Q4 2022 Revenue of $24.8 million, compared to $25.6 million in Q3 2022
Q4 2022 Net loss of $38.6 million driven by $32.8 million impairment charge
Q4 2022 Adjusted EBITDA[1] loss of $0.8 million
Full year 2022 Revenue of $104.6 million, compared to $119.5 million for full year 2021
Full year 2022 Operating Cash flow of $3.8 million
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, NV / ACCESSWIRE / March 23, 2023 / Planet 13 Holdings Inc. (CSE:PLTH)(OTCQX:PLNHF) ("Planet 13" or the "Company"), a leading vertically-integrated cannabis company, today announced its financial results for the three-month and twelve-month periods ended December 31, 2022. Planet 13's financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP").
"Over the course of the year we saw state-wide pricing trends and the overall economic environment impact our revenue. Despite this backdrop, we continued to meet our goal of 8 - 10% of Nevada retail sales. For the full year we had 9% of the sales in Nevada. Towards the end of Q4 we saw those pricing compression trends start to stabilize and we remain optimistic about the outlook for 2023," said Larry Scheffler, Co-CEO of Planet 13. "Despite the pressures on retail, we grew wholesale revenue by 26% year over year and had a top five brand in every product category. Moreover, in California, we increased our share of shelf and wholesale revenue every quarter."
"Across our organization we are focused on three things: increasing profitability, preserving capital, and setting ourselves up for future growth," commented Bob Groesbeck, Co-CEO of Planet 13. "At the end of 2022, we are in a solid position. We have no debt, positive operating cash flow, and over $50 million in cash. This is a strong foundation that alongside our numerous growth projects sets us up for future operating cash flow expansion."
Financial Highlights - Q4 - 2022
[1] Adjusted EBITDA is a non-GAAP financial measure
Operating Results
All comparisons below are to the quarter ended December 31, 2021, unless otherwise noted
Revenues were $24.8 million as compared to $29.9 million, a decrease of 16.8%
Gross profit was $10.7 million or 43.0% as compared to $16.2 million or 54.3%
Operating expenses, excluding non-cash compensation expense, depreciation and amortization, and impairment loss, was $13.1 million as compared to $14.8 million, a decrease of 22.1%
Net loss before taxes of $37.8 million driven by a $32.8 million impairment charge as compared to a net loss of $1.3 million
Net loss of $38.6 million as compared to a net loss of $5.1 million
Adjusted EBITDA loss of $0.8 million as compared to Adjusted EBITDA of $1.9 million
Financial Highlights - Full Year - 2022
Operating Results
All comparisons below are to the full year ended December 31, 2021, unless otherwise noted
Revenues were $104.6 million as compared to $119.5 million, a decrease of 12.5%
Gross profit was $48.0 million or 45.9% as compared to $66.0 million or 55.2%
Operating expenses, excluding non-cash compensation expense, depreciation and amortization, and impairment loss, was $48.2 million as compared to $52.9 million, a decrease of 9.0%
Net loss before taxes of $40.2 million driven by a $32.8 million impairment charge as compared to a net loss of $6.0 million
Net loss of $49.0 million as compared to a net loss of $19.5 million
Adjusted EBITDA of $3.5 million as compared to Adjusted EBITDA of $16.9 million
Balance Sheet
All comparisons below are to December 31, 2021, unless otherwise noted
Cash of $52.4 million as compared to $61.6 million
Total assets of $233.6 million as compared to $216.8 million
Total liabilities of $42.7 million as compared to $43.1 million
Q4 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 and Twelve Months Ended December 31, 2022 (the "MD&A").
On November 11, 2022, Planet 13 announced the location of its new Illinois dispensary.
On December 5, 2022, Planet 13 announced that it had received approval for a consumption lounge at its Las Vegas SuperStore.
On January 19, 2023, Planet 13 announced the location of its Port Orange dispensary in the Daytona Beach area of Florida.
On February 3, 2023, Planet 13 purchased land and a building for its planned Illinois dispensary.
On February 7, 2023, Planet 13 announced it had exercised the option to buy the remaining 51% interest in Planet 13 Illinois, LLC.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-and twelve-month periods ending December 31, 2022, and December 31, 2021.
(Figures in millions | For the Three Months Ended | For the Full Year Ended | |||||||||||||||||||
and % change based | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||
on these figures) | 2022 | 2021 | change | 2022 | 2021 | change | |||||||||||||||
Total Revenue | $ | 24.84 | $ | 29.90 | -17 | % | $ | 104.57 | $ | 119.49 | -12.0 | % | |||||||||
Gross Profit | $ | 10.69 | $ | 16.20 | -34 | % | $ | 47.97 | $ | 66.01 | -27.0 | % | |||||||||
Gross Profit % | 43.00 | % | 54.30 | % | -21 | % | 45.90 | % | 55.20 | % | -17.0 | % | |||||||||
Operating Expenses | $ | 45.87 | $ | 14.80 | 210 | % | $ | 80.94 | $ | 52.93 | 53.0 | % | |||||||||
Operating Expenses % | 184.60 | % | 49.50 | % | 77.40 | % | 44.30 | % | 75.0 | % | |||||||||||
Net Loss Before Provision for Income Taxes | $ | (37.74 | ) | $ | (1.30 | ) | 2803 | % | $ | (40.23 | ) | $ | (5.98 | ) | 572.0 | % | |||||
Net Loss | $ | (38.62 | ) | $ | (5.10 | ) | 657 | % | $ | (48.98 | ) | $ | (19.46 | ) | 152.0 | % | |||||
Adjusted EBITDA | $ | (0.80 | ) | $ | 1.90 | -142 | % | $ | 3.47 | $ | 16.86 | -79.0 | % | ||||||||
Adjusted EBITDA Margin % | -3.22 | % | 6.00 | % | 3.30 | % | 14.10 | % | |||||||||||||
The Company's Annual Report on Form 10-K for the year ended December 31, 2022, is available on the SEC's website at www.sec.gov or at https://www.planet13holdings.com/investors/. The Company's Management Discussion and Analysis for the year and the accompanying financial statements and notes are available under the Company's profile on SEDAR and on its website at https://www.planet13holdings.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 March 23, 2023 at 5:00 p.m. ET to discuss its fourth quarter and full year financial results and provide investors with key business highlights, strategy, and outlook. The call will be chaired by Bob Groesbeck, Co-CEO, Larry Scheffler, Co-CEO, and Dennis Logan, CFO.
CONFERENCE CALL DETAILS
Date: March 23, 2023 | Time: 5:00 p.m. EST
Participant Dial-in: Toll Free 888-506-0062 or International 973-528-0011
Replay Dial-in: Toll Free 877-481-4010 or International 919-882-2331
(Available for 2 weeks)
Reference Number: 836329
Listen to webcast: Link
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 | For the Full Year Ended | |||||||||||||||||||
and % change based | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||
on these figures) | 2022 | 2021 | change | 2022 | 2021 | change | |||||||||||||||
Net Loss | $ | (38.60 | ) | $ | (5.10 | ) | 657 | % | $ | (49.00 | ) | $ | (19.50 | ) | 152 | % | |||||
Add impact of: | |||||||||||||||||||||
Interest expense | $ | 0.30 | $ | - | 0 | % | $ | (0.50 | ) | $ | 0.00 | -2778 | % | ||||||||
Provision for income taxes | $ | 0.90 | $ | 3.80 | -77 | % | $ | 8.80 | $ | 13.50 | -35 | % | |||||||||
Depreciation and amortization | $ | 2.40 | $ | 2.00 | 18 | % | $ | 8.30 | $ | 5.30 | 56 | % | |||||||||
Depreciation included in cost of goods sold | $ | 1.10 | $ | 0.50 | 124 | % | $ | 3.30 | $ | 1.90 | 71 | % | |||||||||
EBITDA | -34 | 1.3 | -2714 | % | -29.1 | 1.3 | -2348 | % | |||||||||||||
Impairment of goodwill and other intangibles | 32.8 | - | 32.8 | - | |||||||||||||||||
Gain on sale-leaseback | -0.5 | - | -0.5 | - | |||||||||||||||||
Change in fair value of warrants | $ | (0.40 | ) | $ | (2.70 | ) | -87 | % | $ | (7.20 | ) | $ | 0.00 | 95350 | % | ||||||
Share-based compensation and related premiums | $ | 1.30 | $ | 3.40 | 62 | % | $ | 7.50 | $ | 15.60 | -52 | % | |||||||||
Adjusted EBITDA | $ | (0.80 | ) | $ | 1.90 | -142 | % | $ | 3.50 | $ | 16.90 | -79 | % | ||||||||
For further inquiries, please contact:
LodeRock Advisors Inc., Planet 13 Investor Relations
mark.kuindersma@loderockadvisors.com
Bob Groesbeck and Larry Scheffler
Co-Chief Executive Officers
ir@planet13lasvegas.com
About Planet 13
Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations in Las Vegas and in Orange County, California. Planet 13 also holds a medical marijuana treatment center license in Florida and a dispensing license in the Chicago-region of Illinois. Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products. Planet 13's shares trade on the Canadian Securities Exchange (CSE) under the symbol PLTH and on the OTCQX under the symbol PLNHF.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and are forward-looking statements. In this news release, forward looking-statements relate to the Company's future goals and future financial performance.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: final regulatory and other approvals or consents needed to close and operate our business; risks associated with COVID-19 and other infectious diseases presenting as major health issues; 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; the ability of the Company to integrate the Planet 13 Illinois business and realize any benefits from the acquisition; 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, 2021 filed with the U.S. Securities and Exchange Commission at www.sec.gov and on the Company's issuer profile on SEDAR at www.sedar.com and in the Company's periodic reports subsequently filed with the U.S. Securities and Exchange Commission and on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States through licensed subsidiary entities in states that have legalized marijuana operations, however, these activities are currently illegal under United States federal law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Planet 13 Holdings, Inc.
Consolidated Balance Sheets
(In United States Dollars)
December 31, | December 31, | ||||||
2022 | 2021 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash | $ | 52,356,914 | $ | 61,588,843 | |||
Accounts Receivable | 1,326,795 | 1,216,128 | |||||
Inventory | 13,004,839 | 14,225,369 | |||||
Prepaid Expenses and Other Current Assets | 3,810,394 | 3,977,524 | |||||
Total Current Assets | 70,498,942 | 81,007,864 | |||||
Property and Equipment | 71,466,051 | 50,778,277 | |||||
Intangible Assets | 69,288,007 | 63,398,007 | |||||
Right of Use Assets - Operating | 21,168,171 | 20,399,965 | |||||
Long-term Deposits and Other Assets | 862,545 | 1,061,879 | |||||
Deferred Tax Asset | 346,257 | 162,804 | |||||
TOTAL ASSETS | $ | 233,629,973 | $ | 216,808,796 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
LIABILITIES | |||||||
Current: | |||||||
Accounts Payable | $ | 3,112,820 | $ | 3,266,783 | |||
Accrued Expenses | 8,072,224 | 7,032,620 | |||||
Income Taxes Payable | 2,826,501 | 1,126,249 | |||||
Notes Payable - Current Portion | 884,000 | 884,000 | |||||
Operating Lease Liabilities | 479,161 | 423,573 | |||||
Total Current Liabilities | 15,374,706 | 12,733,225 | |||||
Long-Term Liabilities: | |||||||
Operating Lease Liabilities | 25,833,071 | 23,134,012 | |||||
Warranty Liability | 18,127 | 7,206,049 | |||||
Other Long-term Liabilities | 28,000 | 28,000 | |||||
Deferred Tax Liability | 1,487,204 | - | |||||
Total Liabilities | 42,741,108 | 43,101,286 | |||||
Commitments and Contingencies | |||||||
Shareholders' Equity | |||||||
Common Shares, no par value, unlimited Common Shares authorized, 220,470,061 issued and outstanding at December 31, 2022 and 198,687,950 at December 31, 2021 | - | - | |||||
Additional Paid-In Capital | 312,023,359 | 245,861,704 | |||||
Deficit | (121,134,494 | ) | (72,154,194 | ) | |||
Total Shareholders Equity | 190,888,865 | 173,707,510 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 233,629,973 | $ | 216,808,796 | |||
Planet 13 Holdings, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(In United States Dollars, except share amounts)
December 31, | December 31, | ||||||
2022 | 2021 | ||||||
Revenues, net of discounts | $ | 104,574,377 | $ | 119,493,435 | |||
Cost of Goods Sold | (56,599,623 | ) | (53,485,458 | ) | |||
Gross Profit | 47,974,754 | 66,007,977 | |||||
Expenses: | |||||||
General and Administrative | 49,395,500 | 59,928,356 | |||||
Sales and Marketing | 3,504,309 | 5,969,792 | |||||
Lease Expense | 2,744,532 | 2,608,016 | |||||
Impairment loss | 32,750,466 | - | |||||
Depreciation and Amortization | 8,337,476 | 5,335,055 | |||||
Total Expenses | 96,732,283 | 73,841,219 | |||||
Loss From Operations | (48,757,529 | ) | (7,833,242 | ) | |||
Other Income (Expense): | |||||||
Interest income (expense), net | 454,892 | (16,984 | ) | ||||
Foreign exchange gain (loss) | (25,528 | ) | 1,662,679 | ||||
Transaction costs | - | (256,667 | ) | ||||
Change in fair value of warrant liability | 7,177,805 | 7,520 | |||||
Gain on Sale-Leaseback | 509,392 | - | |||||
Other Income, net | 413,029 | 454,300 | |||||
Total Other Expense | 8,529,590 | 1,850,848 | |||||
Loss Before Provision for Income Taxes | (40,227,939 | ) | (5,982,394 | ) | |||
Provision For Income Taxes | |||||||
Current Tax Expense | (10,672,538 | ) | (13,954,784 | ) | |||
Deferred Tax Recovery | 1,920,177 | 476,226 | |||||
(8,752,361 | ) | (13,478,558 | ) | ||||
Net Loss and Comprehensive Loss | $ | (48,980,300 | ) | $ | (19,460,952 | ) | |
Loss per Share | |||||||
Basic and diluted loss per share | $ | (0.23 | ) | $ | (0.10 | ) | |
Weighted Average Number of Common Shares | |||||||
Basic and diluted | 216,586,621 | 195,126,972 | |||||
Planet 13 Holdings, Inc.
Consolidated Statements of Cash Flows
(In United States Dollars)
December 31, 2022 | December 31, 2021 | ||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |||||||
Net loss | $ | (48,980,300 | ) | $ | (19,460,952 | ) | |
Adjustments for items not involving cash: | |||||||
Shared based compensation expense | 7,459,267 | 15,576,643 | |||||
Non-cash lease expense | 4,737,162 | 4,485,919 | |||||
Depreciation | 11,258,697 | 7,213,096 | |||||
Amortization of intangibles | 372,222 | - | |||||
Change in fair value of warrant liability | (7,177,805 | ) | (7,520 | ) | |||
(Gain) loss on translation of warrant liability | (10,117 | ) | 100,637 | ||||
Transaction costs | - | 256,667 | |||||
Deferred tax recovery | (1,736,724 | ) | (410,359 | ) | |||
Proceeds from lease incentive | 1,100,000 | - | |||||
Lease incentive amortization | (239,133 | ) | - | ||||
Unrealized (gain) loss on foreign currency exchange | - | (185,916 | ) | ||||
Impairment of goodwill | 25,802,688 | - | |||||
Impairment of intangible assets | 6,947,778 | - | |||||
Gain on sale leaseback | (509,392 | ) | - | ||||
Loss on disposal of property and equipment | 70,601 | - | |||||
(905,056 | ) | 7,568,215 | |||||
Net Changes in Non-cash Working Capital Items | 8,273,643 | (4,589,077 | ) | ||||
Repayment of lease liabilities | (3,566,817 | ) | (3,359,021 | ) | |||
Total Operating | 3,801,770 | (379,883 | ) | ||||
FINANCING ACTIVITIES | |||||||
Proceeds from private placements | - | 53,852,980 | |||||
Proceeds from exercise of warrants and options | 1,142,238 | 14,180,009 | |||||
Financing issuance expenses | - | (3,494,930 | ) | ||||
Total Financing | 1,142,238 | 64,538,059 | |||||
INVESTING ACTIVITIES | |||||||
Purchase of property, plant and equipment | (16,674,704 | ) | (25,909,880 | ) | |||
Net cash acquired through NGW acquisition | 1,479,134 | - | |||||
Purchase of licenses | - | (55,846,866 | ) | ||||
Proceeds from sale/lease back | 1,049,633 | - | |||||
Purchase of domain name | (30,000 | ) | - | ||||
Total Investing | (14,175,937 | ) | (81,756,746 | ) | |||
Effect of foreign exchange on cash | - | 186,563 | |||||
NET CHANGE IN CASH DURING THE YEAR | (9,231,929 | ) | (17,598,570 | ) | |||
CASH | |||||||
Beginning of Year | 61,588,843 | 79,000,850 | |||||
End of Year | $ | 52,356,914 | $ | 61,588,843 | |||
SOURCE: Planet 13 Holdings
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