Planet 13 Q3 2022 Financial Results:18% Growth In Nevada's Retail Market

Planet 13 Holdings Inc. PLTH PLNHF, a leading vertically-integrated cannabis company, reported its financial results late Thursday for the three-month and nine-month periods ended September 30, 2022.

"High inflation and interest rates have impacted all areas of the economy, driving down consumer spending, including here in Las Vegas. We have been able to maintain a 9% retail market share, despite this economic downturn and an 18% increase in Nevada dispensaries year over year,” Larry Scheffler, co-CEO of Planet 13 said.

"From a competitive standpoint, we continue to perform well, maintaining retail market share in our historical 8-10% range in addition to holding or gaining share for each of our brands in Nevada." 

Planet 13 co-CEO Bob Groesbeck noted that through the third quarter, the company has focused on balancing capital preservation and profitability while executing future growth initiatives.

“We've signed a conditional location in Illinois, adding a fourth state to our portfolio. In Nevada, we've begun harvesting at our premium, indoor cultivation expansion and in Florida continue to progress cultivation forward while exploring ways to reduce CAPEX needs and shorten timelines," said Groesbeck.

Financial Highlights - Q3 - 2022

YOY Operating Results

• Revenues were $25.6 million as compared to $33.0 million, a decrease of 22.2%.
• Gross profit was $10.6 million or 41.2% as compared to $17.7 million or 53.8%.
• Net loss before taxes of $4.0 million as compared to a net income of $0.7 million.
• Net loss of $6.3 million as compared to a net loss of $2.7 million.
• Adjusted EBITDA of $0.4 million as compared to Adjusted EBITDA of $2.6 million

Balance Sheet Vs. December 2021

• Cash of $50.9 million as compared to $61.6 million. 
• Total assets of $263.4 million as compared to $216.8 million. 
• Total liabilities of $35.9 million as compared to $43.1 million. 

Business Highlights

• On July 5, 2022, Planet 13 announced it had closed on a Florida property for its cultivation and production campus.
• On July 12, 2022, Planet 13 announced it had begun drafting an application to add a cannabis consumption lounge to its Las Vegas SuperStore.
• On August 5, 2022, Planet 13 announced it had agreed to an option to purchase the remaining 51% ownership of Planet 13 Illinois.
• On September 26, 2022, Planet 13 announced it had commenced its first harvest from Nevada cultivation expansion.

Price Action

Planet 13 stocks were trading 0.59% higher at C$ 1.71 per share at the time of market close on Thursday.

Kirill Sharkovski On Unsplash.