Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) has announced its financial results for the three-month and twelve-month periods ended December 31, 2022, showing a healthy balance sheet with cash of $52.4 million and strong growth in wholesale revenue.
"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 in the results statement.
"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," he added.
READ: Planet 13 heralds fourth Florida dispensary located in Port Orange in the Daytona Beach metro area
Bob Groesbeck, Planet 13's other co-CEO commented: "Across our organization we are focused on three things: increasing profitability, preserving capital, and setting ourselves up for future growth."
"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,” he added.
Financial Highlights - Q4 2022:
- 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:
- 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:
- 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:
- 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.
Conference Call
Planet 13 said it will host a conference call on March 23, 2023, at 5.00pm 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.
Participant Dial-in details: 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
Planet 13 is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations in Las Vegas and in Orange County, California. It also holds a medical marijuana treatment center license in Florida and a dispensing license in the Chicago-region of Illinois.
Contact the author at jon.hopkins@proactiveinvestors.com