closed the transformational acquisition in Florida and opened our completely unique DAZED! consumption lounge. In addition to consolidating results in Florida, we generated strong sequential organic revenue growth, better margins, and increased cash flow across our operations,” said Larry Scheffler, co-CEO of Planet 13.
“As we look to the latter half of 2024, we’re poised for continued strength as we execute our exciting multi-year growth plan. We’re making significant progress on expanding our cultivation and retail network in Florida to continue the trend of sequential growth in that state. Beyond Florida, we are pushing the envelope in innovation as an entertainment and lifestyle-focused cannabis brand. Our SuperStore, Dazed! lounge and lifestyle brand are key to building a deeper connection with Planet 13 fans, and we anticipate even greater engagement and growth in the future,” said Bob Groesbeck, co-CEO of Planet 13.
Financial Highlights – Q2 – 2024
Operating Results
All comparisons below are to the quarter ended June 30, 2023, unless otherwise noted
- Revenue was $31.1 million as compared to $25.8 million, an increase of 20.3%. The increase in sales was driven by a month and a half of revenue from Florida as well as strong sales at the Planet 13 SuperStore and Illinois neighborhood store.
- Gross profit was $15.8 million or 50.9% as compared to $11.9 million or 46.0%. The improvement in gross margin was driven by a lower cost of cultivation through full utilization of cultivation facilities and better yields, along with a higher portion of sales from owned brands.
- Total expenses were $19.4 million as compared to $15.4 million, an increase of 26.0%. Absolute expenses grew with the consolidation of Florida.
- Net loss of $8.1 million as compared to a net loss of $4.6 million.
- Adjusted EBITDA of $3.2 million as compared to Adjusted EBITDA of $2.8 million. Adjusted EBITDA was higher due to better gross margin performance, strong cost control and increased operating leverage.
Balance Sheet
All comparisons below are to December 31, 2023, unless otherwise noted
- Cash of $26.7 million as compared to $11.8 million
- Total assets of $242.4 million as compared to $151.7 million
- Total liabilities of $84.4 million as compared to $44.1 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 Ended June 30, 2024 (the “MD&A”).
- On April 30, 2024, Planet 13 announced the launch of new Medizin Branded Topicals powered by Planet 13.
- On May 6, 2024, Planet 13 announced the closing of the sale of Planet 13 Florida Inc. which held its Medical Marijuana Treatment Center license in Florida.
- On May 10, 2024, Planet 13 announced the closing of the purchase of VidaCann LLC, a Medical Marijuana Treatment Center in Florida, increasing our portfolio by 26 medical retail stores, 1 cultivation facility, and 1 production facility.
- On June 11, 2024, Planet 13 announced the results of its Annual General Meeting of Stockholders.
- On June 12, 2024, Planet 13 announced the appointment of David Loop to its Board of Directors.
- On June 18, 2024, Planet 13 announced the launch of Planet 13 Fight Club.
- On July 24, 2024, Planet 13 announced the launch of its new lifestyles brand, Planet 13 Lifestyles.
Results of Operations (Summary)
The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, is available on the SEC’s website at www.sec.gov. 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+ and on its website.
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.
About Planet 13
Planet 13 is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations across its locations in California, Nevada, Illinois, and Florida following the acquisition of VidaCann and its 26 Florida dispensaries. Home to the nation’s largest dispensary, located just off The Strip in Las Vegas, Planet 13 continues to expand its footprint with the recent debut of its first consumption lounge in Las Vegas, DAZED!, and the opening of its first Illinois dispensary in Waukegan, bringing unparalleled cannabis experiences to the Chicago metro area. Planet 13 holds a medical marijuana treatment center license in Florida allowing for state-wide expansion throughout the Sunshine State. Planet 13’s mission is to build a recognizable global brand known for world-class dispensary operations and innovative cannabis products. Licensed cannabis activity is legal in the states Planet 13 operates in but remains illegal under U.S. federal law. Planet 13’s shares trade on the Canadian Securities Exchange (CSE) under the symbol PLTH and are quoted on the OTCQX under the symbol PLNH.
