How Cannabis Company Planet 13 Stays Green Amid $23M Revenue And Red Ink, Q4 2023 Financial Results

Las Vegas-based cannabis giant, Planet 13 Holdings Inc. PLTH PLNH, revealed its financial performance for the fourth quarter of 2023 on Wednesday afternoon.

Despite a net loss of $14.3 million, which included a $7.2 million non-cash impairment loss, the company reported a commendable revenue of $23.0 million and adjusted EBITDA of $1.3 million.

Larry Scheffler, co-CEO of Planet 13 attributed the strong performance to the expansion of gross margins and effective cost management strategies. Notably, the company accounted for approximately 9% of Nevada's retail market share, underscoring its operational resilience and brand strength in the region.

Bob Groesbeck, co-CEO, highlighted strategic actions taken to fortify the company's balance sheet, including the acquisition of VidaCann, positioning Planet 13 for growth opportunities, particularly with the potential legalization of adult-use cannabis in Florida.

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Key Financial Metrics - Q4 2023

In Q4 2023, Planet 13 reported revenues of $23.0 million, reflecting a 7.5% decrease compared to the same period in 2022. Gross profit stood at $11.0 million, representing a 47.8% gross margin, driven by reduced product discounting at retail.

Operating expenses totaled $18.1 million, down 60.5% from the previous year. Despite a net loss of $14.3 million, the company achieved an adjusted EBITDA of $1.3 million, signaling improved performance through better gross margin and stringent cost control measures.

Key Financial Metrics - Full Year 2023

For the full year 2023, Planet 13 reported revenues of $98.5 million, marking a 5.8% decline compared to 2022. Gross profit reached $44.8 million, maintaining a healthy gross margin of 45.5%.

Total expenses amounted to $105.9 million, including a one-time, non-cash $46.8 million impairment. Adjusted EBITDA for the year was $1.4 million, showcasing the company's resilience amidst challenging market conditions.

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