- Q2 2021 Revenue of $32.8 million, up 205% compared to Q2, 2020
- Q2 2021 Adjusted EBITDA[1] of $7.2 million
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, NV / ACCESSWIRE / August 26, 2021 / Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) ("Planet 13" or the "Company"), a leading vertically-integrated cannabis company, today announced its financial results for the three-month and six-month period ended June 30, 2021. Planet 13's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
"Q2 was a strong quarter for Planet 13. With tourism back, the Superstore's in-store experience is once again proving that it is on the list of must visit destinations for any trip to Vegas. Every week thousands of people share their experience at the store with their friends on social media and the compounding impact of that organic marketing is obvious as even after being open for three years we are seeing strong growth and increasing share of the Nevada market every month," said Larry Scheffler, Co-CEO of Planet 13. "Along with our dispensary operations, our product brands are continuing to gain traction. According to Headset data, HaHa was the number two edibles and number three beverage brand in the state and TRENDI was the number three concentrate and number six vape brand."
"Along with stellar performance from our Nevada operations, 2021 has been about securing our next growth opportunities. I'm proud to say we opened our Orange County location on time and on budget. We are now focused on growing consumer awareness that will ultimately drive the sales we know are possible from that location," commented Bob Groesbeck, Co-CEO of Planet 13. "Subsequent to the quarter, we also won a dispensary license for the Chicago area giving us a clear path for our next SuperStore. Supported by a robust M&A pipeline and over $130 million in cash, Planet 13's future is bright."
Financial Highlights - Q2 - 2021
Operating Results
All comparisons below are to the quarter ended June 30, 2020, unless otherwise noted
- Revenues were $32.8 million as compared to $10.8 million, an increase of 205.2%
- Gross profit before biological adjustments was $18.7 million or 56.9% as compared to $4.7 million or 43.8%
- Operating expenses, excluding non-cash compensation expense and depreciation and amortization, was $12.5 million as compared to $5.8 million, an increase of 114.8%
- Net loss before taxes of $0.9 million as compared to a net loss of $3.3 million
- Net loss of $4.4 million as compared to a net loss of $4.0 million
- Adjusted EBITDA of $7.2 million as compared to Adjusted EBITDA loss of $0.6 million
Balance Sheet
All comparisons below are to December 31, 2020, unless otherwise noted
- Cash of $136.3 million as compared to $79.0 million
- Total assets of $226.2 million as compared to $150.0 million
- Total liabilities of $37.6 million as compared to $29.3 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 and Six Months Ended June 30, 2021 (the "MD&A").
- On May 10, 2021 Planet 13 announced the conversion of all Class A restricted shares to common shares.
- On June 2, 2021, Nevada announced the passage of Bill 341 allowing cannabis consumption lounges.
- On June 22, 2021, Planet 13 announced adding Select and STIIIZY store-in-stores at the Orange County SupterStore.
- On July 1, 2021, Planet 13 opened the Orange County SuperStore.
- On July 7, 2021, Planet 13 announced Moxie as the third store-in-store in Orange County SuperStore.
- On July 14, 2021, Planet 13 announced the results of its AGM.
- On August 5, 2021, Planet 13 announced that its 49% owned subsidiary Planet 13 Illinois won a Chicago dispensary license.
Results of Operations (Summary)
The following tables set forth consolidated statements of financial information for the three-and six-month periods ending June 30, 2021, and June 30, 2020. For further information regarding the Company's financial results for these periods, please refer to the Company's annual financial statements for the period ended June 30, 2021, together with the MD&A, available on Planet 13's issuer profile on SEDAR at www.sedar.com and the Company's website https://www.planet13holdings.com.
Adjusted EBITDA[2]
| NV Cannabis Ops | Consolidated | Consolidated | ||||||||||||||
| Three Months | Three Months | Three Months | ||||||||||||||
| Ended | Ended | Ended | Percentage | |||||||||||||
| Jun-30-2021 | Jun-30-2021 | Jun-30-2020 | Change | |||||||||||||
EBITDA | ||||||||||||||||
Profit (loss) before taxes | 6,041,470 | (851,413 | ) | (3,286,823 | ) | 74.1 | % | |||||||||
Add back: | ||||||||||||||||
Biological asset adjustments | 372,392 | 372,392 | (44,356 | ) | 939.6 | % | ||||||||||
Non-cash share based payments | - | 5,393,748 | 626,017 | 761.6 | % | |||||||||||
Depreciation and amortization | 1,096,897 | 1,096,897 | 1,040,065 | 5.5 | % | |||||||||||
Depreciation included in COGS | 634,740 | 634,740 | 406,322 | 56.2 | % | |||||||||||
ROU Interest included in COGS | 374,476 | 374,476 | 113,152 | 230.9 | % | |||||||||||
Interest and non-operating expense (income) | 212,495 | 212,495 | 568,154 | (62.6 | %) | |||||||||||
EBITDA | 8,732,470 | 7,233,335 | (577,469 | ) | 1352.6 | % | ||||||||||
Margin | 26.6 | % | 22.0 | % | (5.4 | %) | ||||||||||
[2] Adjusted EBITDA is a non-GAAP financial measure
Expressed in USD$ | Three Months | Three Months | ||||||||||
| Ended | Ended | Percentage | ||||||||||
| Jun-30-2021 | Jun-30-2020 | Change | ||||||||||
Revenue | ||||||||||||
Revenues, net of discounts | 32,843,588 | 10,760,996 | 205.2 | % | ||||||||
Cost of Goods Sold | (14,149,025 | ) | (6,051,963 | ) | 133.8 | % | ||||||
Gross Profit, Before Biological Asset Adjustment | 18,694,563 | 4,709,033 | 297.0 | % | ||||||||
Gross Profit Margin % | 56.9 | % | 43.8 | % | ||||||||
Realized fair value amounts included in COGS | 47,052 | (327,997 | ) | (114.3 | %) | |||||||
Unrealized fair value gain on growth of biological assets | (419,444 | ) | 372,353 | (212.6 | %) | |||||||
Gross profit | 18,322,171 | 4,753,389 | 285.5 | % | ||||||||
Gross Profit Margin % | 55.8 | % | 44.2 | % | ||||||||
Expenses | ||||||||||||
General and Administrative | 10,927,038 | 5,559,623 | 96.5 | % | ||||||||
Sales and Marketing | 1,543,406 | 246,353 | 526.5 | % | ||||||||
Depreciation and Amortization | 1,096,897 | 1,040,065 | 5.5 | % | ||||||||
Share based payments | 5,393,748 | 626,017 | 761.6 | % | ||||||||
Total Expenses | 18,961,089 | 7,472,058 | 153.8 | % | ||||||||
Income (Loss) From Operations | (638,918 | ) | (2,718,669 | ) | (76.5 | %) | ||||||
Other (Income) Expense: | ||||||||||||
Interest Expense, net | 481,578 | 572,265 | (15.8 | %) | ||||||||
Realized Foreign Exchange gain (loss) | (145,556 | ) | - | na | ||||||||
Other expense (income) | (123,527 | ) | (4,111 | ) | 2904.8 | % | ||||||
Total Other (Income) Expense | 212,495 | 568,154 | (62.6 | %) | ||||||||
Income (loss) for the period before tax | (851,413 | ) | (3,286,823 | ) | (74.1 | %) | ||||||
Provision for income tax (current and deferred) | 3,567,432 | 701,272 | 408.7 | % | ||||||||
Income (Loss) for the period | (4,418,845 | ) | (3,988,095 | ) | 10.8 | % | ||||||
Other Comprehensive Income (Loss) | ||||||||||||
Items that may be reclassified subsequently to profit/loss | ||||||||||||
Foreign exchange translation adjustment | 970,356 | (83,699 | ) | |||||||||
Net Comprehensive Income (Loss) for the period | (3,448,489 | ) | (4,071,794 | ) | ||||||||
Income (Loss) per share for the period | ||||||||||||
Basic and fully diluted income (loss) per share | $ | (0.02 | ) | $ | (0.03 | ) | ||||||
Weighted Average Number of Shares Outstanding | ||||||||||||
Basic | 196,292,786 | 143,947,783 | ||||||||||
Outstanding Shares
As of August 26, 2021, the Company had 196,463,520 common shares outstanding. There were 169,167 options issued and outstanding of which 169,167 have fully vested. There were 8,875,651 warrants outstanding and 4,943,789 RSU's outstanding of which nil RSUs had fully vested as at the date of this MD&A.
Conference Call
Planet 13 will host a conference call on Thursday, August 26, 2021 at 5:00 p.m. ET to discuss its second quarter financial results and provide investors with key business highlights. The call will be chaired by Bob Groesbeck, Co-CEO, Larry Scheffler, Co-CEO, and Dennis Logan, CFO.
CONFERENCE CALL DETAILS
Date: August 26, 2021 | Time: 5:00 p.m. EST
Participant Dial-in: Toll Free 877-407-8035 or International 201-689-8035
Replay Dial-in: Toll Free 877-481-4010 or International 919-882-2331
(Available for 2 weeks)
Reference Number: 42398
Listen to webcast: https://bit.ly/3yyUidB
Financial Measures
There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is calculated as net earnings before finance costs (net of finance income), income tax expense, share-based compensation, one-time costs and depreciation and amortization of intangibles and is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
For further inquiries, please contact:
LodeRock Advisors Inc., Planet 13 Investor Relations
[email protected]
Bob Groesbeck and Larry Scheffler
Co-Chief Executive Officers
[email protected]
About Planet 13
Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas - the entertainment capital of the world and dispensary operations in Orange County. 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 Stock Exchange (CSE) under the symbol PLTH and 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 the applicable Canadian 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 may be forward-looking statements. In this news release, forward looking-statements relate to, among other things, securing our next growth opportunities, growing consumer awareness of our Orange County location, ultimately driving the sales we know are possible from that location, the dispensary license for the Chicago area giving us a clear path for our next SuperStore, a robust M&A pipeline and Planet 13's future being bright.
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; risks associated with COVID-19 and other infectious diseases presenting as major health issues; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the Nevada and California cannabis market and changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; 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 State of Nevada and California; and employee relations. 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. Additional information regarding this and other risks and uncertainties relating to the Company's business, including COVID-19, are contained under the heading "Risk Factors" and elsewhere in the Company's annual information form dated April 5, 2021 filed on its issuer profile on SEDAR at www.sedar.com.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Expressed in United States Dollars | As at June 30, 2021 | As at December 31, 2020 | ||||||
Assets | ||||||||
Current Assets | ||||||||
Cash | $ | 136,286,828 | $ | 79,000,850 | ||||
HST receivable | 231,264 | 103,445 | ||||||
Inventories (Note 5) | 12,131,141 | 7,334,717 | ||||||
Biological assets (Note 6) | 1,190,850 | 640,995 | ||||||
Prepaid expenses and other current assets (Note 10) | 6,285,345 | 2,637,547 | ||||||
Total Current Assets | 156,125,428 | 89,717,554 | ||||||
Property and equipment (Note 7) | 41,525,657 | 32,073,925 | ||||||
Licenses (Note 8) | 7,007,362 | 7,007,362 | ||||||
Right of use assets (Note 9) | 20,504,567 | 20,149,721 | ||||||
Long-term deposits and other assets | 1,066,819 | 1,054,443 | ||||||
| 70,104,405 | 60,285,451 | |||||||
Total Assets | $ | 226,229,833 | $ | 150,003,005 | ||||
Liabilities | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 6,096,681 | $ | 1,683,833 | ||||
Accrued expenses | 7,024,381 | 2,844,714 | ||||||
Income taxes payable | - | 1,220,652 | ||||||
Notes payable - current portion (Note 11) | 884,000 | 884,000 | ||||||
Long -term lease liabilities current portion (Note 12) | 54,542 | - | ||||||
Total Current Liabilities | 14,059,604 | 6,633,199 | ||||||
Long -term lease liabilities net of current portion (Note 12) | 23,226,086 | 22,326,077 | ||||||
Other long-term liabilities | 28,000 | 28,000 | ||||||
Deferred tax liability | 279,995 | 313,422 | ||||||
| 23,534,081 | 22,667,499 | |||||||
Total Liabilities | 37,593,685 | 29,300,698 | ||||||
Shareholders' Equity | ||||||||
Share capital (Note 13) | 201,023,272 | 139,177,034 | ||||||
Restricted share units (Note 13) | 7,081,682 | 3,262,351 | ||||||
Warrants (Note 13) | 11,486,105 | 6,972,053 | ||||||
Option reserve (Note 13) | 206,392 | 276,081 | ||||||
Accumulated other comprehensive loss | 1,320,869 | (479,122 | ) | |||||
Deficit | (32,482,172 | ) | (28,506,090 | ) | ||||
Total Shareholders' Equity | 188,636,148 | 120,702,307 | ||||||
Total Liabilities and Shareholders' Equity | $ | 226,229,833 | $ | 150,003,005 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
Expressed in United States Dollars | Three months | Three months | ||||||
| Ended | Ended | |||||||
| June 30, | June 30, | |||||||
| 2021 | 2020 | |||||||
Revenue | ||||||||
Revenues, net of discounts | $ | 32,843,588 | $ | 10,760,996 | ||||
Cost of Goods Sold | (14,149,025 | ) | (6,051,963 | ) | ||||
Gross Profit before fair value asset adjustment | 18,694,563 | 4,709,033 | ||||||
Realized fair value amounts included in inventory sold | 47,052 | (327,997 | ) | |||||
Unrealized fair value gain on growth of biological assets | (419,444 | ) | 372,353 | |||||
Gross Profit | 18,322,171 | 4,753,389 | ||||||
Expenses | ||||||||
General and Administrative (Note 14) | 10,927,038 | 5,559,623 | ||||||
Sales and Marketing | 1,543,406 | 246,353 | ||||||
Depreciation and Amortization (Note 7 & 9) | 1,096,897 | 1,040,065 | ||||||
Share-Based Compensation Expense (Note 13 and Note 17) | 5,393,748 | 626,017 | ||||||
Total Expenses | 18,961,089 | 7,472,058 | ||||||
Income From Operations | (638,918 | ) | (2,718,669 | ) | ||||
Other Expense: | ||||||||
Interest expense, net | 481,578 | 572,265 | ||||||
Realized foreign exchange gain | (145,556 | ) | - | |||||
Other income | (123,527 | ) | (4,111 | ) | ||||
Total Other Expense | 212,495 | 568,154 | ||||||
Income before income taxes | (851,413 | ) | (3,286,823 | ) | ||||
Provision for tax - current | 3,709,674 | 866,710 | ||||||
Provision for tax - deferred | (142,242 | ) | (165,438 | ) | ||||
Income (loss) for the period | $ | (4,418,845 | ) | $ | (3,988,095 | ) | ||
Other Comprehensive Income | ||||||||
Foreign exchange translation gain | 970,356 | (83,699 | ) | |||||
Net Comprehensive Income (Loss) for the period | $ | (3,448,489 | ) | $ | (4,071,794 | ) | ||
Net income (loss) per share for the period | ||||||||
Basic and diluted income (loss) per share (Note 16) | $ | (0.02 | ) | $ | (0.03 | ) | ||
Weighted Average Number of Common Shares Outstanding | ||||||||
Basic and diluted | 196,292,786 | 143,947,783 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Expressed in United States Dollars | Six Months | Six Months | ||||||
| Ended | Ended | |||||||
| June 30, | June 30, | |||||||
| 2021 | 2020 | |||||||
Operating activities | ||||||||
Net loss for the period | $ | (3,976,082 | ) | $ | (5,397,157 | ) | ||
Add (deduct) non-cash items: | ||||||||
Share based payments (Note 13 and 17) | 5,597,721 | 1,436,840 | ||||||
Depreciation and amortization (Note 7 and 9) | 3,331,902 | 2,846,655 | ||||||
Deferred tax liability | (33,427 | ) | (408,444 | ) | ||||
Other assets | (12,376 | ) | (494,717 | ) | ||||
Non-cash accretion of lease liabilities (Note 12) | 735,833 | - | ||||||
Non-cash interest expense on ROU Liabilities (Note 12) | 952,441 | 1,075,663 | ||||||
Net change in non-cash working capital | ||||||||
HST receivable | (131,315 | ) | (93,648 | ) | ||||
Inventories (Note 5) | (4,796,424 | ) | (301,629 | ) | ||||
Biological assets (Note 6) | (549,855 | ) | (185,324 | ) | ||||
Prepaid expenses and other assets (Note 10) | (3,736,947 | ) | 1,970,664 | |||||
Accounts payable | 3,694,807 | 1,652,038 | ||||||
Accrued expenses | 4,179,668 | 300,756 | ||||||
Income tax payable | (1,220,652 | ) | 2,823,275 | |||||
Cash flow provided by operating activities | 4,035,294 | 5,224,972 | ||||||
Investing activities | ||||||||
Purchase of property and equipment (Note 7) | (11,486,978 | ) | (2,352,575 | ) | ||||
Purchase of licenses (Note 8) | - | (1,153,407 | ) | |||||
Cash flow used in investing activities | (11,486,978 | ) | (3,505,982 | ) | ||||
Financing activities | ||||||||
Issuance of shares on warrant and option exercises (Note 13) | 14,155,679 | 9,195,063 | ||||||
Issuance of shares and warrants on financings (Note 13) | 50,356,532 | - | ||||||
Payment on lease liabilities (Note 12) | (1,610,271 | ) | (951,311 | ) | ||||
Cash flow provided by financing activities | 62,901,940 | 8,243,752 | ||||||
Net increase in cash | 55,450,256 | 9,962,742 | ||||||
Cash at beginning of the period | 79,000,850 | 12,814,712 | ||||||
Effect of foreign exchange on cash | 1,835,722 | (52,630 | ) | |||||
Cash at end of the period | $ | 136,286,828 | $ | 22,724,824 | ||||
[1] Adjusted EBITDA is a non-GAAP financial measure
[2] Adjusted EBITDA is a non-GAAP financial measure
SOURCE: Planet 13 Holdings
