Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) has reported a strong performance for the fourth quarter and full year ended December 31, 2021, with growth in both revenues and market share.
Planet 13 Holdings saw its revenues grow by 48% to US$29.9 million in the fourth quarter of 2021 and by 70% to US$119.5 million for the full year.
The company also highlighted growth in its market share in the fourth quarter.
"During a quarter that is seasonally slower and marked by significantly less tourist traffic, Planet 13 was able to maintain a market share above 10% in the Las Vegas cannabis market,” said Planet 13's co-CEO Larry Scheffler in a statement.
“In addition to the competitive performance demonstrated by our SuperStore and neighborhood store, our brands grew 21% in a market that was down 5% in Q4. Similarly, while the California market was down sequentially in Q4, our Orange County store grew 7.2% in the quarter on the back of increased brand awareness," he added.
READ: Planet 13 expands into Florida cannabis market
The company's fourth-quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased to US$1.9 million from US$0.4 million, while net losses reduced to US$5.1 million from US$18.2 million. Annual adjusted EBITDA jumped to US$16.9 million from US$6.7 million, with the net loss narrowing to US$19.5 million from US$25.0 million.
Bob Groesbeck, Planet 13’s other co-CEO, said the company has been “working hard” to operationalize all the new assets acquired in 2021.
“We are making strong progress on our Florida roadmap working in dual tracks to bring cultivation and retail online," Groesbeck said. "In California, we closed the acquisition of Next Green Wave in March allowing us to become vertically integrated in the state and bring our award-winning brands to Planet 13's California fans."
Planet 13 had a cash balance of US$61.6 million at the end of 2021 compared with US$79.0 million a year earlier.
Canaccord Genuity keeps 'Hold'
Analysts at Canaccord Genuity retained their 'Hold' rating and C$4.25 price target on Planet 13 Holdings stock following the latest earnings news but trimmed their 2022 estimates as revenue and EBITDA missed their forecasts.
In a note to clients, they said: "Weak tourist traffic continued to hamper performance in January and February, although recent activity has shown improvement. With growing Vegas event activity and generally recovering tourism, we expect demand at the Superstore and Santa Ana to accelerate in Q2 and Q3."
The analysts also introduced estimates for 2023, which they said should benefit from the Florida store rollout throughout the year looking for revenue of US$182 million and EBITDA of US$37.2 million.
They noted that their unchanged price target represents an EV/EBITDA multiple of 19.5 times on the 2023 estimates and their rating remains 'Hold' based on Planet 13’s premium multiple when compared to its MSO peers.
In early afternoon trading in Toronto, Planet 13 stock was up 1.9% at C$3.23.
-- Adds Canaccord comment and share price --
Contact the author at jon.hopkins@proactiveinvestors.com